Eco poaching

It seems that the big chains are poaching the niches created by eco conscious smaller firms. This is from the Guardian: Can supermarkets be green giants?
'Supermarkets wait and see how a product from an outstanding independent supplier is doing, and if it sells well will "de-list" it without explanation and bring out their own cheaper version,' she explains. 'In effect, they are using smaller companies as a free research and development facility.' This should be of concern to an ethical consumer, not least because it is hard to overstate the dominance of the supermarkets. In the UK, the 'big four' (Tesco, Sainsbury's, Asda and Morrisons) sell 75 per cent of the country's groceries, with Tesco controlling 30 per cent of the market, and own enough 'banked' land to increase superstores in the UK by 50 per cent. So the first question to ask yourself is: do you want multiples to hoover up the green-products industry, too? ... An eco product's attributes need to be traceable, otherwise the consumer winds up with a basketful of ethical fig leaves.
Asda, of course, is owned by Walmart.

One Response to “Eco poaching”

  1. Ron Robins says:

    This tactic applies to most industries, I believe.

    Incidentally, I suspect that many of your readers may be interested in ethical or socially responsible investing. Go to http://www.investingforthesoul.com for the latest news.

    Also offered is a free e-newsletter.

    Best wishes, Ron Robins

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