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Rising Food Prices Diminish Brand Loyalty

Brand Loyalty Wavers as Inflation Drives Up Food Prices

Posted on February 26, 2024
Writer: James Miller

Inflation’s persistent rise has left American consumers reconsidering their loyalty to brands that have escalated prices. This is particularly noticeable in the food industry, with brands like Panera Bread losing their devoted customers due to a significant hike in soup prices.

As reported by NBC News, Brooke Benson of Orlando, Fla., says that the price for her favorite soup at Panera Bread has jumped from $7.09 to $8.79. While inflation rates have somewhat cooled from their peak of 9% in the summer of 2022 to 3.1% now, the upward trend has not gone unnoticed by budget-conscious consumers. 

High-profile companies have started to acknowledge the tightening of consumer purse strings. For instance, McDonald’s and MTY Food Group have pledged to emphasize affordability and minimal increases to retain customers.

Walmart’s price reductions on items like French bread have successfully attracted customers, highlighting the effectiveness of adapting prices to meet consumer expectations. Amidst high wholesale costs, brands are diversifying their product ranges to appeal to all consumers.

Read the full story at NBC News.

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