Hobnobs boss warns biscuit prices are set to soar due to extra production costs

McVitie’s the biscuit maker says that the price of many best-selling goodies are about to shoot up.

The treat company, owned by Pladis Global, said items like Jaffa cakes, Penguins and Hobnobs could rise by as much as 5%.

This is reportedly down to staff absences, more expensive ingredients and higher labour costs which have been passed on to customers.

The firm argues that the “humble chocolate digestive” would be less affected – phew!

Pladis's UK managing director, David Murray, said: "Omicron disruption, absenteeism, and the rising cost of business going forward present a big challenge for us.

"At the end of the day, like in many other categories, it will flow through to higher prices."

The firm – which also makes Go Ahead bars and Jacob’s crackers – said that there had been a double digit percentage price hike on ingredients like cocoa beans, reports the BBC.

David continued: “We've dealt with substantial challenges in the past in the food industry – whether it's natural disasters, inflation in the economic crisis.

"It's the compression of the challenge, combined with the scale of some of them [that is different this time].”

Shortages of many items are causing supply issues across the board with everything from computer chips to cream cheese and building supplies being tricky to find.

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Price hikes on everyday items could lead to a rise in the cost of living which has already jumped by 5.1% in the 12 months leading up to November,

The terrifying price rises will have an effect on consumers are the cost of living is at its highest level since September 2011.

The Cost Price Index (CPI) rose by 2.9% in the 12 months leading to September 2021.

Crisps and soft drinks were some of the first food items to see a surge in price .

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