Iani A. CHIHAIA’s Post

Year-on-year inflation in the foodservice sector has fallen for 12 months in a row 📉 The latest Foodservice Price Index (FPI) report from Prestige Purchasing and CGA by NIQ reveals that inflation in June 2024 stood at 3.6%. While the overall inflationary trend is encouraging, shifts in month-on-month inflation suggests that price fluctuations remain a challenge for the foodservice sector. Explore the June Foodservice Price Index here - https://lnkd.in/grETUd_d #Food #Wholesale #Infltion #Foodservice

Hospitality Food Prices Surge Amidst Supermarket Easing Navigating Food Prices: In the hospitality industry, food prices are surging once again, while supermarkets experience easing prices. According to the CGA Prestige Foodservice Price Index, inflation rose to 22.6% year-on-year in June, nearly matching the record high of 22.9% in December 2022. However, supermarkets saw a mere 0.4% price increase during the same month. The stark contrast arises from a complex interplay of factors. Supermarkets vs. Hospitality: The Divide: Retail food markets are more consolidated in supermarkets, where the top ten players own a whopping 75% of the market. Their scale allows for sophisticated contracting and controlled distribution. In contrast, hospitality primarily relies on multiple wholesalers, resulting in diverse ranging but less contractual price protection. Upstream cost improvements take longer to impact hospitality, and recent volatility (like the UK grain corridor arrangements’ failure) adds to the challenge. Global Trends: While global food commodity costs decreased in June (averaging 23.4% below the March 2022 peak), UK producers face less favourable conditions. High farming input costs (energy, feed, and fertilizers) persist, and a tight labour market compounds the situation. Climate vulnerabilities, rising interest rates, and post-Brexit trade costs continue to influence prices. CGA Insights: CGA highlights these dynamics, emphasizing that suppliers—squeezed by rising costs and slim margins—seek respite as inbound costs ease. Meanwhile, the government’s threat of price caps looms over supermarkets if inflation doesn’t subside. Smithfields Social Media #inflation #foodservice #food #smithfields_social_media #supermarkets image: no response

Foodservice inflation has eased for the 15th consecutive month, falling to 2.4% in September. However, the Foodservice Price Index from CGA and Prestige Purchasing highlights persistent inflationary pressures, with nine out of ten categories showing month-on-month price increases. Download the September snapshot report here - https://lnkd.in/gJiSnU4F #OnPremise #Inflation #Wholesale #Food

📢 Latest data from Worldpanel by Kantar reveals that - take-home grocery sales in Ireland increased by 6.6% in the four weeks to 7 July 2024 up from June's growth of 3.4% 🛒 Grocery #Inflation stands at 2.6% in the 12 weeks to the 7 July 2024, up 0.14 ppts since last month. This is the first time that inflation has risen after a 15 month decline. 🌨☀ Milder-than-usual weather impacted BBQ sales & Irish shoppers spent a combined €800k less on chilled salads & burgers & grills 🥣 Shoppers turned to winter-warmers and we saw an additional €1.8m being spent on soup and hot beverages! ✨ Sales of brands were up 6% growing ahead of the total market, with shoppers spending an additional €57.9m on branded lines. 🖥 Read the full release here: https://lnkd.in/exaugRyC #FMCG #Kantar #ConsumerBehaviour #Ireland

We’ve published our latest report which analyses Kantar data on food and drink retail purchase in Scotland between 2019 and 2022. Shoppers are now buying around a fifth of their baskets on price promotion – such as multi-buys and price reductions - which could encourage purchase of food and drink high in salt, fat or sugar. Discover the latest findings and respond to the Scottish Government’s consultation on the proposed regulations to restrict the promotion of foods high in fat, sugar, or salt at: https://bit.ly/3JFYdfJ

📢 Latest data from Worldpanel by Kantar reveals that - take-home grocery sales in Ireland increased by 3.4% in the four weeks to 9 June 2024. 🛒 Grocery #Inflation stands at 2.5% in the 12 weeks to the 9 June 2024, down a staggering 13 ppts versus last year! 🌨☀ Milder-than-usual weather impacted BBQ sales & Irish shoppers spent a combined €1.6m less on chilled salads, burgers & grills and sausages versus last year. 🥣 Shoppers turned to winter-warmers and we saw an additional €1m being spent on soup and €500k on home-baking! ✨ Sales of brands were up 3.9% with shoppers spending an additional €57.9m on branded lines. 🖥 Read the full release here: https://lnkd.in/d59Rzqjs #FMCG #Kantar #ConsumerBehaviour #Ireland

Foodservice inflation continues to ease but underlying pressures remain Year-on-year food inflation in the foodservice sector continued its downward trend in September, falling to 2.4%, according to the latest Foodservice Price Index (FPI) from Prestige Purchasing and CGA by NIQ. This marks the 15th consecutive month of decline, offering some respite for businesses and consumers alike. However, the report also highlights persistent inflationary pressures, with nine out of 10 categories showing month-on-month price increases. Read more - https://lnkd.in/gx9ngciy #inflation #prices #food #insight #hospitality #hospitalityindustry #fpi

Shrinkflation is real. A new study on shrinkflation at Canadian grocery stories found that 20% of the products analyzed by researchers have gotten smaller over the past five years, with some weighing as much as 25% less than they did in 2019. The worst levels of shrinkflation were found in poultry, cooking oils, processed meat, baby food, and products with high fat and sugar content. The study used an archive of grocery flyers to determine how large the products were in 2019, then compared them to their current package sizes. Out of 60 products across 20 food categories, 12 products had shrunk — weighing in as much as 25 per cent less. Why it matters: The shrinkflation game might just be getting started. With consumers now pushing back on price hikes, more brands could try shrinking their products to give the impression of reasonable prices to bargain hunters. Canadian Marketing Association Retail Council of Canada Food, Health & Consumer Products of Canada FHCP Canadian Grocer Flipp reebee Inc. RedFlagDeals.com Kijiji Canada Loblaw Companies Limited Metro Inc. Procter & Gamble Summerhill Market Longo's Costco Wholesale Sobeys Sobeys Wholesale No Frills PepsiCo Kraft Heinz Mondelēz International Campbell's Community Researchers Food Banks Mississauga Daily Bread Food Bank #inflation #shrinkflation Bank of Canada RBC CIBC TD #budgeting Wealthsimple Source - Toronto Star

(NEW ZEALAND 08.07.24) #globalretail Costs from grocery suppliers to supermarkets increase 2.7%pa in June. New Zealand's food price inflation is slowing, with a 9.0% annual increase to May 2023, down from April's 12.5%. Fruit and vegetables led the rise at 18%, followed by grocery items at 10%. Monthly food prices decreased slightly by 0.2% in May. Despite the slowdown, specific items like eggs (up 57%) and cheese (up 29%) still show significant year-over-year increases. While the rate of increase is decelerating, food prices remain notably higher than last year, indicating ongoing pressure on consumers' grocery budgets. https://lnkd.in/gJK4DiBi

However, the rate in the Foodservice Price Index (FPI) remains more than double the level of retail, which stands at 4.0% year-on-year.