The average consumer’s grocery bill is currently on the rise. For example, the foodat-home segment of the Consumer Price Index (“CPI”), which represents what consumers pay for groceries, jumped 4.5% year-over-year in September 2021; this was the highest increase since August 2020. This rate was quickly bested when, in October 2021 (latest available as of this writing), the food-at-home index rose 5.4% year-overyear. As a result, according to the latest U.S. Bureau of Labor Statistics (“BLS”) data, U.S. shoppers are paying about 20.0% more than they were a year ago for steak, 14.0% more for bacon, 12.0% more for eggs, and 4.5% more for nonalcoholic beverages, to name just a few examples.
Adding to the cost of food are the rising costs of transportation and raw materials which must be paid by food manufacturers. The food and beverage industry also faces a labor shortage on all fronts. The American Trucking Association—which transports raw materials to food manufacturers and brings food and beverage products to grocery stores once produced—estimates the truck driver shortage will reach 80,000 this year, an alltime high. Also, the number of employees at U.S. food and beverage stores fell below 3.09 million in September 2021, its lowest point since April 2020 and down about 3.4% since the start of 2021, according to the BLS. The consumer packaged goods (“CPG”) industry—which, according to the Consumer Brands Association (“CBA”) is the largest manufacturing employer in the U.S.—was only able to add 6,400 employees in October 2021, despite nearly 140,000 job openings. Food distributors face difficulties as well; there are limits on some of the products they can get from food manufacturers, including family favorites such as Rice Krispies Treats, Sour Patch Kids, Lunchables, McCormick gourmet spices, Marie Callender’s Pot Pies, Pringles Snacks Stacks, Eggo Pancakes and MorningStar Farms Veggie Dogs.
Still, at-home consumption of food and beverages, which increased dramatically in calendar year 2020 after the onset of the global COVID-19 pandemic, remains strong in 2021.
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