Following up on "Hmmmm....The Atlanta Fed's GDP Forecast Appears To Be Collapsing" the other half of that "stagflation" word.
From FoodDive, October 5:
Dive Brief:
Dive Insight:
- Hugh Johnston, CFO of snack food and beverage giant PepsiCo, says the company is preparing for another round of increased prices in 2022.
- Throughout the third quarter, the results of which PepsiCo shared this morning, the company has been gradually raising its beverage prices and is upping the cost of its snacks to offset its higher input costs, Johnston said. Sector rivals, like Coca-Cola, have been doing the same.
- “I expect [to] see more pricing increases in the first quarter of next year as we deal with the fact that input costs are just higher,” Johnston said on CNBC’s Squawk Box. “That’s just the reality for us and everybody else.”
As is customary for packaged food and beverage companies, Purchase, New York-based PepsiCo buys the commodities and materials it needs months in advance, but those contracts don’t help it stave off inflation, CNBC reported.
“The forward-buying can only do so much for us,” said Johnston, adding that the tactic only buys PepsiCo “about six to nine months of room.”....
....MUCH MORE
Keeping top-of-mind September 8's Reminder: "St. Louis Fed: Food Prices As An Indicator Of Future Inflation"
