Marmite and Dove owner Unilever warns of price rises due to growing costs
Summary
Unilever, the company behind brands like Marmite and Dove, said it will raise prices in the coming months because its own costs are increasing. Despite these price rises, sales grew in the second quarter as many consumers continued to choose Unilever’s products over cheaper alternatives.Key Facts
- Unilever plans to increase prices further due to rising costs of raw materials and services.
- Price rises slowed in the second quarter partly because of World Cup discounts and competition in Brazil.
- The company expects prices to rise faster in the second half of the year as commodity costs increase.
- Unilever’s sales increased by 5.8% in the second quarter, with total revenue reaching €13 billion (£11.1 billion).
- Many consumers stayed loyal to Unilever brands despite higher living costs.
- Rising oil prices, caused by geopolitical tensions, have increased costs for manufacturers including Unilever.
- Higher oil prices can lead to more expensive transportation, which pushes up food prices.
- Economists warn that if oil prices stay above $90 a barrel, inflation and interest rates in the UK could rise.
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