I've recently stumbled upon a case where our client was a brand (and producer!) of a commodity product within the food industry. We produce this product, attach our label and sell it to supermarkets that sell it to the end consumer.
In this case, one of our biggest clients (a supermarket chain) said that he wants to sell our product under his own brand, with us producing it for him. The product and production line would remain absolutely the same, the client would just attach his own label on it in the end, and sell it in his shops. We need to decide if we should take this deal, or not. If we choose the latter, our client will no longer sell our product in his story and would probably produce it somewhere else.
How would you structure this case? A simple profitability evaluation and risk assessment seems a bit too basic for me?
