Inflation is not something new for Brazilians. In the 80s, we had to cope with sky-high prices and frequent changes of currency. We are resilient, but 2022 is bringing up some bad memories… The ‘cesta básica’, a Brazilian index that puts together basic food items that a standard family needs for a month, had an increase of 20% in the past 12 months. The price of tomatoes increased 94.6%, and coffee went up 64.7%, for example. People are struggling to make ends meet.

Driven by the pandemic, climate change, war in Ukraine and rising fuel prices, the entire world is experiencing inflation, and we wonder, what’s next? What brands are doing to keep up? 🤔

The food industry is already on it, and smaller packaging seems to be one of the strategies to keep selling products. Reducing product sizes to keep prices lower was already common practice in some parts of Brazil, like the North and the Northeast, and now it is spreading across other regions. Another strategy is to lower the bar on the quality of ingredients. Ultra processed and artificial flavoring are having a comeback. 😭😭😭

On the bright side, the Brazilian currency is becoming more competitive once more. We can only hope it lasts.

What is your business doing to get by during these uncertain times? We would love to know.

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