Hiking prices can help "recover the cost of product delivery," said CFO Bernadette Madarieta, after noting inflation ate away at profits in Q1.
What happened
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Why it matters
Lamb Weston is one of many food companies passing costs on to its consumers to minimize the impact supply chain challenges have on the bottom line.
Nestlé's strategy "is to offset anything we receive through pricing" as it expects inflation to continue, CFO François-Xavier Roger told Reuters in September. Other companies have made similar statements throughout the year: Tyson increased prices to cover higher grain, labor and freight costs in Q3; and Unilever executives flagged rising input costs during Q2.
"We have been and will continue to pull all of the levers of pricing and saving," Unilever CFO Graeme Pitkethly said on an earnings call in July. "We've already taken significant pricing action in key markets through a combination of list price increases, pack changes on key price point packs, mixed actions and focused promotional management."
This news brief is based on reporting published by Supply Chain Dive on 2021-10-12. The original report is linked below.
Supply Chain Dive
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