ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, July 11, 1996 TAG: 9607110030
SECTION: EXTRA PAGE: 3 EDITION: METRO
DATELINE: MONTPELIER, VT.
SOURCE: ANNE WALLACE ALLEN ASSOCIATED PRESS
Ben & Jerry's premium ice cream will soon come at more of a premium.
The Vermont ice cream maker, known for its offbeat blends like Cherry Garcia and Chunky Monkey, will raise its prices by 10 cents a pint, citing higher dairy prices for the increase.
The company's decision to up prices follows a similar move four weeks ago by competitor Haagen-Dazs, who also said the increase was due to rising milk costs.
``These cost increases are very dramatic for our business, to the point where we've had to look at ways to basically still try to have some profits but also keep the business running,'' said Frances Rathke, Ben & Jerry's chief financial officer.
The South Burlington, Vt.-based company has notified its domestic distributors that prices will go up in about a month. Ben & Jerry's estimates the retail price of its products now at about $2.79 to $2.89 cents a pint in supermarkets.
``I think we're an inexpensive luxury item,'' Rathke said. ``If you really want to have a high-quality treat, I think spending $2.89 is not a lot of money and you can really enjoy it.''
It's the first price change for the company since February 1995, when it raised its prices by a dime per pint. There will no price hikes in 1994, Rathke said.
Ben & Jerry's is also evaluating whether to raise the price of its products distributed overseas.
Economists say lower milk production nationally and a higher-than-usual demand for butter and powdered milk have contributed to the rise in milk prices. The lower supply has translated into higher prices for what milk is available.
``A big piece of our costs are cream and condensed dairy ingredients,'' Rathke said. ``The price of butterfat, a major piece of the cream price, has gone up dramatically just in the last month.''
Haagen-Dazs raised its prices for the same reason about four weeks ago, said Rob Longendyke, a Haagen-Dazs spokesman in Minneapolis.
``We took a ten-cent per pint [increase] on our products just before Ben and Jerry's did,'' Longendyke said. ``Milk prices have gone up nationwide.''
LENGTH: Medium: 51 linesby CNB