[cashion]

If Kraft got together with a couple other major grocery suppliers, they could pretty much make supercenter walmarts useless because not many people are going to want the Sam's Choice version of the product.

Wal-Mart wouldn't continue selling Sam's Choice if they weren't making money. Obviously there are people that are already choosing Wal-Mart's brand over Kraft. Secondly, if Kraft made such a flakey decision, there would be other companies more than willing to take their placed on the shelf.

[atlaw]

"Secondly, if Kraft made such a flakey decision, there would be other companies more than willing to take their placed on the shelf."

For now you're probably right. But we are talking about processed foods here, and the "processed" costs money. If the cost of producing the foods exeeds the price that Walmart is willing to sell them for, then in the long run no independent producer or supplier is going to do business with Walmart. This leaves Walmart selling Walmart produced "processed" foods at an ever-decreasing price, which itself is unsustainable (unless, of course, Walmart just starts making crakers out of sawdust). At a certain point, crappy products and crappy product selection spells doom. Witness Builders Square.

[Ford Fairlane]

Wal-Mart wouldn't continue selling Sam's Choice if they weren't making money. Obviously there are people that are already choosing Wal-Mart's brand over Kraft.

Who do you think makes the sam's choice labeled equivelants of the kraft (and their subsidiaries) products?

Yep

You got it

KRAFT

Walmart would lose over 1/3 of their product, maybe close to 1/2