London Daily

Focus on the big picture.
Monday, Jul 20, 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
Jingye Demands Full Compensation After Britain illegally Nationalized British Steel
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Police Block Cockroach Janta Party’s March to Parliament as Education Protests Intensify
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
Josh Kerr Breaks Twenty-Seven-Year World Mile Record at London Diamond League
Thames Water Crisis Deepens as South East Water Outages Hit Thousands in Kent
EU Ban on Destroying Unsold Clothing Forces British Fashion Brands to Change Operations
UK Government Confirms Existing North Sea Oil and Gas Licences Will Be Honoured
UK Covid Inquiry Finds Nearly Ten Billion Pounds Lost in Pandemic Protective Equipment Procurement
Thames Water Moves Toward Possible Temporary Nationalisation Amid Rescue Plan Dispute
Andy Burnham Cancels One Point Eight Billion Pound Digital ID Programme After Taking Office
UK Government Takes British Steel Into Full Public Ownership to Protect Jobs and Supply Chains
Andy Burnham Becomes UK Prime Minister and Pledges Focus on Living Costs and Public Services
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Singapore Considers Lower Taxes for Fund Managers as Hong Kong Intensifies Talent Contest
US Retaliates Against Iran After Two American Troops Killed in Jordan
Bank of Asia BVI Enters Court-Supervised Liquidation After Regulators Find It Insolvent
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Bank of England Warns Climate Shocks Could Trigger Sudden Asset Repricing
UK Treasury Places Microsoft, Google, AWS and Oracle Under New Financial Resilience Rules
Scottish Government Faces Pressure Over Delays in Vulnerable Group Background Checks
Crown Prosecution Service Authorises Additional Charges Against Andrew and Tristan Tate
NHS Approves At-Home Cancer Treatments for Rare Blood Disorders
Bank of England Gains Oversight of Major Cloud Providers Supporting UK Financial System
UK Government Plans Major Overhaul of English Local Councils Through New Unitary Authorities
British Steel Nationalisation Dispute Escalates as Chinese Owner Jingye Seeks Compensation
Bank of England Signals Interest Rates Will Stay High as It Warns of Financial Risks From Climate and AI
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
Key Trends to Watch
Financial Conduct Authority Warns Cloud and Digital Risks Are Becoming a Financial Priority
Jeffrey Donaldson Appeals Sexual Abuse Conviction as Democratic Unionist Party Opens Review
Welsh Health Authorities Launch Emergency Meningitis Vaccination Programme for Students
Scottish Business Activity Falls for Third Month as Companies Face Rising Costs
Bank of England Regulators Demand Better Access to Digital Banking Services
United Kingdom Cuts Bilateral Aid to Several African Countries by Up to Ninety Per Cent
×