Heinz has resumed shipments to Tesco after a dispute (David Parry/PA)
(Picture: PA Archive)Consumers looking to avoid the cost of living crunch may be faced with higher ketchup and baked beans prices as inflation hits producer Kraft Heinz.
The maker of cupboard staples Heinz Salad Cream, Heinz sauces and baked beans said that it would commence “managing inflation through pricing realisation and gross efficiencies” indicating price upgrades would be passed on to the man and woman in the street. Prices on some products in the Kraft Heinz portfolio have already been raised by more than 12% this latest quarter.
Reporting its second quarter results, Kraft Heinz, who also owns the Cadbury confectionery business, said its net sales fell to $6.55 billion (£5.4 billion) in the quarter ending 25 June, from $6.62 billion a year earlier.
“We delivered yet another quarter of strong results as we continue to successfully navigate near-term headwinds, enabled by further advancements of our long-term strategy,” said Kraft Heinz boss and chair of the board Miguel Patricio.
“Though the environment remains fluid, we are better able to anticipate dynamic conditions, adapt to this constantly changing environment, and demonstrate our resiliency against new challenges. We are anticipating and adapting to changing market conditions while managing inflation through pricing realization and gross efficiencies, ” he added.
Last month, Kraft stopped supplying some products, including its signature tomato ketchup and baked beans, to the UK’s largest supermarket group Tesco after the retailer resisted price hikes. An agreement to restock has since been reached.
Kraft Heinz shares dropped 7% after its results were released.
