The Battle of Grocery Store Shelves: Oreo vs. Hydrox

The podcast episode delves into the rivalry between Oreo and Hydrox cookies. Hydrox is the original chocolate sandwich cookie that predates Oreo by four years. Despite its initial success, Oreo eventually became the more popular and widely available cookie, causing Hydrox to cease to exist by the end of the 20th century. However, Hydrox made a comeback in 2015 thanks to Leaf Brands. Leaf Brands has accused the parent company of Oreo, Mondelez, of using its strong relationships with grocery stores to keep Hydrox off the shelves or hidden from consumers. This is due to the practice of category captain arrangements and slotting fees, where major manufacturers pay retailers for advice on stocking and pricing products, potentially stifling competition. These cozy relationships between manufacturers and retailers also involve large sums of money, with promotional payments accounting for nearly $400 billion in revenue for the grocery industry annually. The episode highlights how these relationships are being strained due to factors like inflation and high prices.