Purveyor of Baked Goods Forced to Raise Prices Skip to content
Photo: Mömmukökur, sometimes named mömmukossar (momma’s kisses).

Purveyor of Baked Goods Forced to Raise Prices

Vilhjálmur Þorláksson, the manager of Gæðabakstur, one of Iceland’s biggest manufacturers of baked goods, says the company has been forced to raise their prices, Vísir reports. Vilhjálmur says that intended pay raises are partly to blame, but also a raise in the price of raw materials. Less than half of the company’s expenses are salaries and Vilhjálmur has said he’d rather raise prices than lay off workers.

Many were outraged yesterday when ÍSAM, a wholesale and manufacturing company declared that they would have to raise prices of their materials by 3.9% should intended pay agreements go through. Consequently Gæðabakstur revealed they would have to raise the price of their products by 6.2%.

“Last year our flour prices went up by 30% due to a poor harvest that year,” a disappointed Vilhjálmur says. “Now salary increases are imminent. Costs of transporting our products around the country have increased by 6%, and then we have an increase in the price of raw materials. We are forced to take desperate measures”.

Vilhjálmur says his company hasn’t raised the price of their products in about 15 months. “Over the last few years we’ve been streamlining our factory procedures, but we’ve hit a wall.”

Asked whether it would be possible to lower prices and find other ways to cover for costs Vilhjálmur isn’t optimistic. “I’m afraid we need this. We don’t have any deep pockets to rely on, I’m sorry”.

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