Kimberly Clark Contains Leaks While Hiding Inflation With Diaper Trim

We have long discussed the 'hidden' and not-so-hidden inflations that are impacting the standard of living for all but the wealthiest in America... and it is hardly new to anyone that the USA faces a demographic dilemma as aging boomers draw down on an ever-shrinking base of entitlement provisions... However, when we saw this slide from Kimberly-Clark's latest earnings call, we were surprised at just how clearly these two trends showed up...

 

 

So... Aging Demographics:

  • Depends and Poise driving the top-line growth in North America
  • Medical Devices volume up 8%

And... Stealth Inflation...

  • KIMBERLY-CLARK CEO SAYS PLANS TO REDUCE HUGGIES DIAPER PACK SIZE BY ABOUT 7 PCT IN Q1'14
  • KIMBERLY-CLARK CEO SAYS CUTTING NUMBER OF DIAPERS IN HUGGIES PACKS TO MATCH COMPETITION SIZES

Welcome to the new normal!

As we noted previously...

In the last two years, according to Intuit, Americans are reaching deeper into their pockets to cover family-related expenses. Given the current concerns over dis-inflationary pressures, we thought the following infographic might highlight just where that hidden liquidity-/credit-fueled inflation is leaking out.

 

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