All articles tagged with #higher prices
PepsiCo's revenue has declined as US consumers reacted negatively to higher prices, impacting the company's sales in its key market. The company's beverage sales were particularly affected, leading to a 3.5% drop in revenue for the third quarter. This decline reflects the challenges companies face in managing consumer response to price increases amid inflationary pressures.
Heineken, the world's second-largest brewer, reported a decline in beer sales in the third quarter due to its exit from Russia and higher prices. Volumes were down 4.2% compared to the previous year, resulting in a 5.1% decline for the first nine months of 2023. However, revenue increased by 2% to 9.604 billion euros ($10.17 billion) in the quarter, driven by price hikes. While sales in the Americas increased by 2.2%, Europe and the Africa, Middle East & Eastern Europe regions experienced declines. Heineken reiterated its full-year operating profit growth forecast and successfully completed the sale of its Russian business to Arnest Group.
Kraft Heinz has announced that Carlos Abrams-Rivera, the current North American president, will become the CEO of the food giant starting January 1, 2023, replacing Miguel Patricio. The company has been facing challenges such as slumping sales, write-downs on iconic brands, and investor scrutiny. Despite efforts to revive brands and expand its away-from-home business, Kraft Heinz has experienced a decline in demand due to higher prices and increased competition. The appointment of Abrams-Rivera, who previously worked at Kraft and has delivered strong results, is seen as a move to drive growth. Patricio will remain as chair of the board after stepping down as CEO.
Two-thirds of shoppers are reporting higher prices on student supplies for the upcoming school year, favoring discount retailers.
European hotspots are experiencing a surge in tourism this summer, with some destinations expected to exceed 2019 records. American tourists, motivated by "revenge tourism" and undeterred by higher prices and crowds, are leading the upswing. However, sustainability concerns have been largely ignored, with a focus on revenue and the present rather than long-term consequences. While travel to and within Europe is still down 10% from 2019, Greece and Spain are seeing an increase in visitors. The rise in short-term apartment rentals is contributing to overcrowding in cities like Rome and Venice, impacting local residents and services.
The Federal Reserve Board's Economic Well-Being of U.S. Households in 2022 report shows that higher prices have negatively affected most households and overall financial well-being declined over the prior year, though workers continued to benefit from a strong labor market. The report draws from the Board's tenth annual Survey of Household Economics and Decisionmaking, or SHED, which was conducted in October of last year. The report discusses findings related to financial well-being, income, expenses, employment, banking and credit, housing, retirement and investments, and higher education and student loans.