Blog: Generation gap
Dean Best | 14 July 2008
The news here in the UK this morning that factory-gate prices among food manufacturers continue to rise will come as little surprise.
We have, after all, become accustomed to food inflation for months now.
However, the fact the rise was the highest jump in food product prices in 22 years only serves to hammer home the message that suppliers are battling with the biggest change to their cost-base for a generation.
And, as we argued on our pages last week, the fact that these changes – and the general economic downturn – haven't been seen for a generation should be cause for concern in the industry.
The well-worn argument that the food industry is “recession-proof” because we all need to eat and drink has its merits but the challenges facing the sector will be new to many battling with rising costs, the likes of which we haven't seen since the 1980s.
Can we, with any certainty, say the food industry will hold up against the headwinds buffeting the whole economy – not just in the UK but in Europe and the US?
Perhaps the slight change in tone from “recession-proof” to “recession-resistant” tells its own story.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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- Who will buy Danone's Stonyfield business?
- Interview: KP Snacks on growth strategy
- Tyson shops Sara Lee bakery, Kettle and Van's
- Nestle to cut UK confectionery jobs
- Tyson to buy burger-to-entree firm AdvancePierre
- PepsiCo affirms full-year target as Q1 hits mark
- TreeHouse Foods sells soup, baby food units