Food boss says consumers should expect higher food prices

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Kraft Heinz makes tomato ketchup among other popular products  (Scott Olson/Getty Images)
Kraft Heinz makes tomato ketchup among other popular products (Scott Olson/Getty Images)

Consumers must get used to higher food prices, the boss of food giant Kraft Heinz has said.

Miguel Patricio, the head of the international food brand which makes tomato sauce and baked beans, said he has been forced to put up prices in several countries.

Patricio said Kraft Heinz has had to increase the price of half its products in the US, its home market, with rises expected in other countries.

Patricio said a broad range of factors was contributing to the rising cost of products.

He said inflation was “across the board” and unavoidable.

Meanwhile, the UN Food and Agriculture Organisation reports prices of ingredients such as cereals and oils means food costs are now at a10-year high.

During the pandemic, production of raw materials deceased. Now some producers are struggling to keep up with a return to full demand - leading to higher prices.

Wages and energy prices are also increasing in some areas.

“We are raising prices, where necessary, around the world,” he to the BBC.

“Specifically in the UK, with the lack of truck drivers. In [the] US logistic costs also increased substantially, and there’s a shortage of labour in certain areas of the economy.”

Mr Patricio said not all price increases should be passed on to consumers. He said food firms would have to absorb some of the rise in costs.

“I think it’s up to us, and to the industry, and to the other companies to try to minimise these price increases,” he said.

This week PespsiCo warned it was also facing rising costs and that price rises were likely at the start in 2021.

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