According to the report, General Mills notified retail customers that it’s raising prices in mid-January on across dozens of brands, including Annie’s, Progresso, Yoplait, Fruit Roll-Ups, Betty Crocker, Pillsbury, Cheerios, Cinnamon Toast Crunch, Reese's Puffs and more. For some items, prices will go up by around 20% beginning next year, according to letters General Mills sent to at least one major regional wholesale supplier last week.
The wholesaler shared General Mills’ letters with CNN Business on the condition of anonymity. A leader at the company said it plans to push along all of the increases to its grocery and convenience-store customers. He expects they will then pass them down to shoppers.
“The current operating environment is as dynamic as we’ve experienced in at least a decade. The inflationary environment has increased, including higher prices for commodities, logistics, and other costs in our supply chain,” General Mills spokesperson Kelsey Roemhildt told CSP Daily News. “Given the level of inflation and other supply-chain costs that we forecast for the fiscal year, we will be using all tools in our pricing toolkit, including taking list price increases where needed across our portfolio. This is consistent with what we’re seeing across the food and beverage industry.
“While the demand picture is uncertain, we’re focusing on what we can control, namely, continuing to compete effectively, taking actions to address the increased cost environment, leveraging our supply chain to service the business better than our competition, and executing our portfolio reshaping actions.”
Grocery prices have increased sharply during the pandemic, after stagnating from 2015 through 2019, according to CNN. Prices climbed 1% in October from the previous month and were 5.4% higher than at the same time last year, according to the latest data from the Bureau of Labor Statistics.
Earlier this month, Dollar Tree announced it will raise prices on most of its assortment from $1 to $1.25. And the American Farm Bureau Federation reported that the average cost of Thanksgiving dinner this year was 14% more than it was a year ago.
Minneapolis-based General Mills Convenience & Foodservice serves the convenience, foodservice and bakery industries by providing products from trusted brands. Its brand portfolio includes Big G Cereals, Yoplait, Nature Valley, Gold Medal, Pillsbury, Chex Mix, Bugles, Gardetto’s and Annie’s.
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