Prices for classic snacks such as Oreo cookies and Sour Patch Kids candy are about to rise
Mondelez International, 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 Tuesday that prices will rise 6% to 7% in the USA, starting in January.
“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,” chief executive Dirk Van de Put said.
Executives said higher prices for its products helped boost sales for Mondelez 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.
The global supply chain shortage affects multiple businesses across all industries. Van de Put said both the U.S. and U.K. markets impact Mondelez's business. He said 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 though prices are increasing, Van de Put said, 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 on average spend 15% more time at home since the pandemic, he said during the call, increasing demand for Mondelez products.
Mondelez is one of many major food companies boosting prices to help with higher transportation, packaging and labor costs. 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%.
Follow Keira Wingate on Twitter: @KeiraRenee