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

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.

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