Food manufacturers going hungry
Tough times see consumers becoming picky shoppers with an eye on 'specials'
Food manufacturers are feeling the impact of shrinking basket sizes as consumers shop around for pocket-friendly deals. This week, Tiger Brands, Pioneer Foods and Rhodes Food Group results showed just how tough it is out there for companies that are facing not only rising input costs, such as fuel prices and electricity, but also consumers who are not easy to win over.
"Generally, shoppers are shopping at least five times a month, so the days of the big once-a-month shop are a very distant memory. They are also buying less and they are spending less than they were over a similar period in the previous year," said Lawrence MacDougall, Tiger Brands CEO, on Wednesday at the group's interim results presentation for the year ended March.