Cleaning products firm McBride raises prices on Iran war energy hit
By James Davey
LONDON, April 2 (Reuters) - McBride MCB.L, the European manufacturer of private label cleaning products, is raising prices to cover the energy cost impact on its suppliers of the U.S.-Israeli war with Iran, it said on Thursday.
The war in the Middle East has driven up energy prices sharply, fuelling inflation but also dealing a wider blow to the global economy.
London-listed McBride, one of the first major companies to impose price rises as a direct result of the conflict, said the first signs of possible shortages in supply chains around the world had started to emerge.
It said some of its chemical and packaging suppliers had already implemented price increases to recover higher costs for petrochemical-derived feedstocks and energy in chemical and packaging production.
As a result, McBride said it will see elevated input costs in April and expects further increases in the near future.
"Consequently, the group has already informed all customers about temporary price adjustments, or surcharges to current pricing, to recover these higher, beyond our control, cost impacts from the Middle East conflict," it said.
McBride's customers include major supermarkets.
The company's update "is not likely to be the last from the grocery retail supply chain across the UK and Europe", said Clive Black, head of consumer research at UK investment bank Shore Capital.
Last week clothing retailers H&M HMb.ST and Next NXT.L warned that a prolonged Middle East conflict could push up prices in Europe and dent consumer demand.
The first clear impact of the war on UK household costs has been seen at fuel pumps, where higher energy prices have already pushed up costs for drivers.
Farmers have also warned of higher food prices from next month, starting with those of tomatoes, cucumbers and peppers grown in heated greenhouses.
On Wednesday, Britain's food and drink manufacturers' lobby warned food prices will be rising by almost 10% by the end of this year.
