Consumers are near "breaking point" with food price increases says Coca-Cola CEO

Kristen Walters
Woman shouting out of frustration.Laflor/Getty Images (Canva Pro license.)

This week, Coca-Cola CEO James Quincey offered a stern warning to food and consumer goods producers regarding the steep price hikes that we've been seeing at the grocery stores for the past couple of months.

After speaking with market analysts, Quincey believes that American consumers are close to reaching their "breaking point" where they will simply stop buying certain items because their household budgets have been stretched to the max.

Up until this point, consumer goods manufacturers and grocery stores have been able to raise prices to cover their own cost increases due to supply chain issues, labor shortages, and inflation without chasing customers away. However, that could soon change.

The fact is that many Americans are running out of money. The government stimulus programs that allowed consumers to offset the higher cost of food, rent, and utilities has run out for many Americans and there is no indication that the government plans to provide additional stimulus checks anytime soon.

According to recent reports, the recent rise in inflation has added upwards of $276 per month to the cost of living expenses per household in the US. When people's budgets become stretched to the max, they tend to stop buying non-essential items like soda, or at least slow down on their consumption to save money for other necessities.

This could be a sign that the rapid rise in food prices and other consumer goods that we've all witnessed over the past few months could start to slow down. However, the country still faces an uphill battle with supply chain issues and labor shortages, so there's no guarantee. Only time will tell.

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