The rising cost of maritime transport of goods and energy, the loss of value of the peso against the dollar, as well as the shortage of some raw materials and the increase in the price of others, forced companies such as Sigma, Kimberly Clark, Lala and Herdez to raise the cost of some of its products by 17 percent on average, in addition to warning that they could make upward adjustments during 2022.
“All this context of pandemic, inflation, seasonal factors add up and give as a result that prices have increased dramatically this year and the previous one,” said Cuauhtémoc Rivera, president of the National Alliance of Small Merchants (ANPEC).
He added that the 1.2 million small corner stores in the country have already reported a 30 percent drop in 2020 sales, and so far this year they have barely recovered 10 percent, which is expected to close. 2021 with income 20 percent below last year, affected by the inflationary escalation that threatens to worsen at the start of 2022.
“What is inflation, the rise in prices of the products that the consumer seeks to buy. The average ticket two years ago was 200 pesos, today you are going to win with having one of 100 pesos, and they take very few things, not only did the ticket go down, what they are looking for is the essential thing, “said Rivera.
The ANPEC found that 47 percent of its associates’ customers reduced the purchase of sausages, 43 percent reported having reduced their consumption of meat, 39 percent of customers responded that they reduced the purchase of canned food, and 20 percent one hundred of legumes.
According to an analysis carried out by El Financiero, between October 2019, prior to the pandemic and October this year, the portfolio of sausages of the San Rafael and Fud brands of Sigma, and the Huggies diapers of Kimberly Clark, are the products that more raised its cost to the consumer.
Sausages, the cheap protein that became expensive
Sausages, previously considered an inexpensive source of protein in contrast to beef, chicken and pork, have now become inaccessible products for much of the population.
The portfolio of ham, chorizo and sausages of the San Rafael de Sigma Alimentos brand increased 17.7 percent in the last two years, going from cost 184.75 pesos in October 2019 to 217.54 pesos the same month this month, an increase of 32.79 pesos .
While, in that same period, its Fud brand went from costing 134.50 to 153.53 pesos per kilo, an increase of 14 percent between October 2019 and the same month in 2021.
“Volume increased, but we also have record revenues, mainly explained by price actions to mitigate inflationary pressures. In Mexico, around 50 percent of our business comes from the traditional channel, where we have the opportunity to reflect the price increases, ”said Roberto Olivares, Sigma’s chief financial officer, in a conference with analysts.
As of the third quarter of 2021, the company had revenues from Mexico of 2,080 million pesos, 16 percent more than its similar period in 2020, it stands out that in volume the growth in volume was barely one percent.
“The traditional channel is increasing, the volume actually went up a low digit during the quarter. And we have the ability to increase prices there, “said Olivares.
Most expensive diapers from Kimberly- Clark
Kimberly Clark’s Huggies diaper portfolio rose 32.37 pesos on average in the last two years, going from 225.33 pesos in October 2019 to 257.90 pesos for this October, an increase of 14.4 percent.
This against increases of over 40 percent that the company has faced in raw materials such as virgin fibers, and fluff, which also hit toilet paper.
Its Suavel brand is currently an average of 66.23 pesos, 14.68 pesos higher than in 2019.
“During the fourth quarter and entering 2022, we will have to deal with an economy that is recovering, but is not fully recovering, and still a difficult cost environment,” Pablo González, CEO of Kimberly- Clark Mexico.
Due to the above, they contemplate an increase of 7 percent towards the end of 2021, and the start of 2022.
As of the third quarter of this year, the company accumulated revenues of 35,175 million pesos, a marginal increase of 0.5 percent.
Lala raises 11.70 pesos
Lala’s dairy portfolio with her milk, cheese and butter had an increase of 11 pesos in the last two years, going from 51.45 pesos in October 2019 to 63.15 pesos for this 2021, equivalent to 22.7 percent more.
“The main reason has to do with the transfer of costs to the consumer, which even comes from grains and feed for livestock, but of course you have to include the impact of the dollar denomination of many of them there,” explained Carlos. Hermosillo, analyst specialized in consumption.
In the third quarter, the company registered revenues of 46 thousand 287 million pesos in Mexico, an annual growth of 4.7 percent, supported by a tactical price increase, they indicated in the financial report for the third quarter of 2021.
found in a survey that 47 percent of the clients of its associates reduced the purchase of sausages and 43 percent decreased their consumption of meat
Shopkeepers affirm that the average purchase ticket went from 200 to 100 pesos per visit.
The pandemic, logistical pressures, the rise in energy costs, packaging and raw materials, forced them to make their products more expensive.
Alejandra rodriguez email@example.com