Unilever Warns of Price Hikes in Fourth Quarter
The consumer goods giant, which has factories in Covington, says rising tariff and fuel costs may push prices higher later this year.
Updated on Nov. 7, 2026 in Inflation
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Unilever, maker of Dove, Lipton Tea, and Hellmann's mayonnaise, warned it may increase prices in the fourth quarter. CEO Fernando Fernandez made the pricing comment last week.
Why it matters
Businesses are trying to recover profits lost to tariffs and higher fuel prices, and firms facing higher costs can raise prices or lay off workers. For Tennessee shoppers, grocery prices are already up 35% since the pandemic, according to federal data.
Federal data shows grocery prices are up 35% since the pandemic, and consumers report staple price increases of 30%, 40%, or 50%. Unilever has not said how large its fourth-quarter price increases will be.
The players
Unilever
Unilever is a multinational consumer goods company whose brands include Dove, Lipton Tea, and Hellmann's mayonnaise.
Fernando Fernandez
Fernando Fernandez is the chief executive officer of Unilever, who made the company's recent pricing comments.
John Gnuschke
John Gnuschke is an economics professor at the University of Memphis who comments on regional economic conditions.
Michael Kofoed
Michael Kofoed is an associate professor at the University of Tennessee who comments on economic trends.
The details
Unilever CEO Fernando Fernandez said last week that the company may raise prices in the fourth quarter and expects 2027 pricing to exceed the 2026 average. The company operates a factory in Covington and an ice cream factory in the same town.
Timeline
Last week: Unilever CEO Fernando Fernandez made the pricing comment.
Fourth quarter of 2026: Unilever may increase prices.
2027: Unilever expects pricing to be higher than the average of 2026.
Inflation Trajectory
Federal data shows grocery prices have risen 35% since the pandemic, and Unilever's warning signals that increases are continuing rather than leveling off. The company's pricing outlook follows the same pattern of cost pressure from tariffs and fuel that has pushed up staple prices nationwide.
Tennessee households buying staples like mayonnaise, tea, and personal care products could face higher shelf prices in the fourth quarter. Families already contending with grocery costs up 35% since the pandemic may need to adjust weekly budgets.
The takeaway
Shoppers can compare prices across store brands and watch for promotions as manufacturers signal increases. Tracking monthly grocery spending can help households spot when costs begin to shift.
Further reading
For more on how rising costs are reaching household budgets, see Inflation coverage across Tennessee.
Source note: This article includes information reported by Fox13.
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