The ongoing pandemic continues to affect the global market and all of its participants. As the pressure of inflation builds, many major US companies are coming up with plans to raise their prices.
As such, consumers should prepare for higher prices on everything from basic goods such as toilet paper and corn syrup to the washing machines.
Executives at Coca-Cola, Whirlpool, Kimberly-Clark, and a few other large companies have confirmed that price increases will be implemented to counter rising input costs caused by the pandemic.
Commodity costs are undergoing substantial increases. Andre Schulten, the chief financial officer at P&G, said that this is one of the largest increases he has witnessed in his career. He also added that: “We will offset a portion of this impact with price increases. Our baby care, feminine care, and adult incontinence businesses have announced price increases in the United States that would go into effect in mid-September. The exact timing and amount of increases vary by brand and sub-brand in the range of mid to high single-digits.”
However, the company intends to introduce new product innovations and add value for consumers to encourage them to remain loyal despite the price increase. P&G vice chairman and chief operating officer Jon Moeller said that there are certain advantages of commodity costs rising, as the company’s competitors will also need to raise their prices, which will contribute to market fairness.
Whirlpool also said it has plans for raising prices between 5% and 12% to overcome what is predicted to be a $1 billion strike from higher input prices.
John Murphy, chief financial officer at Coca-Cola, said: “We’ve got a tried and true practice of being able to take pricing in line with inflation,” even though the company is being affected by the higher cost of key components such as packaging materials and corn syrup.
The industry’s top players seem prepared for the coming inflation pressure, which will have a bigger impact on startups and small businesses. They might need to think about a loan or a line of credit to help them get through the crisis.