Earnest Analytics’ Post

Such interesting insights. 62% of shoppers read labels (meaning that what’s in the food and how it’s made matters). Also, the idea of value has shifted. “During the recession in 2008, consumers would switch to a private label or opt for a cheaper brand when they didn’t have the money. Now, they aren’t as willing to do that if the brand doesn’t align with their expectations and fit to their taste, according to Albright.” So knowing that many folks ARE switching to PL and PL’s share of wallet is increasing, does this mean that PL is winning on price and taste now? I remember when we used to call the PL brand “generic.” Not any more. Kroger’s label diversification in the 2000s (that is still carrying on now) has really upped the game for PL. How can name brand items compete? How do they show their customers prospective consumers that they’ve got the better product (showing value for the cost/taste ratio)? #consumertrends #kroger #privatelabels #ingredient #betterforyou #value #cpg #groceryretail #walletshare #price #inflation

KO stock is under pressure as the growing use of weight-loss medications, such as Ozempic and Wegovy, has been linked to reduced calorie consumption. Retailers, including Walmart, have reported a "slight pullback in overall basket" sizes, suggesting that consumers on these medications are purchasing fewer high-calorie items—potentially impacting sales of sugary beverages. I have started dollar cost averaging this stock. Not financial advice. #KO #cocacolastock #coke #KOStock #WeightLossTrends

Back in 2019, $100 worth of groceries could last a week for a household of two. Today, that same amount often covers just a couple of days. In the past four years, food prices have surged by 22%, leaving many consumers feeling the strain. While #inflation has dipped below 3% for the first time since 2021, food prices remain persistently high and are projected to continue rising. Companies like General Mills have increased their prices by 4% this year, contributing to a profit surge of $670.1 million. Similarly, Kellogg’s has raised cereal prices by 12%. As hunger grows in the U.S., with 44.2 million people living in food-insecure households in 2022—up from 33.8 million in 2021—this issue is set to be a focal point in the upcoming presidential election. Recently, Democratic presidential candidate Kamala Harris called for a ban on price-gouging. Are rising food costs linked to U.S. corporate profits?🤔

Back in 2019, $100 worth of groceries could last a week for a household of two. Today, that same amount often covers just a couple of days. In the past four years, food prices have surged by 22%, leaving many consumers feeling the strain. While #inflation has dipped below 3% for the first time since 2021, food prices remain persistently high and are projected to continue rising. Companies like General Mills have increased their prices by 4% this year, contributing to a profit surge of $670.1 million. Similarly, Kellogg’s has raised cereal prices by 12%. As hunger grows in the U.S., with 44.2 million people living in food-insecure households in 2022—up from 33.8 million in 2021—this issue is set to be a focal point in the upcoming presidential election. Recently, Democratic presidential candidate Kamala Harris called for a ban on price-gouging. Are rising food costs linked to U.S. corporate profits?🤔

📅 It's time for our PEEK of the WEEK! What can you expect this week? 💲 Updates on household net worth and wealth distribution 🧀 The most popular dairy products in the "snack market" these days Check it out now: https://lnkd.in/gVugr3TE #financialplanning #marketupdate #stockmarket

Households with at least one GLP-1 user reduce grocery spending by approximately 6% within six months of adoption, with higher-income households reducing spending by nearly 9%. These reductions are driven by significantly larger decreases in purchases of calorie-dense, processed items, including a 11% decline in savory snacks. In contrast, we observe directional increases in nutrient-dense purchases, such as yogurt and fresh produce. https://lnkd.in/g3N-96qj (h/t Will Nitze)

Kraft Heinz’ fourth-quarter sales slide of 4.4% underscores yesterday’s headline by AP News: “Consumers are increasingly pushing back against price increases—and winning.” Said differently: As food businesses of all stripes cite inflation and raise or maintain high prices, people are taking their own action against inflation, and food businesses are losing customers and cash. Or, as Corbu’s Managing Director Samuel Rines puts it (per AP News), “We’re beginning to see the consumer no longer willing to take the higher pricing. So, companies were beginning to get a little bit more skeptical of their ability to just have price be the driver of their revenues. They had to have those volumes come back, and the consumer wasn’t reacting in a way that they were pleased with.” Though people are now changing or cancelling spending toward all kinds of products and services (from car sales to paper towels), the food industry (unsurprisingly) has particularly begun to feel the pushback of people priced against the wall. “Fed up with prices that remain about 19%, on average, above where they were before the pandemic,” writes AP News, “consumers are fighting back. In grocery stores, they’re shifting away from name brands to store-brand items, switching to discount stores or simply buying fewer items like snacks or gourmet foods.” How will all this play out in 2024? That remains to be seen. Yet one thing seems certain, evidenced by Kellanova’s recently announced plans (per Food Dive) to shutter factories in the U.S. and U.K. because of a 5% loss in net sales last quarter. People are decreasingly willing to suffer sticker shock to feed themselves, further evidenced by Beyond Meat, whose third-quarter losses in 2023 occurred because (per The Motley Fool), “Consumers don’t appear interested in trying plant-based meat alternatives when they cost as much or more than popular proteins like chicken and beef.”

Read this article and actually take the time to think about what it is saying. At the end of the day, the population only NEEDS so many calories to live a healthy life; BUT, to really make the big bucks we need to get them to consume many more calories. Small CPG companies, who want to succeed, have to find a way to get into the BASE CALORIC CONSUMPTION; this way they are always in the shopping cart, rather than trying to get in against all those already there. The goal is to be on the list, all the time - many founders don't seem to understand this very simple concept.

🗓️ After a full year of carefully balancing budgets and health, it's safe to say conscious consumption is a shopper mindset, not just a trend. As 44% of shoppers use coupons to buy snacks and nearly half report avoiding high fructose corn syrup, 2025's most successful brands will be those that can effectively support the evolving consumer preferences of value-driven and ingredient-aware choices. Review more insights from 2024 to help fuel success in the new year: https://bit.ly/3ZzsQeh #8451Proud #YearInReview #ConsumerBehavior #ShopperInsights #RetailData