July 3, 2008 - Fleischmann’s Yeast has announced price increases set to take effect August 4, 2008, or as contracts expire. Due to ongoing cost increases from its raw material suppliers, the company will guarantee pricing and terms to customers for no more than 90 days. It's also requiring minimum purchase amounts per order to reduce delivery frequencies.
Fleischmann’s will raise the per-pound price of fresh yeast by $0.10 (USD) and dry yeast by $0.18 (USD). It says unprecedented input cost increases on energy, distribution, phosphoric acid and fermentable substrates are the main drivers.
In addition, due to continuing, dramatic increases in raw material costs, Fleischmann’s Yeast will increase calcium propionate pricing by $0.12 (USD) per pound. The two primary suppliers to the mold inhibitor industry recently announced dramatic increases on propionic acid, the main component of calcium propionate. The suppliers cited surging energy, feedstock and transportation costs.
“We are continually working to implement cost control initiatives to minimize customer impact. However, we cannot absorb these unprecedented and unforeseen increases and unfortunately will need to pass along some of the costs to ensure that we do not sacrifice quality or service," said Greg Strauss, vice president of sales and marketing, Fleischmann’s Yeast.
|
