Magnum and Marmite maker’s price hikes alert

THE maker of some of best known household brands – from Magnum ice creams to Domestos bleach – has issued a price rise warning. Unilever has increased prices by 4.1 per cent across the world in the past year and is warning of more to come. Unilever chief executive Alan Jope said last night the business was facing a ‘once in two decade inflationary scenario so we have stepped up pricing’. Other manufacturers, including Procter & Gamble, Nestle and British firms behind supermarket own-brands, also suggest sharp increases are in the pipeline.

The factors behind the increases are a rise in the cost of key commodities, a surge in energy and transport costs, plus shortages linked to logjams at ports and the shortage of HGV drivers. Unilever makes a huge number of household brands, including PG Tips, Dove soap, Marmite, Ben & Jerry’s, as well as Magnums and Domestos.

Its chief finance officer, Graeme Pitkethly, said freight costs have been on the rise. For example, the cost of bringing a single container from the Far East has risen from around $1,500 (£1,090) last December to more than $20,000 (£14,900). This week Nestle, whose brands include KitKat and Nescafe, said it has had to raise prices. Procter & Gamble, which makes Ariel, Pampers nappies, Head & Shoulders, Gillette, Oral-B and many others, is also reportedly preparing to raise prices.

There were similar warnings from Accrol, which makes own-label toilet tissue for supermarkets, and McBride, which supplies own-label products including disinfectant and bleach.