I don't think that there is anything wrong with the quality of their homebrand products, but as other people have said, they are often made by a competitor, with a new label. The problem is that when you buy the store brand becasue it is cheaper, the other company is making a much smaller margin on the product, or missing out all together. If they manage to knock out all the competition they can sell what they like at whatever price they like.
My Friend has a fresh produce farm, one of their biggest customers is one of these chains. They were pretty much given an ultimatum, either they sell the fruit under the store brand, or they would stop buying their fruit. This meant the price they would pay for if for was much less, but as this store bought a large % of their fruit they didn't have many options. So their profit margin was slashed, and they lost the marketing/advertising of their product.
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