ROCHESTER, NY – At a time when commodity and fuel costs are rising dramatically, Wegmans Food Markets announced today that it will not increase prices through 2011 on 40 products that families buy most, to help customers and employees manage their grocery costs.
“We considered the importance of an item to a family when choosing our list of 40,” said President Colleen Wegman. “Such things as bananas, pasta, frozen vegetables, and laundry detergent are in most shopping carts every week. They are products that families can’t do without, so what they pay for these items really matters.”
The 40 products include such items as orange juice, canned coffee, cereal, bananas, red peppers, pasta and sauce, chicken, ground beef, salmon, tilapia, tuna, frozen pizza, frozen vegetables, and deli ham and turkey. Because some of these items come in different varieties or sizes (different kinds of pasta sauce or frozen vegetables for example), the actual number of items covered by the price pledge is about 200 SKUs, or stock keeping units.
Nearly all are Wegmans brand. “We can be more aggressive with pricing for our own brand because we have better access to information on the factors that determine costs,” said Jo Natale, director of media relations. “These products are already the best value in their respective category, and for that reason, they are also usually the top-selling brand in a category.”
“Costs for many of these products have risen and may continue to rise over the next 9 months. If retail prices reflected the true cost of goods, it would mean an additional $350 to $400 annually for a family of four.”
Around the globe in recent months, commodity prices have skyrocketed as a result of growing demand, but shrinking supply. Much higher costs for soy-, corn- and wheat-based ingredients in food products, as well as feed for livestock, are pushing up production costs. Fuel costs to transport products from producer to store shelves are also rising – which puts additional upward pressure on prices.
On Sunday, February 27, Wegmans’ print ad will include the following statement:
“At Wegmans, we’re very concerned that rising food prices will cause budget difficulties for many of our customers. All of our efforts will be toward keeping our prices low and our quality and service high.
“With that, we commit that the 40 products in this ad will not change price through the end of 2011. That’s what we mean by consistent low prices. We hope this helps you and your family in planning your weekly food budget.
“And, we will do our best to keep price increases on other products to a minimum. As always, we are committed to keeping low prices on the items most important to families.”
“News that food prices will rise is worrisome for our employees and our customers,” concluded Danny Wegman, CEO, “especially when folks are also dealing with higher gas prices. We hope that it will help knowing that prices will stay the same for the essentials, and that our commitment to consistent low prices overall is still in place.”
Wegmans Food Markets, Inc. is a 77-store supermarket chain with stores in New York, Pennsylvania, New Jersey, Virginia, and Maryland. The company will open its first New England store later this year in Northborough, Massachusetts. The family-owned company, founded in 1916, is recognized as an industry leader and innovator. Wegmans has been named one of the ‘100 Best Companies to Work For’ by FORTUNE magazine for fourteen consecutive years. In 2011, Wegmans ranked #3 on the list.
Source: Wegmans Food Markets