Big Name Brands Signal Americans Have More Price Pain To Endure
Americans could face another round of price increases on everyday household products as major consumer brands raise prices to offset soaring costs, with one manufacturer reporting an 18% price hike even as customers bought fewer products.
Americans could face another round of price increases on everyday household products as major consumer brands raise prices to offset soaring costs, with one manufacturer reporting an 18% price hike even as customers bought fewer products.
Reynolds Consumer Products, Kraft Heinz and other household names are warning that rising commodity, transportation and manufacturing expenses are squeezing their businesses, prompting price increases that threaten to deepen Americans’ affordability struggles. Recent corporate earnings reports show companies are already passing higher costs to consumers while confronting declining sales volumes, suggesting shoppers are increasingly resisting higher prices.
Reynolds Consumer Products, the company behind Reynolds Wrap aluminum foil and Hefty household products, reported an 18% pricing increase in its Cooking & Kitchen Essentials division during the third quarter to recover higher input costs, according to its Wednesday earnings report.
The company’s Hefty Waste & Clean-Up division also reported a 5% price increase, while its Home & Tableware and Storage & Organization divisions each recorded 4% pricing increases.
Across Reynolds’ entire Business, pricing increased 9% from a year earlier, while retail sales volume declined 7%. Within the Cooking & Kitchen Essentials division, retail volume fell 6% despite the substantial price increase, illustrating the difficulty manufacturers face when attempting to recover rising costs from increasingly price-conscious customers.
Reynolds reported $944 million in quarterly revenue, up from $931 million a year earlier, while net income declined to $58 million from $79 million. The company said price increases fully offset higher input costs in its cooking and kitchen division, but declining sales volumes still weighed on earnings.