PRODUCTION
not be bringing that corporate brand under their corporate umbrella — they wanted to keep the unique characteristics of the brand and continue to develop those , while at the same time attempting to leverage the scale that General Mills possesses ,” says Lash . “ From our perspective , that was a shot at Kellogg and the struggles they ’ ve had with the Kashi brand , which lost its uniqueness and its brand identity . Obviously that ’ s a challenge , and that ’ s something that a global business needs to handle very delicately , in terms of leveraging their own scale and marketing power while at the same time not doing anything to tarnish the niche characteristics of a particular brand . It takes significant time and resources to develop brands and continue to ensure that they ’ re at a competitive edge .”
For businesses that would rather launch organic brand lines under their own name , there are other pitfalls . One is in ensuring that the brand is able to gain consumer trust by adhering to and honoring organic standards . But as Lash points out , that ’ s only half the battle — the other half is ensuring
“ You ’ ve not only seen proliferation of products from the branded side of the organic aisle , but also the private label which is an even higher margin sale for retailers ”
- Erin Lash , Senior Equity Analyst at Morningstar
14 March 2015