Trader Joe's or Traitor Joe's?

[buzglyd]

Whose around here isn't?

No kidding. You could get run over by a soccer mom in an SUV in that parking lot quite easily.

 

[callwill]

So the company doesn't really have any creativity at all and can't come up with their own recipes for the products they sell. They just steal it? Classy...

They are just like apple!

 

[davidvel]

You still haven't really answered this question. Why solicit a company, have them come in and pitch, then abandon the effort and roll something out very similar later? I just think it is shitty to have them come in at all if they can reverse engineer on their own anyway.

The article also seems to mention two specific "baby brands" and names their representative at each that were spoken to. How are these anonymous sources and hearsay? In one instance, they basically admitted to knocking off labeling by agreeing to make changes to their labels to avoid confusion with the smaller brand. Though that was the anonymous source you speak of, which per your guidelines simply can't be believed.

While I wish it were less, I am glad I have only stepped into their stores perhaps five times in my life. I probably won't go back. We can certainly agree to disagree.

I'm not sure what specific question you are referring to, but I just am not as easily swayed as you. An article citing a few companies that didn't get deals with TJ claiming that TJ stole their formulation with little more detail other than they met and then TJ created a knock off of their product. No lawsuits, anonymous sources cited, as well as hearsay. TJ admits to and is well known for "knocking off" products so not sure why you reference that.

I need more info than is contained in this "article" to be convinced or even start to believe that TJ is engaging in such a scheme to steal formulas to copy. Also as stated, I don't think they need a formula to copy any product, so it is really a straw man claim. (Even if everything these people say is true, I still don't see anything that would amount to a claim.)

You on the other hand clearly have reviewed all sides, tried and determined that TJ has done these things based on all available info. Based on your last comment it is obvious you don't like TJs to begin with.

 

[T_R_Oglodyte]

The article also suggest it is an "open secret in the consumer packaged goods industry". That doesn't mean you, I or anyone else would know about it. I am at least not in the consumer packaged goods industry.

A good portion of my consulting work is with the food and beverage industries. And everyone who is in the business knows, or should know, that the industry is shark-infested water.

IMHO - it's a direct result of the slim operating margins in the grocery business. When you are operating with the 4% or 5% margin, you pay close attention to reducing cost any way you can. When you operate at 15% to 20% margin your thinking can be different.

 

[davidvel]

A good portion of my consulting work is with the food and beverage industries. And everyone who is in the business knows, or should know, that the industry is shark-infested water.

IMHO - it's a direct result of the slim operating margins in the grocery business. When you are operating with the 4% or 5% margin, you pay close attention to reducing cost any way you can. When you operate at 15% to 20% margin your thinking can be different.

And when you have the big predators like COSTCO making billions of profits with their profits on sales being close to zero (and also selling knock-offs), it is even more difficult to compete.

 

[buzglyd]

A good portion of my consulting work is with the food and beverage industries. And everyone who is in the business knows, or should know, that the industry is shark-infested water.

IMHO - it's a direct result of the slim operating margins in the grocery business. When you are operating with the 4% or 5% margin, you pay close attention to reducing cost any way you can. When you operate at 15% to 20% margin your thinking can be different.

Look at the brewery business now. It's in total copycat if something gets popular. Currently, every place around here has a Mexican Lager.

 

[T_R_Oglodyte]

And when you have the big predators like COSTCO making billions of profits with their profits on sales being close to zero (and also selling knock-offs), it is even more difficult to compete.

When a small vendor is dealing with Costco, fulfillment becomes a big consideration. An example. One time when we stopped by the Auntie Lillikoi operation in Waimea, Kauai, "Auntie Lillikoi" herself was there and we started chatting. I remarked that I saw her products in the grocery stores, but not in Costco. I added that I thought Costco would be a good fit.

She said that she had received a trial order one time from Costco. However, the minimum quantities required were beyond her production capacities. She managed to fulfill the order, but doing so disrupted all of her normal business. Since there was no guarantee of continued business it didn't make sense to take on debt to make an expansion. And she wasn't sure that she was ready to make other changes that would have to happen to make that scale-up in operations.

 

[WaikikiFirst]

minimum quantities required were beyond her production capacities. She managed to fulfill the order, but doing so disrupted all of her normal business. Since there was no guarantee of continued business it didn't make sense to take on debt to make an expansion. And she wasn't sure that she was ready to make other changes that would have to happen to make that scale-up in operations.

makes complete sense. Costco is a tough task-master, which leads to why costco customers love them.
I think that in CONSUMABLES, costco carries far too much over-processed, over-packaged, over-priced junk, but the things costco does well, they do REALLY well.
They make most of their profit on member fees. Aside from that, they probably make high % of their profit on over-processed, over-packaged, over-priced consumables junk,

 

[WaikikiFirst]

it's a direct result of the slim operating margins in the grocery business. When you are operating with the 4% or 5% margin

BINGO! The only "grocery" stock I ever bought was COST, but talk to anyone / read anything about grocery stocks. and that is Pt 1. They desperately hope delivery and paid loyalty memberships can raise that. I haven't looked at 10Ks to see if it is happening Doesn't InstaCart have a large Market Cap?