Mondelez executives see no reason to lower prices or increase promotions for their iconic sweets and snacks despite reported retailer requests that brands across the board do so as some consumers begin pulling back on spending in the face of ongoing inflation.
Researchers set out to determine how much, if at all, a price premium would affect the reality of child labor in cocoa production in Ghana. Through three scenarios, they settled on an 11% bump transferred directly from government to farmer.
Chocolate makers are well prepared for current cocoa deficit forecasts and will only be forced to raise prices if other inputs such transportation become costlier along with cocoa, according to the National Confectioners Association (NCA).
Eleven chocolate companies including Nestlé and Kraft have been fined over €60m ($82m) for colluding to raise chocolate prices in Germany, while price fixing investigations continue in the US and Canada.
Kraft Foods’ global snacks spin-off Mondelez International will focus on penetrating the Chinese market and will introduce lower price points for gum as it looks to reinvigorate the ailing gum and candy segment.
Irish dairy and ingredients group Kerry has turned in a”solid” first half of 2011 that saw it increase volumes, weather raw material price hikes, and see success in a “go-to-market” functional ingredient strategy as profits jumped 6.1% on 2010 figures.
Nestle will use price increases as a last resort in the face of rising raw material costs, says its CEO, and only after implementing its 4-point strategy based on trend predictions, engaging suppliers, replacing ingredients, and cutting down waste.
Consumers at various levels of income are increasingly turning to lower cost ‘dollar stores’ to appease their sweet tooth, according to new US-based research suggesting candy and snacks are a major focus for budgeting buyers.
The Romanian Competition Council has fined Wrigley Romania and 26
connected companies €5.5 million for introducing minimum prices on
its products, which was seen to be a measure that is in violation
of EU law.
Tate & Lyle's European food and industrial ingredients division
proposed increase of 10 to 15 per cent on new contracts for certain
products highlights again the impact of rocketing energy prices on
the ingredients market.
As prices for hazelnuts, two-thirds of which are sourced from
Turkey, slowly start to recover following global shortages,
pistachio production also shows signs of improvement following last
German chocolate sales grew by 3.6 per cent in the first five
months of 2003 as retailers ended their price war and returned to
more normal prices. But volumes rose by less than 1 per cent, and
the exceptionally hot weather in June...