Consumer goods giant Unilever says it will raise prices due to the war in Iran.
The London-listed company, which owns a range of popular brands – from Hellman’s and Marmite to Dove and Lynx – said it is facing unexpected costs of between £300m and £430m.
Small but “frequent price increases” will be made, potentially up to 3% if inflation continues, finance chief Srinivas Phatak said.
“It will be calibrated and it will be done in a competitive manner,” he said.
The increases will affect items more sensitive to oil price changes brought on by the closure of the Strait of Hormuz, such as care products.
They will take place in the second half of the year and will be felt more keenly in parts of Asia, Africa and Latin America, where inflation has been worse, said Phatak.
A Reuters review of more than 200 company statements since the start of the Iran war found 36 signalled price hikes due to the conflict.
This includes some of Unilever’s rivals, such as Nestle and Procter & Gamble.
Asked to comment, Phatak told Sky News: “The principles that we will follow are very clear. We want to ensure that there is the right consumer value. We take pricing up in small measures without compromising the quality of our business and our performance.
“Before resorting to pricing, because pricing is really our last resort, we are looking at all elements, as we sustain volumes, that give us benefit.
“We will look at mix, we are looking at formulation flexibility and we are extracting costs from the complete value chain and really managing our own efficiencies.”
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