TARIFFS HURTING US F&B

Following the new hefty tariffs from the EU and Canada for US products, food and beverage companies are facing an uphill battle. The tariff has been imposed on everything from whiskey to ketchup. Mexico has also announced it will also increase its tariffs on cheese and pork products. With tight profit margins already a juggling act, the tariffs put additional pressure on suppliers to ensure that fuel, transportation and wages are all balanced, not to mention the price-sensitive customers. “The problem right now is while we’re seeing the inflationary impact in the goods, in currency changes and because of tariffs, there’s not much inflationary pass-through that you can do in pricing,” former Heinz CEO Bill Johnson told CNBC. One brand hit hard by Canada’s levy on soups is Campbell Soup. “With a ten percent tariff on soups and broths and tomato products- representing the core of Campbell’s products that are sold in Canada and made from both US and Canadian ingredients – Campbell estimates the economic impact to its Canadian business to be significant,” said company spokesperson Alexandra Sockett.