Outsourced production has always been part of the food industry, but the complexity of today's relationships goes far beyond simple low-cost computations.
Walking down the aisles of a private-label manufacturers' trade show is a lot like touring a grocery manufacturers' exhibition: the same companies showcasing their branded products at one can be found at the other, hawking their manufacturing services. Typical of these companies is Malt-O-Meal Co., the nation's fourth largest cereal manufacturer. Besides Quaker cereals and its namesake brand, Malt-O-Meal spoons up private-label breakfasts for Kroger, Safeway and other retailers.