KitKat maker Nestle increased its prices by an average of nearly 10% in the first three months of 2023. The Swiss food and drink giant said ice cream and pet food saw particularly sharp rises.
The group, which owns brands such as Haagen Dazs, said the prices of ice cream and milk products increased by 11.8% over the quarter, and pet food brands, such as Felix, saw a 12.2% jump. Nestle said its overall pricing increased by 9.8% over the quarter as it sought to pass on the impact of “significant cost inflation”.
It came as industry data from Kantar revealed on Tuesday that grocery price inflation hit 17.3% in April, although this reflected a marginal slowdown in price increases for shoppers. Nestle said it saw overall growth of 9.3% as the price rises contributed to a small decline – 0.5% – in the volumes of its products being bought by shoppers.
It reported that total sales increased by 5.6% to 23.5 billion Swiss francs (£21.2 billion) after it also factored in a 4% knock from foreign exchange rates. The group’s Purina Petcare business particularly helped drive growth, while coffee sales were also strong, with growth across its Nescafe, Starbucks and Nespresso brands. Confectionery sales also saw double-digit growth, with a “strong” performance from KitKat.
Nestle chief executive Mark Schneider said: “Nestle delivered strong organic growth in the first quarter, as our teams worked diligently to protect volume and ensure resilient mix. Portfolio optimisation efforts and responsible pricing helped to offset the ongoing pressures from two years of cost inflation. Following a strong start to the year, we confirm our full-year 2023 outlook and remain focused on creating value for all stakeholders.”
It comes a week after investors at the food group called on the business to set targets to makes its products healthier.
