Like many makers of shaving and shower products, Germany’s Beiersdorf AG is struggling with tepid sales growth, and Chief Executive Officer Stefan Heidenreich isn’t ruling out higher prices to jog it.
The cosmetics company, which is branching into areas like women’s razors and a broader variety of affordable creams for men, plans more price rises in 2016 on top of increases last year, Heidenreich said at a press conference Wednesday.
“Price increases will always happen, in some countries yes and in other countries not,” he said after Beiersdorf reported results that broadly matched estimates. “We won’t shy away from them and want to make sure sales grow.”
That’s not the only defense against lackluster demand in the CEO’s arsenal of skin creams and shower gels. This year, the company plans to push Nivea Protect & Care, a deodorant that lasts for 48 hours. Given an absence of growth in western Europe, which accounts for 41 percent of consumer sales, Heidenreich needs all the premium-priced innovations he can get.