Kraft Heinze will be raising prices in August for items ranging from Miracle Whip & Classico Pasta Sauce to Maxwell House Coffee products & deli meat. Labor department on Friday said grocery prices rose 11.9% in May over the past year, and prices increased 7.4% at restaurants and other food venues. This marks the biggest jump in over four decades. Tyson Foods Inc., the biggest U.S. meat processor by sales, said it increased beef prices by an average 24% over the three months ended April 2, while its costs increased by 15% over the quarter because of higher expenses for animal feed, freight and labor. Sanderson Farms Inc., the third-largest chicken producer, said last month that it raised prices for its products by about 34% for the quarter that ended April 30. Hormel Foods Corp., the maker of Spam, said prices for corn and soybean meal for livestock feed were up more than 125% and 40%, respectively, as of early May. High feed prices are expected to continue, company officials said, especially with farmers getting off to a late planting start this year because of cold and wet weather across the Midwest this spring. Avian influenza outbreak that has led to the death of nearly 40 million birds has also sent the price of eggs and turkey products higher in recent months, analysts and Hormel officials have said. Shake Shack Inc. executives said they are experiencing the cost squeeze from suppliers. Vendors now often call the chain to give new contract prices for goods, which is unusual at this pace, CEO Randy Garutti said at an investor conference Tuesday.
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