Raiq Hussain’s Post

New report concludes B.C.'s small-to-medium food manufacturers are facing an average 9.3-per-cent net loss.

Rising food costs are causing Americans to discover cheaper options. "For about three years following the Covid-19 pandemic, food companies pushed through a series of sharp price increases, saying they needed to recoup their own rising costs—and that consumers would adjust to stick with their favorite brands. As a result, the portion of U.S. consumers’ income spent on food has reached the highest level in three decades. Now, some consumers are hitting their limits. Restaurant chains and some food manufacturers are reporting sliding sales or slowing growth that they attribute to consumers’ inability—or refusal—to pay prices that are in some cases a third higher than prepandemic times. The pace of food inflation in supermarkets and restaurants has slowed significantly over the past year, but prices for goods from burgers to mayonnaise are still far more expensive than they used to be. Fast-food prices in March were 33% higher than 2019 levels, according to the Labor Department, while grocery prices were up 26%. #fcf #flatbush #flatbushfund #community #istandwithisrael

When it comes to inflation in food prices, PNC Financial Services analyst Gus Faucher says the actual creation of a food is among the lower cost inputs that contribute to its final price. There are exceptions, such as U.S. retailer Walmart, but, generally, local and regional grocers are at the mercy of the worldwide food supply chain and the ever-shrinking number of massive companies that dominate its upper echelons.

Forget this image of politicians dressed as pigs for a moment, are Coles and Woolies to blame for pricier food groceries? What role do multinational food and drink enterprises play in our cost of living? And where does it leave emerging brands? The annual CPI rise in the food and non-alcoholic beverages group rose to 4.4% in January, up from 4.0% in December and just behind the 4.6% rise in housing. - coffee prices are back to 2021 levels; - tea is at 2020 levels; - canola, corn and soybeans are back to 2020 prices. Are multinationals causing the increase in consumer spend? "Carrefour told PepsiCo it simply wouldn’t stock its range of snack foods and drinks due to “unacceptable price rises” (Crikey, 29/02/24). Some may be big employers in Australia but we need to maintain the balance of big brands like Unilever, Nestle, JDE, Coca-Cola, PepsiCo etc on shelf if we're not to have similar anti-competitive conversations about brands on shelf and not just about the shelf owners like we've been having.

Food Manufacturing During the Holidays: Behind the Scenes of Your Favorite Festive Foods 🎄🍪 As the holiday season approaches, food manufacturers nationwide are gearing up to meet the heightened demand for festive favorites. This period presents unique challenges and opportunities, from scaling up production to ensuring supply chain efficiency. For an in-depth look at how manufacturers navigate these complexities, check out this insightful article: https://lnkd.in/gfh-WRWw Let's take a moment to appreciate the dedication of professionals who make our holiday feasts possible. To all in the food manufacturing industry—thank you! 🌟 #FoodManufacturing #HolidaySeason #SupplyChain #FoodIndustry #FestiveFoods

📉 Inflation’s Bite on the Bakery Sector 🍞 Despite impressive sales growth in 2023, CSM Ingredients UK has found itself in the red, highlighting the growing strain inflation is placing on the bakery industry. As prices of raw materials and production soar, even established companies like CSM are struggling to maintain profitability. This story sheds light on a broader issue – the fine line between growth and sustainability in a volatile market. CSM’s operating loss, despite a near 10% increase in sales, reflects the sector’s biggest challenge: absorbing rising costs while keeping prices competitive. In an industry where margins are already slim, this balancing act is becoming harder to maintain. It’s a stark reminder of the financial fragility that many businesses face when inflation strikes hard. 💡 What does this mean for bakery businesses across the UK? Here’s my take: Innovation and operational efficiency are no longer optional – they’re vital for survival. Businesses need to explore automation, streamline production, and optimize supply chains to safeguard against economic pressures. Those who don't adapt may struggle to stay afloat in this increasingly tough market. And it’s not just about cost-cutting; investing in sustainable ingredients and processes can attract consumers looking for ethical options, potentially offsetting inflation’s impact. 📊 Food for thought: As the industry evolves, how will bakery businesses balance the need for innovation, sustainability, and affordability? #FoodIndustry #Sustainability #InflationImpact #BusinessInnovation📉 Inflation’s Bite on the Bakery Sector 🍞

After Years of Raising Prices, Food Companies Hit Consumers’ Limits Companies dangle $5 burger meals, flakier biscuits to encourage consumer spending and keep profits steady. Food companies are working on fixes for consumers fed up with high prices, while trying to protect some of the biggest profits earned in years. Food manufacturers are hiking prices at a slower pace, rolling out more discounts . The companies’ moves aim to lure people back to brands that consumers have ditched as prices skyrocketed. Americans in the past two years spent more of their income on food than they have in three decades. We are coming off a period where companies have enjoyed incredible pricing power. Many consumers and politicians have said they are angry about growing corporate profits while household budgets don’t go as far as they used to. Shrinkinflation has been criticized (companies reduce the size of products but not prices). More than 70% of consumers believe that restaurants, supermarkets and food manufacturers are overcharging. https://lnkd.in/deM_seVm

Foodservice Price Index hits 28-month low as food prices continue to fall... Year-on-year inflation fell to 4.6%, the lowest figure recorded by the Index in 28 months. May also saw month-on-month deflation of -0.4% - only the fourth such decrease in the last 32 months. The figures indicate a sustained return towards pre-pandemic levels of inflation and more closely mirror trends seen for some time in the Consumer Prices Index (CPI). Shaun Allen, Prestige Purchasing CEO, said: “This fall of input-inflation is very welcome, as the full basket of CPI has also fallen sharply to 2% year-on-year, and diners will soon come to expect stable pricing again in our restaurants. Buyers should be particularly wary of proposed supplier increases in this period of sharply falling inflation.” Reuben Pullan, Senior Insight Consultant at CGA by NIQ, said: “After several years of relentlessly high inflation, these figures show some very welcome respite. While some rates remain higher than businesses would like, the general stability makes it much easier to plan for the future. In turn it should also reassure consumers, who have seen food and drink menu prices rise sharply but will hopefully become more confident with their spending as we move towards the second half of the year.” The full report may be downloaded here https://lnkd.in/eqsA2956 #sustainability #farmtofork #catering #schoolcatering #schoolmeals #food #teachersandschoolemployees #schoolbusinessmanagers #opportunity #strategy #education #procurement #facilitiesmanagement #fm #managementconsulting #plantbased #britishfood Invictus Partnership Ltd.

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

Did you know there has been approximately 19% price increase for 1 Litre of packaged milk in July 2024 vs last month? Packaged milk is among the top dairy categories bought by consumers from grocery and food stores. Due to the 18% GST applied on it from July 2024, its prices have seen an increase of approximately 19%. Stay informed and adapt to the latest market trends with us! #snappretailinsights #retailinsights #pakistaninsights #datainsights #snappretail #categoryinsights