Price to continue rising for these essentials

Kimberly-Clark in South Africa, which owns nappy and toilet paper brands Huggies and Baby Soft, says price increases will continue into 2023. This is as a result of pulp and sea-freight costs weigh on the business.

According to Steven Hayes, general manager of Kimberly-sub-Saharan Clark’s Africa consumer segment, the company anticipates inflation in all categories to surpass 10% from a current average of 6% to 8%.

Hayes told Business Insider South Africa, “We do see inflation across our categories. We are predicting that to continue into the early parts of next year. With pricing stabilising towards the second half of next year.”

According to consumer inflation, “pricing across our categories will reach slightly over 10%,” he said.

The toilet paper and tissue category is the one most vulnerable to price increases. As the cost of pulp, a crucial raw material used to manufacture this type of paper, has significantly increased.

According to the business, it keeps putting efficiency measures in place to lessen the effect on customers.

“Given the nature of the category we make and the products we provide, it really is important for us to ensure that we consistently focus on reducing any increases that we take into the market,” Hayes said. “That is a major focus for Kimberly-Clark, particularly in South Africa.”
The company is currently under strain due to the supply of raw materials, congestion in marine freight, and problems at South Africa’s ports.

Reason for price increase

Costs for crucial commodities like pulp, shipping, and electricity have all significantly increased for the global consumer products conglomerate.

While sea freight costs have quadrupled from pre-pandemic levels, the price of pulp increased by 20% year over year.

“When compared to pre-pandemic levels, the cost of a container is now around four times what it was for logistics and sea freight during the past two years. Additionally, the majority of our raw materials are imported and paid for in dollars “Hayes remarked.
According to Hayes, the business is still concentrating on using its various channels to introduce new items and pack sizes into the market that meet the spending needs of its customers.

According to him, “Our Kotex brand will continue to introduce diverse pack sizes, whether it be smaller packs to fulfill various convenience needs. Whether it be bigger packs to offer better value across our multiple formats.”

“And if you look at the Baby Soft portfolio, we are releasing bigger packs into the market to drive better value.”

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