Start Stockpiling Soap, Diapers, and Mayonnaise, as Price Increases Are Coming Soon

Inflation has reached Unilever, and it may soon reach your homes. This is roughly how Fortune magazine informed its readers about upcoming price changes for products from the British-Dutch giant, Unilever. The company, which holds globally recognized brands such as Dove, Ben&Jerry’s, Hellmann’s, and Domestos in its portfolio, announced that its profit will be lower than expected by the end of the year, causing stock prices in Europe to fall by 5.6 percent. The company explained that the poorer forecast is due to rising raw material prices such as palm oil, as well as a sharp increase in packaging, transportation, and distribution costs (the last time this happened was in 2008.).

Giants in Fear

As Fortune continues, due to restrained demand, global shortages in supply chains, and rising raw material prices, companies face a tough choice: raise product prices and pass costs onto consumers or absorb them and dramatically worsen business results.

Unilever, whose brands are used by 2.5 billion consumers in 190 countries worldwide, is more inclined to raise prices, although this policy will not be implemented in all markets. As announced, prices will be increased in markets such as Brazil and South Asia, while in Europe they will be somewhat more cautious and ensure that consumption does not slow down.

However, for all those who think they will switch to other manufacturers due to higher prices, here is some bad news – other giants face the same challenges. For instance, Unilever’s competitor, Procter&Gamble, is likely to raise prices for its products such as diapers and feminine care because ‘inflation has become real.’ As stated by the company at the Global Forum of the Fortune media brand, raw material prices such as paper or oil, as well as plastic packaging, have skyrocketed. The same goes for transportation services. ‘Costs are rising in all segments. Inflation is inevitable. But how much? We do not know yet,’ said P&G.

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