TWO CEREAL MAKERS RAISE PRICES

Kraft, General Mills Cite Rising Costs for Hikes

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NEW YORK (AdAge.com) -- Kellogg Co. will not be alone this year with higher prices for its cereals.

General Mills on Tuesday announced it would raise its prices for cold cereal by 2% as a result of rising wheat, cocoa and energy costs.

The move follows Kraft Foods' quiet

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announcement to retailers of its own hike, an increase of an average of 3% on its Post cereal brands, likewise to cover increased energy and commodity costs and to focus on new product and marketing innovation (including its Strawberry Blasted Honeycomb and a new variety of Post Selects, Maple Pecan Crunch, that will ship in March).

Kellogg was the first out of the gate earlier this month when it announced a price hike of 2% to 2.5% on its cereal lines.

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