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May 22, 2006 -- P&G suing private label brands

Proctor & Gamble is one of the largest consumer products companies in the world, as you probably know. Look down the aisle at any supermarket and you’ll see a ton of their products. But the company is scared. It is filing a bunch of lawsuits right now against private label product companies and those who make products for their own stores. Store brands used to mean a vastly inferior product but not anymore. P&G is claiming that private label folks are designing the products to look like theirs and take their business. It’s actually a sign of weakness on the part of Proctor & Gamble. They see consumers buying more private labels and store brands and they are threatened. The good news is that private labels are not going to back off, and consumers will continue to have more of a choice. You might find that a store brand cereal is really good, but you don’t like the quality of the store brand toilet paper. But if it’s something you like, keep buying it.

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