The Dairy Bar: Powered by Ever.Ag

The Dairy Bar: Powered by Ever.Ag

Read the latest issue of The Dairy Bar, a bi-weekly report from IDFA partner Ever.Ag. The Dairy Bar features spotlight data, key policy updates, and a one-minute video that covers timely topics for the dairy industry.

The Dairy Bar: Update on Energy Prices; Combo Deals Enticing Consumers; and Butter Markets in a Minute!

Quick Bites: Combo Kollabs Entice Diners

• Fewer Americans are dining out as inflation keeps pressure on pocketbooks. Data by Placer.ai shows foot traffic at restaurants dipped 0.5% year-over-year in September and declined by roughly the same margin during the first three weeks of October. But quick-service chains are hoping to reverse the trend with discounted "meal deals."
• Various combos - including Wendy's latest partnership with the TV show SpongeBob Square Pants - are moving the needle for individual fast-food chains. Placer.ai reported foot-traffic at Wendy's locations increased 24% versus typical activity between October 8-10, in the early days of the Krabby Patty Kollab release. Analysts also expect meal deal popularity to persist amid higher menu prices - overall restaurant inflation increased 4.0% on the year in September. Some discount combos also stack up favorably versus grocery prices, which climbed 1.3% year-over-year.

Today's Special

• U.S. power usage is expected to reach a record high this year. But with energy prices declining, consumers may have more money in their pockets this holiday season.
• Crude oil markets retreated over the summer as economic struggles in China, the world's largest oil importer, dented global demand outlooks. Though OPEC members agreed to extend production cuts to support prices, adequate supplies and potential ceasefire talks in the Middle East are keeping markets from climbing too high. As a result, the national average price for gasoline could dip below $3.00 per gallon in the coming weeks. This month, the Energy Information Administration also revised lower its diesel price outlook to $2.40 per gallon, down from $2.50 the month prior.
• Natural gas prices, on the other hand, are rising amid increased exports. While U.S. natural gas consumption is expected to remain flat through the fourth quarter and into 2025, international demand is expected to underpin markets. Still, prices for 2024 are forecast at $2.30 per metric million British thermal unit (MMBtu), down from $2.50 last year.
• Overall, the U.S Bureau of Labor Statistics reported energy prices declined 6.9% year-over-year in September, offsetting increases in other categories and helping keep the Consumer Prices Index at +2.4%.
• As a result, consumers may have more money for discretionary purchases. According to research by JPMorgan Chase, Americans spend roughly 80% of their savings on gas prices. Of that amount, about 20% is spent at restaurants. Department stores, entertainment, electronics and appliances also get sizeable shares of fuel savings.

Something Sweet: Butter Markets