Several food manufacturers coping with high commodity costs by raising prices.

Food Institute Report, The, February, 2008

As food makers are increasingly struggling with higher costs for grain, energy and other raw materials, several are planning to raise prices in response to higher commodity costs. CADBURY SCHWEPPES PLC, for instance, plans to lift confectionary prices in response to the ring cost of raw materials including cocoa, milk and oil. CAMPBELL SOUP CO. is also planning to increase its soup prices by 5%; while analysts expect H.J. HEINZ CO. to lift its prices. KRAFT FOODS INC., meanwhile, will use a combination of price increases and supply chain productivity improvements to cover input cost inflation while its volume growth and product mix gains will leverage its overhead costs and increase operating margins, noted Tim McLevish, Executive VP and CFO. The company is also...

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