Next year, items from coffee to condiments will cost extra.
Price increases for items ranging from mac ‘n’ cheese to munchies are expected in 2022, indicating customers will continue to pay more at the supermarket.
Nothing is impervious to price rises, says Tony Sarsam, CEO of food retailer SpartanNash Co. Produce, dairy, and processed foods like bread and juice will all be more expensive next year.
“Inflation hits the poor the most."
— Al Jazeera English (@AJEnglish) December 28, 2021
Rate Hikes All Over
According to IRI, food costs are expected to climb 5% in the first half of 2022, but increases would vary by retailer and location.
Mondelez International Inc. announced a 6%–7% price increase on cookies, chocolates, and other items marketed in the US beginning in January.
General Mills and Campbell Soup announced price hikes for January. An internal document revealed Kraft Heinz Co. notified retailers it would hike prices on several of its commodities, including Jell-O pudding, as well as Grey Poupon mustard, by up to 20%.
The rises are part of what companies and analysts call the greatest inflation in decades. Higher labor, material, and freight expenses are causing businesses from production to retail to hike prices, allowing some corporations to charge more.
“Many food manufacturers say they plan to raise prices in 2022 for a range of products from macaroni-and-cheese to snacks, the latest sign that consumers will continue to face higher costs at the supermarket.” https://t.co/1kKQtdSSyO
— Uzair Younus عُزیر یُونس (@UzairYounus) December 27, 2021
In November, the consumer price index grew 6.8% year-on-year, the largest pace since 1982. The food-at-home index increased 6.4 percent over the last year, with meat, poultry, fish, and eggs up 12.8 percent.
Prices will rise by 2% to 20% in 2022, affecting all grocery store departments, including vegetables and packaged items.
Grocery store officials say heavy crops like potatoes and celery will cost more next year, due to increasing freight expenses. Imported wine, beer, and liquor are also expected to rise in price.
Some CEOs predict pantry essentials like mayonnaise and frozen dinners will cost more, due to increased labor, logistical, and packaging expenses.
Strategies to Curb Rising Prices
Some firms claim people are still eager to spend money on food, despite rising prices. According to industry experts, price-conscious consumers buy cheaper meat and cooking oil.
Supermarkets claim they are dropping specific goods to curb rising prices.
Rapid and wide-ranging growth makes store operations more difficult. Fareway Stores Inc. CEO Reynolds Cramer said they got a letter from a vendor proposing price hikes next month. Price hikes given to them this month have yet to be implemented.
To guarantee projected price increases are correct, Kroger’s Chief Merchant and Marketing Officer, Stuart Aitken, said the retailer was confronting manufacturers on the rate of rises. Mr. Aitken advises against accepting price rises.
Others stocked up before prices rose again, obtaining truckloads of things at deep discounts, just before their expiration dates.
According to Chief Merchandising Officer Scott Crawford, fresh Direct LLC expects 2% to 4% higher costs in 2022; they will pass on increases for goods that are more specialized or less popular with customers.
Mr. Crawford hopes it’s temporary, but it will keep climbing once the bar is set.