In a recent television interview with CNBC, US billionaire Warren Buffett said that strong consumer brands can still "go toe to toe with Walmart or Costco". But he warned that weaker brands faced tougher competition from cheaper own-branded products partly owing to the fact that "the ability to price has changed, and that’s huge".
Mr Buffett's comments related to his troubled stake in consumer goods giant Kraft Heinz (US: KHC), but we also think his comments are relevant for investors in WD-40 Company (US: WDFC).
The WD-40 share price slipped this week following news of slower sales in its core US market. Should the firm's shareholders be worried about the brand's pricing power? We don't think so. In our view, this legendary lubricant still has a bulletproof brand identity.
However, that's not to suggest that the company is immune from pressure on pricing. Second-quarter results issued on 9 April revealed a 6% fall in US sales of the core…
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