Abstract

The article explores the impact of manufacturer brand innovation on retailer brands in grocery product categories,
drawing on literature from category management, power and product innovation. It is argued that the consumer
packaged goods literature has largely portrayed manufacturer brand innovation in relation to retailer brands as a
competitive tool that is employed against the retailer brands. The alternative view of manufacturer brand
innovation as an enhancer of retailer brands has not been fully addressed academically. The article further argues
that aspects of manufacturer brand innovation that enhance retailer brands have relevance for the determination
of strategic policies that govern the coexistence of the two types of brands in supermarket categories. The paper
offers a fresh perspective in explaining the coexistence of manufacturer brands and retailer brands in grocery
retail categories. Aspects of manufacturer brand innovation that positively impact on the welfare of retailer
brands play a strategic role.

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