Cleaning products maker McBride says it is raising prices substantially for the second time in two months, as it deals with a double whammy of global supply chain pressures and a shortage of lorry drivers in the UK.
British companies have been grappling with staff shortages and higher costs as disruptions linked to Brexit and the coronavirus pandemic have severely curtailed supply chains.
Rising Costs
McBride, which makes and distributes brands including Oven Pride and Surcare, warned that raw material and packaging costs have risen faster and to a higher level than previously expected as global supply chains tighten further.
The company says that shortage of haulage capacity and higher fuel expenses have inflated distribution costs and show no sign of abating in the near term.
McBride, which has already forecast a 65% drop in full-year profit, said it was seeking substantial price increases from all its customers again and that could result in mid to high-teen percentage increases.
Variable Pricing Surcharge
On 19 August, the company said it was seeking a variable pricing surcharge to sales contracts, based upon certain key commodity prices.
They estimated cost increases to have been £8 million in the second half of last year and £30 million for the current year.
The company had reported overall cost of sales of £463 million for fiscal 2021.
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