- Several companies, including Procter & Gamble and General Mills, have announced price increases.
- Clorox and Coca-Cola are also planning to raise prices to offset shipping costs.
- The goods concerned include paper products, kitchen appliances and childcare articles.
Many household items are getting more expensive as companies like Clorox and Whirlpool plan to raise prices to fight shortages and rising shipping costs.
Clorox, the brand known for its antiseptic wipes and essential household products, said in its quarterly results that it plans to increase the prices of some of its Glad-branded products. The price increases would impact the company’s garbage bags and food packaging.
Clorox CFO Kevin Jacobsen said the company’s efforts to ramp up production to meet growing needs for its products at the onset of the pandemic forced Clorox to incur additional expenses and the company s ‘Also strives to combat higher material and shipping costs.
Whirlpool, the maker of KitchenAid and several other home appliances, hiked prices between 5% and 12% in April.
Company CEO Mark Bitzer told CNBC the price hike can be attributed to rising material costs caused by the Texas freeze, along with delays at ports and the global chip shortage. .
Procter & Gamble and General Mills also announced price increases.
In its third quarter earnings call last month, P&G said it had started increasing the prices of some of its products, including baby and womens care products and adult diapers from its brands such than Pampers, Tampax and Always.
“The exact amount of the price increase will vary by brand and sub-brand within a mid to high single-digit percentage range and will take effect in mid-September,” P&G said in a statement.
Some of P & G’s main competitors, including Kimberly-Clark, have announced similar price increases. In March, Kimberly-Clark announced that she would raise the prices of top products like Scott
and Huggies diapers.
General Mills CFO Kofi Bruce said during the company’s earnings call in March that he plans to raise prices to offset rising commodity costs as margins continue to decline. . Although the company has not specified which products would be affected, General Mills’ brand line includes Cheerios, Chex, Betty Crocker and Pillsbury products.
In April, Coca-Cola CEO James Quincey told CNBC the company plans to raise prices for the first time in more than three years. Quincey did not specify which products would be affected.
Quincey said Coca-Cola plans to implement the price increases “in a smart way, thinking about how we use package size and really optimizing prices for consumers.”
Coffee prices are also expected to skyrocket. Peet’s and JM Smucker, the brand behind Folgers and Dunkin ‘coffee, said they were facing rising costs. Reuters reported that in February, delays at ports pushed coffee prices to their highest level in more than a year.
JM Smucker also raised the price of its Jif peanut butter products in August.
Many of those companies said sales continued to increase in the last quarter, even compared to the previous year, when some people were stocking products at the start of the pandemic. While an increase in demand can only be positive for businesses, demand exceeds supply and pushes up the price of certain goods.
Consumer interest is increasing as products become increasingly difficult to obtain due to a shortage of shipping containers and port congestion.
Data from the U.S. Bureau of Labor Statistics Consumer Price Index for March indicated that as vaccination rates rise, prices rise. Consumer prices rose in 2021 compared to last year at their highest rate in three years.
While there has been a sharp increase in the price of gasoline, the cost of food, rental cars, and hotels has also increased.
For products from big-company brands like P&G, people will likely see inflated prices at the grocery store, as demand consists of optimism for vaccines and port congestion shows no signs of offsetting.