Say ‘see you tater’ to this beloved snack as prices are set to rise
- Replies 6
Any Aussie would be hard-pressed to think of anything high cost-of-living prices have left untouched. Not even our sanity…
Almost everything a person needs to function has increased in price and to say a lot of people are concerned would be a gross understatement.
Now, as much as we hate to be the bearer of bad news, we have information sure to make you rethink your next grocery purchase.
Some of our favourite snacks are reportedly in for a massive price hike after one manufacturer revealed their gas bill has tripled compared to just last year!
Snackbrands, the company behind brands such as Cheezels, Thins, Samboy, CC’s, and French Fries, said that they’ve incurred a whopping $9 million gas bill, up from just $3 million a year ago.
The company says the gigantic leap in costs was due to the closure of Weston Energy, its previous energy wholesaler.
The development forced Snackbrands to turn to a gas supplier on the costlier end of the market.
The change translates to an additional $173,000 in gas bills weekly, something the company said it cannot sustain.
‘It's a lot of coin… a lot of coin for us as a business,’ Snackbrands Australia CEO Paul Musgrave said.
‘And ultimately we have to pass that onto consumers because there is no way the business can absorb that in any way shape or form.’
Given the development, customers will now have to shell out anywhere from an extra 40c to 50c per packet of chips by 2023.
'The price rise… is necessary to safeguard the jobs of the factory's 600-plus staff.' Musgrave explained.
Annually, Snackbrands churns out 200 million chip packets. Around 75 per cent of Australian households are said to buy at least a packet of its chips yearly.
In case you’re thinking about it, the company also shared that it has explored renewable energy options to offset the costs, but they discovered that powering their fryers for just six hours would take 250 acres of solar panels to work.
‘We need gas... that's what it is at the moment with the technologies that are available... we need gas,’ Musgrave added.
Gas prices have risen by about 10.9% in three months, according to data from the Australian Bureau of Statistics.
Unfortunately for Aussies, there isn’t a clear path ahead with the Treasury forecasting domestic gas prices to swell by 40 per cent by 2024.
At the same time, electricity prices are also expected to rise by about 50 per cent in the next year.
Surging energy costs have spurred the government to intervene in the energy market — a marked departure from its usual hands-off approach.
In a recent Senate hearing, Treasury Deputy Secretary Luke Yeaman admitted the ongoing invasion of Russia in Ukraine has been exerting ‘war-driven price shocks’ in the global oil market.
However, when asked what were the actual policies the Treasury was suggesting, Yeaman admitted they are still weighing options moving forward.
‘Things that act quickly and directly on the price are going to be most effective in our view … in helping people to deal with the current energy price shock,’ he said.
Speaking of policies, former Australian Competition and Consumer chair Rodd Sims suggested the Albanese government consider threatening gas companies with export limits, which he said would prompt them to lower domestic prices.
‘This is (the Government’s) obligation,’ Sims said.
‘It just needs the threat and I think they will act. My view is this intervention would do as much as we can sensibly do to solve the problem – and it would solve the problem.’
If you want more information on what to expect in the coming months, be sure to read this story on an investment bank’s analysis of the surging prices of supermarket goods.
So, how are you taking this latest news of yet another commodity (our dear chips) impacted by rising prices?
Tell us your thoughts in the comments section below!
Source: YouTube/Sky News Australia
Almost everything a person needs to function has increased in price and to say a lot of people are concerned would be a gross understatement.
Now, as much as we hate to be the bearer of bad news, we have information sure to make you rethink your next grocery purchase.
Some of our favourite snacks are reportedly in for a massive price hike after one manufacturer revealed their gas bill has tripled compared to just last year!
Snackbrands, the company behind brands such as Cheezels, Thins, Samboy, CC’s, and French Fries, said that they’ve incurred a whopping $9 million gas bill, up from just $3 million a year ago.
The company says the gigantic leap in costs was due to the closure of Weston Energy, its previous energy wholesaler.
The development forced Snackbrands to turn to a gas supplier on the costlier end of the market.
These chips are among Snackbrands’ products set to become more expensive by as much as 50c due to high gas prices. Credit: Snackbrands Australia
The change translates to an additional $173,000 in gas bills weekly, something the company said it cannot sustain.
‘It's a lot of coin… a lot of coin for us as a business,’ Snackbrands Australia CEO Paul Musgrave said.
‘And ultimately we have to pass that onto consumers because there is no way the business can absorb that in any way shape or form.’
Given the development, customers will now have to shell out anywhere from an extra 40c to 50c per packet of chips by 2023.
'The price rise… is necessary to safeguard the jobs of the factory's 600-plus staff.' Musgrave explained.
Annually, Snackbrands churns out 200 million chip packets. Around 75 per cent of Australian households are said to buy at least a packet of its chips yearly.
In case you’re thinking about it, the company also shared that it has explored renewable energy options to offset the costs, but they discovered that powering their fryers for just six hours would take 250 acres of solar panels to work.
‘We need gas... that's what it is at the moment with the technologies that are available... we need gas,’ Musgrave added.
Gas prices have risen by about 10.9% in three months, according to data from the Australian Bureau of Statistics.
Local gas prices are expected to rise even further in the coming months. Credit: The Canberra Times
Unfortunately for Aussies, there isn’t a clear path ahead with the Treasury forecasting domestic gas prices to swell by 40 per cent by 2024.
At the same time, electricity prices are also expected to rise by about 50 per cent in the next year.
Surging energy costs have spurred the government to intervene in the energy market — a marked departure from its usual hands-off approach.
In a recent Senate hearing, Treasury Deputy Secretary Luke Yeaman admitted the ongoing invasion of Russia in Ukraine has been exerting ‘war-driven price shocks’ in the global oil market.
However, when asked what were the actual policies the Treasury was suggesting, Yeaman admitted they are still weighing options moving forward.
‘Things that act quickly and directly on the price are going to be most effective in our view … in helping people to deal with the current energy price shock,’ he said.
‘This is (the Government’s) obligation,’ Sims said.
‘It just needs the threat and I think they will act. My view is this intervention would do as much as we can sensibly do to solve the problem – and it would solve the problem.’
If you want more information on what to expect in the coming months, be sure to read this story on an investment bank’s analysis of the surging prices of supermarket goods.
So, how are you taking this latest news of yet another commodity (our dear chips) impacted by rising prices?
Tell us your thoughts in the comments section below!
Source: YouTube/Sky News Australia
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