Food makers try to hold prices as retailers push back

[RedEarth]

Source: Reuters

BOCA RATON, Florida (Reuters) - Food makers who raised prices repeatedly to fight soaring commodity costs in recent years are now battling with retailers to hold onto those increases as the global economy grinds to a standstill.

Many are touting the relative value of their products versus eating out, promoting their products together with retailers' own brands and holding extensive conversations to let retailers know that in some cases their costs remain high even though many commodity prices have fallen, industry executives and analysts said.

"We're all trying to deal with a difficult economic reality where consumers are getting more demanding and competition is increasing to meet the needs of consumers, so it's just more pressurized," Campbell Soup Co (CPB.N) Chief Executive Douglas Conant said in an interview.

Manufacturers attending the Consumer Analyst Group of New York conference in Florida this week said conversations with retailers are becoming more intense. And those talks do not always work smoothly.



Read more: http://www.reuters.com/article/ousiv/idUSTRE51I02D20090219

[Dont_Bogart_the_Pretzel]

1. As if the fuel gouging wasn't enough...

n/t

[xchrom]

2. interesting. nt

[PassingFair]

3. Back to nickel Pepsi?

Sounds like a DEPRESSION era-type fight to me.