This paper investigates how a retailer's store brand supply source impacts vertical pricing and supply channel profitability. Using chain-level retail scanner data from major supermarkets in Boston prior to the leading retailer's divestiture of its store brand milk processing to a major brand...

The issue of supermarket chain power in wholesale markets has been around at least since the 1930’s when A&P surfaced as a nationwide chain with centralized buying (Adelman, 1959). Curiously those that complained the loudest were not firms that sold to supermarkets. Small retailers, who were...