Cookie and snack lovers could be in for a rude awakening on January 1, 2019 when new increased pricing from manufacturer Mondelez kicks in!
Mondelez announces price hikes in biscuit, gum and candy categories
The snack company — which makes Oreos, Chips Ahoy cookies and Trident gum, among other things — has announced selective price hikes coming to its biscuits, chocolate and gum & candy categories.
Unfortunately, the company isn’t revealing exactly which products in those categories will cost more in the new year.
That said, here are some of Mondelez’s most popular brands in the three flagged product categories:
When asked about plans for the new pricing structure, CFO Luca Zaramella was basically mum during an earnings call.
“We are not getting into specific details. But as we said, it would be across the three categories: biscuit, gum and candies. And it will be different by brand.”
Like many consumer packaged goods (CPG) companies, Mondelez is facing increased costs for raw materials and transportation.
“As you look at the sustainability of the category and the ability we have to invest, I think, clearly, given the inflationary pressure we see in some commodities and logistics costs, [price hikes are] the right thing to do,” the executive added.
Price-raising has become something of a rite of passage for a lot of CPG companies in recent weeks.
Earlier this month, Procter & Gamble announced new price hikes coming on “several products in Home Care, Oral Care and Personal Care” without giving any further specifics.
That marks the second time this year that P&G — maker of Head & Shoulders shampoo, Dawn dish detergent and Olay moisturizer, among other products — announced a price increase.
And over the summer, Kimberly Clark announced price increases across a variety of product lines including Huggies diapers, Cottenelle toilet paper and Kleenex.