The WIC Food Package: Prices and Store Formats
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1 The WIC Food Package: Prices and Store Formats Institute of Medicine Workshop: Methods and Approaches to the Assessment of WIC Food Packages March 1, 015 Percent change in the annual Consumer Price Index (CPI) for food at home, year average:.6% Annemarie Kuhns USDA, Economic Research Service Percent change in the all items consumer price index (CPI) and food CPI, Percent change in the Consumer Price Index (CPI) by sub category, Economy wide Inflation Food Inflation Apparel Housing Transportation Food Medical care
2 Energy, 6. Where a food dollar goes Finance & Other,.6 Insurance,.6 Retail trade,.6 Wholesale trade, 1.9 Agribusiness,.6 Transportation, 4.7 Farm production, 14.6 Food processing, 4 Packaging,.1 Source: USDA, Economic Research Service, forecasts, by retail food category Other foods Nonalcoholic beverages Cereals and bakery products Sugar and sweets Fresh vegetables Fresh fruits Fats and oils Dairy Poultry Pork Beef and veal Source: USDA, Economic Research Service. 5 6 WIC food: 015 inflation Peanut Butter Dried Beans Lowfat Milk Canned Fish and Seafood Non white Bread Rice Nonfrozen Juice Bananas Retail inflation, by food category Price Index, 000 = Cheese Breakfast Cereal Source: USDA, Economic Research Service Breakfast Cereal Bread Processed Fish and Seafood Milk Frozen Juices Fresh Produce Peanut Butter Dried beans, peas, and lentils 7 8
3 Average retail food prices, by year Year (extra large, per dozen) $1.94 $1.68 $1.75 $1.9 $.0 Annual grocery store inflation by city, Skim/Low fat Milk (per gallon) $.5 $.57 $.69 $.0 $.0 0 Anchorage Seattle Las Angeles Houston St. Louis Chicago Detroit Atlanta New York Pittsburgh American Cheese (per ounce) $0.48 $0.48 $0.48 $0.46 $0.9 National Average Annual percent change scale < % to % > % Source: USDA, Economic Research Service using Bureau of Labor Statistics data Source: IRI Consumer Network data, 008 to Average retail food prices, by region U.S. Midwest South West January 015 Whole wheat bread, per lb NA White rice, per lb NA , per doz NA Whole milk, per gal OJ frozen concentrate, 1 oz NA Bananas, per lb Iceberg lettuce, per lb NA Dried beans, per lb NA Retail food landscape Convenience stores and dollar stores are increasing their food offerings Competitive strategies can differ according to store format Supercenters and club stores have undergone rapid expansions Note: NA = data not available 11 1
4 Supercenters and club stores Dollar Store 5% Supercenter 1% Mass Merchandiser % Club Store 1% Other % Supermarket 14% U.S. Market Share by Format Drug/Convenience 74% Source: USDA, Economic Research Service s Food Environment Atlas 1 Source: USDA, Economic Research Service using Nielsen TDLinx data, Shares of food at home expenditures, by store format, Price for WIC food packages in California higher at smaller stores Share of Total Food Expenditures Supermarkets Drug Stores Mass Merchandisers Supercenters Club Stores Convenience Stores Other Source: Nielsen Homescan ( ) and IRI Panel (010 01) data
5 Average retail food prices, by store format Store format California Store access issues Low access at 1 and 0 miles Texas Traditional Non traditional (extra large, per dozen) $1.9 $1.77 Skim/Low fat Milk (per gallon) $.89 $.94 American Cheese (per ounce) $0.48 $0.4 Source: IRI Consumer Network data, 008 to 01. Source: USDA, Economic Research Service s Food Access Research Atlas WIC redemptions per capita, 01 WIC authorized stores, 01 California Texas California Texas Source: USDA, Economic Research Service s Food Environment Atlas Source: USDA, Economic Research Service s Food Environment Atlas
6 Amber Waves: Presents current ERS economic and policy research on agriculture, food, rural America, and the environment for policymakers, academics and the public. Via web connection or mobile app Resources ERS Retail Food Price Forecasts: products/foodprice outlook.aspx Food Environment Atlas: products/foodenvironment atlas.aspx Food Access Research Atlas: products/foodaccess research atlas.aspx 1 Thank You! Contact Information Food Prices and Markets: Annemarie Kuhns amkuhns@ers.usda.gov OR Contact Information Food Access and Food Environment Atlas: Elizabeth Beaulieu ebeaulieu@ers.usda.gov David Levin David.levin@ers.usda.gov
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