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KurtNYC

(14,549 posts)

2. Breakfast cereal is a very high margin product so kind of an odd choice for their example

Reply to xchrom (Original post)

Wed May 21, 2014, 07:58 AM

May 2014

The whole point of junk food breakfast cereal is to take a low cost commodity produce like 8-cents per pound GMO HFCS corn and turn it into something they can sell at $3.29 for 10 ounces.

Even if corn goes to 16 cents a pound, (100% increase) they can still look forward to a 2000% gross margin. Grant you that is not a 4100% gross margin but still nothing that should turn their Boo Berries into Boo-hoo Berries.

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Breakfast Cereals to Get More Expensive, Thanks to Climate Change [View all] xchrom May 2014 OP

Everything is getting more expensive and the climate change deniers are blaming climate change. kelliekat44 May 2014 #1

Breakfast cereal is a very high margin product so kind of an odd choice for their example KurtNYC May 2014 #2

The use of corn as a motor fuel (ethanol) instead of food doesn't help either. n/t oneshooter May 2014 #3