Also come!Major us daily necessities, snacks will be more expensive!The biggest inflation in 40 years continues

2022-06-13 0 By

A host of US consumer goods companies, from chocolate confectioner Hershey to household cleaning products maker Clorox to tissue paper maker Kimberly-Clark, announced further or broader price increases than expected in recent days, suggesting that the fastest rate of inflation on record may not abate any time soon.According to AMNY, product manufacturers typically hold talks with U.S. retailers at the end of the year about price increases planned for the next year.But company executives disclosed in their most recent quarterly results that they would take a more aggressive approach to protecting margins this year.Clorox said late Thursday that it planned to raise prices on 85 per cent of its products by the end of June, rather than 70 per cent as previously planned, and that there would be multiple rounds of price increases for some of its brands.Kevin Jacobsen, chief financial officer, said its executives were “in dialogue with retailers” about increases that would take effect over the next two quarters and exceed those disclosed in October.”We stand ready to do more price increases if necessary,” Jacobson said.”We want to see how inflation develops in the current fiscal year,” which ends June 30, 2022.Chocolate maker Hershey said it will raise prices again in the first half of 2022, in addition to the price increase it will implement in the first quarter ending March 31, 2022.Its executives did not quantify the price increases.Hershey also said it expects its gross margin to decline in 2022 despite new price increases.Kimberly-clark said last week that after four price increases in 2021, it would make more as pulp, labor and transportation costs continue to rise.Promotions on products such as frozen snacks and frozen foods fell the most in the week ending January 23 compared with last year, according to an index by data analytics firm IRI.”Promotions make no sense because of supply constraints,” said Krishnakumar Davey, PRESIDENT of CUSTOMER engagement at IRI.”Promotions are down because of the pandemic.”A pandemic-driven imbalance between supply and demand has pushed up the prices of everything from hamburgers to household necessities, causing INFLATION in the U.S. to climb in 2021 at its fastest pace in nearly four decades.Comments from executives on an earnings call suggested the company is grappling with higher costs for nuts and vegetable oils, surfactants and plastics as global supply chain glitches persist.Transportation and labor costs are also rising.The average adjusted operating margin for the eight largest publicly traded BEVERAGE companies in the U.S. fell to 25.7 percent in 2021 from 26.4 percent in 2020, according to Citi.Among the top U.S. homeware companies, the average pretax profit margin fell to 19.4 percent in 2021 from 19.6 percent in 2020 — kimberly-Clark, Clorcas, and Colgate-Palmolive all saw their margins hit.Among food companies, average margins fell to 17.2 per cent from 17.3 per cent, with Kraft Heinz, McCormick and Campbell Soup all reporting declines.At Clorox, Jacobson describes “extreme cost inflation.”The cleaning products maker cut its full-year earnings forecast and said it expected its full-year gross margin to shrink by about 750 basis points.”I do think it will take us a couple of years to rebuild margins [back to pre-pandemic levels],” Mr Jacobson said on a conference call with analysts.Mondelez International, maker of Cadbury’s chocolate and Oreo cookies, revealed last month that it was likely to see “multiple waves of price increases” this year to keep pace with inflation.Colgate said it was fast tracking a round of price rises in the first half rather than the second.Noel Wallace, Colgate’s chief executive, said there would be a “dip” in sales when shoppers understood they had to pay more.’All companies and all categories will see this decline, not just Colgate,’ he said.Food companies McCormick and General Mills also said this week that they expected consumers to become more sensitive to price changes in the coming months.P&g executives said they had told retailers that the price increases on fabric care products such as Tide detergent and Downy dryer sheets would take effect On February 28.In mid-April, the company plans to raise prices on some of its personal-health products.So far, executives say, the consumer products giant has not lost market share following the price increases.Despite the price hike, shoppers opted for the more expensive Tide laundry capsule instead of the cheaper liquid detergent.Compilation: V