Introduction
As the world continues to grapple with the effects of the coronavirus pandemic, the food and beverage industry is facing a unique set of challenges. With restaurants and bars closed, demand for certain products has shifted, leading to shortages and price hikes. In a recent interview, the CEO of a major Costco rival warned that these shortages and price hikes are coming, and consumers should be prepared. In this article, we’ll explore the potential impacts of these shortages and price hikes, and offer some tips on how to save money while still eating well.
Drink Shortages and Price Hikes Are Coming, Costco Rival CEO Says — Eat This Not That
Costco rival BJ’s Wholesale Club CEO Lee Delaney recently warned that the U.S. could soon face shortages of certain drinks and price hikes due to the ongoing pandemic. Delaney said that the company is already seeing shortages of certain drinks, including beer, wine, and spirits, and that the situation could worsen in the coming months.
Delaney said that the company is doing its best to keep prices low, but that it may not be able to do so for much longer. He said that the company is already seeing higher prices for certain items, and that the situation could worsen if the pandemic continues to affect supply chains.
Delaney also warned that the company is seeing shortages of certain items, including beer, wine, and spirits. He said that the company is doing its best to keep prices low, but that it may not be able to do so for much longer.
Delaney urged customers to be mindful of their purchases and to buy only what they need. He also suggested that customers look for alternatives to certain items, such as buying canned beer instead of bottled beer, or buying boxed wine instead of bottled wine.
The CEO’s warning comes as the pandemic continues to affect supply chains and cause shortages of certain items. It is unclear how long the shortages and price hikes will last, but it is clear that customers should be prepared for the possibility.
For many shoppers, it doesn’t seem like grocery sales receipts can get any higher at the checkout counter than they already have. According to sources in the wholesale industry, however, inflation prices may get worse before they get better, specifically in beverage aisles ahead of a busy season.
Boxed CEO Chieh Huang recently revealed on Fox Business News that the outlook this summer looks bleak for continued food-at-home inflation and drink product shortages. Huang’s company Boxed is a wholesale retailer that offers direct delivery of grocery items to consumers’ doorstep.
Related: These Are Costco’s Most Popular Items Right Now
“This summer, I think beverages, you’re going to start to see kind of increased prices or shortages just because… already these factories are pumping it out at full capacity, you add in the increased demand of the summer, we don’t know where that’s going to go,” he said.
Recently there has been a predicted increase in the cost of wine, which is also anticipated to hit consumers over the summer It’s not the wine itself that is seeing costs rise but the bottles it comes in, which have gone up 20% in price. Unfortunately, this is expected to be passed down to shoppers. But it’s not the only drink making the total cost at grocery stores higher.
According to Consumer Price Index (CPI) data released by the U.S. Department of Labor, as of April 2022, nonalcoholic beverages and beverage materials have seen a 9.8% increase compared to Spring 2021. Beverages like milk (15%) and other dairy products have also seen inflation pressures, both Coca-Cola and PepsiCo have raised prices this year, citing supply-chain and labor problems, and coffee has hit its highest prices in a decade.
Huang also noted that while many in the industry thought inflation for all items would start to ebb months ago, it “hasn’t abated,” and retailers are wondering “where does it end?”
Currently, shoppers are paying 8.6% more for food at the supermarket over last year, according to the CPI. Many customers are opting to store-hop for better deals, cut back on expensive items, and hunt for coupons to offset costs.
Issues affecting grocery prices have largely been a combination of global crisis and environmental factors. Severe weather, gas prices affecting supply chains, Russia’s invasion of Ukraine, and an avian flu outbreak affecting 38 million chickens across the U.S. have all factored into rising food costs.
Currently, bacon (19%), beef roast (18.6%), cereal and bakery products (7.8%), eggs (11.2%), and seafood (11.2%) have seen the biggest increases in cost over the last year due to inflation.
If you’re shopping around for the best deal, you might want to be sure and snag these products at Trader Joe’s before they get discontinued.
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Amber Lake