Food Price Increases and Inflation Predictions
19 Questions
5 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is driving food manufacturers to consider raising product prices?

  • Soaring ingredient costs (correct)
  • Higher consumer incomes
  • Decreasing shipping costs
  • Increasing demand for food products

    • What recent event has complicated the availability of shipping containers?

  • The Suez Canal blockage
  • The Texas winter storm
  • Both B and C (correct)
  • The pandemic

    • What percentage increase in the price of key ingredients has been reported by Canadian manufacturers?

  • 20 per cent
  • 10 per cent
  • 30 per cent
  • 40 per cent (correct)

    • Which company plans to raise prices to offset higher costs of materials and shipping?

    <p>Procter &amp; Gamble</p> Signup and view all the answers

    What issue has created difficulties for obtaining ingredients at the port of Montreal?

    <p>A labour dispute</p> Signup and view all the answers

    How has the pandemic affected the relationship between food retailers and producers?

    <p>They engaged in fierce competition over fees and fines</p> Signup and view all the answers

    Which of the following companies is NOT mentioned as a manufacturer signaling possible price increases?

    <p>PepsiCo</p> Signup and view all the answers

    What is described as creating a 'perfect storm' for inflation in the food industry?

    <p>Rising costs from multiple calamities</p> Signup and view all the answers

    What did Michael Graydon state regarding the inability to absorb cost increases?

    <p>Eventually, manufacturers must take action.</p> Signup and view all the answers

    What is Eric La Flèche's prediction for food inflation in Canada for 2021?

    <p>1.5 to 2.5 per cent</p> Signup and view all the answers

    According to Sylvain Charlebois, what is the expected range for food inflation in 2021?

    <p>3 to 5 per cent</p> Signup and view all the answers

    What impact might the decline in year-over-year sales have on consumers according to analysts?

    <p>Lower prices due to competition</p> Signup and view all the answers

    What is a key retail metric referred to as 'comps'?

    <p>Current sales compared to the previous year</p> Signup and view all the answers

    What behavior do retailers typically exhibit when they face negative comps?

    <p>Launch heavy promotions to drive volume</p> Signup and view all the answers

    What does Karen Short claim about retailers' views on retail inflation?

    <p>No retailer is calling for retail inflation</p> Signup and view all the answers

    What has led to dramatic sales gains for Metro and its competitors?

    <p>Pandemic restrictions forcing more food shopping</p> Signup and view all the answers

    What did Sylvain Charlebois emphasize regarding the cost to produce food?

    <p>It is increasing significantly</p> Signup and view all the answers

    What does Eric La Flèche mean when he describes the situation as 'volatile' and 'uncertain'?

    <p>Future food prices could fluctuate unpredictably</p> Signup and view all the answers

    What challenge are grocers facing regarding sales figures compared to the previous year?

    <p>Topping historic sales figures from the prior year</p> Signup and view all the answers

    Study Notes

    Food Price Increases

    • Soaring ingredient costs are forcing food manufacturers to raise prices.
    • Canadian supermarket chain head predicts price hikes won't translate to higher grocery bills.
    • Inflationary pressures are being driven by various factors like the Texas winter storm, Suez Canal blockage, and ongoing pandemic disruptions.
    • Shipping container shortages, port congestion, and commodity scarcity are adding to production difficulties.
    • Resin shortages for plastic packaging are a significant issue.
    • Key ingredient prices for Canadian manufacturers have spiked by up to 40%.
    • Labour disputes at the Port of Montreal, impacting ingredient availability.

    Food Inflation Predictions

    • Metro, a large Canadian grocery chain, predicts food inflation will remain steady at 1.5-2.5% in 2021 (similar to 2020).
    • Other experts project food inflation to increase 3-5% in 2021, exceeding 2020's 2.7% rate, with cost of production rises being a key driver.
    • Uncertainty is a key factor in predicting the future of food price increases.

    Retailer Strategies

    • Retailers face the challenge of maintaining historical sales figures during the pandemic recovery period.
    • Panic buying, leading to empty shelves, creates a benchmark that retailers struggle to match.
    • Retail strategies may involve promotions to prevent negative same-store sales figures.
    • This can lead to price reductions/rebates/promotions to remain competitive and retain customers.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Perfect Storm Could Force Food Costs Up 2021 PDF

    Description

    Explore the factors influencing food prices, including ingredient costs and inflation predictions from major Canadian grocery chains. Understanding the impact of shipping and production challenges on grocery bills is essential for consumers today. This quiz covers key topics affecting food prices and forecasts for the near future.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser