The Tesco and Sainsbury’s supplier said it has seen only a small impact from higher haulage costs due to fuel price rises but warned ‘these conditions have now started to change’
McBride makes products including Oven Pride (Image: srenilson)
Household goods manufacturer McBride, maker of Oven Pride, has announced “temporary” price increases to offset escalating costs stemming from the Iran war and warned it was observing early indicators of supply shortages triggered by the conflict.
The company, which produces branded and own-label household and cleaning products for retailers including Tesco and Sainsbury’s, said that until recently it had only experienced a modest impact from elevated haulage expenses owing to fuel price rises, but noted “these conditions have now started to change”.
It reported that the “most heavily impacted” chemical and packaging suppliers are implementing price rises as they confront mounting costs for petrochemical-derived feedstocks and increased energy expenses in chemical and packaging manufacturing.
“The first signs of possible shortages in supply chains around the world are beginning to emerge,” it added.
Manchester-based McBride indicated its costs are climbing this month and will rise further because of the war, and is preparing to increase prices to counter the impact.
“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,” McBride said.
The warnings emerge amid growing concerns over the conflict’s impact on supply and costs, having driven oil prices soaring above 100 US dollars per barrel and causing widespread disruption to global shipping. Supermarket representatives gathered with Chancellor Rachel Reeves and Energy Secretary Ed Miliband at No 11 on Wednesday to examine the difficulties arising from the conflict, agreeing to jointly explore ways to alleviate the cost-of-living burden on consumers.
McBride’s remarks came as part of an update in which the company also unveiled a £34.5 million acquisition of Eurotab – a France-based specialist manufacturer of cleaning tablets, including those designed for dishwashers.
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