US cereal company Kellogg has announced a 2% to 2.5% increase for its cold-cereal brands effective immediately.
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A spokeswoman for the company said higher prices of commodities, such as cocoa, corn and wheat, are to blame for the cereal price hikes.
An analyst at Deutsche Bank Securities said he expects other US food giants such as General Mills and Kraft Foods to follow suit, reported the Wall Street Journal. The three companies together account for 77% of the US cereal market in terms of sales.
Kellogg also reported fourth-quarter net income of US$191.0m, compared with $124.6m a year earlier.
Sales rose to $1.98bn in the fourth quarter, from $1.90bn in the year-ago period.
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