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Unilever Raises Prices 2.3% as Iran War Pushes up Energy Costs
Unilever said 2.3% of quarterly sales growth came from higher prices as it pushes ahead with a $33.8 billion food joint venture.
On Wednesday, October 28, 2026, Unilever announced it will accelerate price increases through 2027 to offset rising costs linked to the war with Iran, with CEO Fernando Fernandez stating pricing will exceed 2026 averages.
The consumer goods giant is separating its food business into a £33.8 billion joint venture with McCormick, expecting a timely closing by mid-2027 with integration work involving more than 200 employees across 20 cross-functional teams.
Third-Quarter underlying sales grew 5.2%, surpassing analyst expectations of 4.8%, while the company raised its full-year volume growth forecast to at least 3% from previous guidance of around 3%.
Shares fell 3.4% on Wednesday as slower volume growth weighed on the stock, while RBC analyst James Edwardes Jones said the food business "is dragging down group performance." Reckitt Benckiser also raised European prices due to conflict-driven inflation.
Fernandez emphasized the need to balance volume and pricing in the short and medium term, aiming to maintain consumer demand while passing through inflationary costs as Unilever continues post-pandemic recovery efforts.