Mr. White
Player Valuation: £8m
whataboutery...
Current Affairs Cost of living…
- Thread starter peteblue
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whataboutery...
You are paying for a brand that has fantastic marketing and brand moat.
Another word you don’t understand.
Mr. White
Player Valuation: £8m
What do I not understand? What direct questions am I avoiding?
'piece of cake' on it's way, long day, tired.
brilliant Pete, so you can just take the Heinz labels off the tins...and then you can stack them.
Example multi bars of chocolate, not a great one, but prices shoot up when the bars of chocolate get actually smaller, is that not ripping off people both ways ?
what 'alright jack (i)' hasn't pointed out there is that he runs a coconut shy and those cans are superglued together, it'd take a wrecking ball to get a prize. cons love the con...
shrinkflation, someone needs to push a twitter or tiktok thing about boycotting brands.
Not necessarily.
When costs go up or contracted selling price go down, manufacturers have a choice - put prices up, give you less or a bit of both.
Most food managers make their profit due to the enormous volume of products sold, not by the margin on them. Taking Heinz as an example as they were mentioned a couple of pages ago as profiteering. Their global profits were $8B, which sounds scandalous on the face of it, but how many actual units of food have they produced in that year? That number will also be in the billions. The margin per unit is tiny.
So rather than profiteering or ripping people off, it is more likely they are cutting costs in order to survive as the supermarkets squeeze more and more profit out of them
operating costs...
Haydn
Player Valuation: £15m
I’d suggest that there is another dimension to be considered. The supposed social contract element, so beloved of big corp inc’s ESG glossy presentations. “Our navigational north star” to quote one bunch of snake oil sellers.
We have all been told that the pandemic, war in Ukraine etc have impacted the costs of living and we just have to swallow the medicine in the form of higher costs.
That does not apply in the corporate world though, where maintaining profit is paramount and limiting employee pay rises and increasing consumer cost is seen as a perfectly reasonable strategy to achieve this.
In bad times, the pain should be equitably shared, companies should not be earning enough to report record profits and undertake self-serving share buy backs at a time of genuine hardship for the majority.
We’re all in this together, my arse !
The conformist education system and totally controlled media coverage in this country, means that the call to stop the boats, will always divert attention from the many real scams being perpetuated on the population.
We have become so compliant, subservient and unchallenging, that our grand parents and earlier generations would surely wonder, why they ever strived for better conditions.
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I don't disagree with any of that, I just think some people seem to be targetting the wrong groups for their rage.
Energy companies are posting record profits. So are banks. Most national supermarket chains too. Food manufacturers are not. Using Heinz as the example again, their profits are down year on year recently.
Australia has had a shortage of potatoes the last couple of months, as a result frozen chips have been very scarce in the supermarkets. Now that they are becoming available again, the price has pretty much doubled. The farmers will be charging more, the supermarkets will be charging more. I can guarantee that the manufacturers haven't seen their profits increase though. But they have to keep producing for overhead recovery.
Rage is good, but only when it is directed at the right people
Haydn
Player Valuation: £15m
There are no doubt specific influences impacting the cost and profitability of particular sectors. However as a random example, I give you Kit-Kat manufacturer Nestle, reporting record profits and share buy back.
Innovation or efficiency improvements perhaps ? No, they just whacked up the price of their products to achieve record profit.
As the article suggests, targeted consumer boycotts would soon bring some order to the market. The chances of that happening on an organised basis though, are slim to nought.
Nestlé is on course to report its best profit figures since 2008 when full-year figures appear next month. The Swiss maker of consumer favourites from KitKat to Nespresso coffee is expected to shrug off the cost of living crisis affecting consumers in most of its big markets to keep shareholders smiling in 2023.
Bumper profits at KitKat maker Nestlé? They should give consumers a break | Phillip Inman
Workers and consumers are paying for the cost of living crisis, through product price rises and stagnant wages – shareholders, it seems, are not
That report states a 7.5% growth in revenue (not profit) due to price inceases, while inflation in the UK for the same period was 9% Doesn't sound much like profiteering to me.There are no doubt specific influences impacting the cost and profitability of particular sectors. However as a random example, I give you Kit-Kat manufacturer Nestle, reporting record profits and share buy back.
Innovation or efficiency improvements perhaps ? No, they just whacked up the price of their products to achieve record profit.
As the article suggests, targeted consumer boycotts would soon bring some order to the market. The chances of that happening on an organised basis though, are slim to nought.
Nestlé is on course to report its best profit figures since 2008 when full-year figures appear next month. The Swiss maker of consumer favourites from KitKat to Nespresso coffee is expected to shrug off the cost of living crisis affecting consumers in most of its big markets to keep shareholders smiling in 2023.
Bumper profits at KitKat maker Nestlé? They should give consumers a break | Phillip Inman
Workers and consumers are paying for the cost of living crisis, through product price rises and stagnant wages – shareholders, it seems, are notamp.theguardian.com
I really don't want to get into accounting semantics, or cherry picking of numbers.
Suffice to say I totally agree with your sentiment that companies shouldn't be posting record profits while everyone struggles, and also believe executives certainly shouldn't be getting multi million dollar bonuses for gouging extra money from the public, I just believe there are dozens of more worthy targets for rage than food manufacturers.
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