Wholesale retailer warns beverage shortage, price hikes to happen this summer
Supply chain crisis took wholesale industry ‘by surprise’ amid product shortages, Boxed CEO said
Boxed CEO Chieh Huang argues product shortages took wholesale industry ‘by surprise’ amid supply chain crisis.
As inflation continues to soar nationwide, a wholesale retailer warned that Americans can expect more shortages and more price hikes this summer.
"This summer, I think beverages, you're going to start to see kind of increased prices or shortages just because… already these factories are pumping it out at full capacity, you add in the increased demand of the summer, we don't know where that's going to go," Boxed CEO Chieh Huang told "Varney & Co." Monday.
Huang’s comments come on the heels of the country seeing roaring high inflation, supply chain issues, and a baby formula shortage.
According to Huang, the supply of baby formula has been "on and off" within his company and noted that product shortages took the wholesale industry "by surprise."
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"It's pretty spotty, as with a lot of things on the shelves these days," Huang said.
He also discussed efforts to help alleviate costs for consumers by eliminating shipping charges on food for customers with a membership.
Boxed CEO Chieh Huang discusses how his company is dealing with product shortages and cutting food costs for his customers with a membership.
"What we're seeing is that the consumer is really in a difficult situation right now… a lot of folks are spending just basically on necessities almost paycheck to paycheck or meal to meals… they really need the help," he explained.
When Varney asked if Boxed has a price increase set in for products distributed amid soaring inflation, he responded: "It depends on the category."
Boxed CEO Chieh Huang told FOX Business that the supply chain crisis took the wholesale industry ‘by surprise’ amid product shortages. (Fox News)
"[Inflation] hasn't abated… where does this end?... As we discuss with these suppliers who are now bringing on more… cost increases, where does it end, for not only retailers but for the consumer? And that's what we've got our eye on," he said.