Much-loved bakery boss Greggs has reported bumper profits for 2021 but warned its cost of goods may have to rise again as its own costs spike
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Chain of bakeries Greggs warned that they could be forced to raise prices in stores as their own costs rise.
Greggs had bet on a 5% price increase this year, but is now rising as the conflict has hit margins.
In January, the Mirror reported that Greggs would raise prices sausage roll for 5p.
At the time, a spokesman for Greggs told Bloomberg : “Materials and labor costs have gone up, and Greggs isn’t immune to that.”
Greggs CEO Roger Whiteside said the bakery could not rule out a further price increase.
“Food ingredients are getting more and more expensive, and energy is getting more expensive than it was then,” says Whiteside.
He added: “All proteins, all grains, all oils – everything is bullish.
“As always, we will work to minimize the impact this has on our customers.
“However, given this development, we do not currently expect physical profits to increase next year.
“We will review everything as the market evolves.”
Bakery chains generally refrain from raising any prices, as it is known for its value for money.
But Whiteside says that may not always be the case.
He added: “I would never make a promise that it always will be because there is uncertainty in the outlook.
“So depending on how the market reacts, you might find that we want to protect prices at one end of the market, where we could see fiercer competition, but push prices up sharply.” stronger than in other parts of the market.”
Yesterday Greggs reported a record £146m profit for 2021 and confirmed open plans 150 new stores This year.
Due to a bumper year in 2021, the company’s shareholders will receive a special payout of 40p per share this April, well above the 57p a share has announced.
Yesterday The Mirror reported canned goods and sunflower oil due to price increases, but all supermarket items could also increase due to higher petrol and fertilizer prices.
Even before the war broke out, supermarket shoppers were warned to prepare for a year Grocery bills increase by around £180 as the cost of living crisis squeezes households.
But the Russian invasion Ukraine threatens to increase food bills further – even though we’ve only seen the warning signs.
Market research firm Kantar said Food prices up 4.3% in Februarywith the fastest rising prices on savory snacks, fresh beef and cat food.
https://www.mirror.co.uk/money/greggs-warns-sausage-roll-more-26425046 Greggs warns sausage roll prices to rise as Ukraine war affects raw material costs