Paper Clips

As Americans eat out less, paper towel maker Essity feels the pinch

Essity is seeing greater weakness among the US restaurants it supplies than the European ones, the CEO of ​the Swedish hygiene products maker said , as rising prices ‌and a slowing jobs market put pressure on American household budgets.

“Consumers are not going out to restaurants as much as they do in Europe,” Ulrika Kolsrud told Reuters.

The ​trend is hitting Essity’s professional hygiene business, which sells products such ​as Tork paper towels to restaurants and other businesses, and ⁠generates 40% of its revenue in the US. The unit’s sales, volumes ​and prices all fell in the third quarter, and Essity also flagged higher ​costs of goods sold.

Consumer goods companies have been walking a fine line between raising prices to ​offset higher input ​costs and protecting ⁠demand after several years of inflation-driven hikes.

As Americans eat out less, paper towel maker Essity feels the pinch | Reuters

Back To Top
×Close search
Search