Cheezels, Kettle, Thins, Samboy and CC’s chip prices to rise as factory gas bills triples

Some of Australia’s favourite snacks are about to soar in price as the cost of living crunch continues to hit families and businesses.

Snackbrands – which produces Cheezels, CC’s, Kettle, Thins, Samboy chips and French Fries – has revealed the gas bill at its Smithfield factory in Sydney has tripled from $3million to $9million in just the past year. 

The economic pain, largely driven by international factors like Russia’s bloody invasion of Ukraine, means the popular brands will cost about 25 per cent more.

Snackbrands was forced to switch gas supplier after its previous provider, Weston Energy, went broke, 9News reported.

It has since changed to Australian Gas but is now paying an extra $173,000 a week for its gas bill.

Snackbrands makes 200 million packets of chips each year and claims nearly three quarters of all Australian households buy at least one packet of its chips every year.

The company explored using renewable energy sources but found that heating its fryers would require 200 acres of solar panels.

Snackbrands Australia was forced to switch gas supplier after its previous utility, Weston Energy, went broke and the new supplier cost far more meaning its chips will go up by at least 40c a packet

The company’s CEO, Paul Musgrave, said Snackbrands has no choice but to pass the rise onto customers.

‘It’s a lot of coin… a lot of coin for us as a business and ultimately we have to pass that onto consumers because there is no way the business can absorb that in any way shape or form,’ he said.

‘The price rise of at least 40c a bag is necessary to safeguard the jobs of the factory’s 600-plus staff.’

Australian gas prices have risen 10.9 per cent since August, according to the Australian Bureau of Statistics. 

In its Budget notes, Treasury predicted domestic gas prices will increase by a further 40 per cent by 2024.

‘Domestic wholesale gas prices remain more than double their average prior to Russia’s invasion of Ukraine,’ Treasury said.

Snackbrands makes 200 million packets of chips each year and claims nearly three quarters of all Australian households buy at least one packet of its chips every year (Pictured, two of its popular brands, French Fries and Samboy)

Electricity prices in Australia are forecast to jump around 50 per cent in the next 12 months. 

The highest inflation rate in 32 years – 7.3 per cent – means Australians will see their wages continue to go backwards in real terms, until at least 2024, as pay levels fail to keep pace with rising consumer prices and utility bills.

Treasurer Jim Chalmers, delivering Labor’s first Budget in almost a decade, acknowledged soaring costs of living would erode any pay increases for two more years.