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Packaging causes hike in cereal prices

Citing cost increases for both packaging and grains, General Mills, Minneapolis, MN, increased the wholesale prices of its cereals in early August by 2.9%, according to a report in Advertising Age.

This follows an earlier announcement that Ralcorp Holdings, St. Louis, MO, was increasing prices of private-label cereals it packs. General Mills had embarked on a value-pricing strategy for cereals 16 months ago when it cut prices an average of 6%. Industry analysts agree that General Mills was hit by "genuine, legitimate" cost increases, but few expect major competitors to follow suit.

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Check out new technology from 2,500+ packaging & processing suppliers
New e-book on Multipacking and Case Packing
Read how to extend the life of your case packing equipment and best practices for efficient shrink bundling operation. Plus, learn the differences between wraparound & regular slotted containers.
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New e-book on Multipacking and Case Packing