Introduction
As snack lovers, we all know that our favorite treats can be expensive. But now, it looks like they may be getting even more expensive. According to a recent statement from a major snack company, prices for some of our beloved snacks may be going up. In this article, we’ll take a look at which snacks may be affected and why prices are increasing. We’ll also provide some tips on how to save money on snacks, so you can still enjoy your favorite treats without breaking the bank.
These Beloved Snacks Will Keep Getting More Expensive, Company Hints
It looks like snack lovers may have to start budgeting a bit more for their favorite treats. According to a recent statement from a major snack company, prices for some of the most beloved snacks are likely to increase in the near future.
The company, which produces a variety of snacks including chips, crackers, and popcorn, recently announced that it is considering raising prices on some of its products due to rising costs. The company cited higher costs for ingredients, packaging, and transportation as the main reasons for the potential price hikes.
The company did not specify which products would be affected by the potential price increases, but it did note that some of its most popular snacks could be impacted. This means that snack lovers may have to start budgeting a bit more for their favorite treats.
The news of potential price increases comes as a disappointment to many snack lovers, who have come to rely on the company’s products for their daily snacking needs. However, the company has assured customers that it is doing its best to keep prices as low as possible.
It remains to be seen how much prices will increase, but it is clear that snack lovers will have to start budgeting a bit more for their favorite treats. In the meantime, snack lovers can still enjoy their favorite snacks without breaking the bank by taking advantage of sales and discounts.
Oreos are about to get pricier. Mondelez International, the food and beverage company responsible for beloved snacks like Ritz Crackers, Sour Patch Kids, Chips Ahoy, and yes, Oreos, said recently that it expects to increase prices yet again as it continues to face labor shortages and commodity inflation.
The snack giant’s latest price hike of 7% took effect this month in the U.S., a change Mondelez had announced back in November. But the company said consumers should expect another increase this year, according to The Wall Street Journal, as Mondelez’s expenses have continued to climb since then.
RELATED: 7 Skyrocketing Grocery Prices That Are Outraging Customers Right Now
Food companies of all stripes have been hit hard by growing shipping and labor costs. Concurrently, the high demand for commodities like wheat and sugar has caused the price of raw materials to surge, ultimately driving product shortages in grocery stores across the country.
“[Suppliers] don’t have enough for all their customers, so they basically say you’ll have to pay what I tell you to pay,” Dirk Van de Put, Mondelez’s CEO, told The Wall Street Journal. “It’s all out of whack.”
While Mondelez has not disclosed exactly how much it expects prices to rise this year, Van de Put said the company will have to monitor the ongoing supply chain issues, particularly in North America where the disruptions have been the most prominent.
The news of Mondelez raising prices comes less than six months after nearly 1,000 union workers went on strike at the company’s U.S. factories due to disagreements over labor contracts. These labor challenges, along with the soaring demand for products, drained the company’s inventories.
“The effect of [the strike] may modestly linger, but should dissipate as the year progresses,” John Boylan, an analyst at Edward Jones, told Reuters.
Van de Put said these issues also affect how much advertising the company can do, with Mondelez not being able to allocate as much money to the promotion of its snacks. However, while the pandemic continues to disrupt the supply chain, it has also “fueled consumers’ desire for comfort and indulgence”—two trends that have benefited Mondelez’s snack sales, Van de Put said.
For more grocery-related news, don’t forget to check out A Shortage of Avocados Is Causing Prices to Skyrocket.
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