According to Kraft Heinz CEO Miguel Patricio, consumers will have to become accustomed to rising food prices as a result of pandemic-stricken countries and the global energy crisis, which have placed a great pressure on the world's food suppliers.
Patricio acknowledged that the world's fifth-largest food and beverage firm has raised prices on items including ketchup and baked beans "where appropriate around the world."
In the United States, the company's home market, Kraft Heinz has reportedly raised prices on more than half of its products, and it expects to do so worldwide.
The warning comes as the UN Food and Agriculture Organization stated that rising ingredient costs, such as cereals and oils, have driven global food prices to a 10-year high.
Unlike past years, Patricio noted that inflation was "across the board." The Covid-19 pandemic, which reduced both output and supply due to the surge of illnesses and measures to control the virus' spread, resulted in a major drop in raw material production around the world, ranging from crops to vegetable oils.
When the vaccination rollout allowed economies to reopen, the resurrected supply couldn't keep up with the rapidly rising demand, resulting in price increases. Moreover, the issue has become even more problematic due to rising energy prices.
"This is especially true in the United Kingdom, where truck drivers are in short supply."
Logistic expenses have increased significantly in the United States, and there is a manpower scarcity in key sections of the economy," Patricio stated, as quoted by the BBC.
He emphasized that not all cost increases should be passed on to customers, and that some expenses should be absorbed by manufacturers.
“I believe it is up to us, the industry, and other firms to try to minimize these price increases,” he said, adding that “there is a lot to come in technology to improve farmer effectiveness” in the long run.
...
https://www.youtube.com/watch?v=RoDkcGM1DSI