The combination of poor harvests in two of the world’s main producing countries and opportunists stockpiling supplies is already causing a surge on the commodity markets.
Wholesale prices have risen by around 20% in the last two months – an increase which will hit thousands of food and drink manufactures. Experts believe the price is likely to climb further still.
But what has happened in-store?
Brand View has tracked data from 750 vanilla lines sold across a range of categories and have seen prices on the rise – up from 6% last year and up 8% compared to two years ago.
Vanilla prices are on the Rise
Brand View has indexed the price change in these categories over the last year. The vanilla lines have increased at around one percentage point more than that of the overall categories – with a more significant change since the beginning of 2012.
Which categories have been driving this change?
Whilst all categories have seen a price increase, not all are being driven by vanilla lines. For example, the spices category has seen an overall increase in price over the last year; however, this is due to other spices increasing more significantly than vanilla. vanilla products have seen a greater price increase than the market average in chilled desserts, yogurt drinks, cookies and ice cream.
Whilst some increases have been seen over the last year, the real impact will occur when costs hit further along the supply chain; suppliers may still be using existing stocks. In other categories, such as cocoa, the impact in store was significantly after the change in cost of the raw material.
Source: Brand View
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