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RE: Greedflation

in #food8 months ago

Conagra Brands, from 2010-2023 (the only years I found data for) has had a net profit margin ranging from -20% to +11% or so. In 2023 their net profit margin was +8%. That doesn't really indicate "greed"flation to me or at least it hasn't been particularly effective. Shrinkflation is just a way to hide increased costs. Wal-Mart has done this for many years with special packaging with many of the products they carry. This is one reason their prices are often lower.

The root problem is inflation. Not greedflation and not shrinkflation. When business operating cots go up, so do consumer prices.

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The insidiousness of these kind of corporations run so much deeper than just the profit margins, which for Conagra in 2023 was to the tune of $1.5B. These companies use their leverage and influence to squeeze out smaller companies and to help write government policy allowing for more unhealthy/addictive/cheaper ingredients to be added into foods. These publicly traded megacorps' sole purpose are to perpetually grow profit margins quarter over quarter to increase stock price and that would be the case in an inflationary economic environment or not. It wouldn't be such a huge problem if the regulatory agencies weren't being so heavily influenced by the same corporations who they're supposed to be regulating but, sadly, this isn't the case anymore.