Punishing rises in input costs, cautious consumers and a predicted rise in capital gains tax will drive further consolidation in the US bakery sector this year and next, packaged bakery giant Flowers Foods has predicted.
Mondi said its underlying operating profit of €187m in Q1 2011 showed its performance continued to improve but acknowledged that rising input costs and the weakening US dollar were hitting margins.
DS Smith said demand for its corrugated packaging was showing signs of recovery following a tough 2009 but that it expected margins to come under pressure over increased input costs in the next 12 months.
An overall decline in manufacturing costs appears unlikely to shift food processor concerns over higher prices for their goods, according to new UK statistics out this week.
Leading drinks can maker Rexam has said it is phasing European
contracts onto a pass-through system, which will result in
customers systematically bearing the brunt of increased aluminium
prices.
