Kraft Heinz: Will Customers Accept Higher Prices?
Inflation ticked up a huge 7% in December 2021, the highest level since 1982. You've probably felt the sting as you head out to live your daily life and been forced to pay more for just about everything. Kraft Heinz (NASDAQ: KHC), just like all of its food maker peers, is part of the problem, as it has been working to pass the rising costs it is facing on to consumers. For investors the big question here is, how is this process going?
The world is in an unusual time period, with the coronavirus upending business in many ways. For food makers, the pandemic brought increased demand as people shifted from eating out to eating at home more often. On top of that, there have been supply chain disruptions that have created problems with production and distribution, effectively increasing costs for everything from basic ingredients to shipping. Although this is a vast simplification of the global upheaval, the end result has been a swift rise in costs for companies like Kraft Heinz.
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Source Fool.com