Kimberly-Clark (K-C) has shelved plans to raise the price of Andrex toilet tissue after own-label brands refused to follow suit.
The seven per cent price hike, which was to come into effect in November, was expected to trigger price increases across the tissue market (MW August 22).
One industry insider says: “The retailers have refused to budge on the issue. If there were a price increase, the difference between the cost of own-label and Andrex would be enormous.”
K-C blamed rising paper pulp costs for the planned price increase. It is unlikely to be phased in until next year. K-C refused to comment as Marketing Week went to press.
It is the second time this year that retailers have forced big manufacturers into a U-turn on pricing, after retailers refused to comply with Procter & Gamble’s plans to increase the price of all its detergent brands (MW September 5).