Food prices fall as customers’ satisfaction rises
Pittsburgh Post-Gazette
Falling food prices may be hurting grocers like Giant Eagle, but they seem to be improving customers’ satisfaction with packaged food manufacturers.
Kraft Heinz was among the big name food companies that picked up points in the American Customer Satisfaction Index based at the University of Michigan. The sector saw a 9.2 percent increase in its total score.
“Higher customer satisfaction for packaged food reflects the decreasing cost consumers see in eating at home,” said Claes Fornell, chairman and founder of the index, in his analysis of the results.
His report indicated the food manufacturing sector’s score was the highest it has been in four years, while the nation has seen the longest streak of food deflation in 50 years.
Overall, customer satisfaction with a basket of consumer nondurable products — which includes packaged food, beverages, beer, cleaning products and sneakers — rose to a score of 82.1 out of 100 on the index.
The index is tracked year-round through interviews with thousands of consumers, but reports for specific sectors are done on an annual basis.
Among food manufacturers, Dole topped the list with a score of 86 out of 100, a 6 percent gain over last year.
Hershey, General Mills, Mars and Nestle tied at 84, with all of them improving their scores.
Kraft Heinz, which is dually headquartered in Pittsburgh and Chicago, earned a score of 83, a 5 percent gain over last year’s score of 79.
That gave it a tie with Quaker (PepsiCo) and put it even with the total score for the overall category.
ConAgra and Campbell Soup were at the bottom of the rankings with each scoring an 80.
Food deflation has contributed to a tough climate for grocers. Last week, O’Hara-based Giant Eagle said it plans to offer buyouts to a number of corporate employees, citing low food prices and other industry pressures. Other companies have consolidated, or, in the case of Idaho-based Albertsons Cos, delayed its initial public offering last year, citing market volatility.