Kids may have Smaller Bite Lunches as Economic Crunch Worsen

Kids worry about homework, teachers and the school bully.  Parents however are getting worried about their children’s lunches.

Prices Increase, Packages Get Smaller

As the prices of food continue to rise while packages become smaller, parents are at a loss how to stretch their already meager food budgets.  The shifting food buying habits of parents to keep costs down will certainly teach children a lesson or two on economics.  

This year, school children should expect to eat more hot lunches.  On the other hand, some kids will have bags full of home packaged chips and cracker biscuits instead of the customary prepackaged lunches.  Peanut butters will become a staple fare if this hasn’t been banned by school authorities due to allergies it may cause.  It may replace meat for lunch or the cheaper alternative Spam.

According to Marcia Mogelonsky of Mintel International, today’s lunch preference will focus less on convenience.  Parents will tend to consider the bottom line as they shop for cheaper deals.  However they will still look for the basics such as fruits, vegetables, proteins, chips and cookies.  Mogelonsky said this would not be easy for most parents.

Parents are not just asking how much the items cost but how they cost compared to the items they used to buy.

Food Companies Pressured by High Cost of Raw Materials

Major ingredients such as corn, wheat, and soybeans are higher and they exert pressure on the profit levels of food companies.  It is not surprising therefore to see big food companies such as Kraft, Sara Lee, and Hormel passing the burden of high prices on consumers in order for their companies to keep earning profits.

Food companies are also reducing their product sizes and shelving certain product lines to keep costs down.  Unilever’s Skippy peanut butters are now prepackaged in 16.3 ounces jars but they look the same as the 18 ounces jars.  That’s because the jars now have large indentations at the bottom.  Kraft on the other hand is phasing out some of its items or reducing the sizes of its deli cheese lines.  Meanwhile, Sara Lee already reduced the size of its Hillshire Farm deli meat to 9 ounces from the previous 10 ounces packaging.  Prices however were not reduced.

There are stores that advise parents on buying techniques.  Save-A-Lot, a chain store targeting bargain shoppers, launched a campaign to teach parents how to make turkey slices wrapped in tortillas that cost only $1 per serving.

Hollis Bischoff has two school children that pack their lunches for many years already.  According to Bischoff, this teaches their children how to save because they know the items they should eat.  It can also teach them how to save and spend money wisely, according to Bischoff.