As inflation continues to rise heading into the new year, food companies have announced the prices of a variety of foods are expected to rise in 2022. These companies are facing escalating costs for labor, commodities and freight.
“In the face of an unprecedented combination of input cost inflation and supply chain disruptions, we’re moving quickly to keep our trusted brands on store shelves for consumers while driving net price realization to protect our bottom line,” General Mills CEO Jeff Harmening said in a news release announcing the company’s fiscal year 2022 second quarter results.
According to the Wall Street Journal, General Mills has been raising prices for its products through a variety of measures, including list price increases and changing packaging and sizes to charge more per ounce. Last week, the company said further increases will take effect in January.
Snack maker Mondelez international, the company behind Oreos, Ritz crackers, Sour Patch Kids and more, made a similar announcement last month, stating prices will rise 7% in January.
“Demand for our categories and brands remains vibrant and volume growth is solid as we implement pricing to reflect higher inflation,” Mondelez CEO Dirk Van de Put said in a news release announcing the company’s 2021 third quarter results. “We expect elevated inflation and logistics volatility to persist, but remain confident in our plans to deliver on our financial algorithm.”
Inflation is also expected to affect the price of products created by food giant Kraft Heinz. According to a company memo reviewed by the Wall Street Journal, Kraft Heinz would raise prices across many of its products including Jell-O pudding and Grey Poupon mustard.
Prices for Kraft Heinz products are expected to go up 5% on average. But select items will cost up to 20% more. Kraft Heinz claims it is eating some of the inflation costs. Company officials cited production costs for Grey Poupon going up 22%, with customers only paying up to 13% more, as an example.
The expected rise in food prices comes as consumer prices as a whole hit a nearly 40-year-high in November. The Labor Department reported the year-to-year inflation rate came in at 6.8%.
