Sunday, May 09, 2010

Shoppers Drug wants private label drugs

From the Toronto Star:
Life Brand antibiotics?

Shoppers Drug Mart is planning to extend its private label brand to its generic drug business, a move it says will cut the price paid by consumers.

But Ontario residents won’t see the benefits because the province’s proposed drug reform plans won’t permit store-brand generics, the retailer said.

“We want to have private label generics,” Shoppers Drug Mart’s chief executive officer Jurgen Schreiber told the company’s annual general meeting in Toronto Thursday.

“It will reduce generic costs further.”

Shoppers Drug already carries a variety of in-house products, from multivitamins to dishwasher detergent, under the name Life Brand, in its 1,234 stores across Canada.

A lot of retailers develop store brands to cut costs without hurting profits.

Store brands can be priced below national brands because they have lower marketing costs. They can also help build customer loyalty because they’re exclusive to that retailer. ...more

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