The “sharp escalation” in the cost of flour and wheat has forced US snack firm Lance to raise prices, the company has said.
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Lance, which makes snacks from cookies to tortilla chips, said prices would rise in a bid to offset rising commodity costs.
“Commodity costs in the third quarter of 2007 were higher than in the second quarter of this year, resulting in lower operating margins,” said Lance president and CEO Dave Singer.
The Lance chief was speaking as the company issued its figures for the third quarter, a period in which sales rose 5%.
Underlying net income, however, was down slightly on the year. Earnings reached $7.6m, compared to $7.7m during the third quarter of 2006.
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By GlobalDataSinger said: “Unfortunately, the benefits of higher sales and operational improvements were offset by a sharp escalation in commodity costs, particularly flour, driven by the unprecedented trend in the price of wheat.”
