Get used to it. This is just the beginning. If you remember, the same thing happened back in 2008 when P&G raised prices by up to 16%.
Procter & Gamble Co. last week notified U.S. retailers that it was raising wholesale prices on Pampers diapers and baby wipes, Charmin toilet tissue and Bounty paper towels, a company spokesman said Monday.
The wholesale price increases amount to 7% for Pampers diapers, 3% for Pampers baby wipes and an average increase of 5% for Bounty and Charmin products.
The price increases come in the wake of rival Kimberly-Clark Corp. on Monday saying it was raising prices on most of the products it sells in North America as it faces higher costs for key materials like wood pulp and fuel. Last month, Kimberly-Clark announced price increases on items like Huggies diapers and Cottenelle bathroom tissue. Source
Kimberly-Clark reported Monday that a bigger-than-expected rise in the cost of raw materials took a toll on first-quarter profit, which fell 9% to $350 million, or 86 cents a share, from $384 million, or 92 cents a share, a year earlier, even as net sales increased 4% to $5 billion.
The Dallas-based company, which also makes Kleenex tissues, said cost increases for raw materials like wood pulp, resins and fuel are likely to run twice as high this year as previously projected. It said it needs to raise prices in response.
Clorox Co., which reports next week, says it is raising the price of Glad trash bags by 9.5% beginning in May. The cost of some of its salad products, like Hidden Valley ranch dressing mix, will also rise.
Shoppers and investors will be watching for similar moves from Colgate-Palmolive Co.,Unilever PLC and Energizer Holdings Inc., which report results this week.
Consumers already are absorbing higher costs for food and gasoline. And price tags are also forecast to begin rising for apparel, reflecting rocketing cotton costs. U.S. consumer prices rose 2.7% in March from a year earlier, the largest increase since December 2009.
“When you look across almost every category out there you are seeing the impact of higher commodity costs show up and higher selling prices for everything,” Kimberly-Clark CEO Thomas Falk said on a conference call to discuss quarterly results Monday.
CHICAGO, March 18 2011 (Reuters) - Procter & Gamble Co will raise U.S. detergent prices by 4.5 percent in June as the world’s largest household products maker starts to respond to rising costs for materials, packaging and transportation.
The maker of Tide, Gain and Era laundry detergents said the increase would go into effect on June 6. Source
What you see here is the manufacturers raising prices on things they know people have to have and are less likely to buy generic. This is just the beginning of commodities price increases. Stock up while you can or BUY GENERIC.
Shoppers are less likely to switch to a cheaper brand on a baby product than many other items on the shopping list, according to a recent survey by Sanford Bernstein analyst Ali Dibadj. Just 10% of consumers said they switched to a cheaper diaper brand because “it’s not worth paying more in this category,” and no consumers reported switching baby food. By comparison, nearly a third of consumers said they switched brands of bleach, bottled water and liquid soap.
Jacking up prices carries marketing risks, even for diapers. Premium brands face intense competition from less-expensive options, especially private-label brands, which gained market share during the recession. Nevertheless, many parents, especially new ones, are willing to splurge on babies even when cutting back elsewhere, believing pricier products are better for comfort or development.