SAWT BEIRUT INTERNATIONAL

| 25 October 2021, Monday |

Kraft Heinz says people must get used to higher food prices

Kraft Heinz boss Miguel Patricio said that people will have to get used to higher food prices, he told BBC.

Patricio said the international food giant, which produces tomato sauce and baked beans, was putting up prices in several countries.

Unlike in previous years, he said, inflation was “across the board”.

The cost of ingredients such as cereals and oils has pushed global food prices to a 10-year high, according to the UN Food and Agriculture Organization.

Kraft Heinz has increased prices on more than half its products in the US, its home market, and Patricio admitted that is happening elsewhere too.

“We are increasing prices, where necessary, around the world,” he said.

During the pandemic, many countries saw production of raw materials, ranging from crops to vegetable oils, fall. Measures to control the virus, as well as illness, limited output and delivery.

As economies have restarted the supply of these products hasn’t been able to keep up with returning demand, leading to higher prices. Higher wages and energy prices have also added to the burden for manufacturers.