The Positive Inflation Trend Sysco's CEO Is Predicting
Everyone's feeling it. Each trip to the grocery store seems to cost more than the last, with pretty much every category affected. Even though food inflation might feel worse than it actually is, Business Wire shares research and consumer analysis by Dunnhumby that reveals troubling data about the number of Americans who are struggling financially, experiencing food insecurity, and seeking out deals from discount stores.
Just a month ago, in September 2022, the United States Department of Agriculture released predictions that grocery prices would continue to rise through 2023, with particularly large increases in the categories of meats, eggs, produce, and milk. Food insecurity doesn't just result in hungry people; it also affects the health of those struggling to afford food. The Guardian explains there's an established connection between obesity and food insecurity, and people experiencing anxiety about food security and food inflation may be forced to select food based on its affordability, rather than on its nutritional value, leading to further health complications. The picture is bleak, but the CEO of food distributor Sysco just shared some insight that may give a brighter outlook.
CEO of Sysco predicts decrease in food inflation
TIME recently interviewed Kevin Hourican, who's been CEO of Sysco since early 2020, and he shared his thoughts on food prices and the challenges food distributors are facing. Sysco has experienced dramatic growth, reflected in its July fiscal year-end sales numbers that showed a 34% increase over last year. Leading a company that delivers food to more than 700,000 locations, Hourican is uniquely placed to both observe and affect food trends.
Hourican believes product availability is likely to improve, which leads him to the conclusion that food prices will also improve. He says, "I expect food inflation to decrease over the next year at both the grocery store and in our business of food away from home."
As companies like Sysco recover from the challenges of the pandemic and work to refine business practices and improve efficiency, Hourican sees a brighter outlook for food bills, whether dining out or eating in. Given that food inflation has caused a majority of Americans to alter or consider altering their food shopping habits by selecting store-brand products in order to save money, Hourican's predicted decrease in food inflation will be a welcome development.