Background: SPC is one of Australia's largest food manufacturers, best known for its pantry staples (think: baked beans, spaghetti, tinned tomatoes, fruit cups). If you grew up in Australia, chances are SPC made a lunchbox appearance at some point. SPC returned to the ASX in 2024 after nearly 20 years off the market - following its merger with Original Juice Co.

What happened: SPC has seen its sales of canned goods jump by up to 20% in late March (forget toilet paper…we've officially entered the baked beans era). The reason? Shoppers are anticipating a spike in prices due to the the war in Iran so they're trying to beat the price-hike.

What else: With the Strait of Hormuz still blocked, input costs are expected to increase through the entire supply chain (from oil to transport, to packaging).

What's the key learning?

💡 Cost-push inflation occurs when it becomes more expensive to produce goods, so businesses pass those costs onto consumers through higher prices.

💡 Oil prices impact way more than just fuel. A 60% jump in oil prices affects transport, manufacturing, packaging, and even agriculture - making everyday goods more expensive to produce and distribute.  

💡 Price expectations can drive demand today. With transport costs already rising (up to 36% locally), consumers are stocking up early... trying to get ahead of higher prices before they hit.