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Kellogg Co. is raising the average wholesale prices of its ready-to-eat cereals by roughly 2 percent, blaming higher commodity costs.

The increases take effect immediately.
KC's View:
One of the analysts reporting on the increase said that while the increase improves Kellogg’s profit potential, there is always the question of how Wal-Mart will react.

Good question. Wal-Mart isn’t one to raise prices, nor does it like to absorb prices increases.

Will there suddenly be an increase in Post cereals available in Wal-Mart?