- Several companies including Procter & Gamble and General Mills have announced price hikes.
- The goods most heavily impacted include paper products and baby-care items.
- Coke products and coffee will see price increases as port delays continue to pinch the supply chain.
- See more stories on Insider’s business page.
Many household goods are getting more expensive, as companies like Procter & Gamble and General Mills hike prices to combat shortages and rising shipping costs.
During their third-quarter earnings call, P&G said it has started raising prices on some of its paper goods, including baby-care, feminine hygiene products, and adult diapers. The price hike would encompass Pampers diapers, Charmin toilet paper, Tampax and Always feminine products, as well as Depends and Prevail adult products.
“The exact amount of the price increase will vary by brand and sub-brand in the range of mid-to-high single-digit percentages and will go into effect in mid-September,” P&G said in a statement.
Some of P&G’s primary competitors, including Kimberly-Clark, have already announced similar price increases. In March, the company said it would implement a price increase for top products like Scott toilet paper and Huggies diapers.
Similarly, General Mills CFO Kofi Bruce said during the company’s March earnings call that it was planning to increase its prices to offset rising commodity costs as the company’s margins continue to fall. While the company did not specify what products would be impacted, General Mills’ line-up of brands includes Cheerios, Chex, Betty Crocker, and Pillsbury products, to name a few.
On Monday, Coca-Cola CEO James Quincey told CNBC the company is planning to hike its prices for the first time in over three years. Quincey did not say which beverages would be impacted by the price increases.
“We intend to manage those [the price hikes] intelligently, thinking through the way we use package sizes and really optimize the price points for consumers,” the CEO said.
Coke is not the only drink that will get more expensive in the coming months. Coffee prices are set to skyrocket. Peet’s and J.M. Smucker told CNBC in March that they are facing rising costs. Last month, port delays pushed coffee prices to their highest level in over a year.
J.M. Smucker – the brand known for Folgers and Dunkin coffee – was one of the first companies to start hiking prices when it increased the price tag for its Jif peanut butter products in August.
Many of the companies including P&G and Coca-Cola saw sales continue to rise in the last quarter, even from the previous year when people were stockpiling products at the onset of the pandemic. While an increase in demand can only be a positive for companies, demand is outstripping supply and driving up the overall price of goods.
Consumer interest is rising at the same time the products themselves are getting increasingly difficult to obtain due to the shipping container shortage and port congestion.
March data from the US Bureau of Labor Statistics’ Consumer Price Index shows that as vaccination rates increase, prices continue to go up. Consumer prices increased in 2021 over last year at their highest rate in three years.
While gasoline prices have seen the largest increase, the cost of food, rental cars, and hotels has also pushed higher.
For top companies like P&G – that encompass everyday products and top brands like Tide, Gillette, Crest, Bounty, and Pantene – consumers will likely continue to see inflated prices at the grocery store, as demand compounds on vaccine optimism and port congestion shows no sign of clearing.