This is akin to store brands by other retailers. Most store brands aren't specialized, they're generic and offer the consumer decent quality at a fair price. This forces brands to differentiate themselves in some way. This is a good thing in my opinion because it seems to weed out poor quality products.

For commodity items like sugar and salt where differentiation is nonexistent, it doesn't make sense to pay a 100% premium for different packaging.

I haven't stated that I think it's a good idea. You've stated that you believe the government (presumably) should intervene and not allow retailers to have their own brands, I'm simply asking you to explain your position.