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Consumers and Commodity Prices

December 24, 2010
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I read with interest a recent McKinsey report titled “The commodity crunch in consumer packaged goods”. One particular paragraph caught my attention:

“A return to the days of passing commodity price increases on to consumers won’t come easily. The structural shifts that dampened the industry’s pricing power remain: consumers are increasingly value conscious, and large discounters still dominate the retail landscape.”

That applies to many industries and markets, but also to retail wines and is something that vintners are going to have to take note of.

The full report can be read here.

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