Unilever hiking prices faster than rivals P&G and Nestle as it struggles with soaring business costs
Unilever is pushing up prices faster than its biggest consumer goods rivals P&G and Nestle, figures show.
The maker of Hellmann’s mayonnaise and Dove soap said last month it has pushed up prices by 12.5 per cent in the last year.
In contrast, Nestle and P&G both raised prices by less than 9.5 per cent over the same period, Reuters analysis shows.
Rising costs: Unilever said it has pushed up prices 12.5% in the last year. In contrast, Nestle and P&G both raised prices by less than 9.5% over the same period
Unilever, whose brands also include Marmite and Domestos, is facing soaring business costs including energy bills, transport and wages.
It expects the rising cost of doing business to total £4billion this year, with a further £1.7billion hit to come in the first half of 2023.
Unilever is more exposed to food compared to its rivals, where the effect of soaring costs is being felt most intensely.
Its presence in emerging markets, where profit margins are wafer thin, has also contributed to the price increases, analysts added.
Unilever reported its sales dropped by 1.6 per cent in the third quarter of this year as consumers tightened their belts.
Boss Alan Jope said last month it needed to raise prices to have the firepower to invest in its brands.
A spokesman said: ‘There are several levers we can pull before increasing prices on shelf – which is a last resort – including reducing promotional activity and offering a selection of products that have higher margins.’