April 21, 2019
Latest News

Prepare to pay more for diapers, clorox and cat litter

 Student volunteers pass along diapers while helping to distribute relief supplies to people impacted by Hurricane Harvey, in Houston, Texas, USA, Sept. 3, 2017. EPA-EFE FILE/Brett Coomer / POOL

Student volunteers pass along diapers while helping to distribute relief supplies to people impacted by Hurricane Harvey, in Houston, Texas, USA, Sept. 3, 2017. EPA-EFE FILE/Brett Coomer / POOL

Madrid, Feb 10 (efe-epa).- Makers of household staples started raising prices last year on diapers, toilet paper and trash bags to offset higher commodity costs and boost profits. Some of those increases have yet to show up on store shelves, but executives are promising to raise even more prices this year, according to a report from the Dow Jones Newswires made available to EFE on Sunday.

Church & Dwight recently increased prices for about a third of its products, including Arm & Hammer cat litter and baking soda, and some OxiClean cleaning products.

"The good news is that competitors are raising price in those categories as we speak," Church & Dwight Chief Executive Matthew Farrell said on a conference call last week when the company reported higher quarterly sales and lower profits.

The company is now discussing more price increases with retailers, including for personal-care products, Farrell told analysts Tuesday.

Church & Dwight is one of several consumer-goods companies that have raised prices -- or pledged to do so -- in response to higher costs of raw materials and transportation as well as unfavorable foreign-currency swings.

As a result, consumers are being asked to pay more for Pampers and Huggies diapers, Bounty and Viva paper towels, Charmin and Scott toilet papers and Arm & Hammer baking soda, among other products.

The price increases are largely playing out in the companies' favor, particularly for those whose competitors responded with their own hikes, Wells Fargo Securities analyst Bonnie Herzog said, the Dow Jones report added.

Sales volumes of household and personal products in the US declined 1.4 percent in January, according to Sanford C. Bernstein's analysis of data from Nielsen. Dollar sales of those products rose 0.7 percent in the period, Bernstein said, indicating that the price increases, on balance, are padding the bottom lines at consumer-goods companies.

But even in a strong US economy, there are limits to how much brands can charge without losing some customers.

Tyler Aftab, a 35-year-old teacher in Green Brook, N.J., said he noticed at his local Costco last week that Charmin and Bounty, which were normally under $18 last year, were both being sold for about $23. Glad trash bags, normally under $15, were listed at about $19.

Aftab bought the Glad kitchen bags discounted for under $16. He opted to buy Costco's Kirkland Signature brand of paper towels instead of Bounty. He decided to not buy any toilet paper.

"I am a fairly loyal consumer of Charmin, but I will not pay $23 for the pack," Aftab said. "I will wait until those prices come down."

Clorox last year raised prices on about half of its portfolio, including its Glad trash bags and plastic wraps, which the company said helped it boost profit margins in the latest quarter. Yet Glad's competitors didn't follow with their own price increases as executives had expected, contributing to a sales decline in the period. To defend the brand's market share, the company would boost spending on promotions in the near term, executives said Monday.

Clorox said sales rose in other categories like cat litter and its namesake bleach, where it also raised prices recently.

CEO Benno Dorer last week voiced confidence in Clorox's pricing strategy over the long term, and the company expects to invest in new products. Higher prices for Kingsford charcoal and Burt's Bees products went into effect in December and February, respectively.

Starting in September, Procter & Gamble Co. began increasing prices on a rolling basis from around 4 percent to as much as 10 percent on various products, such as Pampers, Bounty, Charmin and Puffs brands. The increases will be mostly in place by this month, the Dow Jones report added.

The company in January reported that the higher prices led to an increase in organic sales, a closely watched metric that strips out currency moves, acquisitions and divestitures. The company raised its organic sales target for the year, while P&G's finance chief, Jon Moeller, told analysts that higher pricing may affect sales volume.

Kimberly-Clark Corp. executives said last month that they expect volumes to suffer, particularly with tissue products, after the company implemented price increases averaging in the mid-to-high single digits on a percentage basis. Still, the company, which makes Cottonelle and Scott bathroom tissues and Kleenex facial tissues, predicted organic sales should increase 2 percent for 2019.

