- The Washington Times - Sunday, March 15, 2009

THE TENSION: Retailers _ seeing their customers pulling back on spending _ want food makers to drop their prices on name brand foods now that their ingredient costs have retreated from record highs.

THE MUSCLE: Sales of in-house brands are rising as consumers cut costs, and that’s giving grocers power in their negotiations, since their competition with food companies is growing.

THE RESPONSE: Food makers say that, although ingredient costs have dropped, they’re still high. And the costs are unpredictable, so it wouldn’t be prudent to drop prices. But they’re working with retailers to hold promotions to provide some temporary cutbacks.

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