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| 30 Jul 2008 05:09:05 pm |
 It is true.... |
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I received official, written confirmation of the International Paper price increase today. Effective September 8th, Paper products are going up 6% while Plastic is going up 10%. In over 20 years with I.P. (much of it in Packaging) I never saw double-digit announced increases. One can only hope that between now and September 8th, these will be pulled back – at least a bit…….
Watch for the release of our updated Disposables Pricing Index tomorrow morning at PreDisposedNews.com
MDA |
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Category : Pricing
| By : Mike |  Comments [129] |  Trackbacks [0] |
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| 30 Jul 2008 05:00:08 pm |
| Starbucks Reports First Ever Loss |
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Starbucks reported their 3rd qtr earnings tonight and not good. A big write off for their "transformation” efforts resulted in their first-ever loss.
SBUX continues to blame the economy for their shortfalls, specifically noting that sales (in stores open at least a year) was down about 5%, as a result of fewer customers coming through the door. Ominously (in my view) they also noted a “dampening” of sales growth in the U.K. and Canada…. also due to lower store traffic.
There was no talk in the materials I saw about how their new Vivanno drink is doing…. But perhaps there will be some mention in the conference call (now ongoing).
MDA |
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Category : Companies
| By : Mike | Comments [129] | Trackbacks [0] |
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| 29 Jul 2008 03:32:28 pm |
| and the increases keep on a coming...... |
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The latest price increases announced (yesterday) are from International Paper to take effect on September 8th (unless they pull back). 6% on Paper products and a HUGE 10% on Plastic... This comes against oil hitting a 3 - month low today. Watch for our Disposable Pricing Index (DPI) update to be released later this week for some more analysis on what (and when) we can expect.
As a follow up to yesterdays note on SBUX....and awaiting their earnings report tomorrow…. SBUX announced today the elimination of another 1,000 “support” (i.e. non- store) jobs as well as the closing of 73% (61 of 84 locations) of their stores in Australia.
MDA |
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Category : Pricing
| By : Mike | Comments [116] | Trackbacks [0] |
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| 28 Jul 2008 02:59:38 pm |
| Starbucks Preview |
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Two things to look forward to (?)
1) Starbucks announces its earnings on Wednesday. SBUX has been blaming everything from the economy to McDonalds and Dunkin Donuts for its woes – when in my view - the primary culprit is their own overzealousness; gross over expansion in the US (first steps now underway to repair with the closing of 600 locations) and an increasing dependence on International growth (the next shoe to fall?).
I will give them props for at least being in there swinging with some new product offerings, but having had the opportunity to digest (no pun intended) their new Vivanno drink, I hope they are not pinning their future on its success. I was kind in my first post on this topic (July 15th) however now having tried both flavors – my view is they are awful. The Orange Mango Banana is only slightly more palatable that the Banana – Chocolate version. We’ll see what their numbers tell us on Wednesday to see if I am not alone…..
More Wednesday when we see the actual report.
2) On Friday (Thursday for those of you who are signed up for our PreDisposed e-Newsletter,) we’ll release our newest Disposables Pricing Index – which projects upcoming cost trends for your disposables. I am on pins and needles…..
MDA |
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Category : Companies
| By : Mike | Comments [135] | Trackbacks [0] |
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| 25 Jul 2008 03:19:23 pm |
| Vendor Loyalty ??? |
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I try - honestly I do - to be loyal to my suppliers, and hope for the same from my customers. Yes, some turnover is inevitable - particularly in tough economic times like now - but it often seems short sighted.
The attached article from QSR Magazine talks about How Restaurants Manage Costs in an Uncertain Economy. While written primarily from the perspective of a "chain" it is every bit as applicable to the "independent".
Be sure to read the third paragraph - it basically is the definition of PreDisposed!
Have a great weekend!
MDA |
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Category : Other
| By : Mike | Comments [140] | Trackbacks [0] |
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