Another cereal giant will increase prices for many of its popular brands earlier than expected, according to CNN.
General Mills notified at least one of its major wholesale suppliers that prices increases of up to 20% are expected for brands including Annie’s, Progresso, Yoplait, Fruit Roll-Ups, Betty Crocker, Pillsbury, Cheerios, Cinnamon Toast Crunch, Lucky Charm’s, Wheaties, and Reese’s Puffs, CNN reported.
The wholesaler supplied the letter to CNN, saying the company plans to pass the higher prices to grocery stores that will pass the increased costs to shoppers, according to CNN. The wholesaler provided the letter on the condition of anonymity.
“The current operating environment is as dynamic as we’ve experienced in at least a decade, resulting in significant input cost inflation, labor shortages, and challenges servicing the business,” General Mills said, according to CNN.
General Mills announced broad price increases of roughly 7% to 8% during its earnings call in September to offset the growing cost of ingredients, labor, and transportation, the Daily Caller News Foundation reported.
“Our prices are going to go up for the remainder of the year as we see inflation going up,” General Mills chief executive Jeff Harmening said on the call.
General Mills did not immediately respond to the Daily Caller News Foundation’s request for comment.
Cereal giant Kellogg announced on a Nov. 4 earnings call that it expected to raise prices, citing inflation, supply chain issues and recent labor strikes that boosted the company’s expenses.
Grocery prices have surged during the pandemic, growing 1% in October from the previous month and 5.4% on a year-over-year basis, according to the Bureau of Labor Statistics. Additionally, the Producer Price Index, which measuresinflation at the wholesale level, jumped 0.6% in October from the previous month and reached 8.6% on a year-over-year basis.
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