Food Lion to Use Private Label to Hedge Price Increases

Food Lion prides itself on a high value private label.  Consumers began to buy private label more heavily at the beginning of the economic crisis as a result of having to trade down.  This increase in private label sales will help to off set suppliers price increases that are being discussed.  Food Lion's private brands can be used as a tool and an opportunity to help defend against price increases in other comparable products.  This will help the chain maintain it's image as a low cost provider.