Comes with a warning to the grocery market.
Unilever is one of the world’s largest suppliers of groceries worldwide, and is also strongly represented in Norway with well-known brands such as Dove, Domestos, Knorr, Maizena, Maille, Lipton and Neutral.
The company presented quarterly figures on Thursday where they report much higher prices going forward, as a result of global price increases “Unparalleled”.
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Powerful jumps
The company says it has increased prices 4.1 percent over the past year, including 4.8 percent for cosmetics and household goods, and 3.8 percent for food.
That is more than twice as much as normal, and the company announced that it will be even worse.
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– Such a sharp rise is something we only see around every twenty years. We expect it to stay high into 2022, and reach the top at the beginning of next year, says Alan Jope, CEO of Unilever, at the presentation.
The company emphasizes that the price increases are about increased costs on the world market, related to transport and raw materials. Energy, vegetable oil and packaging are among the costs that have risen the most.
– The price increases are happening all over Europe, it is said in a statement from the company.
Others increase
Unilever is far from the only grocery giant that says they are raising prices. Nestlé and Proctor & Gamble, which are also present in Norway, have announced corresponding to the recent price increase.
This summer, Orkla, one of the largest Norwegian-owned grocery suppliers, also confirmed that they were affected by the global price increases in the future. Orkla is behind brands such as Lano, Grandiosa, Stabburet, Jordan and Nugatti. At the same time, it is Norwegian inflation unusually high and was as high as 4.1 percent in September. This is far higher than wage growth, which means that Norwegian wage earners in practice have less to worry about, even with higher wages.
– We notice increased raw material prices. We are used to this, but now we see sharp increases in more products. Global food prices have risen for 12 months in a row. The price index of the UN’s agricultural organization is at its highest level since 2011, when it reached a peak in recent times, stated Orkla’s CEO, Jaan Ivar Semlitsch, in a telephone conversation with Nettavisen, in July.
Orkla then highlighted vegetable oils, cereals, meat, vegetables, dairy products and packaging in the report.
Semlitsch says that wheat is up by 37 percent, sugar is up by 40 percent, sunflower oil is up by 65 percent and packaging is up by between 15-30 percent from last year.
Orkla will present figures next week.
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