Inflation and Pricing Trends - Food at home index increased by 03% in May, contrasting with a decrease of 04% in April [1] - Supply and demand issues, rather than tariffs, are significant contributors to cost increases, particularly concerning herd sizes which are at a 40-50 year low [4] - Increased fuel, labor, and energy prices are putting pressure on suppliers [17] Tariff Impact - Tariffs are impacting small suppliers, with a 10% tariff on bananas being split between the importer and the company, each absorbing 5% [7] - Specific tariffed items include bananas, pineapples, wines, and champagne from Europe [6][7] - Some products like avocados and salmon are not subject to tariffs [7] Consumer Behavior and Savings - Customers are generally feeling confident, and the company has not yet raised prices due to tariffs [3] - The company avoids raising prices because even a small increase (e g, from $499 to $509) can decrease sales [13] - Customers can save by checking specials, using apps, and trying private label products, which can offer savings of around 20% [14][15] - Sampling demos in stores can double or triple sales of an item [16] Local Produce and Supply - Local produce and fruits/vegetables are currently in season, providing good opportunities [9] - The US relies on imports for tropical fruits like pineapples and bananas due to limited domestic growing regions [11][9] - Lobster prices have decreased in the US due to high tariffs on US exports to China, resulting in ample domestic supply [8] Food Recalls - Food recalls are unpredictable and require quick reaction to clear shelves and notify customers [12]