Associated British Foods (ABF) is said to be talks with the supermarkets to increase bread prices, which could rise by as much as 10p, according to reports from the Guardian.
Wheat prices are rising dramatically because of poor harvests and increasing energy costs.
In its interim report for the 24 weeks to beginning of March, ABF said results were “on track”, but the business was being directly affected by: “rising commodity prices and energy costs as well as volatile currencies”.
Despite this, the Kingsmill manufacturer reported profits had risen by 5%, and in its grocery business, which includes Allied Bakeries, Twinings and Ryvita, profits were up by 38% to £88m.
The cost of a loaf of Kingsmill has already risen from 96p at the end of last year to £1.09.
