Essity Hikes Prices, Names New President

PHILADELPHIA -- With prices for electricity and gas having risen sharply in Europe since July 2022, hygiene and health company Essity is raising prices as it announced organizational changes and its Professional Hygiene division president is stepping down.

Costs for the company’s raw materials have also risen significantly in the third quarter, the company said, and Essity is therefore announcing new comprehensive price increases for all product categories and markets.

“The cost headwinds have worsened further,” said Magnus Groth, president and CEO of Essity. “We will manage this situation through new comprehensive price increases and energy price surcharges and are continuing to invest in our strong offering under leading brands and to supply essential hygiene and health solutions to Essity’s customers and consumers every day.”

The timing and degree of the price increases will be managed locally.

Don Lewis, president Professional Hygiene and a member of Essity’s executive management team, announced this week has decided to leave Essity. He will be succeeded by Pablo Fuentes, current President Essity Latin America.

Lewis joined the company in 2002 and has held various leadership positions in Essity’s professional and consumer businesses in North America and Latin America, most recently with Professional Hygiene in North America, Europe and MEIA. In 2011 he became a member of the Executive Management Team. He will step down from his position as President of Professional Hygiene by the end of 2022.

“Don has grown Essity’s professional hygiene business and the Tork brand to become global leaders,” said Groth. “Throughout his career at Essity he has been a valued contributor to Essity’s strategy and has led some of our major acquisitions. He has been on the forefront of digital innovation and the development of an omnichannel approach for professional hygiene that positions Essity strongly today and in the future. I would like to thank Don for his contributions and wish him well in his future endeavors.”

To strengthen its competitiveness and increase efficiency, Essity is also announced the following changes to its organizational structure and Executive Management Team, effective December 31, 2022.

In the new organizational structure Essity will be comprised of four business units: 
•    Consumer Goods Americas
•    Consumer Goods EMEA
•    Professional Hygiene
•    Health & Medical

Consumer Goods Americas will include consumer tissue, baby care, feminine care and incontinence products retail in the United States, Canada and Latin America. Andres Gomez, currently Vice President Sales and Marketing Hygiene Andean and Caribbean within Essity, will be appointed President Consumer Goods Americas.

The Consumer Goods business unit headed by Volker Zöller remains unchanged but will be renamed Consumer Goods EMEA.

The business unit Professional Hygiene will also include the Latin America Professional Hygiene business.

The business unit Health & Medical Solutions will also include the Latin America medical business and be renamed Health & Medical, headed by Ulrika Kolsrud.

Furthermore, the global unit Global Operational Services will be transformed into – Digital and Business Services. This unit will be headed by a Chief Digital Officer.
Global Procurement, currently part of global unit Global Operational Services will be integrated into Global Supply Chain, headed by Donato Giorgio.

Robert Sjöström, currently President Global Operational Services, will take up a new role within Essity and leave the Executive Management Team. He will continue to report to Essity’s President and CEO Magnus Groth as Senior Advisor Strategic Projects.

“These changes will streamline our organization which will increase our efficiency and capability to leverage innovation and digitalization across Essity and strengthen the focus on our consumer products categories in the Americas”, says Magnus Groth, Essity President and CEO.

All changes come into effect December 31, 2022. The recruitment of the position Chief Digital Officer starts now.

“I would like to wish Andres, Pablo and Robert the best of luck in their new roles and look forward to working with them as we continue to build an even stronger Essity for the future”, said Groth.

For more, go to essityusa.com.