Almost half of food manufacturers processed a price increase in 2018, with an average jump of 7.8 percent, according to a survey by Acosta. The meat, seafood, pet care, deli, baby care, and household care departments are experiencing the highest degree of price increases, while the dairy, alcohol, health and beauty, grocery, bakery, and produce departments are experiencing below-average price increases.
Many shoppers and retailers prefer a price increase vs. a reduction in package size, and 50 percent of shoppers surveyed noticed size reductions.
The trend is expected to continue for the next one to two years. Retailers are implementing new practices, including adding economists to staff, alignment with private brand costs, and protection/compensation until the largest competitors move the retail price. Full Story
Related: Amazon's Brick-and-Mortar Revenue Drops; Organic Price Premiums Dip as Demand Grows.
from Industry Operations http://bit.ly/2RGF5Rt
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