April 21, 2021
Stock up on Tampax, Pampers, and Always Discreet now: Procter & Gamble has announced that it will hike prices on baby care, feminine care, and adult incontinence products in September, in response to higher commodity costs, CNBC reports.
The companies are betting consumers will be willing to pay more for the brand version instead of opting for a cheaper private label. However, that outcome depends on the economic recovery from the coronavirus pandemic and how many consumers will have the cash to spare.
P&G said its price increases will vary by brand but will be in the range of mid-to-high single digits, CNBC notes.
“This is one of the bigger increases in commodity costs that we’ve seen over the period of time that I’ve been involved with this, which is a fairly long period of time,” Chief Operating Officer Jon Moeller told analysts.
After the price increases go into effect, P&G is planning to hold onto market share by trying to increase consumers’ perception of the value of its products and introducing new or upgraded items.
Moeller said on a press call that the company is assessing the raw material costs and foreign exchange impacts on other categories as well, which could mean more price increases down the line. For example, Kimberly-Clark raised prices on its Scott toilet paper due to rising commodity costs; but P&G’s Charmin products have not been impacted yet.
Research contact: @CNBC