Updated on Thursday, 14 October 2021 – 09:09
The food and beverage multinational has increased the prices of more than half of its products in the United States as well as in other countries
Heinz ketchup packaging.
“You have to get used to food being more expensive,” said Miguel Patricio, CEO of the multinational food company Kraft Heinz, in an interview with the BBC.
Patricio announced that the food and beverage giant is raising prices in several countries.
Unlike previous years, he assured, inflation is now “generalized”.
The cost of ingredients like grains and oils has pushed world food prices to a 10-year high, according to the Food and Agriculture Organization of the United Nations (FAO).
Kraft Heinz has raised the prices of more than half of its products in the United States, its home market, and Patricio admitted that is happening elsewhere as well.
“We will raise prices, when necessary, around the world,” he said.
During the pandemic, many countries saw the production of raw materials fall, from crops to vegetable oils. Measures to control the virus, as well as the disease, limited production and distribution.
As the economies have restarted, the supply of these products has not been able to keep up with the return in demand, causing prices to rise.
Higher wages and energy prices They have also added to the cost burden for manufacturers.
Patricio says that this wide range of factors is contributing to the increase in food prices.
“In the United Kingdom there is a shortage of truck drivers. In the United States, logistics costs also increased substantially and there is a labor shortage in certain areas of the economy,” he says in the BBC interview.
Patricio says that consumers will have to get used to higher food prices since the world’s population is increasing, while the amount of farmland is not.
Although in the long term, “there is a lot of technology to come that will improve the efficiency of farmers.”
But not all cost increases should be passed on to consumers, Patricio said. Companies will have to absorb part of the increase.
“I think it is up to us, the industry and the other companies to try to minimize these price increases,” he said.
Kraft Heinz is one of the largest food and beverage companies in the world, employing 38,000 people, increased its sales by 1.6% in the first half of 2021.
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