This is another threat to supply chains 1:05
(CNN Business) -
Procter & Gamble, one of the nation's largest manufacturers of consumer goods, said Tuesday it will increase prices for certain grooming, beauty and oral care products for retail customers to combat the increase. of costs.
It is the latest round of price increases announced by the company.
Other large manufacturers and consumer stores have also raised prices in response to increased spending on raw materials and transportation.
P&G said it communicated the recent increases to distributors and retailers in recent weeks, and they will take effect in about the next 90 days.
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If P & G's retail customers, including department stores, supermarkets, pharmacies and others, decide not to bear those costs, they will soon take a toll on consumers' pockets.
P&G, which makes brands like Gillette, Braun and SK-II, did not specify in which grooming, beauty and oral care brands it will raise prices for retailers.
But an email from P&G to a distributor obtained by CNN Business indicates that Olay, Crest and Oral-B products will be more expensive, at least for retailers.
The exact amount of the price increases will vary by specific item, but will be in a single-digit percentage range, P&G CFO Andre Schulten said in a call with analysts Tuesday.
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"The degree and timing of these changes are very specific to category, brand, and sometimes product shape within a brand. This is not a one-size-fits-all approach," he said.
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According to a distributor, P&G sent an email on October 11 informing that on January 11 it would increase prices for Olay Regenerist Max by 6.1%, Regenerist Ultra Rich and Regenerist Ingredient Collections by 3.5%, Olay Age Defy Moisturizers by 15.3% to 19.3% and Olay Complete Moisturizers by 15.3% to 19.8%. The distributor shared the email on the condition of anonymity to protect its relationship with P&G.
P&G also alerted this distributor that it will increase the prices of certain varieties of Crest and Oral-B mouthwash between 12% and 32.5%, electric toothbrushes between 4% and 20%, and toothbrushes electric teeth between 10%, as well as the prices of certain personal hygiene products between 11% on a weighted average.
P&G did not indicate which toiletries will be the most expensive.
"This increase in list prices is to address a specific portion of input cost inflation that has occurred as commodity prices have risen," P&G said in the email.
P&G declined to comment.
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Previously, P&G announced that it had raised the prices of brands such as Pampers diapers and Always and Tampax tampons in September.
Schulten said Tuesday that P&G raised prices in nine of the 10 categories in its product range.
Costs are increasing at a faster rate than P&G previously estimated.
P&G now expects to spend an additional $ 2.3 billion on transportation and raw material costs for its fiscal year 2022. In July, the company had forecast a $ 1.9 billion increase in those costs.
"Input costs have continued to rise since we presented our initial outlook for the year," explained Schulten.
Despite the higher prices, consumers are not changing their buying patterns by buying fewer P&G products, he noted.
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The Albertsons supermarket chain also noted Monday that consumers have not adjusted their shopping behavior in response to rising prices.
"We have not seen a substantial change in customer behavior," CEO Vivek Sankaran said in a call with analysts.
"We do not see his intention change drastically in the coming weeks and months."
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