We will probably soon be paying more at the supermarket checkout. Food raw materials become more expensive, causing producers to increase their prices. Supermarket chains have so far not passed on those price increases to consumers, but analysts tell

Het Financieele Dagblad



) that they probably cannot keep up with that for much longer.

In recent months, many raw materials have become more expensive, including wood, paper pulp and coffee.

That's because the coronavirus crisis had a huge impact on supply chains.

In some chains factories had to be shut down, in other sectors demand collapsed and yet other sectors counted on lower demand while it remained unexpectedly high.

One effect can be seen with almost all commodities: demand has increased enormously in recent months.

The raw materials needed for food production cannot escape the corona effect, says Unilever CEO Alan Jope according to the



He says that most of the raw materials used by the Anglo-Dutch group are shooting up in price.

This makes everything from shampoo to peanut butter more expensive to make.

The company has been raising food prices since the first quarter of this year and expects to do so again in the second half of the year.

Jope says that Unilever will certainly have to deal with higher costs and prices until 2022.

In addition to Unilever, other food producers are also affected by this.

Consumers will eventually notice that, various analysts told the newspaper.

"Ultimately, 80 percent to 90 percent of cost inflation is passed on to stores and therefore to consumers. How much companies can pass on depends on the type of product and brand. But inflation is so high that it is certain that they have to pass something on. said Bernstein analyst Vincent Lee.

Fewer cookies per pack

Because there are several links between producers and supermarkets, it can take some time before consumers notice the effect on the price.

It is also possible that the price of a product does not change, but the content does.

For example, a pack that normally contains twenty biscuits could contain eighteen biscuits in the future, at the same price.

Finally, supermarkets can still choose to apply the price increases mainly to products that consumers do not buy often, in order to continue to compete with products whose price is very clear to the consumer.

But it seems certain that the consumer will eventually notice this.