In August 1994, Robin Andrews, president RiceTec, Inc, is facing a critical decision that will impact the future of the company: that politicians should follow RiceTec provide grocery retailers with private label products? RiceTec, a small private company engaged in rice breeding and marketing research, fought for eight years to gain market acceptance for its line of premium specialty rice products sold under its own brand name, Texmati. While Texmati superior in taste to other leading brands of rice in the market, the limited cash flow RiceTec severely limits its ability to invest in slotting allowances and remove programs. Consequently, progress in achieving national distribution in supermarkets was frustratingly slow. Several leading supermarket chains have expressed interest in, RiceTec supply them with rice products to be sold under its retail controlled premium private label brands. Board of the company divided by the question of whether it would produce private labels for retailers and Andrews should reconsider its growth strategy in the light of changing opportunities to create brand accessible to small firms operating in a changing market. "Hide
by Alvin J. Silk, Mary L. Shelman Source: Harvard Business School 26 pages. Publication Date: November 17, 1994. Prod. #: 595033-PDF-ENG
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