Editor's Note

Anything But Normal
“Normal couple weds at Taco Bell.” Now that headline is just
plain weird.
In fact, the only ordinary thing about it was that the
couple hails from Normal, Ill. At the reception, which cost a grand total of
$200, the bride was decked out in a $15 hot pink dress, the Internet-ordained
minister wore a T-shirt and hot sauce packets carried the words, “Will you
marry me?”
I know these are hard times, but this whole event redefines the meaning of “Desperate Housewives.”
Yes, the economy remains in the dumps, and the headlines in
the business world are all about bad news. And guess what? It’s all because of
people like me. Since the credit crisis blew away everybody’s 401K last fall,
consumers have started penny pinching everywhere they can to save money.
Fortunately, the snack food and wholesale baking industry is
pretty much insulated unless your company needs access to credit or a loan. In
fact, several segments like the frozen dessert and pizza categories are doing
quite well because people aren’t eating out too often.
Besides, which would you rather have - wildly fluctuating
commodity prices like we had this year or the deep recession of today? Food
companies will take a recession in a heartbeat.
First, fuel prices are half of what they were last year.
Second, commodities have settled down, and profits are more predictable.
To support the industry, I’m doing my fair share to keep the
economy in the dumps, and please don’t rush to thank me. I have millions of
friends who are doing the same.
Last fall, in spite of the deals, I put off buying a new car
until later this year or maybe next, depending on if or when there’s an
economic recovery. Like many consumers, I eat lunch at work and I’m spending
less when I eat out.
Again, I’m not alone. According to the National Restaurant
Association (NRA), foodservice sales are expected to drop 1% this year after
inflation, and I think that’s incredibly optimistic. With the exception of fast
food, foodservice sales will be flat at best and just plain lousy for casual
dining and upscale establishments. In fact, in a recent poll, more than 40% of
restaurant operators predicted that sales for 2009 will be worse than 2008,
according to the NRA. Another 30% said they would be flat at best.
Perhaps a final sign of an economic morass is that consumers
have begun to trade down or buy items only when they are on sale. This is not
good news for our industry. Once again, consumers are being conditioned not to
pay full price, and if our industry doesn’t watch out, price wars are going to
become a reality in every corner of the market.
Sure, these times are anything but normal, but it could be
worse. Just look what’s in the headlines. Bakery products have become weapons.
A contestant on The Biggest Loser was arrested for assaulting
a housemate with a bag of flour in his basement apartment in Detroit.
A Florida man was arrested for battery after he hit his
girlfriend with a sandwich, knocking off her glasses and almost causing a car
accident. The motive? They were arguing about insurance.
No word on what type of sandwich was used.
But there is a bright side to this story. At least, the guy and his girlfriend won’t be celebrating in Taco Bell anytime soon.
Dan Malovany, editor
Go to www.snackandbakery.com
to read Dan’s online-only columns.
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