RubinBrown Food & Beverage Year in Review 2013

Historical Economic Indicators

Highlights • The macro economy has continued its recovery following the Great Recession, with many consumer-based metrics showing marked improvement since the market bottomed in late 2008/early 2009. • 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-recession level spending 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 3.4% and 2.3%, respectively.

Consumer Confidence Index

Producer Price Index

120

210

Food Manufacturing Beverage Manufacturing

200

100

190

80

180

60

170

40

160

20

150

140

0

Source: The Conference Board

Source: US Bureau of Labor Statistics (BLS)

Di

bl P l I sposa e ersona ncome Per Capita

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

$2,700

$39,000

$38,000

$2,650

$37,000

$2,600

$36,000

$2,550

$35,000

$2,500

$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: 2013 Review

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