The chief executive of US cereal maker Kellogg Co has said the company is seeing “a lot of pressure” as a result of rising commodity prices.
Costs of soybean oil, cocoa, sugar, rice and fuel have all risen, chief executive Carlos Gutierrez told Reuters. Kellogg uses soybean oil in its cookies and crackers, rice in some of its cereals and snacks, and sugar in many of its product lines.
“We’ve been able to manage through it, but there’s no question that there is inflation out there,” Gutierrez was quoted as saying. “If the pressure continues, we may have to take some action.”
Action to withstand rising costs could include wholesale price increases that could get passed on to customers.