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Princes Group introduces 5% price increase due to Iran war

UK company Princes Group has set a minimum 5% price increase on its products, making it the one of first major suppliers to openly raise prices due to the Iran war.

Princes Group brands include Napolina, Princes, Chicken Tonight, and Crisp ‘n Dry. Its portfolio also includes licensed partnerships with Capri-Sun, Flora and Branston.

“The price rise is not a blanket rise,” a spokesperson for Princes Group told Ingredients Network.

The company increase currently applies specifically to a select group of smaller customers in continental Europe. Princes Group is now reviewing the situation to determine any future impact on major customers in both the UK and continental Europe.

However, the 5% increase Princes Group is applying reflects “only a portion” of the input cost increases it is facing. And so the attention turns to how the company can adapt its operational strategy to tackle these rises.

“We are not commenting on the specifics of input costs in public but will do so with customers during discussions,” Princes Group’s spokesperson said.

Forecasts prepare for the impact of the Iran war

With 20 leading brands under its name and 23 manufacturing sites across six countries, its price hike signals concerns this is the start of a worrying precedent across the industry.

Monitoring the Iran war is now a strategic priority, as it affects its price points throughout the next financial year.

Princes Group says it plans on doing everything it can to mitigate these increases and will work with suppliers to do so.

“But where we have genuine cost increases, we will need to pass those through and will engage in open and transparent conversations with our customers,” said the spokesperson.

Many of Princes Group’s private-label contracts include mechanisms to address ingredient and packaging cost increases, such as forward buying, hedging ingredients, and using commodity trackers and pricing windows.

It has secured approximately 70% of its energy requirements for 2026, “providing a good level of cost visibility and protection against near-term volatility”, said the company’s spokesperson. “The remaining exposure is being actively managed through a disciplined, phased procurement approach,” the spokesperson added.

First year’s full accounts show knock-on effect

Princes Group released its first full-year financial results on 31st March, six months after announcing its IPO on the London Stock Exchange. In the 12 months to 31st December 2025, the company announced it had generated £1.9 billion (€2.2 bn) in revenue, up 46% year on year, compared to the nine months to 31st December 2024. This amounts to a pre-tax profit of £55 million (€63 mn) compared to a loss of £6 million (€7 mn) in the 2024 period.

The company’s first full-year results relate to 2025 and therefore do not include the impact of the war in Iran. However, the results’ announcement does acknowledge the impact of prevailing macroeconomic conditions and their potential effect on energy costs.

In the financial results, Princes Group said it has implemented targeted actions to contain any negative impacts while continuing to monitor the evolving energy and raw material environment. These include the impact on fuel, sea transport and plastic packaging costs. The company confirmed it will implement its pass-through pricing mechanisms as necessary.