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10th March 2022
01:24pm GMT
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Greggs revealed that it could face a seven per cent increase in costs as Russia and Ukraine are huge exporters of wheat, maise and barley.
The National Farmers' Union has warned that UK food prices will rise as a result of the war, the BBC reported on Thursday. Some 30 per cent of the world's wheat comes from Ukraine and Russia and exports will stop during the conflict.
In addition, the price of gas - which is used to heat greenhouses and to make fertiliser - has soared, the broadcaster noted.
A spokesperson for Greggs said that rising costs have “necessitated some price increases, which were made at the start of this year, and further changes are expected to be necessary.”
They continued: “As ever, we will work to mitigate the impact of this on customers, protecting Greggs’ reputation for exceptional value in the freshly-prepared food-to-go market.
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“Given this dynamic, we do not currently expect material profit progression in the year ahead.”
Greggs’ chief executive officer, Roger Whiteside, said that no immediate price changes are in place. However, as the situation evolves, that may change.
He explained: “We’ve got no plans to raise prices currently, but obviously that’s going to have to remain under review given the way the markets are moving around the world on commodity food prices in particular.”
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“If the market allows price increases to move onto customers, then we will have to attempt to do that, if it doesn’t then we won’t be able to.
“You’re trying to position price to make sure you maximise sales.”
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