In past weeks, consumers have been noticing an alarming trend at the grocery store: prices are going up and up and up. With the economic situation the way it has been, there is little for them to do but watch fluctuating gas prices and cut needless items from their diet.
What most people probably do not consider, however, are the importance of packaging costs to the overall price of food. Kraft, the food producing company known for making bologna, has recently increased their food prices solely because packaging expenses have gone upward.
Considering the global economy, this move makes sense.
What does not make sense, however, are that commodity prices have dropped recently, from gas to steel to aluminum. Businesses may be feeling some relief, but that emotion has not trickled down to consumers.
Paul Bellisario, the Vice President of Indirect Services of Connell, a consulting company for the packaging industry, and Lisa Reisman of Aptium Global, Inc. talk about the importance of the cost of raw materials to packaged goods, businesses, and ultimately consumers.