Skip to comments.Consumer Goods Giant to Raise Prices on More Staples, Blames Increase in Cost on Raw Materials
Posted on 10/19/2021 10:45:23 AM PDT by MNJohnnie
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 consumer behavior.”
Global supply chains are under strain due to factors such as a resurgence of COVID-19 cases and lockdowns in Asia and labor shortages in the United States, leading to a surge in raw material prices that is also squeezing profits at Unilever and Reckitt Benckiser.
Meanwhile, inflation in the United States is at the highest level in years amid supply chain bottlenecks and labor issues.
“We do not anticipate any easing of costs,” Schulten also told the Wall Street Journal in an interview on Tuesday. “We continue to see increases week after week, though at a slower pace.”
On Tuesday, the firm raised its commodity and freight costs impact for this fiscal year to $2.3 billion from $1.9 billion.
The Cincinnati-based consumer products giant will find backup suppliers and will switch shipping routes to deal with potential bottlenecks, he told the Journal.
“To the consumer, it looks like we’re in good supply,” Schulten said.
For the quarter that ended on Sept. 30, Procter & Gamble reported sales of $20.3 billion, according to its quarterly earnings report. Net earnings were about $4.1 billion, a 4 percent drop year-over-year.
And for the fiscal year 2022, the company expects to see a growth of between 2 and 4 percent in sales.
Additional expenses will shave off 90 cents from its full-year earnings per share, compared with a previous forecast of a hit of 70 cents.
Be prepared: install a bidet.
I have years of supplies for razors, toothpaste, soaps, etc.
You’ll never get me....
Toothless, ugly, and bearded.
I can’t find ERA detergent anymore. Does anybody know if it has been discontinued?
No surprise here. The other major consumer goods companies have already announced price increases for 2022. Maybe this is a 2nd increase for P&G, I’m not sure.
That said, razor blades are too damn expensive already. So expensive that the retailers have to lock them up because many people would just steal them.
You can still get ERA at a few places. It’s a P&G product. They have a few brands in that category my guess is they prefer to consolidate their marketing and planning budgets around Tide. Monopolies suck.
“While it’s still early in the pricing cycle, we haven’t seen notable changes in consumer behavior.”
I hope they’re blindsided, then. I hope it hurts their bottom line and that of their investors.
That said - grow your own where you can. Learn to bake bread (it’s easy!) and cook from scratch.
Just pretend we’re going into The Great Depression again, because a lot of the earmarks ARE there. Everything appears to be unsustainable these days.
Take your pick. Indicators of a pending recession/depression:
Worsening unemployment rate. (A worsening unemployment rate is usually a common sign of an impending economic depression.)
Declining property sales.
Increasing credit card & mortgage debt defaults.
6 dozen cloth diapers make a great baby shower gift
Are you set for Years 2 to 5 of inflation?
The world has gone completely crazy.
Butt, butt, butt raggedy jen promised producers wouldn’t pass along increased costs since inflation is transitory. No, really.
But Psaki clearly said this was temporary and the WH experts told her it is a brief transition.
Do you mean we should be worried and not believe her? Never thought I'd see the day we can't trust the politicians. They seem so honest.
Can't post more now. The staff guys are coming to give me another pill and tell me to lie down.
I use stuff that comes in a red bottle, works good, you should try it.
My grandfather was a small town doctor in East Texas during the depression. He traded his medical services for auto work, vegetables and meat and one time he got paid with a pair of goats.
the Biden/Ineligible administration is rushing America to ruinous inflation
just like Jimmy Carter did
paying millions of people not to work only interrupts the entire goods and services supply chain
but it also artificially drives up costs and thus consumer prices
the economic disaster is being set off at all stages of the economy (raw materials, manufacturing, distribution, retailing, services).... which is more damage than Carter ever dreamed of doing
I’m switching to paper clips.
It is a good thing they won’t have to use snail-mail to announce price increases—they can use email.
Yes, it could get that bad....
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