Top food companies like Kraft Heinz Co. and Kellogg Co. are at dire risk of losing market share as supermarket operators grapple with shortages and fill empty store shelves with lower-cost brands, industry insiders told WSJ. 

American households are money-conscious more than ever as inflation hits four-decade highs and takes a bite out of their monthly spending budgets. Some consumers have broken ranks of years and years of brand loyalty only to buy whatever is on the shelf, often generic brands.

"We see people make more choices on items because they are available," said Tony Sarsam, chief executive officer of grocery chain SpartanNash Co.

Sarsam said SpartanNash had reduced shelf space for food products from major brands because of shortages, allowing it to expand room for local brands, which had more dependable supply. 

Private-label consulting company Daymon Worldwide Inc. conducted a survey between May 2020 and August 2021 and found 70% of U.S. consumers bought new or tried different brands in a post-pandemic world. This means brand loyalty could be collapsing as consumers buy what is available and the cheapest.