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Description: Ketchup wars: kind of sounds like a college prank gone wrong doesn’t it.  Or maybe it’s a food fight down at the cafeteria. But Canada was treated to its own ketchup war this past week when social media came alive in support of French’s ketchup after Loblaw’s announced it was de-listing the product. Patriotic Canadian consumers took to social media to decry Loblaw’s move and to support French’s, a food processor using good old Canadian tomatoes from Leamington Ontario, an area hit hard when Heinz left the area a couple of years ago.

Date: March 18, 2016

Source: CBC.ca

Link: http://www.cbc.ca/news/business/private-label-groceries-1.3496088

Discussion Points:

1) Were you aware of the ketchup wars this past week? What is your opinion on the controversy?

2) The CBC piece speaks of gross margin being higher for store brands. How do you calculate gross margin?

3) Do you think the higher gross margin on its store brand was behind Loblaw’s decision to cut French’s? If so, why do you think Loblaw’s reversed the decision so quickly?

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