After the price increases go into effect, P&G is planning to hold market share by trying to increase consumers' perception of the value of its products and introducing new or upgraded items. Companies such as P&G and Kimberly-Clark are betting consumers will be willing to pay more for the brand version, instead of opting for a cheaper private label.
In its most recently issued forecast for fiscal 2020, P&G said it expected sales to be up 5% to 6% and adjusted earnings to grow of 8% to 10%. But the company has also been absorbing higher raw material and transportation costs, which could weigh on results.—CNBC's
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