THE WHAT? Procter & Gamble has announced it is to increase prices of its grooming, oral and skincare products in the U.S. in a bid to offset higher commodity and freight costs, which are set to take a chunk out of its earnings, according to a report by Reuters.
THE DETAILS The price hikes follow on from mid to high single digit rises earlier this year, on products such as Always sanitary towels and Pampers diapers.
Talking on a media call, P&G CFO Andre Schulten stated that the cost increases would be marked for specific items such as razors, rather than being implemented broadly.
THE WHY? Companies are struggling to offset the costs of a failing supply chain, which is under pressure due to factors such as COVID-19 in Asia, labor shortages in the U.S. and Brexit in the UK.
Raw material prices are continuing to rise as a result, with companies starting to pass on the higher costs to the consumer.
Schulten said, “We do not anticipate any easing in these commodity cost pressures. We expect pricing to be a larger contributor to sales growth in coming quarters as more of our price increases become effective.”