Many groceries to go up in price from next Monday

Press, Volume CXVI, Issue 34089, 28 February 1976, Page 1

Many groceries to go up in price from next Monday

By

JOHN McNEILL)

Many groceries will rise in price on Monday, and other increases may follow the Government announcement on the economy expected on Wednesday.

Many Genera] Foods frozen foods will go up on Monday. These lines are manufactured by the Wattie group, which would have had to advise the Price Tribunal of its intention to increase prices at least one month ago.

A spokesman for General Foods denied that the company had been seeking an increase for any of its tjoods when questioned by a representative of “The Press” this week.

Typical of the increases is the popular 1 kg pack of frozen peas, which hau risen

'from 94c to SI. A 500 packet of mixed vegetables has risen 4c to 58c. and frozen green beans are 5c higher at 58c: 500 gm packets of com are 7c higher at 58c. The most important of the General Foods lines is icecream, but price rises for its two brands — Tip Top. and the less lavishly-packaged Country Club — have not vet been announced. These have been expected by some

in the grocery trade, and it l is thought that the other major ice-cream manufacturer, Birds Eye. with Walls ice-cream, would ’ike an increase, but is reluctant to move first.

If an increase were granted in the price of ice-cream, the rise would probably only be a few cents a pack. Butter saving Other increases expected soon are in the price of biscuits from Griffins and Sons. The other main biscuit manufacturers, A. B. Consolidated and Cadbury Schweppes Hudson, received increases for their products in December and January.

If the Griffins application were made, and the Prices Tribunal did not object its packs of plain biscuits would rise about 3c, and cream and fruit fills, halfcovered chocolates, and other fancy lines by up to 5c to about 51c.

Although there has been [speculation about an increase in the price of butter — and a run on dairies in Christchurch last vzeek-end after hints from a local supermarket of a substantial rise—the trade does not think that anv increase would be larger than sc.

The butter pack will be increased from 454 gm to 500 gm, and the price raised to 36c, an effective saving of almost 2 per cent, the Dairy Board says. Cigarette rush Rumours that butter prices would rise have been denied by an officer in the Department of Trade and Industry in Wellington. “The Government is looking at the equalisation account (which ensures that farmers are paid the same prices for butter whether it is sold locally or exported), but if there were to be a rise next week, I would have heard about it,” he said. “I have not been told of [any increase.”

Cigarettes and tobacco are expected to be the subject of Government attention next week, and though shop-

keepers say that they have heard nothing, Wellington sources in the grocery trade expect an increase of about 10c. a packet of 20, which at present sells at 4Gc.

Pessimists in Dunedin expect that the rise may be as much as 14c a packet, and this has probably sparked off the run on cigarette sellers there, some buying up to 10 cartons at a time. There is no evidence of similar activity in Christchurch.

Parliamentary sources have confirmed that a price increase is being considered for cigarettes, but said that it was unlikely to be as high as 10c a packet.

Kelloggs, too Dunedin shoppers have also been'more active buyers of tea, coffee and sugar. Coffee has been in short supply recently, as both major manufacturers, Nestle (N.Z.), Ltd, and Greggs, Ltd, closed their plants during Christmas, and stocks have been depleted. Retailers expect both brands to be available again within the next two weeks, but these stocks, too, will be at a higher price, as the manufacturers were allowed a 33 per cent increase, and alert buyers have taken up most of the old stock. Last week the Sanitarium Health Food Company increased the price of its breakfast cereals. Weetbix 240 z pack rose 9c to 65c. and the Ikg pack was 16c dearer at 92c. Most supermarkets have permanent specials on these nroducts, and on Skippy cornflakes, which are now 5c dearer at 55c. It is likely that the manufacturer of Kellogg cornflakes and rice bubbles. A.B. Consolidated, will seek similar rises soon.

Not all the news for the housewife is black, though. Prices of imported commodities appear to have steadied, and merchants say that some products, notably some Australian dried fruits, are cheaper. Tinned mackerel has been reduced recently by 6c to 31c for a 7oz can, and capsicum has come down from 41c to 34c.