WSJ Your Money Briefing What’s News in Earnings: Tough Times Come for Big Food
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Aug 6, 2025 The food industry is grappling with rising raw material costs while trying to keep prices low for budget-conscious consumers. Major companies are seeing declines in snack sales as they navigate these economic challenges. Health trends, particularly influenced by weight loss medications, are also shifting consumer preferences, pushing food businesses to adapt their offerings. The pandemic has further altered purchasing habits, highlighting the need for evolution in the industry.
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Food Industry's Pricing Power Declines
- Food companies face declining sales and weaker pricing power amid rising costs.
- Consumers resist higher prices due to inflation fatigue, squeezing company margins.
Snack Sales Decline Unexpectedly
- Snacks, once a major growth driver, are now in decline due to consumer cutbacks.
- Weight loss drugs like GLP-1 are a probable cause reducing demand for sweet snacks.
Health Trends Pressure Food Companies
- The health and wellness trend is resurging after pandemic pause, impacting big food companies.
- Political pressure and weight loss drugs compound challenges alongside inflation and tariffs.