Grocers, food companies aren't seeing eye-to-eye

Brownfield notes that grocers and food companies aren't seeing eye-to-eye on food prices.

It bases its report off an article in the Los Angeles Times. The article notes that several name-brand food companies are feeling the heat from the nation's big grocery chains. Grocers are accusing manufacturers of raising prices too fast and too far, considering the significant price declines for fuel, corn, wheat and other important commodities.

According to the report, Kraft raised the wholesale price of a box of its staple macaroni and cheese an average of nine percent in the last year - despite a 38-68 percent drops in cheese and wheat prices. Another grocer reported the wholesale price for a box of Kellogg's Corn Pops rose about 17 percent since June last year - despite a more than 50 percent plunge in corn prices from their peak that month.

Here's a related post: Are grocery stores gearing up for a fight?