6. Nike Sneakers
> Parent Company: Nike
> Price Increase: n/a
> Reason: Rising Oil, Cotton, and Labor Costs
In the company’s third quarter earnings report last month, the athletic wear company announced it would be raising prices across its entire product line, citing increased costs. Nike CFO Donald Blair stated during the conference call: “As we expected, in Q3, we began to see the impact of rising input costs, such as oil, cotton and labor.” Su
pply chain management and raising prices would be used to combat the increased costs.
7. Hershey Chocolate Bar
> Parent Company: The Hershey Company
> Price Increase: 9.7%
> Reason: Rising Price of Dairy and Sugar
Hershey recently increased prices for the majority of its products. The candy company reported a weighted-average price increase of about 9.7% across its candy and grocery lines. Hershey cited rising raw material costs, as well as fuel costs, for the new prices.
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8. Glad Trash Bags
> Parent Company: Clorox Co.
> Price Increase: 10%
> Reason: Rising Costs of Oil and Resin
Due to rising commodity costs, Clorox Co. is raising prices on its Glad trash bags by almost 10%. The rising costs of commodities such as resin and oil will be offset by consumers. Clorox has raised prices on Glad products for this reason before, most recently in 2008. The company is also raising prices on some of its its salad products, such as Hidden Valley ranch dressing mix.
9. Diehard Batteries
> Parent Company: Johnson Controls
> Price Increase: 5%-9%
> Reason: Rising Commodity and Handling Costs
Johnson Controls, the world’s largest manufacturer of lead acid batteries, increased the prices of its batteries by 5%-9% last month. The company cites increasing commodity and handling costs as the reason for the price changes. These costs have to do in part with improved packaging and transportation due to new safety standards from the U.S. Department of Transportation.
10. Charmin
> Parent Company: Proctor and Gamble
> Price Increase: 5%
> Reason: Rising Energy Costs, Pulpwood Price
Facing raising energy, material, and transportation costs, Proctor and Gamble has announced that it will raise prices on a number of popular goods. The company gross margin fell from 51.9% to 50.5% this past quarter compared to last year, and now additional costs will be, in part, passed on to consumers. P&G will be raising the list price on its Charmin paper products by 5%. It will also reportedly be raising prices on Pampers diapers, wipes, and Bounty products.
Jonathan Berr, Michael Sauter & Charles Stockdale
