More bad news for consumers today. The White House predicts food prices remaining high for the next 2-3 years. In addition, Kraft will hike prices to protect margins and profits, according to CEO Irene Rosenfeld.
The Food Marketing Institute (FMI) found that consumers are spending less at fast casual restaurants and having more of their meals at home or picking up food in the prepared food aisle of restaurants like Publix and Whole Foods Market. 71% of 2,020 respondents to an FMI survey said they were cooking at home more and eating out less. Food industry analysts expect frozen dinners and other frozen prepared foods to see growth in 2008.
This may also drive consumers to fresh foods - meat, seafood, chicken, pork and fruits and vegetables - as some in the natural products industry are suggesting.