Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: PRICE THE SAME, REDUCE PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE RELIABILITY
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2000 | 2009 | Profits at the large branded food makers are rising despite the recession in part because companies have continued to raise prices and the rate at which cheaper generic brands are making inroads has moderated. The nation's largest food company, Kraft Foods Inc., said that improved margins and a slowing in retailers' inventory reductions helped boost its first quarter profit 10%. Its organic revenue grew 2.3%, with prices pushing up revenue by 5.7 percentage points from the year before. Kraft's better-than-expected earnings followed improved profits from giants Kellogg Co. and Hershey Co. While cheaper private label brands continue to grow in market share, the growth is slower. And although branded companies have had to cut prices in some categories, they have avoided the widespread price rollback some investors have feared. |
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