Retailers Resist Food Price Increases

May 31, 2022
Food retailers are increasingly pushing back on processors who try to impose price increases as inflation persists at double-digit rates.

Food retailers are increasingly pushing back on processors who try to impose price increases as inflation persists at double-digit rates.

The Wall Street Journal reports that major retailers like Kroger are asking suppliers to justify price increases before accepting them, with Kroger looking at commodity and packaging prices. When suppliers insist on increases, retailers have been using tactics like switching to private label, stockpiling meat and other commodities, or simply refusing to carry a brand with a price deemed too high.

Processors are pushing back too in some cases. Hain Celestial Group said that it recently cut off some European food retailers from a certain product when they refused a price increase; those retailers eventually gave in.

The tenseness in the situation probably won’t go away soon. “Retailers’ job is to protect the consumer,” Kellogg CEO Steve Cahillane said in remarks quoted by the Journal. “Our job is to protect our margins.”

Sponsored Recommendations

Kaeser is the world’s leading air systems specialist and offers a full range of compressed air solutions for almost any application. From industrial compress...
Take a moment to see the scope of Kaeser's commitment to innovative system designs that guarantee ultra-reliable compressed air, easy maintenance, and greater efficiency.
Ventilation has a huge impact on the ambient temperature in the compressor room and is often the missing link to temperature regulation issues. Here are four factors to consider...
Learn how to get a smart, reliable, energy-efficient compressed air system delivered in a turnkey, weatherproof and temperature-controlled enclosure that needs little or no onsite...