RubinBrown Food & Beverage Update 2015

Long-term Economic Indicators

Highlights

Consumer Confidence Index

Producer Price Index

 The U.S. economy has continued its recovery following the Great Recession, with many consumer-based metrics exhibiting marked improvement.  Absent a decline in food prices during the Great Recession, prices for both generally increased over the last decade – before food prices began another descent starting in the 3 rd quarter of 2014 (discussed in more detail to follow).  Overall, the improvement in the U.S. economy, in combination with manageable producer price increases, should bode well for industry participants as well as the end consumer. food and beverage manufacturers have

120

220

Food Manufacturing Beverage Manufacturing

100

200

80

180

60

40

160

20

Source: US Bureau of Labor Statistics (BLS)

Source: The Conference Board

140

0

Disposable Personal Income Per Capita

Personal Consumption Expenditures Per Capita on Food

$40,000

$2,700

$38,000

$2,600

$36,000

$34,000

$2,500

$32,000

Source: US Bureau of Economic Analysis (BEA)

Source: US Bureau of Economic Analysis (BEA)

$30,000

$2,400

www.RubinBrown.com

Food & Beverage Industry Sector: 2015 Mid-Year Update

10