Kraft Heinz boss: Businesses should try to minimise food price increases for customers
Businesses should try to minimise price increases for consumers, according to the boss of Kraft Heinz.
Miguel Patricio – who oversees the ketchup and baked beans producer – told the BBC that the firm was hiking prices in several countries. He said consumers would be forced to get used to higher food prices.
Inflation was “across the board” currently, unlike past years, Patricio said in an interview with BBC World News.
“We are raising prices, where necessary, around the world,” he said. This has included price rises on more than half the company’s products in the US, as well as across other markets.
Raw material production, including crops and vegetable oils, dropped during the pandemic with supply unable to keep up with demand.
Manufacturers have also struggled with rising energy prices and a shortage of workers.
The Kraft Heinz boss said customers would need to get used to paying a little more due to population growth and lack of available land to match the subsequent demand to grow more food.
“There’s a lot to come in technology to improve the effectiveness of farmers,” Patricio said of the future.
“I think it’s up to us, and to the industry, and to the other companies to try to minimise these price increases,” he added.
His comments come as Tesco’s Ken Murphy pledged to maintain a good value for customers despite supply chain disruption and fear of panic buying.
However, last week he admitted there had been a “promotional de-escalation” in order to ensure products remained in stock for customers.