Base Costs Go Down Yet National Food Brands Continue to Up Their Prices PDF Print E-mail
Written by Serena Weaver   
Monday, 13 April 2009

National Brand FoodsAlthough I didn’t realize it first-hand myself, America’s major food brands have been raising their wholesale prices like crazy of late.  Besides the additional cost that is passed onto consumers afterwards, this increase presents a problem to the middlemen (aka grocers) who know that they are likely to lose business as well.  The main issue with the price increase, however?  Commodity costs and interest rates are going down at the same time, a seemingly nonsensical simultaneity.  Matters were complicated when, “Nestle said that ingredient costs for Edy's/Dreyer's increased 30 percent to 60 percent from 2003 to 2008,” and yet it was reported by the Chicago Tribune that, “the company did not raise prices until last year.”  So why the raises right now?  The answer remains to be seen.  For now, I’d suggest forgoing purchasing from national corporate powerhouses as much as possible and opting for supporting small, local businesses instead.


-Serena

Comments
Search
Only registered users can write comments!

3.25 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."


 
Reddit!Del.icio.us!Google!Facebook!Slashdot!Technorati!StumbleUpon!Spurl!Newsvine!Furl!Fark!Yahoo!RawSugar!Ma.gnolia!Squidoo!