July 2, 2008 – Elmwood Park, NJ – Consumer spending is increasingly impacted by the growing pressure of soaring retail prices and minimal income growth, and that's creating a market situation that will require manufacturers, retailers and restaurants alike to adopt new strategies and manage their operations much differently, according to Ron Paul, President, Technomic, Inc.

This issue will be extensively explored and key trends identified in an upcoming webinar, Consumer Food Spending and the Changing Economy, scheduled for 2PM Eastern Time on July 9, 2008. The webinar is jointly sponsored by The Food Institute and Technomic Inc. Paul will be a featured presenter, and will be joined by Kevin Higar, Senior Manager for Technomic, and Danielle Breuel, Research and Education Director at The Food Institute. Breuel will focus on trends in the Consumer Price and Producer Price Indices to describe economic conditions.

The webinar can be attended via internet-connected computer and telephone, and will include a question and answer period. Registration information and access is available below. Technomic is a research and consulting company specializing in the food and foodservice industries. The Food Institute is the industry's foremost information source and conducts webinars on a regular basis.

"The webinar will cover major issues that have emerged with the current economic trends," says Breuel, "and the presenters will provide guidance on how to address the challenges that this economy has created for virtually every business in the food industry. The takeaway will be ideas that participants can use to better position their companies for growth in the second half of the year."

The presenters will deliver an economic update that will discuss the most relevant indicators. "One of the most powerful developments," says Paul, "is that consumer confidence has declined so sharply in such short time. The Conference Board's Consumer Confidence Index has fallen steeply and steadily from 110 last summer to 50 this June." Low consumer confidence combined with record highs in consumer prices has created completely new marketing and merchandising challenges for food retailers, restaurants and suppliers. "We will use Technomic's latest Consumer Pricing Impact Survey," adds Higar, "to offer some tactical and strategic insights for industry decision-makers."

The webinar will delve into the interplay between retail food store and foodservice sales. "Our latest research shows that 96% of consumers are worried about gas prices, 92% about the price of groceries," says Paul, "and 67% say the cost of restaurant meals is cause for concern. Restaurants and bars are expected to grow in dollar sales by only 2.1% this year, compared to last year's 4% rate." One implication is that foodservice operators will need to bring new strategies and tactics to the table, just as much as supermarkets and other retail food outlets are going to have to do in an era of declining growth and changing consumer shopping patterns.

"We think," notes Higar, "that both of these food industry sectors are going to deploy conservatism in investment and expansion, but at the same time commit to bold thinking and innovation in product development and marketing. Innovation that is carefully attuned to what cash challenged consumers with negative attitudes can do and want to do is one powerful strategy that can help concepts achieve a competitive advantage in this kind of economy."

The content of the webinar will be based on Technomic's own research, plus analysis of third party data, and on the 40 years of experience Technomic has in the food industry. The Food Institute portion will draw upon its research and analysis of CPI and PPI trends, as well as its eighty-year heritage in the food industry.
For more information or to register for the webinar for $149, visit www.foodinstitute.com/consumerspending.cfm.


The Food Institute is a nonprofit organization with a single purpose: providing information. The Food Institute strives to be the best "single source" for current, timely and relevant information about the food industry from "farm to fork." The association serves as a trusted source of information, providing balanced coverage of the issues. It delivers information through multiple media so that industry professionals worldwide can tap in when and how they choose. For more information, visit www.foodinstitute.com.


Technomic, a fact-based research and consulting firm, helps restaurants and food suppliers grow profitably with business-building guidance. For over 40 years its consultants have helped clients anticipate and respond to customers' needs - and competitive threats. Its services range from major research studies to management consulting solutions to simple fact-finding assignments. For more information, visit www.technomic.com.