Work

Premium Private Labels, Supply Contracts, Market Segmentation, and Spot Prices

Year: 2005

Type: article

Abstract: In recent years, European retailers have modified the market segmentation in the meat and the fresh produce sectors by implementing new private labels which aim to guarantee higher quality and food safety. As a result, retailers impose more demanding production requirements and rely on contractual relationships with upstream producers. Meat and vegetables shelve spaces are now composed of generic products supplied from competitive spot markets, and premium private labels based on long term supply contracts. In this paper we propose a model of vertical relationships between producers and retailers in order to analyze the consequences of such strategies. In particular, we analyze the interest of producers to commit to these new private labels, their effects on spot market prices, and the resulting market segmentation between the spot market and supply contracts.

Source: Journal of Agricultural & Food Industrial Organization

DOI: 10.2202/1542-0485.1087

Authors: Pascale Bazoche, Eric Giraud-Héraud, Louis-Georges Soler

Institutions: École Polytechnique, Laboratoire Lorrain de Recherche en Informatique et ses Applications, Institut National de la Recherche Agronomique

Language: English

Topic: Consumer Market Behavior and Pricing

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Zero hunger

Open Access status: green

OpenAlex ID: W1979466677

FWCI: 3.825

Cites: 25

Cited by: 29

Related to: 10