Private Labeling of Milk and the Impact on Market Structure

Abstract

Branding, as a means of product differentiation, is a practice of long standing in the food industry. Historically, food manufacturers have used brands as a means of gaining a larger share of the market while avoiding the consequences of direct price competition. Merchandising food, particularly dairy products, under private label brands, however, is a practice of more recent origin.Introduction of private label brands of dairy products can be traced to that period of the 1920s when private label brands of evaporated milk first appeared in some markets. This was followed by private label brands of butter in the 1930s and fluid milk and ice cream during the 1950s.