Grocery Stores Fight Back Against Food Prices

A year ago, when the cost of commodities such as wheat, oil, and corn was soaring, grocers grudgingly accepted price increases from Kellogg (K), General Mills (GIS), H.J. Heinz, (HNZ) and other food manufacturers. The strange thing is, those price tags never came back down, even when commodity prices collapsed in the fourth quarter of 2008. As a result, grocers have little cheer to offer their shoppers at a time of deepening economic gloom. "The prices don't seem to go down as fast as they go up," says Jeffrey Noddle, CEO of Minneapolis-based Supervalu, one of the nation's leading grocers.

Business Week