THE WHAT? Hindustan Unilever (HUL) has announced increased prices of soap and shampoo products in response to a price hike for raw materials.
THE DETAILS Products such as Lifebuoy and Lux have seen price increases due to the rising cost of palm oil, with Lux soap up by up to 9.1 percent and Lifebuoy soap bars up by up to 10 percent. Dove body wash was up by 8.7 percent.
The company has also removed promotional offers on Lifebuoy hand wash as demand for hand sanitizers continues to rise amidst the COVID-19 outbreak.
Alongside the cost increases HUL also cut some prices, with Clinic Plus shampoos down by up to 25 percent and Pears soap bars down by up to 5 percent.
A HUL spokesperson said, “During our earnings call in January, we had spoken about the price increase planned in skin cleansing. The category has seen significant commodity inflation upwards of 25% over the last few months. We had indicated pricing increase anywhere between 5% and 6% on the portfolio.
“The inflation has been much higher, but we are being very judicious in terms of how we look at different parts of the portfolio.”
THE WHY? Said to be strategic portfolio decisions, HUL stated they were made based on the relative market, commodity and competitive context for each brand, according to Cogencis.