Re:The Smash and Grab of Kroger-Albertsons
by bombcar on Wednesday October 19, 2022 @01:36PM
(#33265392)
Yeah - my point was that once prices start going up noticeably, all the other processed food manufacturers will increase their prices, also (often with a "return to what the original size was" along with it).
Re:The Smash and Grab of Kroger-Albertsons
by ch4s3 on Wednesday October 19, 2022 @02:07PM
(#33265798)
> One is sugar water with extremely high profit margins
I assure you, as someone in a position to know the numbers, that sugary beverages have low margins. It is very expensive to move them around, marketing is expensive, and customers are very price sensitive.
Re:The Smash and Grab of Kroger-Albertsons
by lotsofpulp on Wednesday October 19, 2022 @02:17PM
(#33265931)
Is this at the retail level? At the producer level, profit margins seem quite decent:
https://www.investopedia.com/ask/answers/071015/what-profit-...
Logically, if the same quantity of Arizona Ice Tea retails for the same price as it did 25 years ago, then someone in the supply chain is or was making huge profit margins, considering the increase in materials and transport costs.
Food prices have been changing for a long time, but only if you pay attention to quantity and ingredients. With gas prices, the unit quantity or ingredient cannot change, so the change is obvious. Same with things like milk and eggs and vegetables though, which do change often.
With processed food, the seller has much more ability to maneuver around having to increase price.