Volume Declines Paint A Cautious Picture
Since the pandemic-era spending spree on discretionary goods ended, companies from Pepsi to UPS have offset transaction volume declines with higher prices. Some industries have had more success than others. However, signs are emerging that the era of aggressive price hikes may be behind us. 🤔
Last week we started looking at consumer goods companies like Procter & Gamble, which raised prices by 10% YoY to offset a 3% drop in demand. Yesterday that trend continued, with Coca-Cola reporting organic revenue growth of 12%, comprised of 11% growth in price/mix and 1% growth in concentrate sales. And today, PepsiCo said prices were up 16% YoY overall, with volumes down 2% across all categories.