After Coca Cola announced on April 19 that it would raise its price,
P & G, the global giant of daily chemical products, also announced that,
The price increase will start in September this year.
On April 21, Procter & Gamble, an international daily chemical giant, said it would increase the prices of baby products, adult diapers and women's care products by 5% - 9% from September this year. P & G is the latest consumer goods company to announce a price increase and the largest one. P & G also said that this could be a harbinger of a wider range of commodity price increases.
Economist song Qinghui said that in the field of daily consumer goods, the rise in product prices has a certain negative impact on sales. P & G needs a period of time to adapt to this sharp rise in prices. In addition, as an important market of P & G, China's market should not have a big price rise. After all, the impact of big price rise on sales is not small. P & G also needs China's market to boost its performance.
P & G did not mention the price of related products in the Chinese market in the announcement. In this regard, the reporter interviewed P & G, but as of press release, no reply has been received.
P & G began to raise its price in September due to rising costs
P & G said the price increase was due to rising costs of raw materials such as resin and pulp, as well as rising transportation costs. P & G said the announcement would be a precursor to a broader price increase. Last month, rival Kimberly took similar measures.
P & G announced that it will increase its price in September this year. Photo source: Wall Street Journal
Jon Moeller, chief operating officer of Procter & Gamble, said, "this is the biggest increase in raw materials for commodities in my 33 years at Procter & Gamble." After the price hike takes effect, P & G will improve its existing products and add features to appease consumers, Jon Moeller said.
It is understood that P & G's products include Pantene, piaoluo, haifeisi, Shufujia, hushubao, etc.
For large consumer goods companies, the last big price hike due to material costs was in 2018, when soaring pulp prices pushed up prices for diapers, toilet paper and other products.
In addition to P & G, these companies are also raising their prices
Kimberly's Scott toilet paper also announced price increases. Photo source: Wall Street Journal
In addition to P & G, Kimberly Clark, a paper manufacturer, also announced a price increase, saying it would increase the prices of its baby and child care, adult care and Scott bathroom tissue products from the end of June, also by 5% - 9%.
Several food producers have also raised prices recently. According to reports, Hormel Foods announced in February this year that it had raised the price of turkey products in response to rising grain prices. J.M. Smucker recently raised the price of jif peanut butter, and may also raise the price of pet snacks due to higher transportation costs and other inflationary pressures.
Inflation? Us CPI up 2.6%
P & G releases first quarter results
According to the data released by the U.S. Department of labor on April 13, boosted by multiple factors such as steady economic recovery and sharply rising oil prices, the U.S. CPI rose by 2.6% year-on-year in March, the highest level since the autumn of 2018, higher than the Federal Reserve's inflation target of about 2%.
P & G announced the price increase when it released its first quarter results as of March 31. It is worth mentioning that this price increase is not a positive growth product in all P & G businesses.
On April 20, P & G announced the results of the third quarter of fiscal year 2021, showing that its net sales in the third quarter reached 18.109 billion US dollars, up 5% year on year; The net profit was US $3.249 billion, up 10% year on year. Meanwhile, P & G said in its financial report that it expects overall and organic sales to grow 5% - 6% year-on-year in 2021.