Kraft Foods to Raise 2011 Prices

8 Comments to “Kraft Foods to Raise 2011 Prices”

1. chiller says:

   February 12, 2011 at 6:18 AM

   “persistent consumer weakness in many markets”…..sounds like a good reason to raise prices to me….and make the “persistent consumer weakness in many markets” 10 times worse. What kind of illogical thinking is this? “Our prices are too high already for people to buy so we’ll raise them to make up for it.” Uh-huh…let me know how that works our for ya.

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   • ken (Modern Survival Blog) says:

     February 12, 2011 at 6:26 AM

     @chiller, Then the exec. goes on to say, “…confident that Kraft’s brands had sufficient strength to enable price increases to be passed on…”, which I believe is another way of saying that they believe they have a sufficient monopoly on many of their food items such that the consumer won’t have much of a choice but to pay for it. (Of course, consumers do have a choice – store brand instead of name brand, or just don’t buy it… thing is though that most people are creatures of habit and will probably keep buying the same things they always have)

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2. sdawgarmy says:

   February 12, 2011 at 7:20 AM

   Just a little confused. I know debt is bad and u should try n avoid it like the plauge. Some of us still have some unfortunetly. But why is it worse for u in times of inflation? As your dollar is worth less isn’t the value of your debt decreased as welll? Don’t the creditors get screwed in their risky lending? I know most of us have mortgages. if u owed say 100,000 left on mortgage but in hyperinflation times I know I’ve seen pictures of people burning bills of over a million etc. Just for fire in their stoves. I don’t get it. Does the debt get converted to new dollar amounts? Just wonderin.

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   • ken (Modern Survival Blog) says:

     February 12, 2011 at 7:49 AM

     @sdawgarmy, The banksters will always keep your interest rate higher to keep up with inflation. Even today’s credit cards have interest rate percentages that vary from the mid teens to low 20s. When inflation ticks up higher, so will those interest rates on cards. You can’t win in most cases. Even though the value of the debt purchased with yesterday’s dollar is reduced when compared with newer inflated (devalued) dollars, you won’t be able to get out from under the interest charged on your debt – unless you have a fixed rate loan and the inflation rate goes above that of the agreed upon interest terms. Banks are probably pretty smart about this though, and unless we get hyperinflation, the banksters will probably win in most instances.

     Regarding housing, a fixed rate mortgage is just that – and the interest rate will not go up – so you’re protected in this case. In fact, during inflationary periods, the value of that house will go higher (in new devalued dollar terms). The worst scenario though, one that many suspect, is something called StagFlation, where we have inflation along with a stagnating economy (higher prices, but not much economic growth).

     Read this post for an explanation of how the government will benefit from inflation with regards to its debt. This doesn’t apply to us though – because we don’t print the money.

     Having said all that, economic theory is not my field, this is simply my opinion…

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3. sdawgarmy says:

   February 12, 2011 at 10:05 AM

   Thanks ken. Yeah I guess I was looking more at the scenario of the hyperinflation with a fixed rate mortgage. If u still have a job I figured bout an 8 hour days worth of work might be able to pay off most peoples homes. As far as credit card debt I m pretty sure we’d always get the short end of the stick with the banks changing rules n aprs. Its always been a curious topic with me as a prepper post wrol if debt would even matter. I would love to know what has happened in other countries in history after shtf events ie war, ragime change, disolvement of govt etc. I imagine say total economic collapse in this country the banks are not going to foreclose on everyone. What would they do with all those houses n who would enforce the evictions. I imagine interesting times are ahead of us.

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4. TrutherD says:

   February 12, 2011 at 1:30 PM

   I hope Kraft starts a 100% true organic line one day

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5. WhiteRose says:

   February 13, 2011 at 7:19 AM

   Great article and something we don’t find on FOX or CNN. We all knew it was coming & now it’s finally being reported. Thanks….again, good article.

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6. lee says:

   April 26, 2011 at 11:48 AM

   how much did kraft food pay in taxes in 2010 in the usa.

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