Dive Brief:
- Hillshire Brands says it expects to raise prices for many of its products as the cost of meat supplies continue to rise.
- The maker of processed-meat brands such as Jimmy Dean sausages said its commodity costs have already risen $100 million more than anticipated so far this fiscal year.
- Hillshire put the blame for the rise on the porcine epidemic diarrhea (PED) virus that is killing piglets by the millions and spreading rapidly.
Dive Insight:
When Hillshire announced just a few weeks ago that it was buying Van's Natural Foods, a maker of natural and gluten-free frozen goods, it was noted that the deal made sense, but seemed a little weird.
Now, as meat costs continue to skyrocket, Hillshire's idea of shifting into something that's unaffected by pig viruses, droughts, and other animal catastrophes seems positively brilliant.