Editorial: Turns out it’s bad business to jack prices just because you can

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The bosses of big consumer-staples companies seem to be wondering why their sales are softening. Consumers are fed up with needlessly high prices.

Bosses of consumer products and packaged food companies are scratching their heads for reasons why consumer demand for their goods has slackened so much since the spring. Stocks of those companies — locally based examples include Kraft Heinz and Conagra Brands, owner of familiar names like Birds Eye, Slim Jim, Duncan Hines and Reddi Whip — are down by well over 20% in 2023, disappointing investors.

” Cheat code? That sounds to us like a rational consumer response to a phenomenon that ought to give these companies pause beyond a couple of quarters of soft sales. Once people who’ve relied on frozen dinners learn how easy it is to prepare their own meals, might they decide simply to continue doing that? Connolly, to be sure, isn’t alone. Executives at rivals are saying much the same thing. There’s a simple reason why.

 

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