We don’t closely follow all food industry trends,
The Washington Post reported recently that food prices in grocery stores are dropping, because the country “is awash in pork, beef, eggs, milk and bountiful harvests.” USA Today reported that the price of a dozen eggs has dropped by about a dollar on average, with the cost of a gallon of milk falling by about 40 cents and a pound of ground beef dropping by roughly 50 cents.
We have no data to counter those claims, but are left wondering how it is that this auspicious moment feels anything but. If consumers are ecstatic about lower prices, we have missed the revelry in checkout lines. Perhaps years of inflation have left most people disconnected from the price of things. The saying that a penny saved is a penny earned has lost its currency.
But it could be that Americans are not reaping the full benefit because they dine out so much. The Washington Post reports that restaurant menu prices have been rising at a 2.7 percent annual rate, despite a drop in wholesale food costs. The U.S. Department of Agriculture explains, “Restaurant prices are primarily comprised of labor and rental costs, with only a small portion going toward food.” So enjoy the ambiance and the staff when you go out — that’s mostly what you are paying for. If you want to participate fully in agricultural deflation, it’s best done at home.
Also of interest is the news that Greek yogurt sales are declining after a notable boom because consumers are tossing away their spoons in favor of yogurt drinks. The latter are more portable and free consumers from the tyranny of the utensil — convenience is king.
The stories about yogurt trends mentioned a similar decline in cereal consumption in recent years. While we would have hoped that the decrease could be traced to health concerns about sugary cereals — the Environmental Working Group says Kellogg’s Honey Smacks are 55.6 percent sugar, for example — that’s not all that’s in play. The New York Times reported earlier this year that 40 percent of millennials told market researchers that cereal is inconvenient because cleaning up afterward is too much trouble. Too much trouble? Bowl, spoon, milk? What can we say but, “Oh, my?”
Millennials are prone to skipping breakfast, but when they do partake, the Times says they prefer hot grains, smoothies, yogurt or breakfast sandwiches. We recently saw a new product in a local market that might appeal to them — squeezable oatmeal in a pouch — said to “enable adults and families to lead active, healthy lifestyles.”
Eliminating almost all effort related to food preparation in the service of more active lifestyles? At least the irony is delicious.