In this clip from The Call @ Hedgeye, Consumables analyst Daniel Biolsi flags the promotional intensity in the grocery channel and the current inflationary impacts on his sector.

(This clip is a small taste of what our subscribers get each day on The Call @ Hedgeye. In a nutshell, The Call is our morning research call hosted by Hedgeye CEO Keith McCullough with our 40+ analyst research team. It helps small and large investors alike make better decisions via unique and investable stock/sector updates Click here to learn more.)

Editor's Note: Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.

The promotional intensity in the grocery channel has pulled back with the Delta variant, as seen in the following chart.

According to IRI, the percentage of CPG items purchased on promotional was 3% lower YOY in the week ended September 26.

For edible items, the promotional intensity was 4% lower YOY, flat compared to the prior week. For non-edible items, the promotional intensity was much higher, +12% YOY, down 1% from the prior week.

The most promotional sub-categories were general merchandise and home care, while beauty was 1% less than the prior year.

Among edible sub-categories, beverages were the least promotional down 12% YOY, while general food was 1% higher and beverage alcohol was 2% higher.

Thus, the level of promotions appears to rise and fall with COVID-19 concerns.

Inflation Continues To Impact Consumer Staples - yq