Food & Drink

Why We'll Pay More for Detroit's Better Made Chips

December 17, 2021, 4:36 AM

(Photo from company)

Better Made Snack Foods of Detroit feels the pinch of supply chain disruptions and inflated prices for potatoes, oil and other ingredients. Consequently, its potato chips and other items will cost more.

But before it does, it wants to see how much Texas-based, market leader Frito-Lay raises prices on Ruffles and Lay's potato chip, Crain's Detroit Business reports.

"If you raise your price over what the major national brand is selling for, you're not going to be in a very good marketplace," company President David Jones tells Crain's. "So we've got to see what the national leader is doing and then we follow right behind them."

The snack company is one of many businesses locally and nationally feeling the supply chain squeeze and rising prices during the pandemic.

Better Made, which distributes snacks in 20 states, says prices have increased:

  • 20 percent for potatoes

  • 30 percent for seasonings

  • 20 percent to 30 percent for corrugated cardboard

  • 158 percent per pound for cotton seed oil (It jumped from 41 cents to $1.06 per pound)

"I've been doing this for 25 years and I've never seen anything like this," Phil Gusmano, vice president of Better Made and a member of the family that owns the company, tells Crain's. "The price increases for our raw materials in the past year have been more than the whole 24 prior [years]."

Read more:  Crain's Detroit Business

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