Survey Says: 80% Find Food Costs Too High

The Lempert Report
October 13, 2023

A new survey from Deloitte came out about fresh foods that it's a key ingredient for grocers growth. However, what was interesting to me about this survey is that 2/3 of consumers are willing to pay a premium for the best fresh food. That's up seven points year over year. On average, these consumers are willing to pay 28% more for fresh food than frozen, canned or processed alternatives. That's the bulk of the study. But what they found while talking to consumers and to grocery retail executives alike, an 85% combination of the retailers and consumers said that brands were raising prices more than needed for the purpose of increasing profits. Only 10% of the grocers surveyed said their food suppliers were raising prices to keep up with rising costs. So when we look at facts like this, and I have spoken for months about these price increases, consumers are up in arms about price increases and these brands just taking these price increases and saying that they deserve to have price increases. Their CEOs are making fortunes, their stockholders are making fortunes. But every time you and I go to a supermarket and we get our bill, we're in shock.

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