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Kraft Heinz Inflation Fears Rise as Cookout Costs Soar
2 Jul
Summary
- July 4th cookout for 10 now costs $73.82, highest since 2016.
- Ground beef prices reached a record high due to drought.
- Canned good costs rose due to aluminum price increases.
A recent survey indicates that the cost of a summer cookout for ten people has reached $73.82, the highest figure recorded since 2016. This surge in prices directly questions Kraft Heinz's recent decision to invest $600 million in its brands, a move predicated on the belief that commodity inflation had passed its peak.
Record high prices for ground beef, now at $14.06 for two pounds, are attributed to a cattle herd nearing a 70-year low, exacerbated by prolonged drought. Similarly, canned goods like pork and beans experienced a 13.8% price increase, largely due to soaring aluminum production costs. Strawberries also saw a significant rise following a spring frost in Florida and elevated fuel and labor expenses.
While some items like potato salad and chips decreased in price, the overall trend shows 10 out of 12 surveyed items costing more than the previous year. This economic reality clashes with Kraft Heinz's CFO's May 6th projection of peaked inflation for meats and coffee, as the AFBF data suggests cost relief is not materializing as anticipated.
