The increase in energy and raw materials is having an impact on high-consumption companies, which includes food and beverages, drugstore and personal hygiene. Most manufacturers have had to transfer these price increases to distribution, supermarkets and stores, according to a study by the IRI consultancy on how it is affecting this reality to the sector.
According to IRI data, more than half of manufacturers considers that the rise in the bill of light and the increase in raw materials are having a lot of impact, and 38% qualify this moderate impact.
100% of consulted manufacturers recognizes that it is being forced to raise their rates to distribution, to supermarket or hypermarket chains where they sell their products. Specifically, 69% say that this rise will be above 7% and 19% of the consulted ensures that it will be between 4% and 6%.
The study also analyzes the options that the manufacturers are considering, as an alternative, to minimize the impact on the price rise. Half of the consulted is adjusting the margin (what they earn for each product they sell), cutting it, and 33% is increasing the promotions.
Other manufacturers are reducing formats, making them smaller and just 9% say that it is not doing anything about it.
Regarding the possible impact on the consumer, this will look for more promotions (67%), it will choose the channel that offers better prices (45%) and will buy more distributor brand (45%).Updated Date: 25 November 2021, 08:56