Procter & Gamble hikes soap prices

The local unit of consumer products giant Procter & Gamble (P&G) has hiked prices of several bath soaps by 4%-5% due to higher raw material costs, an official yesterday said. The firm stayed mum on whether other products in its portfolio would see price increases as well. It said it was confident of maintaining buyers’ loyalty amid the competitive personal care market despite the price hike. The adjustment in suggested retail prices (SRP) for bath soap -- particularly for their Safeguard and Ivory brands -- was made in January, P&G Philippines spokesman Jaime L. Endaya said in a telephone interview. The percentage increase translates to a P1.00 rise in prices, Mr. Endaya said. Trade Undersecretary Zenaida C. Maglaya reported the increase in a general price briefing on Tuesday, noting that bath soap and sugar were the few products that saw their SRPs rise from October 2009 levels. “It is the first time we’ve increased since February 2009. [This comes as] the price of inputs -- soap noodles -- actually increased by double digits," Mr. Endaya said. “[Despite this], we feel that because our brands are strong and continue to offer value, our consumers will continue to patronize us," Mr. Endaya said. Safeguard and Ivory, first introduced in the domestic market in 1986, enjoy “good market shares," he said. Safeguard is made locally at the firm’s Cabuyao, Laguna plant while Ivory is imported. The soap noodles, meanwhile, are sourced both locally and from abroad. P&G and other soap makers had asked government to eliminate tariffs on imported acids, an input used for detergents. Mr. Endaya clarified that these acids were different from those used to make bath soap. -- Jessica Anne D. Hermosa, BusinessWorld