Kraft, Kellogg to Raise Prices, Ad Spends

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NEW YORK Squeezed by higher commodity costs and ad spends, Kraft and Kellogg are both planning to raise prices on many of their products.

The announcements by both came after disappointing Q4 earnings on Wednesday. Kraft’s earnings fell 6.3 percent while Kellogg’s slipped 3 percent compared to the year-ago period.

Kraft, which markets Nabisco, Philadelphia and Maxwell House brands, attributed declines to higher dairy and marketing costs. Kraft invested heavily in marketing support for new products such as Single Select cheese slices, Oreo Cakesters, DiGiorno Ultimate Pizza, Maxwell House Coffee, as well as Oscar Meyer Deli products to inflate sales.

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