Don’t Be Surprised Yes! KitKat and Condom Prices Will Rise

Jakarta –

The price of KitKat chocolate is likely to rise this year due to rising production costs of the item. This was announced by Nestle as the manufacturer.

Simultaneously, the Durex condom manufacturer, Reckitt Benckiser also announced that the contraceptive device would increase. It hopes that most of the increase can be suppressed.

Reckitt fees are up 11% in 2021. Still, that percentage doesn’t mean condom prices will go up that much. Because the company has a way to reduce and manage prices.

“We care about the competitiveness of our brands,” said Reckitt Benckiser Chief Executive Laxman Narasimhan. BBCFriday (18/2/2022).

Reckitt Benckiser’s chief financial officer, Jeff Carr, said the company’s costs had been rising from crude oil, plastics, shipping and workers’ wages. He admitted that he would absorb most of the cost increase through efficiency and sales.

“We don’t charge it to consumers. We give some prices to consumers but we minimize them through the programs we have to absorb these rising costs,” he explained.

The company’s shares rose as much as 5.4% on Thursday (17/2). Meanwhile, Nestle said it had raised prices by 3.1% in the fourth quarter to offset rising operating costs.

“It is a safe assumption that our increase in input costs for 2022 will be higher than for 2021. That is something we should reflect on in our pricing. Hardly any company is free of inflation now,” said Nestle CEO Mark Schneider.

Consumer goods companies have previously warned of rising prices for products due to rising costs of raw materials, energy and labor. This will certainly increase the pressure on households facing a cost of living crisis.

The latest data shows UK inflation hit a 30-year high of 5.5% in January 2022. The Bank of England expects the cost of living could reach more than 7% in the spring, well above its 2% inflation target.

(aid/ara)

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