Michelle ThompsonUnilever and Procter & Gamble suggest additional price hikes may be coming as Trump-era policies drive up ingredient expenses.
Manufacturers of top brands like Magnum ice cream, Nescafé coffee, and Ariel detergent have signaled that further price hikes may be necessary, as rising ingredient costs are driven by trade tariffs introduced under Donald Trump.
Procter & Gamble—maker of Pampers, Oral-B, and Ariel—stated that new U.S. tariffs could add up to $1.5 billion (£1.1 billion) in annual costs, leading to additional price increases on top of the 1% year-on-year rise recorded in early 2025. Its beauty line, including Olay and Pantene, saw prices rise by 3% over the same period.
Chief Financial Officer Andre Schulten said the company would rely heavily on pricing and cost-cutting strategies, as shifting away from Chinese raw material suppliers isn’t feasible in the short term due to limited alternatives.
Despite raising prices, P&G has lowered its sales outlook from 2%-4% growth to flat, citing a difficult global economic and political climate.
Unilever CEO Fernando Fernandez, who oversees brands like Magnum, Dove, and Domestos, noted recent increases in commodity costs—particularly for dairy, cocoa, and palm oil—that could lead to more price rises. However, he stressed that Unilever would only raise prices as a “last resort,” aiming first to manage internal costs. In Q1 2025, Unilever raised prices by an average of 1.7%.
Some beauty product costs are also expected to climb due to increased expenses for imported packaging and ingredients affected by U.S. tariffs.
Nestlé, which owns KitKat, Felix, and Nescafé, reported a 2% overall price increase in Q1, with a 3.2% rise in Nespresso coffee pod prices driven by higher coffee and cocoa costs. These increases boosted overall sales by 2.8%, with strong performance in coffee and sweets, but weaker pet food sales.
Nestlé noted that the full impact of tariffs on consumers, currencies, and raw material costs remains uncertain and evolving.
Meanwhile, PepsiCo announced it no longer expects profit growth for the year, warning that new tariffs are likely to raise supply chain costs. CEO Ramon Laguarta said ongoing global trade uncertainty would continue to pressure operations, especially in markets where consumer spending remains weak.
Despite these market conditions, Unilever plans to proceed with spinning off its ice cream division—including Magnum, Cornetto, and Ben & Jerry’s—in September. Fernandez confirmed that this move remains the preferred path, and there are no intentions to sell Ben & Jerry’s separately.
Recent reports suggest Unilever has threatened to pull around $5 million (£3.75 million) in funding from the Ben & Jerry’s Foundation, amid disputes over the brand’s governance and political activism. Fernandez stated that Unilever is seeking clarification on how the foundation’s funds are being used, ensuring alignment with corporate agreements.
He reaffirmed that Ben & Jerry’s would not be sold off individually, and the scheduled listing of the ice cream business will proceed as planned.
