Several major food and restaurant suppliers in the United States, including Kraft Heinz and several McDonald’s franchises, have announced that they will continue to raise prices because they face high costs. This was reported in the Wall Street Journal.
Kraft Heinz announced last Monday to retailers that it would raise prices in August for a variety of items, from sauces to Maxwell House coffee products. Corey Heinz, Kraft Heinz’s VP of Sales, wrote in a memo to retailers that inflation continues to affect the economy and shape consumption patterns.
The Ministry of Labor said on Friday that supermarket prices rose by 11.9% in May last year, and prices rose by 7.4% in restaurants and other feeding centers during that period. Russia’s invasion of Ukraine, one of the world’s leading grain production regions, has led to a rise in the price of basic foodstuffs, cooking oils and animal feed. Bad weather affecting other major crop-producing countries, including parts of South America, Australia and India, is also fueling the global crisis.
Ian Borden, McDonald’s international business director, said during a investors’ conference on Thursday that the company was examining the impact of price increases in its restaurants to make sure they were not too high for consumers: “Our approach is to make more frequent price increases, but In smaller leaps. ”