business news in context, analysis with attitude

The Wall Street Journal reports that “a major freeze in Mexico earlier this month has resulted in a shortage across the U.S. of tomatoes, cucumbers, bell peppers and other produce that could last until April and lead to higher prices at the grocery store.

“Supermarkets, distributors and restaurant chains are scrambling to find other sources for the items and to offer replacements,” the story says. “But the problem has been compounded by the fact that inclement weather has also hit other growing regions, like Florida and Texas, that would normally be able to make up for a supply interruption from Mexico.”
KC's View:
Just add this to the list of products that are likely to see price increases in coming months, for a variety of reasons. It is all going to mean sticker shock for consumers and potential sales and profit problems for retailers and suppliers.

Marketers are going to have to get a lot better at explaining themselves to shoppers, of telling the story that goes along with their products and services, because they are going to have to find a rationale for higher prices.