Well folks I’m afraid I have some not so good news to share in this blog. After holding our fragrance prices relatively stable for quite some time there has been a series of recent events that are pushing up the price of our fragrance oils.
Late last year, a factory fire at a major raw material supplier in Germany (BASF) resulted in a plant closure. And in April this year there was another fire resulting in a shutdown at Privi Organics in India. In addition, tighter environmental controls have limited the production of certain raw materials in recent months while at the same time, other natural materials have experienced growing supply challenges. This has resulted in a surge in market prices.
Add to this supply problem the continual slide in the NZ$ and we have a perfect storm that can have only one outcome. We don’t know how long the raw material prices will continue to surge but at this point, we have no choice but to ask our customers to share in the burden of these cost increases and therefor, unfortunately, the price of our fragrances will increase by up to 20% (dependent on the ingredients in each fragrance) effective from September the 1st, 2018. Not every fragrance will be affected, but most will…some may increase by 5%, some up to 20%. We have the challenging task of working though each and every fragrance to set the new prices.
One option offered to us was to ‘reformulate’ some of our more expensive fragrances; essentially watering them down with fillers and replacement ingredients to keep the price the same on the same named fragrance. But I just don’t agree with that option and I don’t think you, our customers, would agree either. Please beware because some other companies may reformulate without telling you; if you do buy candle or soap fragrance elsewhere and their prices aren’t going up….you can pretty much bet that the quality is coming down!
At Candle Creations we have always offered high quality products at the best value for money, not the cheapest but always the best quality at the best prices possible. Please rest assured that this will continue to be the case and if/when we can bring these prices back down, we will. We appreciate your business and we will continue to inform you of any changes in the market.
Owner operator | Candle Creations New Zealand