Image source: Kimberly-Clark
(Reuters) – Kimberly-Clark Corp said on Wednesday it would raise prices on many of its products including Scott toilet paper, tissues and diapers in the United States and Canada to offset rising commodity costs.
The company saw its products roll off supermarket shelves as shoppers stockpiled essential staples ahead of curfews and lockdowns to stem the spread of COVID-19.
The company makes several pulp-based products including Cottonelle toilet paper, Kleenex facial tissue and Kotex feminine hygiene products.
Kimberly Clark said the price increases, in the mid-to-high single digits, will start from late June and impact the company’s baby and child care, adult care and Scott bathroom tissue businesses.
Last year, sales rose to nearly $20 billion, but higher manufacturing costs also led to a surge in input costs.
Most consumer product companies have been pressured by recent increases in cost of raw materials such as pulp, recycled fiber and resins, even as hygiene and cleaning products remain in demand despite easing of coronavirus-related restrictions.
Pulpmakers have also raised prices for hardwood pulp and forecast rising global demand for tissues and toilet papers.
Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli and Rashmi Aich.