Citing inflation, supply chain issues, the higher costs of ingredients, transportation logjams and rising energy costs, labor shortages and higher wages, many food manufacturers continue to announce price increases for 2023.
I. Rice & Company, specializing in bakery fillings & flavors, ice cream toppings, flavors, & ingredients, syrups, & beverage concentrates, has shared this clear and concise article outlining the challenges to their 2023 pricing structure.
THE ISSUES PRESENTED IN THE FOLLOWING I.Rice & Company ARTICLE, MAY READILY BE APPLIED TO ALL OTHER CONSUMER PRODUCTS.
According to RSM- US 12/16/2022:
"In the coming months, food and beverage businesses will face headwinds from consumers uncertain about lingering inflation, geopolitical issues and a looming recession. These challenges are in stark contrast to the pantry-loading days of the pandemic and come only shortly after these businesses were finally able to pass surging costs for ingredients, logistics and labor to the end consumer."
"Premium food and beverage brands continue to outperform conventional brands in growth despite the overall pullback in spending, indicating the stickiness of some pandemic behaviors has overcome the impact of inflation."
How does this effect YOUR business?
Understanding the market can help you prepare your business strategies for the upcoming frozen dessert season: menu offerings, pricing, staffing levels & wages, advertising, market segmentation, building & equipment maintenance and upgrades & more.
What does this tell you about positioning YOUR products in the marketplace?
1- Revenue - Expenses = Profit
What percent of inflationary costs can you absorb before you need to pass the costs onto your customers? Every business owner understands that Fixed costs such as insurance, rent, utilities, payroll, basic stock... will always need to be calculated into their pricing structure.
2- The three leading areas of growth to maximize the 2023 season are:
Impulse Ice Cream
Take-Home Ice Cream
Artisanal Ice Cream
Capitalize on ALL three areas!
3- Differentiation from competition through advertising.
EVERYONE'S costs will be rising. Ensure the quality of your final product justifies your higher pricing structure. TELL your prospective customers about your Impulse/ Take-Home/ Artisanal offerings by ADVERTISING.
Gil's Wholesale Distributors
Gil's Ice Cream Supplies
322 W Oak Lane Glenolden PA 19036
610-237-6500 GilsWholesale.com IceCreamSupplesWholesale.com
Gil’s Wholesale Distributors/ Gil's Ice Cream Supplies is a family owned Pennsylvania based full service distributor with over 40 years of providing personalized service & product expertise for wholesale tobacco, cigars, cigarettes & tobacco related products, ice cream, Italian Ice, Gelato & frozen dessert manufacturing supplies, convenience store products, paper & plastic items, candy, concession, automotive and janitorial products.
Located 10 minutes from the Philadelphia International Airport, our delivery area is PA, NJ, and DE and we ship throughout the U.S. and abroad by common carrier, as well as offer convenient Pick Up services at our customer-friendly showroom. FRE Parking!
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