Tech Price Rises

Apple is increasing the price of MacBooks and iPads worldwide due to rising memory and storage chip costs. The iPhone maker has hiked the prices of some laptops and tablets by almost 20%, saying the electronics industry is facing an "unprecedented challenge" due to an "extraordinary surge" in demand for chips to power AI data centres. "We have never seen a component price increase this much, this quickly," the company said - adding it was working to find solutions. Not long after Apple's announcement, Xbox said it had decided to significantly raise the price of its popular gaming console for the second time in less than a year due to the current "components crisis". The Microsoft-owned company said on Thursday that the price of its basic console will go up by $100 (£75) to $499, while the price of a console with more memory will go up by $150, to $749. New prices will take effect from August. Xbox previously hiked the price of its consoles in October by $20-$70, meaning the price of a new console will be 30% to 40% more expensive than it was this time last year.The company added that while the cost of memory and storage has already more than doubled, it expects the costs to double again by 2027. That seemingly leaves the door open for Xbox to further raise prices. Apple's and Xbox's price hikes follow a slew of firms increasing device prices to help them absorb rising hardware costs.

BBQ - How much will price rises impact the sales?

Tech Price Rise

Cod Prices Increase

 

Fishing quotas in the Atlantic and conflicts around the world have pushed the price of cod higher than ever before, meaning chippies are having to diversify. More and more takeaways are now offering alternative fish species, such as hake, pollock, and monkfish, as lower-priced options. But even with changing menus, there has still been a deluge of chippies closing. At its peak around a century ago, there were approximately 35,000 fish and chip shops across the UK. There are now about 10,000, and industry leaders are concerned more could disappear as prices rise.Margins are tight, and businesses are having to think of new ways to balance the books. It is also difficult to convince the paying public to change their habits, even when a portion of hake is priced at £6.50 compared to £8.20 for cod. As well as diversifying by adding different species of fish to menus, some restaurants believe concentrating on customer service and retaining loyal diners is the key.

BBQ - What price would be too much for fish and chips or is it already too high?

Cod Prices

Hot Sauce Shortages

 

Hot pepper sauce in Caribbean cuisine is as pervasive as ketchup in the US. The fiery flavouring is a staple of dining tables regionwide, the obligatory accompaniment for everything from rice and peas, to curries and stews. And as international palates continue to heat up to the potent taste, a growing number of brands are exported to North America, Europe and Australia, appearing on the shelves of major supermarket chains, from the US's Walmart, to the UK's Tesco, and Woolworths in Australia. But a shortage of the particular chilli pepper used to create the quintessential Caribbean condiment is threatening to stifle supply, while sending costs for the region's producers soaring.A confluence of extreme weather, disease and pests is making core ingredient Scotch bonnet peppers particularly hard to source. The temperamental little, yellow fruit with its susceptibility to heavy rain and viruses can be tough to grow, while devastating hurricanes in Jamaica, a prime producer of Scotch bonnets, delivered a further blow. The Jamaican government has been working to help farmers get back on their feet. That included supplying Scotch bonnet seeds to 650 growers. As the warmer months are now arriving - peak season for both Scotch bonnets and storms - hot sauce manufacturers are keeping their eyes on the weather as well as their profit margins.

BBQ - What would you do if there was a shortage of chili peppers?

Hot Sauce Shortage

Back To Black & White

 

Japanese snack giant Calbee says it will temporarily switch to black and white packaging for some of its best-known products as supplies of an ingredient used in ink have been disrupted by the Iran war. The firm says new-style packets for 14 of its products, including crisps and prawn crackers, will start to appear in shops in Japan from 25 May. In recent weeks, companies around the world have warned that supply disruptions to things like fuel, plastics and helium are pushing up costs for their businesses. Calbee said in a statement that the design change is a response to "supply instability affecting raw materials amid ongoing tensions in the Middle East." "This measure is intended to help maintain a stable supply of products," said Calbee. Oil and gas prices have surged since the conflict started on 28 February as shipments through the Strait of Hormuz halted. Supplies of naphtha, a byproduct of oil refining used in ink and plastics, have also been hit hard. Naphtha prices in Asia have almost doubled since the conflict started, pushing up costs for businesses in the region. Before the war, around 40% of Japan's naphtha was imported from the Middle East, Japan's deputy chief cabinet secretary Kei Sato told reporters on Tuesday. Asian countries have been hit particularly hard by disruptions to shipping through the Gulf as they are heavily reliant on the Middle East for energy and other oil-related products.

, external that the design change is a response to "supply instability affecting raw materials amid ongoing tensions in the Middle East."