Companies that don't have a mix of high- and low-priced products find it harder to pull off price increases, said Bernstein analyst Ali Dibadj, because they risk losing price-sensitive customers for good. "The big fear is your pricing is too high and that consumers are just not going to come back to your brand," he said.

By Aisha Al-Muslim

News history
Besides electricity, what else does Venezuela lose in a blackout?

By Hector Pereira

The business lesson in Tiger Woods' big comeback: Rebuild, don't replace

By John D. Stoll

The inside story on the Vatican conclave that elected Pope Francis

By Cristina Cabrejas

Farming crisis looms large on India's ongoing general elections

Mathura, India, Apr 20 (efe-epa).- The discontent of farmers, the largest workforce in India, might prove decisive in the ongoing general elections, where...

Leaders from 37 countries to attend second Belt and Road forum in Beijing

Beijing, Apr 19 (efe-epa).– A total of 37 heads of state or government are expected to attend the second Belt and Road forum in Beijing next week to...

Financial turbulence hits Jet Airways, once a trailblazer of India’s aviation

By Sarwar Kashani,

Global press freedom under threat, says media watchdog report

Paris, Apr 18 (efe-epa).- The global press freedom is regressing with more and more countries putting journalists at risk and authoritarian regimes...

Peasants in Mexico seek alternatives to growing opium poppies

Chilpancingo, Mexico, Apr 17 (epa-efe).- Peasants in the southern Mexican state of Guerrero who have long subsisted by growing opium poppies want to get out...

Uruguay theater bus presents comic reenactment of Paysandu history

By Raul Martinez

India's Jet Airways suspends all flights after running out of money

New Delhi, Apr 17 (efe-epa).- Indian airline Jet Airways suspended all of its domestic and international flights as it ran out of money after a refusal by...

US to allow lawsuits against foreign companies operating in Cuba

Washington, Apr 17 (efe-epa).- Secretary of State Mike Pompeo said Wednesday that the US government would invoke a measure for the first time that allows...

Apple, Qualcomm end legal feud

San Diego (USA) Apr 17 (efe-epa).- Apple and Qualcomm agreed to dismiss all litigation between the two companies world-wide and forged a new license...

Uber shows why food-delivery business is no cheap date

Madrid, Apr. 17 (EFE).- Uber's drive to go public is lighting a fire under an already-sizzling market for online food delivery, where everyone wants to eat...

China growth beats expectations thanks to humming factories

By James T. Areddy

EU urges companies to counterattack US lawsuits on Cuba

Havana, Apr 16 (efe-epa).- European Union authorities on Tuesday committed themselves to protecting the interests of businessmen from the bloc in Cuba and...

President Andres Manuel Lopez Obrador daily press conference

Mexico City, Apr 16 (epa-efe).- President Andres Manuel Lopez Obrador on Tuesday touted the creation of more than 269,000 jobs in the first quarter, saying...

American Airlines to boost Boeing 737 MAX training

New York (USA), Apr 16 (efe-epa).- American Airlines Group Inc., after saying for months that its pilots didn't need additional ground-simulator experience...

China pushes for power of electric vehicles in face of declining sales

By Paula Escalada Medrano

Former VW chief faces new allegations

Madrid, Apr 16 (efe-epa).- German prosecutors charged former Volkswagen Chief Executive Martin Winterkorn and four others with fraud relating to emissions...

Investors suffer a smoking relapse

New York (USA), Apr 16 (efe-epa).- Much like die-hard smokers, investors are finding it hard to stay away from cigarettes, according to a Dow Jones...

Korean carrier to sell large stake

Seoul, Apr 16 (EFE).- South Korea's second-largest carrier, Asiana Airlines, will put up for sale the one-third stake owned by its controlling family as...

China's share in global output will peak at 27 percent in 2030 : OECD

Beijing, Apr 16 (efe-epa).- The Chinese economy will continue to grow at a strong pace despite signs of a slowdown, and its share in the world’s output will...

Macri predicts inflation spike in March, but says it can be eradicated

Buenos Aires, Apr 15 (efe-epa).- Argentine President Mauricio Macri on Monday predicted an inflation "peak" or spike in the figures for March - to be...

Mexican gov't reveals cheapest, most expensive places for fuel

Mexico City, Apr 15 (efe-epa).- The federal government on Monday revealed the average price for fuel by brand and which service stations in Mexico had the...

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.