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French's food division president Elliott Penner on expansion plans and how commodity prices are impacting the businesses' bottom line.
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French's you know the mustard company well believe it or not it's more than 100 years old and for writing French's has seen fifteen consecutive quarters of growth but.
Increase prices recently to combat rising commodity costs.
Tell us how that's affecting consumer demand in the bottom line give us his outlook on the state of the US consumer president of French SP division -- pattern mr.
-- it's nice to meet you -- she really as I said have a -- -- to what's going -- with the US consumer.
Prices has -- fifties he said consecutive quarters of growth are you managing these new challenges.
We know we've been lucky we've had united set fifty quarters -- growth and that's fantastic but it hasn't come easily.
On the consumers clearly been impacted by the economy and every time the gas price goes up for every time costs what they're forced to make changes.
It's difficult for mom to balance everything in her budget -- if you think about what's happened in in just your own household do you vote as often as much as he used to where do you stay more at home and consumers are staying home.
Here's the thing to French's yellow bottle it's an iconic American brand and I can't imagine people.
And by end its prices got up as he said but not so much that it's not something that -- X off the grocery list or it I mean -- our time so bad for people.
That you -- Re strategize perhaps with your advertising.
Or something along those lines to make up for that.
A lot of things happening could clearly consumers make choice for a couple of reasons one is they want tapes so -- lucky there we've got great tasting product.
They also want to point of difference so we've got number one -- mustard seed.
You know where an all natural products were zero calorie so that works really well.
For the same time they need help.
On the financial side -- for great value so we've done hasn't actually done the larger sizes.
With a better cost per ounce and they see that -- they see great value with a great taste that they know -- -- Along with a product that gives them really more than any other product that they can purchase.
The Agriculture Secretary US -- secretaries predicting two and a half to three and a half percent food price inflation is that what you're seeing as well is that what you believe will happen depending on what category looking at a can be anywhere from a couple points all the way up we've seen as high as nine and 10%.
So it is is a challenging environment the recent droughts that we're seeing I think it ever really -- in -- that in that direction for sure you have an -- is -- part of your organization extends into Europe.
The factories there I -- different as a sold overseas but this crisis in -- past to be impacting -- as well what's gonna happen as we've got a business that's about 10%.
Is exported outside of the US.
And that changing in pricing of the dollar you know and and and the Euro is really have an impact I think on most business exporting.
I think the costs will manage here.
What's gonna really take place is a changing currency -- have to manage that we're seeing great growth in Europe you know -- UK business is up at a 150%.
And what we're seeing is that more and more consumers looking to have some fun.
Maybe some cheaper funds some less expensive fund.
Are entertaining in the backyard it is cheaper funds outstanding family again and I certainly -- it alone spent a lot of analysts popular -- products.
Ferocity yellows number one with a about a 43 share of the total total business followed by -- and then dean John of the three the three large segments.
We've also got horseradish and -- But that's just part of our business you know francs red hot as another another big piece for -- business which is just a great brand.
Well it's great to meet the guy behind the French's yellow mustard really sure to thank you so much --
