Thought For The Day

I'm taking a day off today to go & visit my kids and my brand new grandchild, so there will be no blog posts again until tonight after the close of CBOT.

Meanwhile one thing that has been on my mind recently that I thought I'd share will you all concerns food demand.

Is it falling in this recession? For sure consumers are spending less on non-essentials, but what about food? The latest figures I've seen show food sales growing at a steady-away pace of around 6.4% in the UK.

It seems that people are changing what they eat and how & where they eat it more than anything else. Look at the sort of people reporting above average growth and recession-busting profits recently:

Morrisons, MacDonalds, Domino's Pizza, Aldi, Lidl. Even Sainsbury's seem to be carving out a future as a perceived "value" brand, with a 60% increase year-on-year in its basics range.

Latest figures on how the supermarkets are faring is due next week, although overall sales growth looks set to be down for the likes of Aldi for example, the picture is distorted by the inclusion of sales of non-food items.

"Food sales are growing and they're growing at the same kind of pace as they were growing through the last 15-16 months," said Aldi's MD in a recent interview with Reuters.

Of course it should come as no surprise that food is the last thing that people start to economise on. So don't go slitting your wrists just yet.

I'm being pressed to load up the car & get going now. I might write a bit more on this topic later in the week.