RubinBrown Middle Market Food & Beverage Sector 2016 Update

Producer Price Index by Sub-Industry

Highlights

Fruit / Vegetable Processing

Meat / Dairy Processing

§ As mentioned previously (and illustrated in the charts to the left), composite producer prices for food manufacturers appear to have generally bottomed for the time being and have generally begun increasing across most food manufacturing types. § As depicted in the charts, the decline in overall input prices for food manufacturers frommid- 2014 through most of 2015 was largely driven by declining input prices for meat and dairy processors – with prices for fruit / vegetable processors, beverage manufacturers, and bakeries exhibiting much less volatility. § The underlying commodity prices impacting many of these producers are examined more closely on the following pages.

Year-over-year % Change in PPI

Year-over-year % Change in PPI

15.0%

15.0%

10.0%

10.0%

5.0%

5.0%

0.0%

0.0%

-5.0%

-5.0%

-10.0%

-10.0%

-15.0%

-15.0%

Overall Food Manufacturing

Fruit / Vegetable Processing

Overall Food Manufacturing

Dairy Manufacturing

Meat Processing

Soft Drinks / Breweries

Bakeries

Year-over-year % Change in PPI

Year-over-year % Change in PPI

15.0%

15.0%

10.0%

10.0%

5.0%

5.0%

0.0%

0.0%

-5.0%

-5.0%

-10.0%

-10.0%

-15.0%

-15.0%

Overall Food Manufacturing

Bakeries

Overall Food Manufacturing

Soft Drink Manufacturing

Breweries

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Food & Beverage Industry Sector: 2016 Update

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