WASHINGTON, D.C. – Using Consumer Price Index (CPI) data, CNBC reported how working families would see price increases on common grocery items from Campbells, Tyson Foods, Mondelez, and Starbucks — all companies that have seen their profits soar. According to recent earnings reports compiled by government watchdog Accountable.US, Starbucks — whose average price increased by 10.5% for a 12 oz. pack of ground coffee — left the door wide open to continue jacking up prices even after its profits increased by 31% to $816 million in its first quarter.
In addition to its sky-high profits, Starbucks spent nearly $4.1 billion on stock buybacks and dividends, and its CEO’s pay jumped 39% to over $20 million in 2021. For months, Accountable.US has highlighted how major companies across the supply chain have used the pandemic as an excuse to increase their wealth and line their own pockets.
While working families bear the brunt of larger grocery store prices, big food producers are swimming in profits yet still insist on charging consumers a pretty penny for household necessities. There doesn’t seem to be a single industry that isn’t exploiting the pandemic to boost their own bottom lines at the expense of its customers. The sooner corporations stop using the pandemic as an excuse to demand more from consumers while their profits soar, the sooner we’ll see costs stabilize for working families.”
Accountable.US president Kyle Herrig
SEE MORE EXAMPLES OF PANDEMIC PROFITEERING:
- The average price for a two-pound bag of ground beef has increased by 13.6%. In February 2022, Tyson Foods—with its history of alleged price-fixing and resisting workers’ demands for fair wages—saw its stock climb over 11% to an all-time high after the company reported its quarterly profits nearly doubled year-over-year thanks to a nearly 20% increase in average prices.
- The average price for eight cans of Campbell’s Chicken Noodle Soup has increased by 10%. Campbell Soup Company—which raised prices multiple times in 2021 and planned on further hikes in 2022—posted a $473 million profit and spent $293 million on stock buybacks and shareholder dividends in the first half of its 2022 fiscal year.
- The average price for a pack of Chips Ahoy! cookies has increased by 8.5%. After Mondelez — whose brands include Chips Ahoy!, Oreo, Ritz, and Triscuits — saw its gross profit increase by over $800 million in 2021, the company still jacked up prices by up to 7% in January 2022 and is leaving the door open to raising them again despite spending nearly $4 billion on stock buybacks and dividends in 2021.