Large manufacturers of Sweets Mars and Mondelez notified the Russian networks to increase the sales prices of their products, Izvestia reported, referring to the letters of manufacturers received by the retailers. The main reason is the increase in the cost of cocoa grains and logistics.

Snickers, Oreo and Alpen Gold manufacturers warned about prices up to 19%
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According to the newspaper, Mars said that as of February 20, the prices of the Batchiki Snickers, Mars, Bounty (in 14-19%), Skittles (12%) and M&S Drageoes (16%) will increase prices. As of March 24, Korkunov Sweets prices will increase by 14-19%.

As of April 1, Mondelez will increase the cost of Alpen Gold and Milka (14.9%), Oreo cookies and barney cookies (6-9%) and bake 7 days (5-9%).

Speaking about the reasons for the price increase, manufacturers refer to several factors. The exchange value of cocoa grains increased by 30% per year, reaching $ 9,000 per ton. Raw materials represent up to 60% of the cost of bitter chocolate. In addition, the cost of transport and international containers increased, fluctuations in the rubleing rate increased the costs of imported ingredients, and manufacturers are forced to increase wages.

According to Ilya Bereznyuk, manager of agricultural and food communications, the market really records the record increase in the cost of cocoa grains due to the failure of crops in Africa and Latin America. The problem with the increase in the cost of production will be relevant not only for foreign brands, he says.

How will stores react? Retailers are not in a hurry to accept new prices. According to the ACORT representative, the networks verify the validity of the increase already often coordinate only part of the application. “We agree with the delay and promotions to soften the coup to the buyers’ wallet,” the association said.

According to Dmitry Vostrikov of Rusprodsoyuz, even with an increase in 20%sales prices, retail trade can be limited to a 5-10%increase, distributing the load between the supplier and the consumer. Dye networks will try to soften the effect at the expense of special offers: in Pyaterochka and Magnet, they point out that the proportion of sweets promotion can grow up to 30%.

What about Russian brands? National manufacturers, including Babaevsky and Slavyanka, have not yet announced plans to correct prices. However, experts do not exclude that the price increase will affect local brands. “Russia is the fifth in the world, a confectionery manufacturer. But we import cocoa bobs, so it will not work to avoid the influence of exchange prices, ”said the Ministry of Agriculture.

  • This is the second wave of price increase in the last six months. According to Izvestia, in autumn, Mondelez has already announced plans to increase prices as of February 1. Then it was supposed that chocolates would increase in the price by a maximum of 15.7%, cookies, in almost 10%, cakes, 9%. Among the reasons, the manufacturer and then indicated the increase in the price of raw materials. In total, in 2024, the cost of cocoa grains in the modern exchange of New York increased by more than 135%.

Author:

Julia Pastor

Source: RB

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I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.

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