Consumer Goods Giant to Raise Prices on More Staples, Blames Increase in Cost on Raw Materials

Posted 45 days ago

From WWW.ENTREPRENEUR.COM

Procter & Gamble Co. said it will raise prices on a number of household staple goods as the cost for raw materials and freight has increased faster than it had anticipated.

The company, which makes a range of products including Tide and Charmin, said it would begin to charge more for oral care, beauty, and razors. Earlier this year, Procter & Gamble said it would charge more for toilet paper and diapers.

The new price hikes are not being implemented on all its products, but they will be marked for specific items such as razors and in some sub-categories, CFO Andre Schulten told Reuters. U. S. retailers are aware of the new sticker prices, he added.

“We announced price increases to retailers in the U. S. on oral care, skin care, and grooming,” Schulten said in a conference call. “It’s item by item,” he added, although he did not say how much the prices will rise.

“As this pricing reaches store shelves we’ll be closely monitoring consumption trends,” he also remarked in the conference call. “While it’s still early in the pricing cycle, we haven’t seen notable changes in behavior.”

Global supply chains are under strain due to factors such as a resurgence of cases and lockdowns in Asia and labor shortages in the United States, leading to a surge in ra... (Read more)