How Much Money are You Willing to Pay for your Favorite General Mills Cereal?
HOW MUCH ARE YOU WILLING TO PAY FOR YOUR CEREAL?
According to a recent report from New York CNN Business, General Mills has plans to raise their prices in January on hundred of items across many of their brands including Annie's, Progresso, Yoplait, Fruit Roll-ups, Betty Crocker, Pillsbury, Cheerios, Cinnamon Toast Crunch, Lucky Charm's, Reese's Puffs, Trix, Wheaties and more.
The increase is not insignificant. It looks like there will be a 20% increase in products in the near future. Are you ready to pay 20% more for that box of cereal your kids love for breakfast?
WHAT WILL A 20% INCREASE IN FOOD PRICES MEAN FOR CONSUMERS?
According to the article, there is a leader within the company that says General Mills plans on pushing the increases to its grocery and convenience store customers. Does that mean the grocery stores will then push that price down to their consumers? This may be just one big company starting a chain of events, and if more companies decide to do the same, things are going to get tough on consumers.
Other companies that plan on raising their prices as well include Tyson, Kraft Heinz, Mondelez, Proctor & Gamble, and Kimberly Clark, to name a few.
What is so unfortunate is that low-income families are going to be burdened even more so than they already are. Walmart said they have tried to absorb some of the costs rather than passing them on to consumers, but how long will they be able to absorb the cost? and how long will they be willing to take it on?
What doesn't make sense to me, is that the company is making money, reporting a 3% increase from the year before, and had an operating profit of 3.1 billion dollars up 6% from the previous year.