‘Inflation was killing my grocery budget’ — Meal delivery company uses inflation fears in latest ad

- Advertisement -


,“Inflation was killing my grocery budget before I even found it. I’m too busy cooking every night.”,

- Advertisement -

This was the beginning of an online video ad that aired factor75, a food delivery company that specializes in bringing fully prepared, diet-friendly meals to consumers.

- Advertisement -

Factor75 is using inflation concerns in its latest ad campaign in an effort to drive consumers away from grocery stores and into their meal subscription service. The company says that grocery stores are being hit hard by inflation in the US, which is actually true given the latest inflation data. But it’s not entirely clear whether pre-made services are free from supply-chain issues, pandemic food demand and other factors that are sending food bills higher.

Consumer prices rose 0.5% in December, pushing the cost of living to a nearly 40-year high of 7% last year. One particular area of ​​price increase over the past year is actually at the grocery store—Americans are paying 15.2% more for beef, 20.7% more for eggs, and 5.9% more for milk, for example.

- Advertisement -

The most popular membership option from Factor75 includes eight meals per week for $12.38 per meal per person, yet is likely to cost more per meal than a person would spend to buy groceries.

But is it effective to use inflation fear as a strategy in your advertising? Is this ethical?

See why your favorite grocery store products are suffering from ‘shrinkage’

“Companies have a long history of using ‘inflation’ in their advertising,” Doron Gerstel, CEO of Perion, a global advertising company that executes ads on multiple platforms, including digital and TV, told Businesshala in an email. “It hasn’t happened recently, because we’ve lived in such a low inflationary environment.”

“However, in the 70s and 80s, we would see ads that promised ‘prices that beat inflation’ all the time. If the offers are valid, it is ethical, and it may be in effect for some time. Once everyone starts making the same statement it becomes the wallpaper,” Gerstel continued.

Representatives for Factor75 did not respond to Businesshala’s request for comment on this story.

Factor75 is similar to food delivery companies HelloFresh and Blue Apron APRN,
+1.05%
But delivers fully prepared meals instead of a do-it-yourself meal kit. At times during the COVID-19 pandemic, food delivery companies like Blue Apron saw a surge in demand as people made limited travel outside their homes.

In 2020, the German-owned US subsidiary Hello Fresh buys Factor75 Inc., For a part-stock deal worth up to $277 million.

See ‘Are you guys into crypto?’ – Kim Kardashian, Floyd Mayweather Jr sued for their involvement in alleged crypto scam

The news comes as an academic who predicted the Dow 20,000 DJIA,
+0.07%
The saying is that inflation in the US is mainly caused by “too much money chasing too few goods”.

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox