9:28 AM PDT, November 3, 2021
The price of Oreo cookies, Sour Patch Kids and Ritz crackers will all increase in 2022, the CEO of Mondelez International, the company behind these popular brands, says, according to Business Insider.
Dirk Van De Put, the CEO of Mondelez International, the maker of Oreos, Ritz, Toblerone, and Sour Patch Kids, said it plans to raise prices by as much as 7% in the U.S. starting January 2022, Business Insider reported.
De Put said it is the largest price-hike he has seen in his four years with the company and the largest in a while.
Mondelez is one of many retailers and manufacturers that are raising prices to offset rising inflation caused by higher transportation, packaging, and labor costs, according to Business Insider.
Many of the issues in the global supply chain have been brought on by the pandemic.
De Put told CNBC that on-shelf inventory is “nowhere near where we would like it to be” and keeping store shelves stocked with products has been hard due to issues of transportation, packaging, labor costs, and ingredient costs rising.
“The average consumer around the world spends 15% more time at home than before,” he told CNBC. “It happens that these categories, biscuits and chocolate, are also something that is more consumed at home.”
Mondelez reported that its net revenue for the third quarter rose to $7.18 billion from $6.67 billion a year ago, topping analysts’ average estimate of $7.03 billion, Yahoo News reported.