As mentioned earlier, private label products, also referred to as “generic” products,
pose a serious threat to industry and firm profits. In Kraft’s 10Q, the Company writes
that a potential risk is “a growing presence of hard discount retailers, primarily in
Europe, with an emphasis on own-label products.” According to the Private Label
Manufacturers Association (PLMA), 16.1% of sales in U.S. supermarkets in 2004 were
private label products.