3 ms·

In ideal world. Stuff like groceries are such a rigged market that (well I'm sure somebody already wrote a book about it, recommendations?) it puts financial in

by comboy 3y ago

In ideal world. Stuff like groceries are such a rigged market that (well I'm sure somebody already wrote a book about it, recommendations?) it puts financial institutions to shame. Just a few brands own most of the stuff you buy [1] and then supermarkets have deals with those. Both protect each other. I mean market finds its way, people can move to small stores and non-branded products if it gets bad enough, but to paraphrase, market irrationality can outlast people's well being. I'm not in favor of some more regulations which usually only help big players, but corporations power steadily climbs and I expect it to become bigger than those of governments. New big companies, some decent competition, come from places when there was none. They hardly ever can push themselves into existing markets. They create new ones. But we still need groceries, gas, electricity etc. 1. https://www.reddit.com/r/coolguides/comments/elzqf2/eleven_companies_that_own_nearly_every_product_in/ https://www.reddit.com/r/coolguides/comments/elzqf2/eleven_c...

Spivak 3y ago
Sure, but that assumes that people will do nothing in the long term that affects their spending behavior and will just eat the cost indefinitely. If groceries tomorrow cost 10x I would not suddenly be spending 10x my current grocery bill. Luxury purchases like snacks, soda, premade sauces, candy, off-season produce, would be on the chopping block. Anything non-perishable would be bought in bulk during sales and wholesale clubs. And for people who are already scraping by it would result in a 10x grocery bill which they can now not pay. There's only so much money you can squeeze from a stone in the long run. Rising prices like this changes consumer behavior but can't make money appear out of nowhere. Since food is one of the easiest ways to belt-tighten rising prices across the board has the risk of reducing the wallet share food producers have.
badpun 3y ago
> Just a few brands own most of the stuff you buy [1] and then supermarkets have deals with those. Both protect each other. I buy almost exclusively store brands. Probably less than 5% of my grocery spending goes to name brands.
- asdff 3y ago
  Who do you think makes the store brand and prints the label for Kroger?
  - badpun 3y ago
    In my country (Poland), it's various local suppliers. Some large, some mid-sized. Basically, whoever agrees to do the job for the least amount of money, it seems.
    - asdff 3y ago
      In the US its often just the brand name slapping a label on for the store. There aren't any local suppliers for things like paprika when McCormick already cornered the market 100 years ago.

by comboy 3y ago

Spivak 3y ago

Sure, but that assumes that people will do nothing in the long term that affects their spending behavior and will just eat the cost indefinitely. If groceries tomorrow cost 10x I would not suddenly be spending 10x my current grocery bill. Luxury purchases like snacks, soda, premade sauces, candy, off-season produce, would be on the chopping block. Anything non-perishable would be bought in bulk during sales and wholesale clubs. And for people who are already scraping by it would result in a 10x grocery bill which they can now not pay. There's only so much money you can squeeze from a stone in the long run. Rising prices like this changes consumer behavior but can't make money appear out of nowhere. Since food is one of the easiest ways to belt-tighten rising prices across the board has the risk of reducing the wallet share food producers have.

badpun 3y ago

> Just a few brands own most of the stuff you buy [1] and then supermarkets have deals with those. Both protect each other. I buy almost exclusively store brands. Probably less than 5% of my grocery spending goes to name brands.

asdff 3y ago
Who do you think makes the store brand and prints the label for Kroger?
- badpun 3y ago
  In my country (Poland), it's various local suppliers. Some large, some mid-sized. Basically, whoever agrees to do the job for the least amount of money, it seems.
  - asdff 3y ago
    In the US its often just the brand name slapping a label on for the store. There aren't any local suppliers for things like paprika when McCormick already cornered the market 100 years ago.