- Athlos Research forecasts food input costs will rise 1.9% over the next six months which will increase the pressure on companies to use pricing to offset the inflation.
- Strong price gains are expected in the fruits/vegetables, softs/sweetners, and oils categories - while proteins, dairy, and grainscosts are expected to fall back.
- The impact on profit varies across the sector. A negative EBIT impact from cost inflation is forecast for Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP), Cott (NYSE:COT), Dr. Pepper Snapple (NYSE:DPS-OLD), Campbell Soup (NYSE:CPB), Pinnacle Foods (NYSE:PF), and Hormel (NYSE:HRL). Foods cost inflation will have a positive impact on EBIT for Post Holdings (NYSE:POST), Dean Foods (NYSE:DF), Hershey (NYSE:HSY), and Fresh Del Monte Products (NYSE:FDP), according to the Athlos estimate.