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Greed inflation: Giants behind brands from Heinz soup to Head & Shoulders raise prices by up to 73% – while raking in £50bn profits
The consumer giants behind some of Britain’s favorite brands – from Heinz baked beans to Head & Shoulders shampoo – have been accused of greed and profit after hitting shoppers with huge price increases while raking in massive profits.
Struggling families have been hit by inflationary increases in products such as Heinz tomato soup – which rose 73 per cent from 98p a can to £1.70 in a year – while the multinationals behind them are making billions.
Critics say the companies should use their huge profits to absorb some of the increased production costs, rather than passing them on to customers, and have called on market watchdogs to intervene.
The Mail on Sunday can reveal that seven of the largest consumer companies are on the verge of revealing a combined profit of £50bn for 2022 – £2bn more than the previous year.
The Mail on Sunday can reveal that seven of the biggest consumer companies are on the verge of revealing a combined profit of £50bn for 2022 – £2bn more than the previous year
Yet they have imposed big price increases at the box office, such as Unilever raising the price of Hellmann’s mayonnaise by 42 percent from £1.75 to £2.49; Procter & Gamble’s Head & Shoulders shampoo is up 21 percent from £2.33 to £2.83 and Heinz beans are up 35 percent from £1 to £1.35.
Such increases expose companies to accusations of “greed” – using the cost-of-living crisis more than necessary as a cover for rising prices.
Consumer champion Baroness Ros Altmann said: ‘To any normal consumer, this looks like greed and needs an explanation. It feels like they charge as much as they can get away with.
“There should be a CMA [Competition and Markets Authority] investigate what is going on. If we want to control inflation, there will have to be a price study.’
Yet they have imposed large price hikes at the box office, driving costs to consumers soaring
Sir Chris Bryant, the veteran Labor MP, said: ‘Under the cover of the cost-of-living crisis, these companies appear to be engaged in blatant profiteering. It’s time they let go of the greedy pedal and give the consumer a better deal.’
Tory MP Mark Garnier said: ‘It’s okay for companies to make a profit for their shareholders, that’s capitalism. But modern shareholders look for companies that are committed to the community and their environment.
“These companies need to show how they are helping those who are suffering, and our wider society. If they don’t, both their shareholders and their customers will fail them.’
Of the companies making a total of £50 billion in global profits, Mondelez (the US conglomerate that owns Cadbury chocolate and Philadelphia cheese), Danone, Nestle, Procter & Gamble and Reckitt Benckiser (which owns Dettol, Harpic, Finish and more) say last year’s earnings were significantly larger than 2021.
Meanwhile, Unilever and Kraft Heinz are forecast to say their numbers are broadly similar to the previous year.
Unilever said it is trying to absorb ‘as much as possible’ of the impact, and Danone said it is cutting back where possible. Mondelez said it is ‘impossible’ to protect consumers from the impact, but P&G and Reckitt declined to comment
Last week, P&G raised its annual sales forecasts after making multiple price hikes last year — and chief financial officer Andre Schulten said more were to come. In October, Nestle reported its strongest sales growth in 14 years with average price increases of 7.5 percent.
Reena Sewraz, retail editor of consumer magazine Which?, said: ‘We have seen huge price increases for many beloved branded products over the past year, with our own findings showing increases of more than 100 per cent in some supermarkets.’
Other increases reported by market research firm Assosia include P&G’s Ariel laundry detergent rising 25 per cent from £5.83 to £7.27, Heinz tomato ketchup rising 39 per cent from £2.30 to £3.20 and Nestle Cheerios rising by 20 percent from £2.45 to £2.93.
In many cases, supermarket private label products are significantly less expensive than the branded equivalent.
Spokesmen for both Nestle and Kraft Heinz said separately last night that price hikes were a “last resort.” Nestle said it gobbled up billions of dollars in costs, while Kraft pointed out that energy bills have risen 609 percent since 2019.
Unilever said it is trying to absorb ‘as much as possible’ of the impact, and Danone said it is cutting back where possible. Mondelez said it is “impossible” to protect consumers from the impact, but P&G and Reckitt declined to comment.
‘It’s time for consumers to get a better deal’