Costs for Oreo cookies and different snacks made by Mondelēz Worldwide will probably be going up subsequent yr due to increased transportation prices and different components affecting the provision chain, the corporate says.
Mandel Ngan/AFP through Getty Photos
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Mandel Ngan/AFP through Getty Photos
Costs for Oreo cookies and different snacks made by Mondelēz Worldwide will probably be going up subsequent yr due to increased transportation prices and different components affecting the provision chain, the corporate says.
Mandel Ngan/AFP through Getty Photos
Provide chain issues are making it more durable to get so many merchandise and making them costlier — the whole lot from books to toys to glass bottles. Look out: Our beloved snacks are subsequent.
Mondelēz Worldwide, the corporate behind snacks together with Oreos and Bitter Patch Youngsters, introduced in a name with traders that U.S. clients can count on costs for his or her merchandise — together with Chips Ahoy! cookies, Ritz crackers and Toblerone chocolate — to extend by 6-7% starting within the new yr.
Transportation prices and “industrywide provide chain constraints” are a number of the components liable for the spike in pricing, Chief Monetary Officer Luca Zaramella, mentioned on the decision Tuesday.
In a press release to NPR, the corporate mentioned it is seeing inflation in lots of markets — significantly in North America — and it expects that to proceed into subsequent yr. “This is because of the price of commodities, transportation and packaging,” it mentioned, including that labor shortages are additionally an element.
However regardless of increased costs, the corporate says the demand for snacks has not diminished — the pandemic could have even elevated it.
“Ongoing uncertainty is fueling the will for consolation and indulgence which has been a constant development all through COVID,” Dirk Van de Put, the corporate’s chairman and chief govt officer, mentioned on the decision.
Mondelez is not the one firm to spice up costs in response to growing prices and different components. Unilever — which makes merchandise together with Dove cleaning soap, Lipton tea and Klondike bars — introduced worth will increase of round 4% final month. And McDonald’s expects to lift its menu costs by 6% this year.
