Unilever expects price hikes ahead as cost pressures mount

Yahoo Finance's Brian Sozzi and Julie Hyman discuss Unilever's price increases amid broad inflation.

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JULIE HYMAN: And Sozz, we've been talking about inflation in so many different components. This is just another blow. And there's a company that reported this morning that talked about those types of increasing costs.

BRIAN SOZZI: It's funny you should mention this, Julie. I'm looking right at Unilever, the maker of Lipton teas, Hellmann's Mayonnaise, and Ben & Jerry, of course, other products like Dove, various sprays. Unilever noted it raised prices by more than 8% in the first quarter, so really taking the same path as rival P&G. But unlike P&G, Unilever noted that volumes fell 1%.

So what that essentially means here is that consumers have started to balk at the price hikes put in by a Unilever for whatever reason. Maybe they just don't see enough value in what the company is selling. Does not matter. That is what happened in the quarter. Now, Unilever-- I will lastly note here, Unilever also noting now they're trying to swap out certain ingredients in its products, in some cases, removing certain oils and putting in other cheaper products, just to protect their margins. So something to watch moving forward.