Falling prices for wheat and other commodities have helped foodmakers cut prices and offer one-time promotions. But with high unemployment and consumers turning more to lower-priced store brands to save money, analysts were concerned that manufacturers were risking profits to chase sales volume.
“Even though commodity costs have moderated, I don’t know if the level of moderation has warranted the price declines that were passed through,” Morningstar analyst Erin Swanson said.
Full story: Foodmakers post rosy outlooks, but pricing worries via Reuters