Unilever produces many brands, such as Marmite and Persil (Chris Radburn/PA)
(Picture: PA Archive)Hard-pressed consumers already reeling from the cost-of-living squeeze are set to be hit with even more price rises.
Consumer goods giant Unilever has warned that it is putting up prices of everything from Magnums and Marmite to Persil and Cif.
Prices are already rising, up 2.9% over 2021 as a whole and 4.9% in the fourth quarter.
Alan Jope, CEO of the soap-to-ice-cream group, told the Standard the price rises were “very broad based” which means products across the company’s consumer range are going up.
He warned that prices are being forced higher as result of “dramatic increases” in the cost of everything from shipping to ingredients. Costs are expected to rise by €3.5 billion in the year ahead.
Jope said: “We don’t want to put prices up but when are costs are going up like they are we have to.”
The warning came as Unilever reported its strongest sales growth in nine years, with taking of around £50 billion in 2021. Other brands in its stable include Hellmann’s mayonnaise, Domestos bleach and Vaseline.
The increase in cost for everyday items is more bad news for Brits, who are facing rising energy bills, petrol prices and borrowing costs.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “With belts being tightened as the cost-of-living squeeze intensifies some customers won’t put up with increased prices indefinitely and may switch to cheaper alternatives.
“However the strength of brands like Dove and Ben and Jerry’s should provide some resilience.”
Unilever said its underlying profits for the year just gone rose to €9.6 billion from €9.4 billion, which was a bit better than expected.
Richard Hunter, head of markets at Interactive Investor, said: “The spectre of high input cost inflation has been a major challenge for Unilever, with commodity, freight and packaging costs providing a headwind.”
