Kellogg's downgraded by Citigroup

Ingredient cost have been rising for several years now in Consumer products.  We have seen natural disasters, weather, and government policy( corn/ehtanol)  dictate inflationary pressure on cost of goods. Companies have done all they can to take other costs out of the system before passing on increase in costs to customers/consumers. There is no room left.  The continued pressure...

The growth of the Asian middle class's demand for healthier foods, droughts in many major wheat and corn producing countries and the growing of grain for ethanol production is putting enormous strains on food manufacturers.

Commodity cost increases (wheat,corn,oil,sugar) are causing havoc with food and CPG companies bottom lines.The significant upward pressures of wheat (+100% latest 12 months) specifically impact all cereal,baking, pasta and many other food companies profits. The key questions surrounding these increases include: 1) Are companies able to take pricing to offset this increase in costs? 2) What companies...