Already happened to chocolate. Raw cocoa is currently around 10% more expensive than it was at the same time last year - but chocolate products at retailers has shot up 40% or more. Including brands where cocoa isn’t the dominant component ingredient like milk chocolate.
Yet businesses like Lindt are celebrating a 7.8% increase in sales… Make it make sense to me cos I buy far less now. Who are the people who see these increasing prices and buy more 🤡
Decades ago, in undergrad, I wrote a paper on recessions and the effects on everyday items. Oddly enough, the less money people have, the more likely that they will spend a tiny amount on luxury goods like chocolates. You add up all those people who buy small boxes of chocolates when they normally wouldn’t, and you’ve got your uptick in sales.
Yep, becomes a lot less important to save towards something when you have less than before. Those small luxuries are a mental health savior. That plus all the feel-good chemistry that happens with things like chocolate.
Looking forward to price hikes far beyond the actual cost to middlemen. The eggification of another good.
Already happened to chocolate. Raw cocoa is currently around 10% more expensive than it was at the same time last year - but chocolate products at retailers has shot up 40% or more. Including brands where cocoa isn’t the dominant component ingredient like milk chocolate.
Yet businesses like Lindt are celebrating a 7.8% increase in sales… Make it make sense to me cos I buy far less now. Who are the people who see these increasing prices and buy more 🤡
Source data: https://tradingeconomics.com/commodity/cocoa
Decades ago, in undergrad, I wrote a paper on recessions and the effects on everyday items. Oddly enough, the less money people have, the more likely that they will spend a tiny amount on luxury goods like chocolates. You add up all those people who buy small boxes of chocolates when they normally wouldn’t, and you’ve got your uptick in sales.
Yep, becomes a lot less important to save towards something when you have less than before. Those small luxuries are a mental health savior. That plus all the feel-good chemistry that happens with things like chocolate.
Finally! I’m so glad people are starting to realize just how much we’re getting fucked.
“Product costs 5% more to bring to market? Better increase the price by 20%!”