Prices of Procter & Gamble products to increase
MANILA, Philippines—Consumer goods giant Procter & Gamble Philippines Inc. will be raising prices of its products across all segments to reflect higher commodity costs.
In an interview with reporters, P&G Philippines president and general manager Siddik Tetik said the move was not unique to the Philippines, but was in line with strategies being implemented on the global level.
The price hikes, however, would be “marginal” and would hardly be noticeable, he said.
Prices of some of P&G’s products have already gone up, with others to follow suit soon.
“It’s more a global impact. We absorbed some additional costs and this marginal hike in prices will just be for cost adjustments,” Tetik explained.
Tetik said the price hikes were not expected to make a huge dent on demand for the company’s products.
In the first half, however, the company did experience a dip in demand.
In the second quarter, for example, Tetik said consumers cut consumption across all of the company’s product categories, mainly due to foreign exchange movements.
The strong peso eroded the spending power of overseas Filipino workers’ beneficiaries, making them cut down on their expenses, he said.
But demand went back up in July and August, despite the strong peso.
“We’re seeing a good trend,” Tetik said.
He said that sales across all of the company’s brands registered double-digit growth last year, making 2010 the highest growth year for the company.
Tetik attributed the huge surge in sales to election-related spending and higher consumer confidence as a result of the changing of administrations.
This year, growth across all segments should slow down, but only because of last year’s large base. Growth should still be at double-digit rates for all brands, Tetik said.
The bulk of the company’s sales comes from its fabric care line, he said, with its personal cleansing and skin care and baby care lines also providing good volumes.
P&G Philippines carries a wide range of products, including fabric and home care brands Ariel, Downy, Joy, Mr. Clean, and Tide; personal cleansing and skin care products Safeguard, Zest, Secre, and Old Spice; feminine care brand Whisper; and baby care line Pampers, which are all manufactured in the company’s Cabuyao plant.
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