A major supplier of hygiene products to the foodservice and hospitality sector has said it will raise its prices in Europe by 3% to 4% from the start of next year.
Diversey, which makes items including detergents, rinse aids and sanitisers, said the hikes across its Professional product ranges are due to continued cost movements and investments it has had to make in the business following the pandemic.
The company said it has been confronted with significant supply chain challenges and “exceptional” fluctuations in demand across the different industries it serves since the beginning of the year.Story continues belowAdvertisement
Costs of key feed stocks, including ethanol, IPA, chlorhexidine, caustic soda, phosphonates, copper and lead, have impacted market dynamics, while it has had to invest in R&D, regulatory and compliance processes due to ongoing changes in product classification.
Sinéad Kwant , president Europe at Diversey, said the company has absorbed or mitigated over 80% of the total raw material cost inflation during the pandemic, but this was unsustainable in the longer term with 2021 cost projections higher than-pre-pandemic levels.
“Whilst we continue to adapt our business to the challenge and absorb as much of the impact as we feasibly can, our investment and cost increases are significant and as a result we will be increasing the prices of all Diversey Professional products by an average of 3% to 4%,” he commented.