Good morning! Another week is in the books, but unfortunately it ended on a down note with the consumer price index (CPI) being released and showing the highest increase since December 1981. The early 80’s weren’t “The Best of Times” for the economy, so “Don’t Stop Believing” in inflation peaking.
Supply Chain Conditions
Traeger presented at an investor conference and noted how their products aren’t as impacted by macroeconomic factors, especially on models over $1,000. They also are seeing some improvement in supply chain conditions and raw material costs. They said it won’t impact their P&L this year. That could be true, or they could be counting on it offsetting a negative elsewhere in the business. We may never know, but my finance experience tells me to save the upside for when you need it.
Sticking with the consumer, we took a look at May search trends and they showed signs of growth from 2019. We’ve seen some pretty bearish articles about the grilling segment, but comparing 2022 to a year where everyone had to stay home or outside (2020), or when checks were sent out to stimulate the economy (2021), seems pretty unrealistic.
The negative economic environment didn’t stop kayak maker, Pelican International, from acquiring outdoor cooking company GSI Outdoors. It’s a good addition to their portfolio and is added competition to companies like Camp Chef, Coleman and Solo Brands.
Regional BBQ Trends
Do you like to have a cookout or a barbecue? It turns out it depends on where you live in the country, with a strong concentration of the “cookout” crowd in the Southeast. Your also more likely to be cooking outdoors if you’re in Missouri, Georgia or North Carolina. Don’t even get us started on the great soda vs. pop debate.
This Award Goes To
Congrats to Dansons for taking home the 2022 Communicator Award of Excellence for the I Am Pit Boss video series. It’s an interesting series with their brand ambassadors talking about why they partner with Pit Boss.
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