Kellogg’s is lifting prices across its cereal range due to the drought, which has increased the cost of grains across Australia.
The cereal company manufactures its products at its factory in Botany, and according to a spokesperson, has tried to absorb the rising cost of grain through measures such as investing in energy from the Beryl Solar farm – but has been forced to lift its prices regardless.
The Kellogg's spokesperson told Food & Drink Business: “We make most of our iconic cereals here in our NSW factory and, for these cereals, we use 100% Aussie grains. Due to the unprecedented drought conditions, the cost of our core ingredients – like corn, wheat, oats and rice – has increased significantly.
“We’ve worked hard across the business to drive efficiencies and find opportunities to absorb as much of the increase as possible but unfortunately we’ve not be able to offset all of the increased costs.
“As a result, we had to make a tough decision and increased the list price for our cereals in July 2019. This wasn’t a decision we took lightly but we are committed to always do everything we can to buy locally and support Australian farmers."
Earlier in October, Kellogg's announced its partnership with B2B marketplace Yume to help reduce waste in its manufacturing process.
