CEO of Kraft Heinz says "inflation is here" (but ketchup shortage end is in sight)
An interview with Miguel Patricio, CEO of Kraft Heinz, indicating the supply chain problems, well at least that for ketchup, may be close resolution.
- we have bottles; we don't have enough pouches.
- We saw this coming in July of last year.
- So we said we're gonna have a big change in mix. It takes about a year to order, install and start operating a new line of ketchup.
- (So we built) Eight new production lines. In July, we'll increase our capacity by 25%. And that will solve the problem.
The point is this will be the same across other industries. Supply bottlenecks are coming to an end it would seem.
- Inflation is here-in raw materials, not necessarily in consumer products.
- And it's pretty high in some products, like edible oils.
- (and) In many different things, [like] resin for packaging. There's inflation in labor, inflation in logistics. There's big cost spikes going on.
- We haven't increased prices to consumers. We do not know if we'll have to increase prices or not yet. We are studying and building scenarios on that. We are very concerned, concerned but acting to mitigate the possibility of increasing prices through efficiencies.
Here is the link for more, also on labour market issues.