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?
See #40
You can find plenty of fertilizer in Washington DC. Why that place is full of
s__t.
That is why when you apply a sticker you must apply many. Then you pull up behind her and notify the attendant that she is putting stickers on the pump.
When Obama ran for president the first time, my favorite local restaurant had a campaign poster for him in the window.
I've not been back once since then.
Conservatives have tried playing well with others for decades.
It has failed.
Time for Plan B.
“Conservatives have tried playing well with others for decades.”
People in this country are moving politcically to the right just for the exact reason conservatives are not a holes like the left and you want the right to become aholes just like the left??
Re: 40 - Peeled off a sticker today at the pump I was at to get gas.
This area is pretty conservative. The owner of the store gave me a thumbs up - and he is on the Town Board...as an elected Republican.
He said his workers peel them off when they see them.
He mentioned similar to what you did - he needs all his customers. So he doesn’t allow any political stuff at his stores.
But there’s group of so-called conservatives at FR that appear to maintain it is their “right” to slap on stickers wherever they deem appropriate.
Nothing but fakes.
I hate that. But it was what the People, in their Infinite Wisdom wanted when they replaced Donald Trump with Lying Joe Bide. So hell with what I want. Let them have their way. And enjoy it.
“Nothing but fakes.”
They have never owned a business where in this day and age retaining customers is difficult as is and when payroll is due the next day and you are 25% short because you lost customers over something or said or did and it made FB
Every customer in todays age is precious even the liberal ones. Their money is as green as conservatives.
My dad was super strict when I took over his business he built from scratch and hard work if he ever caught me talking politics or religion with customers and ticking them off he would smack me across the face..and he would have.
Lol yeah, you’re right. I personally wouldn’t get pissed if one was slapped on my car but I own a 1997 Expedition and I like those stickers. Call me crazy 😜!
Can’t think of a single product they make, in my kitchen. And if Americans eat less crap, it will only save them money in the long run.
they over the years have reduced their package size so now its not really a great place for buys....
got gas at Costco yesterday at $3.29 which is about 25 cents cheaper then other local stations....
Now Biden's thugs have removed all monoclonal treatments... so more people will die. I'm sure their butt boys in the press will agree to blame Trump for that horror too.
And insult Kerry? Not on your life.
They are raising prices now in advance of the effects of expected fertilizer shortages and decreasing yields of crops. They will do it again when the events materialize just for good measure.
Greed is the fuel for the inflationary spiral. Shortages are just the spark.
The reason people are moving to the right is because the left is coming after them like rabid dogs.
That will continue to happen regardless of what we do.
They could probably reduce the salt by 24%, to make the pricier product better.
Why tick off 50% of your customers?
_______________________________
The idea is to show the commie 50% the error of their ways.
As for neutrality:
It is a form of compliance.
The commies will regulate everyone out of business and into slavery in due time. Your profits will be confiscated, one way or another. In the end, you cannot hide from determined slavers. No one is ever pure enough, in the long run.
the People, in their Infinite Wisdom wanted when they replaced Donald Trump with Lying Joe Bide.
_____________________________
Did not.
Joesh!tshow was installed by fraud so he would destroy the country.
I am not honor bound to respect theft and fraud and neither are you. If speech is suppressed, it will break out in other forms.
By the looks of it around the world, people are Done. Stickers are a form of samizdat and duty. And a sign of early days.
Good luck as they triple down and provoke rebellion. Look at Solidarity and realize even the Velvet Revolution will not be painless.
We are in a Time of Choosing. Choose well.
I will not buy anything that I know is connected to heinz. I’m glad to see more info.
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