Unilever released its quarterly results and they've pushed up their prices up.
👉 Background: Unilever is the company behind household brands like Lipton tea, Vaseline and Ben & Jerry's. They originated in Europe 92 years ago when a British soap maker and Dutch margarine producer decided to join forces.
👉 What happened: Now, Unilever has released its quarterly results and they've pushed their prices up 12.5%. Meanwhile, their rivals, P&G and Nestle have raised prices by less than 9.5%
👉 What else: This ain't the first time it's happened. During the 2008 financial crisis Unilever's prices jumped by 9% while their competitors were hanging out at 4%.
💡Business risk is the exposure that a company has to factor that could lower its profits or lead it to fail. Think: compliance risk, reputational risk, operational risk... or geographical risks.
💡Unlike other manufacturers, Unilever is heavily exposed to currency and inflation risk as a large number of their raw materials come from Turkey, Russia, the broader Latin America (which have experienced whopping inflation levels).
💡So now, Unilever is just balancing how much they can raise their prices without losing customers to other brands.
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