THIS IS GOING TO BE IMPACTING
EVERYBODY.
LIZ: JOINING ME NOW TO GIVE HIS
PERSPECTIVE ON RISING COSTS FROM
INSIDE THE INDUSTRY, STEW
LEONARD JR., THE PRESIDENT AND
CEO OF GROCE ARELY STORE CHAIN
CITY THE LEONARD’S -- STEW
LEONARD’S --
>> THAT WAS JUST A CUSTOMER THAT
WALKED OVER --
LIZ: BY ALL MEANS --
[LAUGHTER]
BRING ’EM BACK.
>> I’M TALKING TO LIZ.
LIZ: WE HAVE A SITUATION RIGHT
NOW THAT IS LEADING SOME
PROGNOSTICATORS TO PREDICT THAT
WE WILL HAVE BREAD SHORTAGES.
PLEASE TELL ME WHAT YOU’RE
SEEING AT THE MOMENT AND WHAT
YOU EXPECT TO SEE WITH THESE
HIGH WHEAT PRICES AND THE
SITUATION IN UKRAINE AND RUSSIA,
BOTH OF THEM TOGETHER EQUAL
ABOUT 40% OF THE WORLD’S WHEAT
OUTPUT.
>> YOU KNOW, LIZ, THAT WAS A
SHOCKING STATISTIC I JUST
LEARNED.
I DIDN’T REALIZE UKRAINE AND
RUSSIA PRODUCED THAT MUCH OF
THOSE COMMODITIES WHICH AFFECTS
EVERYTHING EVEN ARE FROM IF
SOYBEAN OIL AND THINGS LIKE
THAT.
SO THAT’LL DEFINITELY HAVE AN
IMPACT.
BUT, LOOK, I’VE BEEN IN THE
BUSINESS, OUR FAMILY HAS,S FOR
50 YEARS NOW.
I’VE I’VE RIDDEN THESE SUPPLY
AND DEMAND CURVES OVER MY
LIFETIME.
RIGHT NOW I GOTTA SAY MY CRYSTAL
BALL IS BROKEN.
I CAN’T FIGURE OUT WHAT’S GOING
TO HAPPEN.
LIZ: WOW.
>> BUT I WOULD SAY THIS, I
WOULDN’T SAY PEOPLE HAVE TO
WORRY ABOUT A SHORTAGE.
I THINK, IF ANYTHING, IF THERE’S
STILL THE DEMAND OUT THERE,
YOU’RE GOING TO SEE THE PRICES
TICK UP A LITTLE BIT.
LIZ: OKAY.
BUT, STEW, WHEN YOU ELIMINATE
40% OF ANY MARKET, YOU KNOW THAT
SUDDENLY, AT LEAST
PSYCHOLOGICALLY, PEOPLE MAY
START TO BECOME PREPPERS AGAIN
WHICH IS WHAT WE SAW IN THE
PANDEMIC WHERE THEY MAY
STOCKPILE BREAD AND PUT IT IN
THE FREEZER.
ANY KIND OF BEHAVIOR LIKE THAT
YET?
>> FIRST OF ALL, LIZ, THAT’S A
GOOD POINT.
I WOULD RECOMMEND PEOPLE TO DO
THAT RIGHT NOW.
YOU’VE BEEN TALKING TO ALL THESE
STOCK PEOPLE ABOUT WHETHER TO
BUY THIS STOCK OR THAT STOCK, I
WOULD SAY SOMETHING PERSONAL YOU
WANT TO DO -- FORGET ABOUT THE
STOCK MARKET, LAO LOOK AT YOUR
OWN PANTRY AND FREEZER.
IT’S PROBABLY A GOOD TIME RIGHT
NOW TO STOCKPILE SOME FOOD A
LITTLE BIT LIKE THAT.
YOU CAN SEE THINGS LIKE CHICKEN
WHICH ARE GOING UP, USED TO COST
AT STEW LEONARD’S ABOUT $5,
WELL, IT’S $8 NOW BECAUSE I’M
TALKING TO THE FARMER, I WAS
JUST TALKING TO A GUY THIS
MORNING, AND HE’S GOT TO PUT
FUEL IN HIS TRACTORS IN THE
MORNING AND HIS CORN PRICES ARE
GOING UP, CHICKEN FEED, ABOUT A
POUND AND A HALF OF CORN EVERY
YEAR, SO IT’S COSTING HIM MORE
MONEY.
WHAT I’VE BEEN DOING WITH THE
FARMERS IS I’VE BEEN SAYING TO
THEM, LOOK, LET’S SPLIT IF IT 50
WILL HAVE -- 50-50.
I’LL EAT HALF OF THE INCREASE,
YOU EAT HALF.
THEY’VE ALL AGREED TO THAT SO
FAR.
