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Changing power relationships in US food industry: Brokerage arrangements for private label products

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  • Bruce W. Marion

    (Department of Agricultural and Applied Economics, 427 Loreh St., 233 Taylor Hall, University of Wisconsin, Madison, WI 53706)

Abstract

A shift in the distribution of power within the US food system has occurred over the last two decades. The dramatic increase in “street money” (such as slotting allowances) paid by manufacturers to retailers reflects this shift in power and increases the comparative advantage of large vs. small manufacturers and the entry barriers into manufacturing. The growth of “in-house brokers” (IHB) for private label products is seen as another instrument for street money. The characteristics and implications of IHB are explored. © 1998 John Wiley & Sons, Inc.

Suggested Citation

  • Bruce W. Marion, 1998. "Changing power relationships in US food industry: Brokerage arrangements for private label products," Agribusiness, John Wiley & Sons, Ltd., vol. 14(2), pages 85-93.
    • Handle: RePEc:wly:agribz:v:14:y:1998:i:2:p:85-93
    DOI: 10.1002/(SICI)1520-6297(199803/04)14:2<85::AID-AGR1>3.0.CO;2-E
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    References listed on IDEAS

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    1. Franklin, Andrew W. & Cotterill, Ronald W., 1993. "An Analysis of Local Market Concentration Levels and Trends in the U.S. Grocery Retailing Industry," Research Reports 25173, University of Connecticut, Food Marketing Policy Center.
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    Cited by:

    1. Bergès-Sennou Fabian & Bontems Philippe & Réquillart Vincent, 2004. "Economics of Private Labels: A Survey of Literature," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-25, February.
    2. Chad M. Baum, 2013. "Mass-Produced Food: the Rise and Fall of the Promise of Health and Safety," Papers on Economics and Evolution 2013-03, Philipps University Marburg, Department of Geography.
    3. Davies, Terry & Konisky, David M., 2000. "Environmental Implications of the Foodservice and Food Retail Industries," Discussion Papers 10761, Resources for the Future.
    4. Robert Innes & Stephen F. Hamilton, 2009. "Vertical restraints and horizontal control," RAND Journal of Economics, RAND Corporation, vol. 40(1), pages 120-143, March.

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