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Colgate Warns Higher Prices Will Scare Away Some Shoppers

  • Company’s fourth-quarter sales rose, but volumes remained flat
  • Impact of higher prices is filtering into consumer behavior
A Dollar Tree Inc. Store Ahead Of Earnings Figures
Photographer: Luke Sharrett/Bloomberg
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Colgate-Palmolive Co., which sells products from dish soap and toothpaste to deodorant, said the recent wave of price hikes on household goods will probably deter some buyers.

Like its peers, Colgate has started to charge more to deal with elevated raw materials and logistics costs, and it’s now watching for shoppers’ reaction. Given the magnitude of the price hikes, “you will see a fall off in volume,” Chief Executive Officer Noel Wallace said Friday during the company’s fourth-quarter conference call.