Russell Zwonka
๐ค SpeakerAppearances Over Time
Podcast Appearances
That's Chris Blench, CEO of Mavericks Manufacturing Partners, a company near San Diego that makes parts for nuclear power plants and the military.
Blench says the company's playbook is simple.
This move of consolidating and simplifying in the grocery industry has been going on for years now.
Remember Procter & Gamble, the personal care brand, used to own Pringles and Folgers Coffee.
Selling off the food brands makes sense, says Russell Zwonka, who directs the food marketing program at Western Michigan University, because soap and mayonnaise are two really different products to sell.
And if Unilever was going to drop one, the food side just isn't growing much.
Part of that is a change in consumer buying, says Ricky Volpe, an agribusiness professor at Cal Poly San Luis Obispo.
Meaning we're spending more time in the fresh produce and deli sections, less time buying boxes of stuff.
Meaning we still know Hellman's mayonnaise, but we're not committed to buying it, especially if the generic store brand option is a dollar cheaper.
So, Volpe says, good idea for Unilever to get rid of it, but also a good idea for McCormick to pick it up, says Eric Chafee with Case Western Reserve University.
For McCormick, adding mayonnaise is a pretty natural progression to their spice and sauce niche, says Bobby Gibbs with the consulting firm Oliver Wyman.
In the short term, this won't change much for consumers.
But Volpe with Cal Poly says as more brands consolidate power in their corner of the market, they also have an easier time raising their prices.
I'm Kaylee Wells for Marketplace.