Nestlé, the largest food and drink company globally, has increased prices by 9.8% in the first three months of 2023.
Inflationary pressures triggered the collective price hike, resulting from significant cost inflation, Nestlé stated in an earnings report.
The Swiss conglomerate owns a slew of well-known food brands, including Purina, Gerber, Nescafe, and KitKat. With the Latin American and North American markets seeing the most significant price increases at 13.4% and 12.4%, respectively, prices also surged 10.7% in Europe and 3.9% in China. Nestlé CEO Mark Schneider expressed his satisfaction with the quarter’s sales growth of 5.6% worldwide, despite the 0.5% decrease in real internal growth.
Nestle beats quarterly sales estimates with price hikes https://t.co/UdLWkYiTKr pic.twitter.com/vXIHcNa0pH
— Reuters (@Reuters) April 25, 2023
Food inflation remains high, rising 8.4% year-over-year in the cost of food at home, compared to other categories.
The elevated price levels in the food sector are likely to persist for the near term, as confirmed by other companies in the food industry, including Walmart and McDonald’s. Despite this, the Biden Administration insists it is making progress in the fight against inflation.