Increased cost of ingredients, labor, transport and packaging is exerting pressure on margins generated by food manufacturers.  Major companies including Campbell Soup Company, J.N. Smucker and General Mills are raising prices on a wide range of packaged foods. Grocery stores are also under pressure to hold prices especially against the deep discounters and club stores that market house brands at competitive prices. 

In an attempt to reduce shelf price, manufacturers are reducing portion sizes.  The second strategy is to rationalize the range of products to reduce cost of manufacture, marketing and logistics. 

Faced with common cost escalation, most QSRs and casual dining restaurant chains have reduced their range of menu offerings.  Promotions and discounts have also been reduced in frequency in an attempt to optimize profit.