July Disposables Pricing Index (DPI) Projects Uptick in Costs for Foodservice "Disposables"

July 6, 2010 - PRLog -- Germantown, TN  Strategic Alternatives, LLC today released its proprietary Disposables Pricing Index (DPI) report for July 2010. The new DPI shows a slight uptick in projected costs for disposables (cups, lids, straws, napkins, drink carriers, bags, etc.) as compared to June 2010.

This ‘upward pressure’ we see is the result of two factors:

•   We have been watching an ongoing increase in the cost of NBSK pulp (used to make paperboard for paper cups) over the past four months. During this time frame, the cost of pulp has risen over 12%, which could be a precursor to upcoming price increases for paper based items.

•   The ongoing volatility of the cost of a barrel of oil went against foodservice operators this past month as oil prices increased by about 6.6%. Oil by-products are an important component in the manufacture of many disposables items – most especially plastic cups as well as lids for both hot and cold cups. The good news is that oil costs have actually decreased by about 7% over the past four months.

•   On a positive note, there are no significant announced price increases from the major disposables manufacturers in the market currently.

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Memphis based, Strategic Alternatives, LLC was founded in 2005 and uses an e-based distribution model for disposable foodservice items focusing solely on independent foodservice operators in the Specialty Coffee, Catering, Convenience Store, Not-for-Profit and Concession segments.

Under the Strategic Alternatives umbrella are three brands; BaristaWorks.com®, CaterStock.com® and QwikStock.com® each offering a broad assortment of disposable, “to go” packaging, low (1 case) minimums, 24/7/365 ordering, easy credit card payment and fast shipping. Orders received by 4:00 p.m. (Central time) ship the same business day via FedEx Ground®.