Consumer goods manufacturers are adopting a variety of strategies to deal with ingredient issues, up to and including discontinuing some products entirely, according to a recent survey.
The survey of more than 300 CPG executives by TraceGains, an ingredient information service, showed that supply chain issues are overwhelmingly top-of-mind. Ingredients that either are unavailable or have become too expensive have forced CPG companies into various responses:
- 37% said they had modified formulations for 20 or more of their products. Another 25% did modifications for between six and 19.
- 65% said they have been forced to raise prices in the last two years.
- Nearly 50% completely halted production on some products, and another 46% confessed they have not been able to keep up with consumer demand.
Respondents are following a variety of strategies to deal with the situation, including expanding supplier networks (69%) and changing or eliminating product offerings (41%).
"As consumers, we feel the pain of supply chain issues each time we walk out of a grocery store," said TraceGains CEO Gary Nowacki. "This survey sheds light on the problem directly from a CPG brand's perspective, and lets other food and beverage companies know they're not alone in this fight.”
