WikiWealth

Higher prices may cause consumers to migrate to private label products. This provides a low cost advantage for the consumer and producer. Some private label companies also sell branded goods in an effort to capture the entire range of consumer purchases. Producing both branded products and private label products could result in cannibalization of sales.

… This statements will have a short-term positive impact on this entity, which adds to its value. This statement will lead to an increase in profits for this entity.