Oreo cookies and Toblerone chocolate are among snack foods that will cost more in the US in 2022.Food manufacturer Mondelez International said Tuesday it’s raising prices to offset inflation.Higher transportation, labor, and packaging costs are weighing on its margins.Get a daily selection of our top stories based on your reading preferences.Loading Something is loading.
Mondelez International, the maker of Oreo cookies, Toblerone chocolate, and Sour Patch Kids candy, said it plans to raise prices by as much as 7% in the US from January 2022.
In a call with investors on Tuesday, Mondelez CEO Dirk Van De Put said it would be the largest price hike at the company for some time, and certainly in the four years he has been there.
Mondelez is among a large group of retailers and manufacturers that are raising prices to offset rising inflation caused by higher transportation, packaging, and labor costs.Competitors Nestle and Unilever announced price hikes earlier this year.
The global supply chain crisis means businesses across all industries are struggling to make and ship their products to meet consumer demand.
Mondelez said that while it’s raising prices in other parts of the world – including Brazil, Mexico, Russia, and Southeast Asia – the cost pressures in these areas were not nearly as high as in the US.
This is why the US will see the largest price hikes, the company said.
So far customers have responded well to price increases, some of which are already in force, Van De Put said.
He said this was because on average, consumers were still spending 15% more time at home than before the pandemic, and were happier to spend more on snacks if they weren’t eating out at restaurants as much.
“Ongoing uncertainty is fueling the desire for comfort and indulgence which has been a consistent trend throughout COVID and of course this is benefiting trusted brands like ours,” Van De Put said.
“All of this means that our core categories are growing faster than they were pre-COVID and that our portfolio, which skews toward in-home consumption, is benefiting,” he added.
Sign up for notifications from Insider! Stay up to date with what you want to know.
Subscribe to push notifications.