The big food brands prepare imminent price increases: "Inflation is going to get worse"

• RAQUEL VILLAÉCIJA

  Barcelona

Updated on Thursday, 21october2021-02: 59

• Share on Facebook

• Share on Twitter

• Send by email

View 4 comments

The rising cost of raw materials and the increase in the price of electricity and transport are problems that are already being transferred to the price of food.

Many manufacturers and brands recognize that they are raising the prices of their products to protect the business,

This is the case of the

company

, which is studying it and

if things continue like this", according to its CEO, Javier Dueñas. Last week it was the CEO of Heinz who admitted that the group had already raised the prices of its products to be able to face this triple increase in costs.

"This inflation is already emerging and will be the same or even worse,"

as said yesterday the president of the association of companies and manufacturers of the mass consumption sector (Aecoc), Ignacio González, during the celebration of the annual congress of this employer's association that represents more than 30,000 companies.

"When companies have cost increases they try to absorb it so that it does not have an impact on the consumer, but we are condemned to have inflation," said the businessman.

margins

This imminent price rise yesterday centered much of the debate during the first day of this congress where businessmen from the sector meet.

, which are aware that the consumer is very sensitive to price increases.

«

Many things are happening and this has made it necessary to review the product portfolio ”, confessed the director of Campofrío.

Another group that acknowledges that it has raised its prices "on some products" is Angulas Aguinaga (parent company of brands such as La Gula del Norte or Krissia).

“We have to be able to protect the financial structure,

which is what drives everything we do, in order to continue.

It is not only a matter of prices, but of the business model, "says its CEO, Ignacio Muñoz.

Frit Ravich, a brand of potatoes, snacks and nuts, also admitted yesterday that it has done the same.

The food industry also recognizes the impact of the rise in electricity, although it is not considering stopping its production for this reason, as companies in other sectors have done.

Supply chain

The third big problem they face is the tension in the supply chain, caused by demand exceeding supply and problems in transportation from China.

At this point, many companies have revised their policy of replenishing raw materials, so that they order them earlier and in larger quantities, to avoid shortages.

In the case of Campofrío, for example

and that is why they are increasing the stock or even approving alternative materials.

These problems "generate many uncertainties" and "extraordinarily complicate the situation" derived from the pandemic, at a time when, in addition, "part of the savings that households have contained and which is essential as a short-term solution should emerge." according to Ignacio González.

Remember that

although the problem "is no longer the price, but the availability."

“This situation is a huge challenge for a competitive sector that has little margin.

There is a solution in the short term, which is for savings to emerge, but for that you have to build trust ».

According to the criteria of The Trust Project

Know more

• Ignacio Gonzalez

• China

• HBPR

Covid-19 The 200,000 Chinese blood samples that 'hide' the origin of the coronavirus pandemic

Brexit Lack of butchers may lead to the slaughter of thousands of pigs in the UK

Savings and Consumption Electricity, fuel and tourist packages propel the CPI to its maximum in 13 years

See links of interest

• La Palma volcano

• Last News

• Holidays 2021

• Home THE WORLD TODAY

• Podcast Economia

• How to do

• Barcelona - Dinamo Kiev, live

• FC Red Bull Salzburg - VfL Wolfsburg

• Benfica - FC Bayern München

• Chelsea - Malmö FF

• Lille - Seville