E. A. Sween continues to see rising costs in the areas of logistics, labor, and raw materials. As a result, new pricing for our products goes into effect on Sunday, July 3, 2022. A price increase is never ideal, and we’ve actively worked to avoid one whenever possible. This price increase allows EAS to continue to provide excellent quality and service despite the explosive increase in demand for safe, pre-packaged, ready-to-eat sandwiches.
We want to take a deeper dive into the details behind the price increase.
Labor Costs Continue to Rise
The United States continues to see labor issues, especially in the manufacturing industry. Workers are not as willing as they used to be to do shift work, preferring more flexible schedules. Increasing pay, offering signing bonuses, and cross-training are all part of the strategy to acquire new talent. We have a four-tired approach to solving this labor issue and show our employees that we value people most of all:
1. Training – We recently hired a training manager to nurture loyal employees.
2. Co-packers – We continue developing new relationships and building upon our current relationships with co-pack partners.
3. Machine Automation – We purchased new lines to help modernize our production.
4. Expansion - In May, we announced the building of a new plant in South Carolina.
Increased Freight and Logistics Costs
Gas prices continue to rise to an all-time high, placing pressure on all points of the logistics channel. In addition, freight companies are still trying to attract truck drivers and need to offer competitive wages and hours to acquire talent. This, in turn, adds to the rising costs of freight.
Turbulent Raw Material Costs
Increased labor and freight costs directly impact the raw materials needed to produce our products. Turbulent raw materials markets are no stranger to price increases, boosted prices on everything from wheat, poultry, and packaging film.
We appreciate your continued support of our business. We know you have options for pre-packaged, ready-to-eat sandwiches, and we thank you for selecting us as a partner. Should you have any questions or concerns about this increase, we encourage you to reach out to our Sales Manager.
We’ve included links to relevant articles addressing national issues with labor, gas prices, and raw materials:
The Three Biggest Staffing Challenges For 2022
Gas Prices Set Another Record
The State of Manufacturing’s Labor Problem
Expect Higher Prices for Consumer Products
