RubinBrown Food & Beverage Mid-Year Review 2014

Historical Economic Indicators

Highlights • The U.S. economy has continued its recovery following the Great Recession, with many consumer-based metrics showing marked improvement since the market bottomed in late 2008/ l 2009 ear y . • As disposable personal income levels have rebounded, so too have consumer confidence and personal expenditures per capita on food. As economic conditions continue to improve domestically, industry participants should expect to see a return to pre- i l l di recess on eve spen ng on food. • Producer prices have continued their upward trend over the last decade, with Food and Beverage manufacturing prices exhibiting average annual growth rates of 3.8% and 2.0%, respectively.

Consumer Confidence Index

Producer Price Index

170 180 190 200 210 220 140 150 160

120

Food Manufacturing Beverage Manufacturing

100

80

60

40

20

0

Source: The Conference Board

Source: US Bureau of Labor Statistics (BLS)

Di

bl P sposa e ersona ncome Per Capita l I

P

l C ti ersona onsump on xpen ures Per Capita on Food E dit

$39,000

$2,650

$38,000

$2,600

$37,000

$2 550 ,

$36,000

$2,500

$35,000

$34,000

$2,450

$33,000

$2,400

$32,000

$2,350

$31,000

Source: U.S. Bureau of Economic Analysis (BEA)

Source: U.S. Bureau of Economic Analysis (BEA)

Food & Beverage Sector: 2014 Mid-Year Update

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