MISE & Agrave; DAY
Expect to pay more for some of your favorite cereals, snacks, soups, and cooking brands next year. General Mills (GIS) has informed retail customers that it will increase prices by around 100 items associated with 10 brands in mid-January.
The aforementioned products include among others Cheerios, Cinnamon Toast Crunch, Lucky Charm's, Wheaties, Reese's Puffs and Trix, as well as Yoplait dairy, Betty Crocker and Pillsbury baking, according to letters General Mills sent to at least one major wholesaler last week.
For some items, prices will increase by about 20% from next year.
< p>The wholesaler shared General Mills' letters with CNN Business on condition of anonymity in order to protect the company's relationships with its suppliers. A company executive said he plans to apply all increases to his customers at grocery and convenience stores. He expects them to pass them on to buyers afterwards.
Reached by CNN, a spokesperson for the company declined to comment on the matter.
If more General Mills customers – including major big box stores, supermarkets, drugstores and other chains – decide to do the same, these popular brands will become even more expensive for consumers.
Food prices rose sharply during the pandemic, after stagnating from 2015 to 2019. Costs climbed 1% in October compared to September and were 5.4% higher than at the same time last year , according to the latest data from the Bureau of Labor Statistics.
Inflation on food, beverages and basic necessities will climb to 8% in the first quarter of 2022 before settling to 4% in the second half, projects IRI, a market research firm. . & nbsp;
IRI tracks prices, point of sale and volume data, promotions and trends in big box stores, wholesale clubs, supermarkets, drugstores and other channels of consumption.
Food manufacturers and grocery chains have faced higher costs for commodities, labor, transportation and other expenses during the pandemic. These costs have skyrocketed in recent months, prompting them to raise prices to minimize the impact.
The Producer Price Index, which measures the price that manufacturers receive for their goods and services, jumped 0.6% last month from September and is up 8.6% annually.
General Mills said in letters it was coping with costs for materials and higher labor.