L’Oreal on Cautious mode on UK Pricing


L’Oreal, the world’s biggest cosmetics manufacturer is on toes on raising prices in the United Kingdom to compensate with the slump in the pound, CEO Jean-Paul Agon told in the wake of the dispute between the major MNCs Tesco and Unilever respectively. He added that they would be very cautious to respect both the relationships with retailers and consumers and it is not the fault on the customer side that some production costs are constantly rising. For MNCs that make products with imported raw materials the burden of costs of currency devaluation de-synchronise the margin levels. Britain’s biggest supermarket chain Tesco and food giant MNC Unilever had some discrepancies in this week, leading the retailer to remove some of its branded items for its shelves and from its online offerings. Anyhow both of them came at a common resolution. The pound had declined 15% after Brexit on June 23. Previous week, the cheesemaker Emmi AG  told that the price should definitely go up as a part of compensation in UK, while Nestle SA said that the pound’s devaluation has raised the costs to import coffee and cocoa.