Tuesday, July 31, 2018
Tissues, toilet paper, paper towels and diapers getting more expensive
- Get ready to pay a little more for Pampers, Charmin, Bounty, and Puffs.
Procter & Gamble said on Tuesday that it was in the process of raising Pampers’ prices in North America by 4 percent. P&G also began notifying retailers this week that it would increase the average prices of Bounty, Charmin, and Puffs by 5 percent.
P&G is raising prices because commodity and transportation cost pressures are intensifying. The hikes to Bounty and Charmin will go into effect in late October, and Puffs will become more expensive beginning early next year.
These products are significant sales drivers and market share leaders for P&G.
Food companies, such as Coke, Boston Beer, Hershey, and Tyson Foods, have announced price increases in recent weeks, but P&G’s move will serve as a test for how willing Americans are to pay up for big household brands. The strategy could leave the company vulnerable to low-cost competitors or pushback from retail partners. Walmart was P&G’s biggest buyer in 2017, accounting for 16 percent of its $65 billion in sales.
“There is uncertainty and will be volatility with these pricing moves. They will negatively impact consumption. We’ll have to adjust as we go and as we learn,” Chief Financial Officer Jon Moeller told analysts on Tuesday.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment