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Hey girls! Biscuit maker McVitie’s warns that prices for teatime snacks will rise


Hey girls! Biscuit maker McVitie’s warns that prices for teatime snacks, including Jaffa cakes, Penguins and Hobnobs, are set to rise

  • McVitie’s warns customers to be prepared for higher biscuit prices
  • Parent company Pladis Global said a range of problems are causing spikes
  • Company saw percentage cost of its raw components rise ‘double digits’










Biscuit lovers are about to experience a new credit crunch — with teatime snack prices soaring.

McVitie’s, the leading manufacturer, has warned customers to be prepared for price hikes across their range, which includes Jaffa Cakes, Penguins, Hobnobs and best-selling chocolate products.

Parent company Pladis Global, which also makes Jacob and Kar’s biscuits and Go Ahead group fruit bars, has warned that a host of problems mean spikes are inevitable.

They include an increase in the prices of ingredients such as wheat, higher labor costs and staff absences due to Covid.

McVitie’s, the leading manufacturer, has warned customers to be prepared for price hikes across their range, which includes Penguins, Jaffa Cakes and best-selling chocolates.

David Murray, Managing Director of Pladis UK, said: “Omicron’s disruption, absenteeism and the rising cost of doing business in the future are a huge challenge for us.

“At the end of the day, as in many other categories, it will flow to higher prices. I’ve never seen a set of challenges like this at the same time.

We have dealt with significant challenges in the past in the food industry – whether it was natural disasters, or inflation in the economic crisis. It’s the pressure of a challenge, combined with the size of some of them.

We do get some sleepless nights. It’s really just a test of our resilience.

Murray said his company is in negotiations with the supermarkets that supply it about the level of price hikes, and he declined to say how high each product should be.

Asked if it would be about the same as the rate of inflation – 5.1 per cent in November – he said: “You are certainly in such numbers.”

A 5 per cent increase in a box of McVitie’s Victoria Classic Biscuits will raise the cost from £4 to £4.20.

Murray added that the company is seeing a “double” rise in the cost of raw ingredients, such as cocoa beans.

McVitie's Hobnobs will also be affected by higher prices caused by increased costs of ingredients such as wheat, higher labor costs and employee absences due to Covid

McVitie’s Hobnobs will also be affected by higher prices caused by increased costs of ingredients such as wheat, higher labor costs and employee absences due to Covid

He said Pladis had no choice but to pass on the increases to customers. “There is a continuing opportunity to bring the cost down, but when it’s in that range of inflation, I think we’ll struggle,” he said.

“But the humble chocolate digestive system will still be accessible to all.”

He added that profits have been reinvested in research and development, including in healthy snacks amid a government drive to reduce obesity.

Research finds McVitie’s Chocolate is Britain’s favorite snack, UK biscuit market is worth £3.2 billion annually

Pladis also plans to launch a new product, a chocolate-caramel cup-shaped biscuit called Blissfuls, at Sainsbury’s in January.

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