Food prices around the world are on the rise, particularly for meat, sugar and coffee, and companies like Royal Caribbean are finding ways to deal with the problem.
Royal Caribbean Chief Executive Richard Fain says the cruise line is hedging increases in cattle prices, that hasn't fully offset its rising costs for beef. Since the fall of 2010, meat prices have risen for Royal Caribbean and since the steakhouses aboard their ships are the most popular according to Fain, it makes sense for Royal Caribbean to be concerned. Royal Caribbean serves about 53 million pounds of beef, poultry, lamb, veal and pork a year.
"Meat is important to our guests," Mr. Fain adds. "We aren't prepared to sacrifice the quality and we can't raise prices enough to reflect it, so it ends up being a cost we have to absorb." Royal Caribbean is also paying more for citrus fruits and fish, particularly shrimp, another popular dish on its cruises.
