Fitch ratings: U.S. packaged foods may fare well in 2012

December 19, 2011
/ Print / Reprints /
/ Text Size+
Fitch Ratings says that it expects the outlook for U.S. packaged food companies to remain stable in 2012, despite operating challenges. 

The outlook for U.S. packaged foods as expected by New York-based Fitch Ratings looks stable in 2012 though it considers that packagers and marketers alike will face significant operating challenges. Material strength changes as a result of corporate spinoffs and other structure decisions or operating performance could swing rating actions for food companies either in a positive or negative way.

“While value-conscious consumers contending with heightened grocery prices pose significant risk, it appears that most food companies have already faced their peak commodity cost inflation levels for the near term,” states Judi M. Rossetti, senior director at Fitch. “As a result, cost pressure will ease gradually but remain at heightened levels in 2012, compared to historical inflation. Similarly, gross margins should recoup some lost ground after facing a prolonged margin squeeze for most of 2011.”

The internal ratings agency anticipates that most large, diversified packaged food companies will maintain ample liquidity during 2012. For companies progressing toward the completion of spinoffs, debt reduction will be a priority to maintain leverage appropriate for their current ratings.


Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.



Image Galleries

2014 Bakery of the Year: Capistrano's Wholesale Bakery, Phoenix AZ

Here’s a look at Capistrano’s Bakery, our 2014 Bakery of the Year.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

National Pizza Month

October is National Pizza Month! Where do you go to grab a slice (or two) of your favorite pie?
View Results Poll Archive


Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Facebook IconTwitter IconYoutube IconLinkedIn Icon

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!