Food manufacturers are facing a combination of challenges including rising energy costs, commodity price increases, supply chain, and labor shortages. These headwinds, left unchecked, would force large manufacturers to absorb the impacts and suffer erosion across the business.
In a highly competitive shopper climate, many retailers take a “wait and see” approach to everyday price changes. They rely heavily on intel gathered from their field teams and traditional syndicated, POS data. Delays in the adoption of prices has previously caused key retail partners to revert to original pricing, erasing any planned gains.
Having implemented a market-wide price change on the entire portfolio of cereals in Jan 2022, this manufacturer identified a singularly critical element of executing that increase. They focused on monitoring a critical price threshold on high turning brands in an important size portfolio across the most competitive retailers in Grocery. The goal was to validate if any of those retailers had decided to pass that price increase through to their shopper base.