To Counter Profits Decline, Kimberly-Clark Rises Prices
Kimberly-Clark, the maker of Huggies diapers and Kleenex tissues has announced it will increase prices for several key products in North America.
The group said that the price increases will be in the 'mid-to-high single digits on average' for various products such as Kleenex, Viva paper towels, Huggies diapers.
The price increases will occur over Q4 2018 and Q1 2019. The increases will apply to both list prices and package counts.
The group cited 'significant commodity cost inflation' as the key reason necessitating the price increases.
This commodity price increase had already forced the company to lower its profit forecast. The company cited at the time the rise in cost of key raw materials such as pulp from $675 million to $775 million in 2018, with CEO Thomas Falk commenting, "Our second quarter results reflect a challenging environment, particularly with commodity inflation."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.