Strategic Movements April 2021

Tim J. Smith, PhD
Founder and CEO, Wiglaf Pricing

Published April 16, 2021

Price Check on Kimberly-Clark Again…

Kimberly-Clark, maker of Kleenex, Cottonelle, Scott paper products, Huggies, Depends, and Kotex, plans to raise prices by mid to high single digits in 2021. 2020 Revenue at $19.1 billion and P/E of 20.1.

General Mills Announces 2021 Price Increases

Price Check on General Mills

General Mills, maker of Cheerios, Chex, Total, Wheaties, Trix, Häagen-Dazs, Wanchai Ferry, Yoplait, Nature Valley, Pillsbury, Betty Crocker, Annie’s, Green Giant, Old El Paso, Hamburger Helper, Blue Buffalo, Progresso, Gold Medal, and Pillsbury, plans to raise prices in response to higher commodity prices. 2020 Revenue at $17.6 billion and P/E of 14.8.

Price Check on Hormel Foods

Hormel Foods, maker of eponymous Hormel meats along with Jennie-O, Applegate, Dinty Moore, Don Miguel, Herdez, Embasa, Dona Maria, La Victoria, Fontanini, Tsang, Spam, and Skippy, is raising prices in response to higher commodity prices. 2020 Revenue at $9.6 billion and P/E of 29.0.

J.M. Smucker Co Announces 2021 Price Increases

Price Check J.M. Smucker Co

J.M. Smucker Co, maker of eponymous Smucker’s Jams, Jellies, Syrups and Peanut Butter along with Jif, Goober, Dunkin’, Folgers, Milk Bone, Meow Mix, and other brands, reports preparations to raise prices on pet snacks as shipping and other inflationary pressures rise. 2020 Revenue at $7.8 billion and P/E of 15.4.

Inflation 2021?

These may be one-time price increases in response to specific industry pressures, but if the economy rebounds, I expect more signals to demonstrate that this is the time of inflation. What do you expect their revenues P/E will be in 2021?

Posted in: Pricing
Tagged: 2021 inflation, CPG pricing, General Mills, Hormel Foods, J.M. Smucker Co, Kimberly-Clark

About The Author

Tim J. Smith, PhD, is the founder and CEO of Wiglaf Pricing, an Adjunct Professor of Marketing and Economics at DePaul University, and the author of Pricing Done Right (Wiley 2016) and Pricing Strategy (Cengage 2012). At Wiglaf Pricing, Tim leads client engagements. Smith’s popular business book, Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies, was noted by Dennis Stone, CEO of Overhead Door Corp, as "Essential reading… While many books cover the concepts of pricing, Pricing Done Right goes the additional step of applying the concepts in the real world." Tim’s textbook, Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures, has been described by independent reviewers as “the most comprehensive pricing strategy book” on the market. As well as serving as the Academic Advisor to the Professional Pricing Society’s Certified Pricing Professional program, Tim is a member of the American Marketing Association and American Physical Society. He holds a BS in Physics and Chemistry from Southern Methodist University, a BA in Mathematics from Southern Methodist University, a PhD in Physical Chemistry from the University of Chicago, and an MBA with high honors in Strategy and Marketing from the University of Chicago GSB.