The current commodity markets are bad for everyone. Our economic climate is tenuous. Consumers are struggling to make ends meet and current fuel prices are forcing them to manage what they spend on food. American consumers play an integral part in any recovery because their spending accounts for about 70% of the nation’s economic activity.
After ratcheting back spending during the recession, households have started shopping again. But with unemployment still high and wages barely budging, Americans remain sensitive to shocks, such as higher food and energy prices. Private-label products are growing at double-digit rates and key national brands are losing market share.