Saturday, August 20, 2022

CEO's are talking price elasticity!

They probably read Chapter 6 and the NY Times Reports on what it calls their "obsession" with the idea that consumers purchase fewer items as their price increases.

Keurig Dr Pepper

“The good news is our brand strength has held up well in the face of new pricing with modest elasticity impacts across our portfolio during the quarter.”
— Robert J. Gamgort, chief executive

Callaway Golf

“To offset inflationary pressure, we have raised prices nicely this year and, as the avid golf consumer is both affluent and passionate, there has been no discernible pushback.”


“The rising cost for essential items and customers’ reprioritization of spending led to significant mix shifts in our business.”
— John David Rainey, chief financial officer

Southwest Airlines

“Leisure travelers have a price elasticity effect where you can’t go much higher.”
— Andrew M. Watterson, chief commercial officer

Procter & Gamble

“As they are more exposed to inflation broadly in the marketplace, with the highest inflation in 40 years, it’d be naïve to assume the consumer is not looking at their cash outlay and their spending even in our categories.”

— Andre Schulten, chief financial officer


“I think you’re seeing a macro environment change in the second quarter, and particularly towards the middle to end of the quarter, with the inflation really hitting the consumer, and you saw an inflection point in the consumer behavior.”
— Stephen B. Bratspies, chief executive


“We anticipate, as the drag of high interest rates, high inflation and uncertainty continues to impact the consumer, that they will soften as the year goes on.”
— Andrew Rees, chief executive


“In Sweetgreen’s 15-year history of sales patterns, we’ve never seen this before. Our historical seasonality always showed growth during this period.”

— Mitch Reback, chief financial officer 


“In the first half of the year, we saw minimal price elasticity across our portfolio,” Michele Buck, the chief executive of Hershey, told investors. “We continue to expect more elasticity in the second half of the year than what we have experienced year to date.”

HT:  David

1 comment:

  1. Suppliers need to proactively work on their internal costs to keep their customers instead of passing along the cost increase to customers as a reflex.