Thanks for linking that. I’ve heard horror stories and this is just another nail in the coffin.

Am I supposed to feel sorry for Vlasic here? The upshot is that I get cheaper pickles.

You should, because this kind of behaviour ripples through so many companies, that I wouldn't be surprised if you actually not on the receiving end of things. Retailer lowballs the manufacturer. The manufacturer then needs to lowball someone too, probably starting from its employees. Also the supplier who can be anything from local hardware store to some IT giant.

I think another upshot is that it ends up making all consumer products "lowest common denominator" consumer products. It's a vicious cycle:

Step 1: Company has a great product. Walmart begins stocking it nationwide, perhaps promoting it to increase their marketshare. That product's revenues explode, they expand, everything seems great.

Step 2 to N: Then Walmart threatens to pull from shelves unless they can meet the cost of $substituteGood. The company cuts costs to make it work. Rinse and repeat.

Step N+1: The product is no longer great.

This is exactly what has happened with Rubbermaid and with countless other consumer goods.

You also get lower quality pickles.

Cheaper pickles that taste like vinegar and rubber.