Household cleaning giant Oven Pride forced to increase prices amid Iran war
McBride, the household goods group behind Oven Pride and own-brand cleaning products for retailers such as Tesco and Sainsbury’s, has announced “temporary” price increases.
The company highlights the rising costs of conflict in the Middle East and warns of emerging supply chain shortages.
McBride noted that previous impacts were limited to higher transportation costs resulting from increases in fuel prices, but “those conditions are now beginning to change.”
The “hardest hit” chemical and packaging suppliers are imposing price increases, facing rising costs for petrochemical-derived raw materials and higher energy expenditures in production.
“The first signs of possible shortages in supply chains around the world are beginning to emerge,” the group added. McBride confirmed that its costs have increased this month and will increase further due to conflicts, which will require price adjustments.
“The group has already informed all customers of temporary price adjustments or additional charges to existing prices to compensate for the higher cost impacts of the conflict in the Middle East that are beyond our control,” McBride said.
The warnings come as concerns grow about the impact of the conflict on supply and costs, with oil prices rising above US$100 per barrel and causing widespread disruptions to global shipping.
Supermarkets met with Chancellor Rachel Reeves and Energy Secretary Ed Miliband at No 11 on Wednesday to discuss the problems caused by the war and agreed to explore together how they could ease the impact on consumers’ cost of living.
“They agreed to work together to explore what more can be done to ease the cost of living for consumers and strengthen supply chains,” a Government spokesman said.
Helen Dickinson, chief executive of the British Retail Consortium, described the meeting as a “constructive” meeting and said that “while some inflation is inevitable, there are domestic policy tools the government can use to ease some inflationary pressures”.
This comes as FDF economists predict food inflation will reach at least 9 percent by the end of the year; This figure was higher than the 3.2% forecast in September last year.
McBride’s comments were updated as he announced a £34.5 million deal to buy Eurotab, a French-based specialist in cleaning tablets such as dishwashers.
