Since consumers are eating more meals at home, packaged goods producers are seeing a jump in business. But not all products will enjoy sales increases in 2009. Fitch Ratings indicates that private label products may do better than usual because consumers continue to shop for the best deals in grocery stores. A recent Nielsen Company survey reinforces this belief with its findings that nearly 2/3's of consumers see little difference between private label and branded food products. The Fitch Ratings report also indicates that demand for items such as bottled water and carbonated soft drinks will continue to soften in 2009.
Finally, packaged goods producers have yet to pass along all of the cost increases they experienced in 2008 so consumers will see higher prices next year and continue to seek the best bargains.
Talk with your packaged goods producers now about the best ways to market products for the challenging year ahead.[Source: BakingBusiness.com releases, 2009]