Procter & Gamble raising prices on Tide, personal health care products
Procter & Gamble is raising its prices on Tide and other personal health care products amid rising inflation.
The company said in an earnings call Wednesday it would be raising prices on fabric care, baby care, feminine care, adult incontinence, family care, home care, hair care, grooming, oral care and skincare products, CNBC reported.
"The degree and timing of these moves are very specific to the category, brand, and sometimes the product form within a brand. This is not a one-size-fits-all approach," Chief Financial Officer Andre Schulten said on the call.
The price hikes for fabric care products will begin on Feb. 28, while prices for other personal health care products will start increasing in April. The increase in prices will also affect international consumers, not just those in the U.S.
The hike in prices comes as the company projects an increase in inflation and other businesses costs due to broader economic events.
"When you have a business model that's founded on innovation that provides higher levels of delight, solves problems better upon the consumers, you are able to charge a little bit more," Procter & Gamble CEO Jon Moeller told CNBC's "Squawk Box" Wednesday.
"While it's very early for these commodity-based price increases, to date, we see positive signs," he added. "Probably 20 percent to 30 percent less price elasticity than we were expecting, and if you look at, for example, private-label market shares - private label being the lowest price offered on the market - they're down."
However, Moeller said there could be some unforeseen issues with the price raises.
"There will be bumps in the road," he said. "There will be cases where we take pricing, and we either encounter the consumer reaction that some of you are rightly looking to or a competitive reaction."
