Alcone Marketing Group – Consumer Lab

The Consumer Lab is the consumer insights and brand strategy group at Alcone Marketing Group, a consumer activation company.

Higher Food Prices Start to Pinch Consumers

The biggest jump in food prices in 17 years has forced shoppers to find creative ways to save money.

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Higher Food Prices Start to Pinch Consumers – WSJ.com
With the rising cost of milk, eggs, meat and produce contributing to the biggest jump in food prices in 17 years, consumers are starting to feel the pinch.

Some shoppers, already dealing with falling home values and rising fuel costs, are finding creative ways to save, opting for cheaper ingredients and private-label goods and leaning more heavily on discount grocers. And restaurant diners, who have been eating out less frequently, will likely face even higher prices on menus.

Filed under: Consumer, CPG, In Store, living target

2 Responses

  1. aglawman says:

    While there is little debate that food prices are increasing somewhat, do not be misled into believing that the increases are primarily raw-ingredient related. I am a corn farmer and know that since corn prices have doubled, your box of corn flakes now contains a dime worth of actual corn — up from a nickel a year or two ago. Most of the cost related to such processed products is unrelated to the base agricultural product. Think processing, transportation, marketing, profit etc. There is a reason there is such a wide price differential in generic and branded cereal — and it isn’t due to the price of corn.

  2. dick earle says:

    As an observation, the increase in the ingredient cost of corn in cornflakes from $0.05 to $0.10 results in an increased case cost for a 12 pack case of cornflakes of $0.60. That is substantial in a retail grocery business with margins in the 2-4% range. Anytime an ingredient cost doubles it is has a substantial impact on consumer prices.

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