Even as rampant inflation in food prices leaches away consumer spending power and disproportionately affects lower-income consumers, food-company executives and Wall Street analysts believe that Americans will continue to buy their favorite foods.
Hershey Co. HSY, -1.32%, which reported results on Friday, raised its full-year outlook, citing “higher than anticipated consumer demand and favorable price elasticities,” or little change in demand in a world of higher prices. Hershey Chief Executive Michele Buck said during the company’s earnings call that its pricing for next year would be similar to this year.
“We find a fundamental backdrop that is improving, largely driven by pricing coming through at a robust rate, elasticity remaining low , and at-home food consumption remaining elevated,” Stifel food-stocks analysts wrote in an Oct. 24 note. But he added: “The name of the game is to optimize our revenue equation over the next 12, 18 months. That’s going to be a combination of smart pricing, understanding the mix both from a channel and package perspective, and being able to utilize the many levers that we have inside of the RGM tool kit that our bottlers have.”
Quincey, during Coca-Cola’s earnings call, said customers in Europe — where an energy crisis has grown more acute — were starting to gravitate toward cheaper goods. To some degree, customers in the U.S. were doing so as well.
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History Inflation
Since the handouts have run out, it's only from massively unsustainable credit card debt. And as credit card interest rates skyrocket.. 'The average household credit card debt is nearly $9,000 with a total of $887 billion in Q1 2022. It's the fastest rise in more than 20 years.'
Do they now?
Keep voting Democratic Party for more results like this
Joy Reid would not approve of this made up word “inflation” joyreid
I've changed my entire grocery shopping spending habits. Companies want insane prices for certain items I'll just pass on it.
Sad
Not me. I'm headed to Spain. 🇪🇸
Yes because it’s fucking food!!!! Of course they will keep paying!
(beverages)
Nope. Been cutting back on those