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Miami Herald
a day ago
- Business
- Miami Herald
Tariff impact on grocery prices muted so far, Circana reports
Tariffs have yet to make a noticeable impact on retail grocery prices this year, with inflation in the sector in 2025 driven primarily by supply constraints unrelated to levies on imports, according to a May 30 report from Circana. Food and beverage prices were up 2.9% on a year-over-year basis as of the end of the week of May 18, Circana reported. Prices were up 1.7% in 2024. Price increases this year have mostly stemmed from tight supplies of eggs, meat, coffee and cocoa, with coffee costs still going up even as prices for the other categories have stabilized, Circana said. The Trump administration announced a broad array of tariffs shortly after taking office, but temporarily paused many of the levies. U.S. officials have indicated that they intend to reinstate tariffs on imports from countries the government is unable to hammer out trade deals with during the pause. The United States Court of International Trade last month issued an injunction blocking many of the executive orders that authorized the tariffs, but the ruling was put on hold by a federal appeals court. While tariffs have not played a meaningful role in pushing up food and beverage prices in recent months, Circana noted that certain categories, including seafood, produce, alcohol and baking ingredients, are more susceptible to potential cost increases than others due to their high reliance on imports. By contrast, items such as dairy products, most meats, shelf-stable breakfast foods and frozen meals depend more heavily on domestic supply chains, making them less susceptible to potential tariff-related impacts, Circana noted. Food and beverage volumes were off by about half a percent in May after growing slightly during the first quarter and the final three months of 2024, Circana said, attributing the decline to cooler weather, relatively weak consumer sentiment and reduced demand following strong Easter sales. Circana said it expects volumes for the sector to grow slightly as 2025 continues. Copyright 2025 Industry Dive. All rights reserved.
Miami Herald
19-05-2025
- Business
- Miami Herald
Ex-Kroger CEO took home $15.6M in 2024
Dive Brief: Former Kroger Chairman and CEO Rodney McMullen earned compensation of about $15.6 million during the company's most recent fiscal year, just under the amount he earned during fiscal year 2023, the supermarket chain reported in a regulatory filing on who resigned on March 2, did not receive an incentive payment for his last complete fiscal year with Kroger, but took home 6% more in stock awards in 2024 than during the prior fiscal shares rose in value by more than a third during McMullen's final fiscal year at the helm, ahead of the performance of the S&P 500 over the same period. Dive Insight: Kroger's proxy statement for McMullen's final fiscal year running the company shows that his pay in fiscal 2024 was mostly in line with what he received in fiscal 2023 - when Kroger cut McMullen's pay by about 18% compared with the previous year as the company's performance weakened. McMullen earned a base salary of just over $1.4 million during fiscal 2024, which ended Feb. 1 - slightly higher than his base salary the year before. He received stock options in 2024 valued at $10.6 million, up from slightly more than $10 million in 2023 - a change that helped make up for the fact that he did not receive incentive compensation during 2024 because he resigned. Only about 8% of McMullen's pay during 2024 was fixed, with the balance tied to the company's performance, Kroger said. Kroger reported that the ratio between McMullen's pay in 2024 and the annual total pay of its median associate was 457-1, down from 502-1 in 2023. The median pay for a Kroger associate rose from $31,302 in 2023 to $34,213 in 2024, an increase of about 9%, according to Kroger. Kroger has not provided details about why McMullen suddenly departed from Kroger, only noting that he left after an investigation by the company's board concluded his personal conduct was "inconsistent" with its ethics policy. The company named its lead director, Ronald Sargent, as chairman of the board of directors and as interim CEO, agreeing to pay him an annualized base salary of $4.35 million. Kroger plans to consider internal and external candidates for the role of CEO, Sargent said during the grocer's fourth-quarter earnings call in March. McMullen joined Kroger in 1978 as a part-time stock clerk and worked his way up to become president and chief operating officer in 2009, CEO in 2014 and board chairman in 2015. Kroger's stock price more than quadrupled during his time as CEO. Copyright 2025 Industry Dive. All rights reserved.
Miami Herald
19-05-2025
- Business
- Miami Herald
How at risk are grocery staples to tariffs?
While food and groceries rank in the top 20 categories with the highest tariff risk index, the non-food essentials that grocers sell are more likely to face tariff-related price hikes, according to new research from Numerator. Household items, including plastic cutlery and disposable bowls, plates and cups, as of May 12, topped Numerator's recently released Tariff Risk Index. Only two grocery categories made the data firms' list of the top 20 most at-risk categories for tariffs: dessert decorations at No. 17 and vegetable oil at No. 18. The Tariff Risk Index is based on five key datasets - import reliance, tariff exposure, purchase power, U.S. sentiment and price sensitivity - to help brands and retailers understand which factors are driving a category's overall risk score, according to Numerator. Plastic cutlery, for example, has elevated tariff exposure due to heavy dependence on Chinese imports, while vegetable oil and fresh avocados are less impacted by that metric. The indexes for frozen beef, wine, olive oils, shredded cheese, and brick and chunked cheese increased from the tariff scenario for April 9 - which saw a 10% tariff on all countries excluding Canada and Mexico and a 145% tariff on China - to the May 12 one. This most recent tariff scenario is the same as a month ago but with China's tariffs down to 30%. To keep up with these fast changes, Numerator underscored the importance of scenario planning to help brands and retailers anticipate how trade policy changes can alter which categories are most vulnerable to cost pressures and demand disruption, per the Tariff Risk Index webpage. To counter potential shortages and price upticks, Numerator suggests retailers not only identify which categories are most exposed but also set up proactive pricing, sourcing or promotional strategies to offset consumer sensitivity and margin pressure. Copyright 2025 Industry Dive. All rights reserved.
