November 2024 Market Update:
Subject: Industry Update: Expected Market Trends and Cost Adjustments
Dear Valued Customers,
As we look toward 2024, Powers Inc. remains committed to transparency and partnership. We want to share updates on key market trends and their potential impact on product pricing and availability.
Key Market Influences for 2024
Nuts (Almonds, Cashews, Hazelnuts):
Climate challenges, particularly droughts in almond-growing regions and supply chain disruptions in cashew-producing countries, are contributing to upward pressure on raw material costs. Additionally, a growing demand for sustainably sourced nuts is creating premiums in the market.
Candy and Snack Ingredients:
Continued labor strikes at ports and shortages of key ingredients may also influence the cost and lead times for certain items.
Energy and Sustainability Investments:
The global transition toward renewable energy and sustainable farming practices is leading to increased production costs in the short term. However, these initiatives are essential for long-term stability and environmental stewardship.
Packaging Materials:
Prices for packaging materials are stabilizing but remain sensitive to supply chain disruptions and evolving regulations on sustainable packaging.
Anticipated Adjustments
While Powers Inc. is taking significant steps to mitigate rising costs through efficiency improvements and partnerships, these market conditions will likely lead to moderate price adjustments in early 2024.
Commitment to Value
Sustainability Focus: As a veteran-owned company, we are proud to align with sustainability goals, including sourcing from partners committed to regenerative agriculture and responsible practices.
Operational Efficiency: Recent investments in automation and energy-efficient systems aim to offset cost increases where possible.
We value your partnership and remain dedicated to providing high-quality products at competitive prices. If you have questions about specific product categories or would like to discuss long-term supply arrangements, please do not hesitate to contact our team.
Thank you for your continued support as we navigate these changes together.
Greg Kroetch
Director of Operations / PCQI – SQF Practitioner
Powers Inc.