Mondelez International Inc, maker of some of America’s classic snacks, said prices for its dunkable cookies and candies will climb in the coming months.
The maker of Oreo cookies, Toblerone chocolate and Sour Patch Kids candy said in an investors call on Tuesday that prices will rise between 6% and 7% in the U.S., starting in January 2022.
“We've been increasing prices, and we plan to increase the prices more than we've done, at least in the time that I'm here and probably for quite a while as a company,” said chief executive Dirk Van de Put.
Executives said higher prices for its products helped boost sales for Modelez in the latest quarter and they expect elevated costs in North America to continue into 2022. The company is also raising prices in Brazil, Mexico, Russia and Southeast Asia, executives said during the investors call.
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The global supply chain shortage is impacting multiple businesses across all industries, with Van de Put saying both the U.S. and U.K. markets are impacting Mondelez's business. He added that there is a “significant gap between demand and supply of trucking capacity and containers in places like the U.S. and the U.K."
Even with prices increasing, Van de Put says customers have responded well and are willing to pay more for Mondelez snacks since they are spending less on eating and drinking at restaurants. U.S. consumers are on average spending 15% more time at home than before the pandemic, he said during the call, increasing demand for Mondelez products.
Mondelez is just one of many major food companies that have been boosting prices to help with higher transportation, packaging and labor costs. Earlier this year, Nestle CEO Mark Schneider said the company was raising prices by 2% to offset cost increases. Kraft Heinz announced last month it was doing the same, saying prices would rise 4% and 5%.
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This article originally appeared on USA TODAY: Oreos and Sour Patch Kids are going to be more expensive soon
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