These Grocery Items Saw Double-Digit Point Hikes in the New CPI Report

Last Week’s Moves

BLS Cash Index  574.43 (-1.79%)               BLS Industrials Index 591.46 (-1.89%)        

BLS Foodstuffs Index 550.26 (-1.65%)       BLS Fats and Oils Index 805.25 (-1.04%)   

BLS Livestock Index 713.65 (-0.17%)

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Welcome to your weekly food & beverage report, where we cover everything you’ll need to know for the week ahead. This week, we’ll explore the BLS’s most recent Consumer Price Index report, unpack the rivalry between NFL sponsors, and take a peek into the life of Colonel Sanders. Let’s dig in. 

After months of steady inflation rates, the Bureau of Labor Statistics’ Consumer Price Index for June brings little relief for consumers

It’s old news: inflation is here, and it’s not going anywhere. However, the most recent numbers are in and they are truly striking. Over the past year, prices for food-at-home were up an additional 12.2%, marking the largest 12-month increase since April of 1979. The biggest increases were seen in the BLS category of “other” foods, which includes everything from candy to spices, with a 14.4% price increase. Butter is up 21.3% year-over-year as milk prices continue to rise (dairy prices increased 13.5% over the past 12 months with a gallon of milk up 16.4%).

• Ingredients’ price increase… Flour prices were up by 5.3% in June alone, hitting producers downstream hard (as flour is a pretty popular ingredient). Supplies from Ukraine are currently halted, with president Volodymyr Zelenskyy saying Ukraine has 22 million tons of grain, including wheat, ready to ship but cannot because of the Russian blockade. 
• The golden grain… US Grown wheat doesn’t seem likely to be the answer, with projections suggesting the biggest drop in crop since 2017. However, beef and veal prices were down 2.3% since May according to USDA’s June Livestock Report.  

The Super Bowl is seeing significant sponsorship shake ups as Anheuser-Busch InBev and PepsiCo forgo exclusive rights

Rivalry reignited?... Molson Coors (TAP) will be returning to the NFL’s Super Bowl for the first time in over 30 years. The advertising comes as rival Anheuser-Busch InBev (BUD) ended its 33-year contract with the NFL making the company the exclusive alcohol advertiser during the Super Bowl. While Anheuser-Busch InBev’s exclusivity is gone, the company still plans to run advertisements throughout the game this year.  

• Covid over commercials… In 2021, AB InBev made headlines when instead of advertising Budweiser during the Super Bowl, they chose to put their budget towards boosting awareness of the Covid vaccine. 
• Make it count… Molson Coors is only planning to run one 30-second commercial during the big game, however Michelle St. Jacques, chief marketing officer at Molson Coors, is aiming to make it truly unforgettable. 
   

PepsiCo still grows… The Pepsi Halftime Show used to be the saving grace for uninterested Super Bowl party goers, however this past year, PepsiCo (PEP) did not sign its contract with the NFL for halftime show rights. However, the company appears to be doing well, raising its revenue forecasts for the year in its most recent report. 

• Carried by the consumer… PepsiCo reported $20.23 billion in revenue as opposed to the $19.51 billion analysts expected. The metrics come as PepsiCo increased consumer prices for Doritos chips and Gatorade drinks. Frito-Lay North America’s organic revenue (which excludes acquisition and divestiture impact) grew 14% as sales of Cheetos and Doritos grew, despite volume declining 2%. 
• Revenue on the rise… Pepsi has reported organic revenue expectations of 10%, up from its initial forecast of 8%. This is the second consecutive quarter PepsiCo has increased its revenue forecast without updating its earnings guidance. 

Other stories…

• McSwitchUp… McDonald’s (MCD) is reintroducing Jill McDonald to leadership, but this time as the company’s executive vice president and president, International Operated Markets.
• Calling all KFC Fans… KFC (YUM) Champion Colonel Sanders’ house is officially for sale. It resides on three acres of land and comes with a variety of perks– all for an undisclosed price. 
• Sweet tooth… Hershey (HSY) and Mondelez International (MDLZ) are both dropping chocolate prices in hopes of reversing a trending drop in sales over the past few months after price hikes. 

That’s all we have for you this week, do you have anything for us? We’d love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input. 

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