Procter & Gamble will boost product prices by up to 16%

[Zenlitened]

Source: Bloomberg

CLEVELAND - Procter & Gamble Co., the maker of Tide laundry detergent and Head & Shoulders shampoo, will raise prices as much as 16 percent because of higher costs for plastic, energy, and paper.

The increases are the Cincinnati-based company's steepest in at least 18 months. Procter & Gamble is betting that customers will continue to buy its Gillette shaving cream and Ivory soap rather than switching to store brands with lower prices promoted by Kroger Co. and Wal-Mart Stores Inc.

(snip)

Retailers will pay P&G 2 to 16 percent more for fabric, home and hair care, bar soaps, and health and shaving products beginning in September, P&G spokesman Paul Fox said yesterday. Commodity expenses will climb more than $2 billion this year, he said.

P&G previously added 4 to 8 percent to prices in the past 18 months, Fox said.

Read more: http://www.boston.com/business/articles/2008/07/08/pg_will_boost_product_prices_by_up_to_16/

[onehandle]

1. Thanks, Oil President. Mission Accomplished! nt

[Zynx]

2. This was bound to happen.

Their margins can't sustain the raw materials price increases we are seeing.

[Jackpine Radical]

3. It could be much worse.

We could have inflation if we didn't have Bush & Bernanke looking out for us.

[Jackpine Radical]

4. All your dollar are belong to us.

This, of course, is exactly how the wealthy steal the savings of the middle class.

[Journeyman]

5. Good thing they're only raising prices. I thought inflation might be kicking in. . .

[Yavin4]

6. Dear 28% Bush Supporters

How much misery do you need in order to change your mind? What does Bush have to do? Eat live puppies on the White House lawn?

[WriteDown]

7. Nothing to do with Bushler....

Welcome to peak oil. I find it funny that everyone spouts off about hybrids and gas sippers. Take a look wherever you're sitting now (people sitting in a forest or field are exempted), EVERYTHING is made of petroleum. Right now near me: Pens, phones, laminate desks, mousepad, thumbtacks, container, clothes and elastic, glasses, cups, tape dispenser, fedex envelope pouches....i could go on all day.

[dixiegrrrrl]

8. News flash !!!!

Our household announced today we are reducing our monthly spending 16% by not purchasing the following Proctor and Gamble items:

http://www.pg.com/common/product_sitemap.jhtml

[LeftyMom]

9. I don't buy thier shit anyway.

:shrug:

[Critters2]

10. Yeah, but the shit you do buy is likely to go up in price, too.

If only because of shipping costs.

[LeftyMom]

11. So far, so good.

I do most of my shopping at our local food co-op, and the prices there haven't gone up noticeably. Trader Joes seems to have hiked most things $0.30 or so, which is annoying but not exactly budget-breaking, especially since I only get a few things there. I don't expect much of my food to go up, since where I live it's kind of hard not to buy local food, since pretty much anything but tropical fruit grows here. If non-perishables do go up (they haven't yet) I'll start buying more by the case (there's a discount) to offset the difference.

And anything that shifts people away from P&G is a good thing. I'm hard pressed to think how the alternatives could be worse.