After Nestle, FMCG Giants HUL, Coca Cola And Britannia Warn Of Further Price Hikes

About two weeks after Maggi maker Nestle warned of further price hikes amid inflationary pressure, Coke, Britannia and Hindustan Unilever Limited (HUL) may soon follow the suit.

FMCG giant Britannia Industries yesterday said it has judiciously increased prices in the January-March quarter on account of cost inflation and would further take such calibrated price hikes to retain its profitability, as per PTI.

Britannia Industries¡¯ Managing Director Varun Berry reportedly said "We shall further take calibrated price increases and drive cost leadership to manage profitability," said Britannia's MD Berry. The economy has been impacted by global geo-political factors which caused a further surge in inflation during the January-March quarter of 2022. as per an ANI report.

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On the other hand, Hindustan Unilever Limited (HUL) too indicated further price hikes.

Sanjiv Mehta, CEO and MD of HUL, reportedly told Moneycontrol in a recent interview ¡°The FMCG industry will see more price hikes in the quarters ahead on account of unabated inflation in palm oil and crude oil¡±. According to HUL¡¯s CEO, the prices will continue to inch up till commodity prices do not abate.

¡°It¡¯s difficult to predict what would be the precise quantum of price increases, but the way we see it is, commodity costs keep going up, so there will be more price actions,¡± the HUL CEO reportedly said.

And that¡¯s not all. Coca-Cola India and Southwest Asia¡¯s President Sanket Ray reportedly told ET in an interview ¡° Inflation will remain in the current range for a few more quarters because of multiple factors, and there will be price increases for select packs.¡±

He added "It (inflation) is a global phenomenon, and we expect it to stay for a few more quarters. To manage that, we are very clear that we will be taking some more price increases for select large packs. For affordable packs, though we are holding on to the price.

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The maker of Thums Up and Sprite soft drinks and Minute Maid juices had recently taken up price increases in the range of 3-3.5% for some of its larger packs, and further price increases will be in the same range, though it will maintain affordability to drive consumption volumes.

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