00:00Emily, they lowered prices, so what went wrong here?
00:03So I think what we're seeing now is consumers are trading down.
00:08Think about the brands that are General Mills, Cheerios, other snack foods,
00:12where there are private label options that are cheaper.
00:16I think the same can be said about pet food.
00:19People are trading down to cheaper options right now,
00:22and either these are the kinds of foods that you just don't need in your pantry.
00:28They're more disposable. They're not the staples.
00:31Or that there are cheaper options at the grocery store.
00:34Even for pets? I feel like that's got to be a signal,
00:37because people love spending money on their pets and buying the finest delicacies
00:42that their tiny little Bichon frise could eat.
00:45You're so right, and I think in the pandemic, we saw a rapid rise in pet ownership.
00:50When people have more disposable income, they're likely to splurge on their pets.
00:55But that's where we're seeing people cut back now.
00:57We're seeing people cut back on the things that they don't need.
00:59Obviously, hopefully, they're still feeding their pets,
01:02but they're not splurging on the brand names.
01:05There are private label options. There are cheaper options.
01:08And that's where General Mills is struggling.
01:11So what does a General Mills do? I mean, do they keep cutting prices?
01:14Because we've seen, for example, I know it's different. It's not groceries.
01:17But McDonald's slashed their prices pretty aggressively.
01:20And then that led to a really good earnings season.
01:23Is that the tactic going forward? Keep prices as low as you can?
01:26It's interesting, and we'll see more this week.
01:29I'm curious to hear what Walmart has to say about prices.
01:32A lot of companies have been eating the cost of tariffs for a year now.
01:38And there might not be much room for them to keep taking on higher costs and lowering prices.
01:46So some companies in the consumer space are raising prices.
01:51So we'll see how long they can do.
01:54General Mills did say in the categories where they did cut prices, they saw volume up.
01:58But obviously, that's not enough to keep their bottom line growing.
02:02I mean, we actually went to the market to test homes when it was succ educate.
02:03So I can imagine some experts were talking about paying a price of 치료 Com sick.
02:03But we'll see how they got tidying into that bo Richtung.
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