Prices Going Up On Oreos, Kraft Mac & Cheese and…
By George Anderson
The high cost of energy has not made its full impact apparent on grocery story shelves but that may be about to change.
Kraft Foods announced it is increasing prices on many of its popular nationally branded products by an average of 3.4 percent. Warehoused delivered items will see price increases
go into effect immediately with direct store delivered items to follow on January 2.
The Associated Press reported that Kraft Foods’ decision to raise prices comes on the heels of the manufacturer and others reporting lower results as higher energy prices
have cut into profits.
In a conference call with analysts on Oct. 18, Kraft Foods CEO Roger Dermodi indicated that the company was aware of the balancing act it would have to perform with product pricing.
“We’re cognizant and watchful of consumers’ spending power as they’re having to spend more on filling up their tanks of gasoline. The important thing for us is to maintain and
continue to build the value they see in our brands in the face of these other pressures.”
Moderator’s Comment: Will Kraft Foods’ decision to raise prices begin a wider trend to higher overall prices for grocery products? What will it mean
for retailers that sell Kraft Foods’ products? –
George Anderson – Moderator