Nestle will increase the price of food products this year. Today Thursday, the company’s top executive (CEO) Mark Schneider confirmed this information. The world’s largest food producer has taken this decision as a result of rising prices of various materials and production costs, Khabar Reuters reported.
Since last year, the world is suffering from rising commodity prices. Especially the increase in the price of food products and fuel has had an impact everywhere. The war in Ukraine is disrupting the supply of agricultural products. This is increasing the cost of food product manufacturing companies like Nestle. However, Nestlé CEO did not confirm how much the price of food products will be increased. However, the Switzerland-based company is targeting 6-8 percent growth this year.
Consumer purchasing power has already been eroded by the highest inflation in decades. Nestlé’s decision to increase the price of food products will put them under more pressure.
Last year, prices of Nescafé instant coffee and KitKat chocolate bars were hiked by 8.2 percent. But rising raw material prices were not enough for Nestlé to turn a profit.
Schneider said in a press conference that Nestlé’s total revenue in 2022 fell by 260 basis points. This decline could not be prevented despite the increase in the prices of various products.
Note that in 2022, Nestlé’s sales increased by 8.4 percent to 9,440 million Swiss francs or 10,231 million dollars.