Milk’s favorite cookie is becoming more expensive as inflation continues to rise nationwide.
Mondelez International Inc., the company responsible for Oreo cookies, Sour Patch Kids, and Ritz crackers, will increase the domestic price of its products through 2022 by as much as 7%, according to a report.
The higher prices will offset increasing production costs, wages, transportation costs, and growing demand.
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“We’ve been increasing prices, and we plan to increase prices more than we’ve done at least in the time that I’m here and probably for quite a while as a company,” Mondelez CEO Dirk Van de Put told the Wall Street Journal.
Given higher commodity prices and transportation shortages, cost inflation may grow by 6% in 2022, according to Van de Put.
Inventory is “nowhere near where we would like it to be,” he said, noting demand for Mondelez’s products continues to stay strong.
This steady demand is partly attributed to fewer people eating in restaurants, he said.
“The average consumer around the world spends 15% more time at home than before,” Van de Put said. “It happens that these categories, biscuits and chocolate, are also something that is more consumed at home.”
The problems facing Mondelez are confronting major food corporations across the country.
Nestle, Conagra Brands, General Mills, and Kraft Heinz said they would each raise prices to compensate for the rising expenses of materials, shipping, growing wages, and supply chain issues.
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The Washington Examiner reached out to Mondelez for comment but did not receive a response.
