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Soaring costs turn into puzzle for consumer giants

2021-08-03T18:09:49.295Z


ANALYSIS - Savings plans, changes in revenue, price increases, lower margins… Manufacturers are looking for a solution to the inflation of raw materials and logistics costs. A challenge.


"Stronger than what we had anticipated", "Never seen for a very long time", "Multiple headwinds"

... From Danone to Mondelez via the hygiene giant Reckitt Benckiser, the food industry and consumer products are worried about soaring costs, which they must try to absorb.

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Certainly, the demand for their products seems stronger than ever.

Thanks to the vaccination against Covid, the lifting of health restrictions, the revival of developed economies and support plans (especially in the United States), the desire to consume is indeed strong all over the world.

But, precisely, this recovery has put a strain on factories and supply chains.

It triggered both a surge in the price of agricultural raw materials and packaging, an increase in logistics costs and a rise in labor costs, with labor sometimes tending to be scarce.

From oil to soy, everything is on fire

After having launched the first warning signals at the start

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Source: lefigaro

All business articles on 2021-08-03

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