BBQ - Why does this show why it is so important to carefully manage your supply chains?

Black & White Packaging

Big Brands Ditch Chicken Pledge

Major restaurant chains, including KFC, have ditched a commitment to improve chicken sourcing standards in the UK as poultry demand soars. Eight restaurant groups, which also include the owners of Burger King and Nando's, have left the Better Chicken Commitment (BCC), in which they pledged to stop using fast-growing chickens, for an industry-led plan without that commitment. Animal welfare groups say fast-growing "franken-chickens" mature quicker but also have higher rates of premature death and muscle disease.Trade body UKHospitality said the industry-led plan will help restaurant firms reduce emissions and meet surging demand for the lean protein while ensuring secure supply chains. The BBC understands the famous chicken chain owned by Yum Brands buys about 4% of the UK chicken supply. An industry source said there is not yet a large enough supply of slower-growing poultry in the UK. However, animal welfare group Anima International said the change was "about money and nothing else". Its UK chief executive Connor Jackson said the companies' explanation for leaving is rubbish.

BBQ - Have businesses put profit over ethics with this decision? What would be the impact of this?

Chicken Supply Chain

 

Pandora to switch from silver to platinum

 

Jeweller Pandora has said it will switch from using silver in some of its ranges to platinum-plating following a dramatic increase in prices. Silver prices have more than doubled over the past year with other precious metals such as gold also surging. Pandora's chief executive Berta de Pablos-Barbier said the aim was not to make all jewellery platinum-plated, but silver will be reduced to around 25% of its goods to reduce its exposure to the metal given the recent volatility. The Danish firm, one of the world's biggest jewellery retailers, currently makes the majority of its products from silver. Although platinum is more expensive than silver per ounce, Pandora said it will create an alloy, which would make it cheaper to use. It said over time, parts of its silver ranges will shift to platinum-plated, using its own metal alloy called Evershine, which it already uses for its gold-plated products. Pandora is well known for its charm bracelets. Chief executive de Pablos-Barbier said that around 60% of its business was currently in silver. Silver prices hit record highs in January before falling back, but remains elevated compared to last year. Pandora said that it would introduce the new platinum-plated range in 2026 before rolling it out more broadly.

BBQ - Will this switch in supplier impact the customer perception of the brand?

Pandora

Penguin & Club Downgraded

 

The classic British lunchbox favourites, Penguin and Club biscuits, have been officially downgraded from "chocolate" to "chocolate flavour" due to a quiet reformulation driven by a global cocoa crisis. The manufacturer, Pladis, reduced the cocoa solids content in the coating below the legal UK minimum of 20% to offset record-high cocoa futures prices—which recently soared to over $11,000 per tonne following poor harvests in West Africa caused by climate change. To replace the cocoa fat, the company increased the use of cheaper vegetable fats like palm and shea oils. This cost-cutting move has had immediate brand consequences, forcing the retirement of the iconic Club slogan, "If you like a lot of chocolate on your biscuit, join our Club," in favour of a less memorable alternative, sparking a considerable social media backlash from consumers who feel they are receiving an inferior product. This trend highlights the increasing cost pressures on confectioners, making real chocolate a growing luxury.

 BBQ - What is the potential impact of this strategy on the company's profitability and brand image?

Penguin & Club

Egg-spensive Easter Eggs

Easter egg prices have surged by up to 56% compared to last year, according to a recent report by Which? This dramatic increase is attributed to a significant drop in global cocoa production, driven by higher temperatures affecting the quality and quantity of cocoa beans. As a result, many popular chocolate treats have not only become more expensive but have also shrunk in size, a phenomenon known as "shrinkflation". For example, an 80g pouch of Terry's chocolate orange mini eggs at Lidl has increased from 99p to £1.35 while shrinking to 70g. Despite these rising costs, consumers can still find good deals by looking for special offers, comparing prices per gram, or waiting until Easter Sunday when many eggs are likely to be discounted. The price of chocolate in the UK has risen by 16.5% in a year, compared to a 4.4% increase for supermarket food and drink overall. At Morrisons, a 200g Cadbury Creme Egg 5 Pack Mixed Chocolate Box increased from £2.62 last year to £4 this year. Similarly, a Twix white chocolate Easter egg at Tesco rose from £5 to £6 while shrinking from 316g to 258g, making it 47% more expensive per 100g. This trend is not limited to Easter eggs; other chocolate products have also seen significant price hikes. For instance, Asda's Fruit & Nut Milk Chocolate 200g bar increased by 73%, from £1.33 to £2.30.

Given these rising costs and shrinking sizes do you think this will impact sales of easter eggs?

Easter Egg Prices