London Daily

Focus on the big picture.
Monday, Oct 19, 2026

Kraft Heinz says people must get used to higher food prices

Kraft Heinz says people must get used to higher food prices

People will have to get used to higher food prices, the boss of Kraft Heinz has told the BBC.

Miguel Patricio said the international food giant, which makes tomato sauce and baked beans, was putting up prices in several countries.

Unlike in previous years, he said, inflation was "across the board".

The cost of ingredients such as cereals and oils has pushed global food prices to a 10-year high, according to the UN Food and Agriculture Organisation.

Kraft Heinz has increased prices on more than half its products in the US, its home market, and Mr Patricio admitted that is happening elsewhere too.

"We are raising prices, where necessary, around the world," he said.

During the pandemic, many countries saw production of raw materials, ranging from crops to vegetable oils, fall. Measures to control the virus, as well as illness, limited output and delivery.

As economies have restarted the supply of these products hasn't been able to keep up with returning demand, leading to higher prices. Higher wages and energy prices have also added to the burden for manufacturers.

Kraft Heinz chief executive, Miguel Patricio, says consumers need to get used to higher food prices

Mr Patricio says this broad range of factors is contributing to the rising cost of food.

"Specifically in the UK, with the lack of truck drivers. In [the] US logistic costs also increased substantially, and there's a shortage of labour in certain areas of the economy."

Mr Patricio says that consumers will need to get used to higher food prices given that the world's population is rising whilst the amount of land on which to grow food is not.

In the longer term "there's a lot to come in technology to improve the effectiveness of farmers" that will help.

Not all cost increases should be passed on to consumers, Mr Patricio said. Firms would have to absorb some of the rise in costs.

"I think it's up to us, and to the industry, and to the other companies to try to minimise these price increases," he said.

But big food producers like Kraft Heinz, Nestle and PepsiCo "will most likely have to pass that cost on to consumers" according to Kona Haque, head of research at the agricultural commodities firm ED&F Man.

"Whether it's corn, sugar, coffee, soybeans, palm oil, you name it, all of these basic food commodities have been rising," she said.

"Poor harvests in Brazil, which is one of the world's biggest agricultural exporters, drought in Russia, reduced planting in the US and stockpiling in China have combined with more expensive fertiliser, energy and shipping costs to push prices up."

But she said food producers would all be affected and would therefore all be raising prices in similar ways: "because it's so widespread that everyone will do it, meaning they probably won't lose customers".

This week PespsiCo warned it was also facing rising costs on everything from transport to raw ingredients, and said that further prices rises were likely at the start of next year.

However, as well as pushing up costs, the pandemic did help boost sales for some Kraft Heinz brands, Mr Patricio said, because staying in meant "people are cooking far more than they were before".

Customers in the UK bought more Heinz Baked Beans, while customers in the US bought more Kraft Mac & Cheese. Overall sales rose 1.6% to $13bn in the first half of this year, described by Erin Lash, at the investment firm Morningstar, as "still quite impressive relative to the comparable pre-pandemic period in 2019". despite representing a slight slowdown.

The company is also undergoing an extensive restructuring under Mr Patricio, involving selling some old, and buying some new brands which Ms Lash said was "narrowing its focus and increasing its spending on innovation and marketing" which would support future sales.

Mr Patricio said the firm was also spending significant sums on developing new packaging to meet its aims on reducing plastic waste.

Most of the 650 million bottles of ketchup the firm sells every year are plastic, for example. But Mr Patricio said the firm was "encouraging" customers to buy glass bottles even though they are less convenient "because you have to tap on the bottom".

He adds "We are working hard, not only on the plastic bottles, but everywhere in our footprint that has plastic."

The pandemic led to a shortage of ketchup sachets as demand for takeaways soared

Campaigners against plastic waste would like to see a reduction in the use of single serving sachets.

However following faced a shortage of sachets during the pandemic, as consumers bought more takeaways from restaurants, Kraft Heinz has invested in expanding production of them by 30%.

"Thanks God we did that, because now we don't have that [shortage] problem anymore", says Mr Patricio. But he says the company is working on a solution "to cutting the amount of plastic they use".

Newsletter

Related Articles

0:00
0:00
Close
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
Labour Party Instructs Local Council Groups to Sever Power-Sharing Accords with Green Party Over New Controversial Policy Positions
Institute for Fiscal Studies Warns of Thirty-Five Billion Pound Fiscal Gap Ahead of Chancellor John Healey Upcoming Autumn Budget
House of Lords Backs Landmark Legislative Amendment to Decriminalize Abortion Across England and Wales
United Kingdom Defence Secretary Wes Streeting Travels to Pentagon for High-Level Strategic Talks Amid Escalating Tensions Over Ukraine and United States Policy Shifts
Bank of England and International Monetary Fund Officials Issue Urgent Warnings Regarding Potential Artificial Intelligence Financial Market Shocks
Reform UK Faces Severe Political Fallout and Scrutiny After Undercover Media Investigations Reveal Systemic Racism Among Candidates
Former Democratic Unionist Party Leader Jeffrey Donaldson Sentenced to Fifteen Years in Prison Following Landmark Child Sexual Abuse Trial
House of Lords Votes to Amend Schools Bill Implementing Comprehensive Social Media Ban for Children Under Sixteen Years of Age
International Monetary Fund Upgrades United Kingdom Growth Forecast for Two Thousand Twenty-Six While Warning of Energy-Driven Inflation Pressures
Competition and Markets Authority Launches Formal Inquiry Into Corporate Artificial Intelligence Partnerships
Automotive Industry Leaders Urge Westminster to Accelerate Electric Vehicle Charging Infrastructure Rollout
Home Office Expands Digital Border Security Framework With Mandatory Electronic Travel Authorizations Across United Kingdom
Northern Ireland Executive Reaches Final Consensus on Public Sector Pay Reform and Budget Allocations
Welsh First Minister Secures Additional Funding for Rural Agricultural Transition and Sustainable Farming Schemes
Scottish Government Unveils Accelerated Regional Infrastructure Strategy to Boost Clean Energy Manufacturing
National Health Service England Launches Emergency Recruitment Drive to Alleviate Severe Acute Care Winter Backlogs
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Reductions Amid Persistent Wage Growth
British Government Finalizes Emergency Energy Support Package to Protect Households From Winter Price Surges
Russell Brand Trial Begins at Southwark Crown Court
UK Parliament to Debate Climate Risks and Council Tax Following Public Petitions
Department for Transport Demands Safety Audits Following Regional Rail Disruptions
House of Lords Scrutinizes Amendments to Armed Forces Bill
Devolved Administrations in Scotland and Wales Criticize Post-Brexit Funding Framework
Prime Minister Andy Burnham Defends Middle East Military Support Under Parliamentary Scrutiny
NHS Leaders Warn of Severe Pressure on Hospitals from Winter Virus Outbreaks
Retailers and Business Groups Lobby Chancellor for Relief from Rising Employment Taxes
City of London Taskforce Urges Radical Reform to Prevent UK From Becoming "Incubator Nation"
×