Parents to Pay More for Their Pampers, Luvs Diapers

by Christopher Freeburn | September 9, 2013 9:25 am

Parents to Pay More for Their Pampers, Luvs Diapers

271098482 4abc8e144c 298x300 Parents to Pay More for Their Pampers, Luvs Diapers[1]Though the price for packs of Procter & Gamble‘s (PG[2]) Luvs and Pampers diapers won’t be going up, parents will still find their wallets lighter in the long term[3].

That’s because the consumer products giant is cutting the number of diapers on each package. Beginning with packages shipped on September 16, the number of diapers in a 140-pack box will drop by eight. While the price for the package remains the same, each diaper inside will now cost 6% more. Other packs will see similar cuts. Overall, the downsizing move will raise prices between 5% and 7% across all Pampers and Luvs packages, the Wall Street Journal notes.

Diapers are a huge business for Procter & Gamble. It’s high-end Pampers brand generates more than $10 billion in annual revenue.

The move comes as the company looks to boost margins as part of an effort by new CEO A.G. Lafley to improve results[4].

Procter & Gamble says it has increased the absorbency of the diapers, leading to the high price per diaper. The company last hiked diaper prices in 2011, raising them by about 7%.

Last month, Procter & Gamble launched a new home pregnancy test, which can assess whether a woman is pregnant and provide a rough estimate of how many weeks have passed from her last ovulation[5].

Shares of Procter & Gamble edged fractionally higher in Monday pre-market trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/04/271098482_4abc8e144c.jpg
  2. PG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PG
  3. find their wallets lighter in the long term: http://online.wsj.com/article/SB10001424127887323864604579063310991786406.html
  4. effort by new CEO A.G. Lafley to improve results: http://investorplace.com/2013/06/lafleys-revamps-the-org-chart-to-save-pg/
  5. many weeks have passed from her last ovulation: http://investorplace.com/2013/08/new-pregnancy-test-can-tell-users-more-than-before/

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