Domination by transnational corporations of the domestic name-brand food sector

The world-level quality image established by the transnational corporation is important in differentiating its products and constitutes a continuing advantage in building market shares against local rivals. The firms with the greatest transnational activity in specific name-brand food industries or product lines are, with few exceptions, also the leading firms in their home country markets, in the industry world-wide, and in numbers of developing country affiliates. The products of these affiliates have secured and held their market positions largely through advertising and brand-name promotion. Local industries for name-brand foods in most developing countries tend to be both highly concentrated and dominated by transnational corporation affiliates. The effectiveness of the acquisition and promotion strategies of transnational corporations is at least one important reason for the observed concentration. It is a practice in several industries for the leading firms to cross-license their brand names and products and to have joint ventures with rivals. Some of the marketing techniques utilized by transnational corporation affiliates to expand the market for their branded products suggest that considerations of nutritional appropriateness are secondary.