RISING PRICES THREATEN PROFIT MARGINS AT FOOD COMPANIES
Techlife News|20, November 2021
Albertsons, Mondelez and Kroger are among a wide range of companies whose profits could be squeezed from rising food prices if inflation keeps running hot.
So far grocery stores, restaurants and food producers have passed along much of inflation’s impact to consumers, who have eaten most of the increase. The industry’s profit margins have been tightening throughout 2021 and analysts are growing concerned that margins could feel an even tighter pinch as companies absorb more of the persistently rising costs and consumers possibly change shopping habits to adapt.

Prices for U.S. consumers jumped 6.2% in October compared with a year earlier, leaving families facing the highest inflation rate since 1990.

“We’re getting into this situation where we have spiraling inflation,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. “Inflation in one area drives inflation in another.”

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