Kraft to raise food prices

Kraft Foods has warned it will increase its product prices because of higher raw material costs.

The Cadbury owner, which also produces Oreo cookies and Philadelphia cheese, made a first quarter profit of $799m (£488m).

Kraft reported a strong start to 2011.

Most of the commodities that Kraft uses to make its products have risen in price, including corn, cocoa and energy costs.

Chairman and chief executive, Irene Rosenfeld, said: “We’re off to a stronger-than-anticipated start to the year as our teams around the world execute our growth strategy.”