Ingredient Shortage Takes Bite Out of Snack Industry

Aug 19, 2022

Lack of ingredients has led to a sna(ck)fu for consumer packaged goods companies.

Twinkies, Nutter Butters, and other tasty treats are out of stock on grocery store shelves, with production lines halted as they wait on essential ingredients like wheat and cooking oils.

Halloween (and Christmas) candy supplies are also looking a little scary because of the low supply of raw ingredients and issues with suppliers. (However, despite predictions that candy supply around Halloween time will be a little sticky, overall sales are still looking sweeter than last year.)

Special new recipe. General Mills is getting creative in response to the ingredient shortage, changing recipes to keep products like pizza, hot snacks, and refrigerated baked goods on the shelves. The company has had a hard time finding everything from starch, fats, and oils, to packaging.

Soundbite: Some products have been “reformulated over 20 times year-to-date,” said Jon Nudi, group president of North American retail for General Mills.

The backstory: The war in Ukraine caused a backup in exports out of the country, not to mention restrictions on Russian exports of grain and sunflower oil. But ships are now trickling out of the region, after a July 22 United Nations-facilitated agreement.