Mondelēz International, the company behind snacks including Oreos and Sour Patch Kids, announced in a call with investors that U.S. customers can expect prices for their products — including Chips Ahoy! cookies, Ritz crackers and Toblerone chocolate — to increase by 6-7% beginning in the new year.
Transportation costs and "industrywide supply chain constraints" are some of the factors responsible for the spike in pricing, Chief Financial Officer Luca Zaramella, said on the call Tuesday.
In a statement to NPR, the company said it's seeing inflation in many markets — particularly in North America — and it expects that to continue into next year. "This is due to the cost of commodities, transportation and packaging," it said, adding that labor shortages are also a factor.
But despite higher prices, the company says the demand for snacks has not diminished — the pandemic may have even increased it.
"Ongoing uncertainty is fueling the desire for comfort and indulgence which has been a consistent trend throughout COVID," Dirk Van de Put, the company's chairman and chief executive officer, said on the call.
Mondelez isn't the only company to boost prices in response to increasing costs and other factors. Unilever — which makes products including Dove soap, Lipton tea and Klondike bars — announced price increases of around 4% last month. And McDonald's expects to raise its menu prices by 6% this year.