A Long and Winding Road

Reardon sees little relief in sight. “There is no sign of a softening in oil and raw materials inflation, so margins will be squeezed at all levels of the value chain,” he says. This is true in the prime label market particularly, where brand owners (themselves suffering from spiraling oil-associated costs, etc.) are aware of supply-side pressures, but need to mitigate necessary increases. Suppliers are doing their best to find cost-cutting solutions.”