Pasta Crisis Sweeps the Globe, but Stops at Etto
In case you missed it nearly every major news organization has been reporting feverishly about the major pasta crisis that has bitten Italy. Just do a quick google search or click here: Italian Pasta Crisis.
It seems that prices of raw materials rose and the prices have too even though the prices have recently dropped. There has been some disparity between regions with pasta prices in Tuscany rising over 50% and other with a modest 5% increase. The government is looking into the matter and some citizens have accused producers of price gouging. I have also noticed the prices of Italian pasta rising when I check out some supermarkets (It's hard for me not to walk down the pasta isle).
The truth of the matter is, grain prices rose dramatically over the past couple years, at one point getting so high that I'm sure we lost money on the pasta we were producing (triple our lowest price). Also, the price of cardboard for our boxes and shipper boxes went up too and fuel also for delivering. Lucky for you, I made the tough decision not to raise prices hoping that my sales would increase, which they did, and the price of raw materials would drop too and I'd eventually be in better shape once on the other side. Our pasta price is the same price since we opened Etto.
Did I make the right decision? I sure hope so, but I guess time will tell. Luckily we are playing the long game and we think our price is fair for the quality of our product and represents good value. As prices hopefully continue to drop and we get more efficient things will work out just fine. Thanks for all of you sticking with us and recognizing the quality and value we offer. Let's hope Etto doesn't have to raise our pasta price - it's the last thing I want to do.
