Everything from coffee to mustard is getting more expensive next year, APA reports citing The Wall Street Journal.
Many food manufacturers say they plan to raise prices in 2022 for a range of products from macaroni-and-cheese to snacks, the latest sign that consumers will continue to face higher costs at the supermarket.
“There’s nothing immune from price increases,” said Tony Sarsam, chief executive officer of food retailer and distributor SpartanNash Co. SPTN 3.63% , adding that produce, dairy and packaged food such as bread and juice are among many items set to become more pricey next year.
Food prices are estimated to rise 5% in the first half of 2022, according to research firm IRI, though the level of increases will vary by grocers and regions.
Mondelez International Inc. MDLZ 0.89% said recently that it was raising prices across cookies, candy and other products sold in the U.S. by 6% to 7% starting in January. General Mills Inc. GIS 0.11% and Campbell Soup Co. CPB 0.52% said their price increases also would take effect in January. Kraft Heinz Co. KHC 0.51% told retailer customers that it would raise prices across many of its products including Jell-O pudding and Grey Poupon mustard, with some items going up as much as 20%, according to a memo viewed by The Wall Street Journal.
The increases follow others that food manufacturers imposed in 2021, and are part of what businesses and economists call the highest inflation in decades. Higher wage, material and freight costs are prompting industries from manufacturing to retail to raise prices of goods, creating an environment in which some executives say they have room to charge more.
Kraft Heinz said the average price increase on its products will be 5%, adding that it wasn’t passing all of its cost increases to customers. Production costs of Grey Poupon rose 22%, and the company is raising it by 6% to 13% for customers, the company said.
Mondelez, General Mills and Campbell had no additional comment.
The Labor Department said the consumer-price index rose 6.8% in November from a year ago, the fastest pace since 1982. The food-at-home index, which includes purchase from grocery stores, rose 6.4% over the past 12 months, with meats, poultry, fish and eggs increasing 12.8%.
Coming price increases in 2022 range from as low as 2% to 20%, hitting all sections of the grocery store including produce and packaged goods. Potatoes, celery and other heavier vegetables will have higher price tags next year in part because of higher freight costs, supermarket executives said. Wine, beer and liquor are also likely to get more expensive, they said, especially those that are imported.
Pantry staples such as mayonnaise and frozen meals are expected to be more pricey partly because of higher labor, logistics and packaging costs, some executives said.