Posted on 01/28/2022 4:20:41 AM PST by blam
As some on Wall Street warn that the Fed remains dangerously behind the inflation curve (a fear that was given voice yesterday when Fed Chairman Jerome Powell’s comments on inflation during the post-FOMC press conference appeared to send stocks spiraling lower), one of America’s biggest makers of food and consumer goods has warned that more price hikes are coming.
To wit, Kraft-Heinz (in which Warren Buffett’s Berkshire Hathaway owns a big stake) said in a letter to customers that it will raise prices in March on dozens of its most popular products. The hikes will affect brands including Oscar Mayer cold cuts, hot dogs, sausages, bacon, Velveeta cheese, Maxwell House coffee, TGIF frozen chicken wings, Kool-Aid and Capri Sun, CNN reported.
Increases range from 6.6% on 12oz packs of Velveeta to a whopping 30% hike on a package of Oscar-Mayer turkey bacon.
Most cold cuts and beef hot dogs will go up around 10% and coffee around 5%. Some Kool-Aid and Capri Sun drink packs will increase by about 20%.
“As we enter 2022, inflation continues to dramatically impact the economy,” Kraft Heinz said in a letter dated January 24 to at least one of its wholesale customers that was viewed by CNN Business. The wholesaler shared the letter on the condition of anonymity to protect the company’s relationship with its suppliers.
Kraft Heinz is just the latest consumer manufacturer to announce plans to boost prices early in the year. Last week, P&G said that it would raise prices on Tide and Gain laundry detergents, Downy fabric softener and Bounce dryer sheets by an average of about 8% in February. Conagra, which makes such brands as Slim Jim, Marie Callender’s and Birds Eye, has said it plans to raise prices later this year.
The question now is how much of these price hikes will retailers pass on to customers? Given the thin margins that grocery stores operate on, it’s likely that most, if not all, of the hike will be incorporated into prices on the shelf.
For Kraft-Heinz, this isn’t the first time prices have been raised since the start of the latest “transitory” inflation wave. The brand just announced a 9% price hike on its beef, lean beef, hot dogs and some other products back in November.
Headline consumer prices surged 7% in December according to the most recent CPI data release, which was the strongest level in nearly 40 years. Food prices alone rose 0.5% MoM.
Beyond the US, global food prices have soared to levels unseen in a decade led by surging demand for wheat and dairy products following a year of severe drought and other environmental factors limiting production.
The question now is how many more times will K-H and its competitors hike prices before inflationary pressures finally ease?
Why do you hate zombies??
😜😆
For Kraft-Heinz, this isn’t the first time prices have been raised since the start of the latest “transitory” inflation wave.
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How come “transitory” only goes in one direction; up.
Proving that the government puts in one pocket, and takes from the other. I wouldn't be talking about being 1% above last year, this government of ours thinks the economy is a zero sum game and they're not going to be too happy with you.
Of course the damn prices are going to go up.
All this is Biden's fault. And his commie thug pals - we must never forget who screwed over the American people.
Typical. You deface private property, property that someone works to build and maintain, then stomp your feet when called out about it.
Disrespecting private property rights are not the mark of a conservative.
Read this article:
https://fee.org/articles/the-primacy-of-property-rights-and-the-american-founding/
to learn more about private property rights.
You’re dismissed.
> All this is Biden’s fault. <
Absolutely. The media will tell us it’s a Covid problem. The virus is causing supply chain disruptions and employment shortages. Blah, blah, blah.
But Covid was also present when Trump was in office. There was very little inflation back then. So it’s not a Covid problem. It’s a Biden problem.
Thank the Republican Party for allowing the steal in 2020. All to stick to President Trump and all his supporters. Someone tell me, what good is the Republican Party? I suppose they are good for China.
Heck — if I owned a business like that I’d love to have customers put those “I Did That” stickers on my gas pumps. It lets the other customers know that the high prices aren’t MY fault!
Product shrinkage or inventory shrinkage is loss from theft and spoilage.
Package shrinkage, if that is what you meant, is package size variance when a marketer accordions the product size up and down before and after change the wholesale and retail price. Package sizes go up and down over decades. They shrink, and go back up. Otherwise all Three Musketeers bars would be microscopic by now. I agree that smaller sizes are a way to hide an immediate increase in price. But 16 ounces of bacon is still 16 ounces and consumers can still read and know that a 12 ounce package of bacon isn't a 16 ounce package of bacon.
Do you go to the parents of kids that use chalk to write on a sidewalk or roadway say within a private campground? Or even on a public walkway (my taxes helped pay for that sidewalk)? Or in a city park?
If their food cans and boxes get any smaller, we’ll have to cook on Barbie play ovens.
Looks like JIM BAKKER was right when he urged people to stock up on food
LOL!
Nope, don’t do that. And chalk washes off.
There’s many of those stickers around these parts. Saw an employee working to clean them off at one station. The owner is a pretty conservative guy.
My guess is the some of the same people who think it’s such a good idea to put them on other people’s property would be steamed if someone slapped one of those on their car.
The customers already know it’s not their fault.
Private property is private property, notwithstanding self-serve. From my spective it’s not a gray area - treat others private property with respect.
Maybe the station owner said it’s okay. Who knows.
Sure, Fury...let’s be nice and civil and play by the rules. I’m sick and tired of the other side lying, burning, boycotting, assaulting, intimidating...while we have to be reminded to always play nice. The sticker on the fuel pump did nothing to its functionality. You may say the pump was defaced. I say it’s a convenient reminder of the stupidity of democrats and the left. I guess telling my liberal “friends” that I hope gasoline goes to $5.00/gallon to show them what voting for democrats gets you is being uncivil...and that we should be nicer, help them understand their errors. PHHHHT!
“There’s many of those stickers around these parts. Saw an employee working to clean them off at one station. The owner is a pretty conservative guy.”
To run a successful business you have to be politicaly neutral.
When a liberal customer comes up to a pump and sees that biden sticker he/she wonders did a customer put that on there or the owner?
Why tick off 50% of your customers?
The same people thinking the biden sticker is ok would go nuts of a anti trump sticker was on that pump (if Trump did something to cause prices to rise)
People want to put election sign on the grass area in front of my wifes business..nope nada. She stays neutral.
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