Food producers have reached a tipping point when it comes to passing on increased input costs and plan to charge more over the next 12 months. The latest global survey from Grant Thornton found that 41% of food and beverage businesses expect to increase their prices over the next 12 months, compared with just 12% a year ago. Jim Menzies, global food and beverage industry leader at Grant Thornton Food told the Financial Times that in regards to passing on input costs “the levee looks set to be breached”. He said: “Beverage producers are now looking to push higher commodity prices up the chain where ultimately the cost will be borne by the consumer. What industry folk tell us is that although it’s a dip, there’s a view that higher prices are here to stay ... the longer-term trend is for prices to increase.” Menzies told the newspaper that big operators had more clout than their mid-sized peers to pass through price increases. But it is the latter, he said, that were at “the crux of the food producing industry”. He said: “The majority of those that we have spoken with have not been able to approach retailers for price increases [but] are now at a point where they have to overturn that. There are scenarios throughout North America and elsewhere where these players are now going to retailers and saying: ‘We have absorbed too much here and prices have to go up.’” The report, which covered 11,000 businesses across 39 economies, also showed that most businesses do not expect the higher prices to translate into higher profits.