Private labels slow Kraft's grocery sales

03/21/2014 | Forbes

A surge of price-based competition fueled by private-label brands was the main driver behind Kraft Foods Group's 3% sales decline in the grocery segment. The company saw the biggest losses in salad dressings and gelatin desserts, due in part to a rise in demand for organic salad dressings and an overall increase in competition within the snacks category. The price gap between private labels and national brands is expected to narrow over the next couple of years, which is forecast to slow Kraft's decline in the segment.

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