Consumer Business Recap: Wal-Mart’s Supplier Denies Rumor, Kroger Starts Price War

The Chinese supplier of Wal-Mart Stores, Inc. (NYSE:WMT), which is a division of Li & Fung, says its business is “better than ever” and will be profitable for 2012. In addition, the firm strongly denies a report in the Wall Street Journal which says that Wal-Mart canceled a large part of an arrangement through which Li & Fung provisions its international stores.

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The K-cup market could see a price war, says the analyst Howard Penney, as chatter has it that Kroger Co. (NYSE:KR) is selling its store brand product at $6, which is an entry point that could impact Supervalu Inc. (NYSE:SVU), Green Mountain Coffee Roasters, Inc. (NASDAQ:GMCR), and Safeway Inc. (NYSE:SWY) negatively. If true, such a price could force the companies to reduce prices on their single serve offerings.

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