Great American Group Expects Retail Food Prices to Increase in Coming Months
–Effects of drought to translate to higher prices–
WOODLAND HILLS, Calif. -- February 21, 2013
Analysts with Great American Group, Inc. (OTCBB: GAMR) report that overall
retail food prices are likely to increase between three and four percent by
year-end, which is above the historical average. Animal products such as meats
and dairy items will be the first to reflect these most recent increases, with
prices for processed foods rising later in the year.
In its latest Food Monitor (Inventory and Equipment), Great American Group
also notes that retail food prices were impacted by continued increases in
historically high commodity costs. A drought that plagued the Midwestern U.S.
throughout the summer months led to high prices for corn that is used in
animal feed. After reaching a high of $8.43 per bushel in August, corn prices
softened in the remaining part of the year and into January 2013. Despite the
recent decline, corn prices remain well above those of prior years.
“Commodity prices have been high for several months, and food retailers have
been feeling pressure to pass along price increases to customers,” said Ken
Bloore, chief operating officer for Great American Group’s Advisory and
Valuation Services division. “Retail prices are expected to increase more
significantly in the coming weeks and months.”
In addition to the drought, commodity food prices were impacted by the
consumption of corn in the production of biofuels, as well as population
growth and increased energy costs. These increased costs have translated to
rising retail prices, which show no signs of abating in 2013.
Great American Group’s newest quarterly Food Monitor (Inventory and Equipment)
with industry trends in food prices, as well as food and beverage processing
equipment, is available at
For more information about asset disposition, valuation and appraisal services
available through Great American Group, visit the company’s website at
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction
solutions, advisory and valuation services, capital investment, and real
estate advisory services for an extensive array of companies. A trusted
strategic partner at every stage of the business lifecycle, Great American
Group efficiently deploys resources with sector expertise to assist companies,
lenders, capital providers, private equity investors and professional service
firms in maximizing the value of their assets. The company has in-depth
experience within the retail, industrial, real estate, healthcare, energy and
technology industries. The corporate headquarters is located in Woodland
Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C.,
Chicago, Dallas, New York, San Francisco and London. For more information,
call 818-884-3737 or visit www.greatamerican.com.
Great American Group
Michelle Kahan, Director of Marketing
Mulberry Marketing Communications
Christina Bereta, Account Executive
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