Why the price of crisps and fish fingers is rising

0
278
LONDON, UNITED KINGDOM - JANUARY 19: Gary Lineker attends Walkers 'What's That Flavour?' launch party at Borough Market on January 19, 2012 in London, England. (Photo by Stuart Wilson/Getty Images)

Beleaguered British families will soon be paying more for crisps and frozen foods, as a result of Brexit.
The owners of Walkers crisps and Birds Eye frozen foods have indicated they are following Marmite’s lead and putting up prices following the June referendum vote.
Walkers crisps will be going up in price by 10 per cent, blaming “fluctuating foreign exchange rates” which have seen the value of the pound plummeting following the decision to leave the EU.
Leicester-headquartered Walkers, which is owned by PepsiCo has said the price of a standard sized packet will go up by five pence to 55p. A larger grab bag price will rise from 75p to 8op.
The firm has already found itself under fire from consumer groups who say there is no justification in the price rises, given that the crisps are made with British grown potatoes and produced in the UK. Therefore, they should not be suffering from any effect of currency fluctuations.
Marmite owner Unilever also found itself facing criticism. The row over its price structure led to supermarket giant Tesco taking the love-it-or-hate-it spread off its shelves. While the dispute has now been resolved, prices of Marmite still appear to be going up, in particular at Morrisons where there has been an increase of 12.5 per cent.
However, Walkers say that increasing costs of items it is importing, such as seasonings, frying oil and packaging mean it has no choice from a business perspective but to raise prices.
A company spokesperson said: “Fluctuating foreign exchange rates, supply pressure on key ingredients and the weakened value of the pound are impacting the import cost of some of our materials and affecting the price of material costs based on commodities that are traded in foreign currencies.”
Meanwhile, Birds Eye, which makes frozen food including fish fingers and chicken nuggets, is understood to be thinking about price hikes of as much as 12 per cent.
The firm is currently in discussions with major supermarkets about increasing prices, or reducing the size of its packs. That could mean that families will get only 10 fish fingers to a packet instead of 12.
A spokesman for Nomad Foods-owned Birds Eye said: “Many of our raw materials are priced in dollars and the fall in the value of the pound since the EU referendum has meant that our costs in sterling have risen.”

LEAVE A REPLY