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Grocery chain CEO on food prices: 'My crystal ball is broken'
The owner of Dove and Ben & Jerry’s said Thursday that it increased prices by 4.1% in the third quarter to “offset rising commodity and other input costs.” The pricing action “is a step up from the first half of the year,” Unilever
(UL) added in a statement, as it increased pricing across all major categories.
The increase is the fastest in at least seven years, according to Bloomberg, and comes as consumer goods producers grapple with spikes in the costs of shipping, raw materials and labor.
Nestlé said Wednesday that it increased prices 1.6% over the nine months to September and Procter & Gamble
(PG), which makes Pampers diapers, Tide detergent and Gillette razors, said it’s raising prices on certain grooming, beauty and oral care products to combat higher costs.
“Supply chains are under pressure from tight labor markets, tight transportation markets and overall capacity constraints,” Procter & Gamble Chief Financial Officer Andre Schulten told analysts this week. “Inflationary pressures are broad-based and sustained.”
Unilever expects inflation to continue into next year and CEO Alan Jope said the company will implement productivity measures to offset elevated costs.
“Our current view of the future is that peak inflation will be in the first half of 2022, and it will moderate as we move towards the second half,” Jope added in a Bloomberg television interview.
Moody’s Analytics warned this week that stress in US supply chains is intensifying and could slow the economy in the coming months.
Ports in California are operating 24/7 to alleviate bottlenecks, and on Wednesday the state’s Governor Gavin Newsom directed agencies to find land for short-term container storage and identify freight routes for trucks in order to move cargo more quickly.
