Increases in commodity and freight costs are leading to higher prices on tissues, toilet paper, diapers and related products, says Procter & Gamble.
P&G, which manufactures such products as Bounty paper towels and napkins, Puffs tissues, Charmin toilet paper and Pampers disposable diapers, is passing on those increasing costs to consumers.
P&G operates a plant in Mehoopany, its only plant in Pennsylvania.
Increasing logistics costs also led another paper product manufacture, Cascades Tissue Group, to close its plants in Pittston Township and Ransom Township about a year ago.
“P&G’s noted on our last several earnings webcasts that as commodity input costs and freight costs have continued to rise, we will offset a portion of these higher costs with price increases and with productivity savings,” P&G said in response to questions about the increases.
“We announced price increases on baby care and family care products in April and August, respectively. Pricing at the store shelf is at the sole discretion of the retailer.”
The company said it prices by product category and includes factors such as costs, the value of our brands and local marketplace dynamics.”
The response continued, “Over the past several years, we’ve invested in our supply chain, including new multi-category, advanced manufacturing sites and mixing centers near major population centers.”
Cascades Tissue Group plant did not fare as well in a market hampered by the COVID-19 pandemic.
The company closed tissue production at its two area plants between Dec. 7, 2020 and Jan. 31, 2021.
“The aging equipment of these facilities, the low profitability, the high logistic costs and our recently announced investments in other production and converting units in the U.S. have prompted us to move production to our other sites to optimize operational efficiency,” Jean-David Tardif, president and chief operating officer of Cascades Tissue Group, said at the time.
“The closure of these units is part of our ongoing strategic initiatives to improve the Tissue Group’s profitability. We would like to reassure our customers that Cascades’ service and product quality levels will not be impacted by this decision.”
The closings put 229 employees out of work, but the company offered them the option to transfer to Cascades’ other business locations or receive help in their search for other employment.