Changing the rules when the home brand wins!


Love this story. Aldi scooped the pool at the Sydney Royal Dairy Awards.

The consequence? The rules might be changed to exclude retailers (like Aldi) competing against manufacturers in the future.

The reason? Well, Aldi sell their cheeses and other dairy products under their own labels. In other words they are ‘home brands’. And:

  • everyone knows how bad home brands are meant to be; and
  • no one but Aldi knows who the (Australian) manufacturers are!

But, the bottom line seems clear. Like your cheese? Go to Aldi!

6 Responses to "Changing the rules when the home brand wins!"
  1. Already do. I picked up an addiction to soft cheeses while living in France. This caused me to hunt around seriously when I returned. Aldi was the solution, and this was almost 7 years ago! But when you do hit your local Aldi for some Brie or Camembert, you will notice something different to the other major chains: there are no competing brands of soft cheeses on their shelves. So the home brand might not be part of a price discrimination strategy, meaning it’s actually good!

  2. Its a good tale. I have bought the soft cheeses from Aldi for a while and they are very good and much cheaper than those from the big chains.

    I also liked their $78 capsule coffee maker which beat the opposition in recent tests.

    Nothing like a bit of competition to bring out the worst among our esteemed business leaders.

  3. The artisanal cheesemakers, fail to see the value to consumers of the awards (better information, more informed choice) and only see the value to them (higher prices, demand).

    Also, surely an award that doesn’t cover the majority of cheeses, will ultimately be ignored by consumers (except foolish ones), as it doens’t provide enough information about whether cheese X (within award system) is better than cheese Y (excluded from system) so the cheesemakers won’t benefit from higher prices for too long if they exclude ALDI.

  4. Ignore the awards unless you think that they reflect your personal tastes. Choose your own cheese on the basis of price and taste rather than taking the view that the cheese aristocrats can tell you what tastes good.

  5. I love businesses like ALDI, IKEA (of old anyway) and UNIQLO because they offer a better retail experience for me by removing a lot of unnecessary “choice”. Why are there so few examples of businesses challenging the accepted wisdom of retailing?

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