One controversial move by some marketers of major brands is to supply private label makers. For example,

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One controversial move by some marketers of major brands is to supply private label makers. For example, Ralston-Purina, Borden, ConAgra, and Heinz have all admitted to supplying products-sometimes lower in quality-to be used for private labels. Other marketers, however, criticize this "if you can't beat them, join them" strategy, maintaining that these actions, if revealed, may create confusion or even reinforce a perception by consumers that all brands in a category are essentially the same.
Manufacturers should feel free to sell private labels as a source of revenue versus national manufacturers should never get involved with private labels.
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Marketing Management

ISBN: 978-0132161077

14th Canadian Edition

Authors: Philip R Kotler, Kevin Lane Keller, Subramanian Sivaramakrishnan, Peggy H. Cunningham

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