Sharp run-up in plastic raising tab for groceries

A sharp run-up in plastic costs is starting to have an impact on supermarket shelves, pushing up the price of products packaged in plastic and forcing some beverage companies to consider shifting to cardboard.

Citing the aftereffects of the Gulf Coast hurricanes, many milk producers have started passing along surcharges for raw materials and fuel costs. One food industry official, who asked not to be identified, said most milk producers added a surcharge of 9 cents a gallon last month and tacked on another 5-cent increase this month. The price increases by and large are being passed along to consumers.
H.P. Hood confirmed it is passing along surcharges to its customers, but declined to say how big the surcharges are. Dean Foods, which makes Garelick milk, did not return phone calls.

Other products packaged in plastic, including soft drinks, orange juice, and bleach, are also facing upward pricing pressure. Clorox increased the price of its liquid bleach 9 percent in July and is increasing the price again an average of 8 percent Jan. 1.

Boston Globe