Packaged snacks like Oreos and Ritz Crackers are going to get more expensive — and that’s even if you can find the varieties you want on store shelves.
Snack maker Mondelez is looking at starting off 2022 with a 7% price increase in the U.S., CEO Dirk Van de Put said during Tuesday’s episode of CNBC’s “Closing Bell.”
Mondelez is one of the world's largest snack companies and is the maker behind brands including Cadbury, Honey Maid, Oreo, Perfect Snacks, Ritz, Sour Patch Kids, Triscuit and Wheat Thins.
Van de Put cited higher prices for commodities, packaging and transportation as factors in the price increase, adding that a shortage of drivers is making it difficult to keep shelves stocked.
"Demand for our categories and brands remains vibrant and volume growth is solid as we implement pricing to reflect higher inflation," said Van de Put in a prepared statement after the company reported its third quarter 2021 results. "We expect elevated inflation and logistics volatility to persist."
It’s not just snack prices that are going up. Higher prices and labor shortages have been plaguing many companies during the COVID-19 pandemic, and those costs have sometimes been passed along to shoppers.
September 2021 food prices rose 4.6% from September 2020, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index, which measures the average change paid by consumers for goods and services. Prices for meat, poultry, fish and eggs saw the highest overall price change with a 10.5% increase year-over-year. Cereals and bakery products saw a 2.7% increase.
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