I’M HOPING, I’VE BEEN OPTIMISTIC
THAT ALL OF THESE SUPPLY AND
DEMAND DISRUPTIONS ARE GOING TO
BE SETTLING OUT A LITTLE BIT IN
THE NEXT FEW MONTHS.
BUT LIKE I SAID, I’VE BEEN
SAYING THAT FOR TWO YEARS NOW.
LIZ: WELL, YEAH.
BUT THE SITUATION --
>> IT’S TOUGH.
LIZ: RIGHT.
AND WHAT WE’RE SEEING NOW IN
EASTERN EUROPE HAS REALLY RAMPED
UP THE ANXIETY, I BELIEVE.
BUT YOU JUST MADE A GOOD POINT
ABOUT HOW THE FARMERS NEED THEIR
GASOLINE AND SO I LOOK AT THAT
AND I SAY IS, WELL, NOW WE’VE
GOT A REAL PROBLEM BECAUSE IT IS
REALLY WORKING THROUGH.
I HAVE SEEN THIS HEADLINE, A NEW
EXPORT BUSINESS FROM RUSSIA HAS
BEEN SUSPENDED.
BUNGE, OF COURSE, A BIG GLOBAL
GRAIN TRADER, TICKER SYMBOL BG.
THIS IS REALLY STARTING TO BE A
WAVE OF COMPANIES SAYING NO MORE
BUSINESS WITH RUSSIA.
WE’RE DONE.
IF YOU HAVE A PERSONAL
EXPERIENCE WITH FEELING AS IF
THIS IS A STORY WE HAVE SEEN
BEFORE, AND I’M TALKING ABOUT
THE NAZIS AND WORLD WAR II.
>> HEY, MY MOM WAS A HOLOCAUST
VICTIM.
YOU KNOW, SHE WAS A SURVIVOR.
I TELL MY CHILDREN, I HAVE FOUR
DAUGHTERS AND, OBVIOUSLY, A LOT
OF NIECES AND NEPHEWS, BUT WHAT
WE’RE SEEING IN UKRAINE TODAY IS
SORT OF LIKE WHAT HAPPENED TO MY
MOM.
SHE A HAD TO FLEE GERMANY BACK
IN THE LATE ’30s.
SO IT’S VERY, VERY MEANINGFUL TO
OUR FAMILY, WHAT’S HAPPENING IN
THE WORLD RIGHT NOW.
I’M SAD ABOUT IT.
I WANT TO TRY TO HELP OUR
CUSTOMERS AS MUCH AS I CAN.
WE’RE STUCK BETWEEN A ROCK AND A
HARD PLACE AS A RETAILER.
YOU KNOW, WE HAVE SEVEN STORES
AROUND THE METRO NEW YORK AREA,
AND ON ONE HAND I WANT TO KEEP
PRICES LOW, BUT ON THE OTHER
HAND, I HAVE IS MYFARMERS
CALLING ME AND SAYING, YOU KNOW,
PRICES FOR THEM, HAIR COST IS
GOING UP.
THEIR COST IS GOING UP.
YOU KNOW, I CAN’T HURT A FARMER,
YOU KNOW?
THEY’VE NOT, THEY’RE NOT, YOU
KNOW, FANCY SPENDERS OR
ANYTHING.
SO I’M STUCK, AND I’M JUST
HOPING ALL OF THIS WILL WORK ITS
WAY OUT.
BUT YOU KNOW WHAT?
YEAH --
LIZ: GO AHEAD.
>> ON A POSITIVE NOTE YOU WANT
TO SEE COOLEST PRODUCT AT STEW
LEONARD’S RIGHT NOW?
LIZ: I DO.
>> LOOK AT THIS PUNCH THAT WE
HAVE.
PUTIN’S PUNCH.
[LAUGHTER]
LIZ: WHAT IS THAT?
[LAUGHTER]
>> THIS IS A FAMILY BUSINESS UP
THERE, A CONNECTICUT STORE
THERE, HAS A FAMILY THAT COMES
UP WITH ALL THESE LABELS.
THEY JUST SHOWED IT TO US, WE’LL
BUY AS MUCH AS WE CAN --
LIZ: YEAH, PUNCH HIM IN THE
FACE.
>> OUR CUSTOMERS ARE LOVING THIS
RIGHT NOW, AND THEY’RE BUYING
IT.
YOU KNOW, JUST SOMETHING,
SOMETHING, YOU KNOW, PUTS A
LITTLE, MAYBE, SMILE ON
SOMEBODY’S FACE RIGHT NOW.
LIZ: WELL, I STEW, YOU PUT A
SMILE ON OUR FACE, BUT I THINK
YOU’RE RIGHT, AND I STARTED TO
STOCKPILE MY FAVORITE ORGANIC
PEANUT BUTTER.
LISTEN, IT’S A TOUGH SITUATION.
GOOD TO SEE YOU, STEW.
PLEASE COME BACK AGAIN.