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Wake Up and Haul the Bacon
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<p><span style="font-family:verdana,geneva;font-size:small;">Here is an article that tells us not to worry about a U.S. consumer backlash against Smithfield due to the acquisition by Shanghui. The article dances around the issue of China’s food reputation affecting Smithfield, and is able to nervously dismiss it after a struggle. </span></p> <p><span style="font-family:verdana,geneva;font-size:small;">Well first of all, if they are sure that Americans won’t change their buying habits, why even bring it up?</span></p> <p><span style="font-family:verdana,geneva;font-size:small;">But the real jewel of this article is the conclusion that Americans won’t change their buying habits over the issue because <span style="text-decoration:underline;">they won’t know where the product comes from</span>. Yet that is precisely why Americans will question the quality of the Smithfield product. </span></p> <p><span style="font-family:verdana,geneva;font-size:small;"><a href="http://www.cnbc.com/id/100777347">http://www.cnbc.com/id/100777347</a></span></p> <p> <span style="font-family:verdana,geneva;font-size:small;">Quote from the article:</span></p> <p><span style="color:#0000ff;font-family:verdana,geneva;font-size:medium;">"From a consumer stand-point, it's a huge non-event," Karp said of the Smithfield deal. "It <span style="color:#000000;font-size:small;">[the question of food safety associated with Shanghui]</span> will likely not have much of an effect."</span></p> <p><span style="color:#0000ff;font-family:verdana,geneva;font-size:medium;">When consumers go into a market, they're likely going to focus on what's on sale, which cuts of meat look good and then maybe narrow it down to a few of their favorite brands, Karp said. <span style="font-size:large;">"But you may or may not even know which are Smithfield brands</span>, since they're also Farmland, they are Armour, and Eckrich, and Carando and they own Gwaltney," Karp said, listing off just some of Smithfield's subsidiaries.</span></p> <p><span style="color:#000000;font-family:verdana,geneva;font-size:small;">[My emphasis added]</span></p> <p></p>
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