BIDENFLATION: Kraft Heinz Warns Retailers They’re Hiking Prices Up To 20% In 2022

Written by K. Walker on December 30, 2021

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Get ready to shell out more at the grocery store for just about everything in 2022.

Food manufacturers are warning retailers that they plan to raise prices in the new year as inflation continues to ramp up. This means that the increase will be passed along to consumers.

The Wall Street Journal reported that the prices for everything from coffee to mayonnaise, soup to snack foods are set to rise in 2022. Consumers should expect to pay approximately 5% more for prepackaged foods, on average, beginning in January.

WSJ reports that one big-name food manufacturer is significantly hiking prices on some products, “Kraft Heinz Co. told retailer customers that it would raise prices across many of its products including Jell-O pudding and Grey Poupon mustard, with some items going up as much as 20%, according to a memo viewed by The Wall Street Journal.”

From the WSJ:

The Labor Department said the consumer-price index rose 6.8% in November from a year ago, the fastest pace since 1982. The food-at-home index, which includes purchase from grocery stores, rose 6.4% over the past 12 months, with meats, poultry, fish and eggs increasing 12.8%.

Coming price increases in 2022 range from as low as 2% to 20%, hitting all sections of the grocery store including produce and packaged goods. Potatoes, celery and other heavier vegetables will have higher price tags next year in part because of higher freight costs, supermarket executives said. Wine, beer and liquor are also likely to get more expensive, they said, especially those that are imported.

Pantry staples such as mayonnaise and frozen meals are expected to be more pricey partly because of higher labor, logistics and packaging costs, some executives said.
Source: Wall Street Journal

This increase of up to 20% is what the retialiers will pay, it’s unclear what the markup will be for consumers.

From The Last Refuge:

Keep in mind a few points:

(1) The outlined price increases noted are against current price terms and contracts. Meaning, these are price increases from right now to the next fulfillment. These are not inflation price increases which are compared to a year ago. These are 5% to 20% increases from the current price right now.

(2) The price increases are not the final price increase. This is the price of a contract today from the field to the distribution center. The retailer also has additional price increases (transportation, energy, labor, etc) which they need to add to the wholesale price before you see the final price at retail (grocery store).

The final field to fork price is not yet known but will be higher than noted above. We are only seeing the notifications from field, through processing and into warehousing and distribution.

Additionally, the more an item needs to be processed, the higher the price increase will be. Food items that require multiple raw materials, ingredients and bases for processing (ex. condiments), when combined with increased packaging costs (oil, energy), will be much higher than foods with less processing, handling and packaging.

This won’t exclusively be food items, either. Many cleaning supplies use citrus as a base and you can expect increases there as well.

And we’re all familiar with how gas prices have gone up under the Let’s Go Brandon administration, so the increased cost in shipping will need to be added into the cost of getting products from farm to table.

And of course, energy prices are up, so the overhead of the stores themselves will continue to increase.

All of this means that, in the end, it’s the Average Joe consumer that gets hosed with higher prices.

The worst part? Much of it was avoidable… but it was the policies of the Biden-Harris administration that have made all of this so much worse.

Thanks, Joe!

Let’s Go, Brandon!

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ClashDaily's Associate Editor since August 2016. Self-described political junkie, anti-Third Wave Feminist, and a nightmare to the 'intersectional' crowd. Mrs. Walker has taken a stand against 'white privilege' education in public schools. She's also an amateur Playwright, former Drama teacher, and staunch defender of the Oxford comma. Follow her humble musings on Twitter: @TheMrsKnowItAll and on Gettr @KarenWalker