Beloved Toothpaste Company Delivers Bad News
A major toothpaste and toilet paper company is warning of possible looming price hikes.
According to the Associated Press, Procter & Gamble, which makes Crest toothpaste, Tide detergent, and Charmin toilet paper, issued the warning in a call with reporters.
The company stressed that it was "doing whatever it can to reduce higher costs" due to tariff wars, AP reported.
P&G’s Chief Financial Officer Andre Schulten told reporters that the company will "likely have to pass on higher prices to shoppers as early as July," AP reported.
According to the AP, Procter & Gamble reported lower sales, prompting the company to decrease "its annual financial outlook," as consumers spend less due to tariff worries but also mortgage rates.
“Everything plays into the consumer behavior,” Chief Financial Officer Andre Schulten said to AP. “Uncertainty around the stock market and what their 401ks are worth and what the portfolio is worth. Uncertainty around the economic outlook and what it means for their livelihood and the job market.”
According to The Wall Street Journal, the company is even looking at changing its product "formulations" to lower costs.
“Once we have clarity on what the structural tariff environment is… that’s when companies can become more active in looking at formulations,” Schulten said, according to WSJ.
The company also makes Bounty paper towels and Pampers diapers, along with other household name products, WCPO reported.
According to WCPO, Schulten indicated that "average price increases of 1 to 2 percent are possible."
That site reported that the issue stems from the fact that some "packaging and finished goods" are imported from China.
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