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The authoritative independent voice of the UK food industry

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Nestlé warns of further price rises due to rising production costs

21 Apr, 2022

Swiss food manufacturer Nestlé has said that it will continue to raise the prices of its products, after initially increasing prices by more than 5% in the first three months of 2022.

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Swiss food manufacturer Nestlé has said that it will continue to raise the prices of its products, after initially increasing prices by more than 5% in the first three months of 2022.

This news comes as the cost of living in the UK is rising at its fastest pace for 30 years due to energy, fuel and food prices continuing to soar.

The food and drink manufacturer that operates brands including KitKat, Cheerios and Polo Mints reported 7.5% organic growth for 2021, which included 2% growth arising from price increases.

Commenting on the price increases at the beginning of the year, Nestlé boss Mark Schneider said: “We stepped up pricing in a responsible manner and saw sustained consumer demand.”

He added that “further pricing and mitigating actions over the course of the year” will be necessary.

Analyst at Hargreaves Lansdown Matt Britzman said: “Hiking prices to keep things moving in the right direction in the wake of input cost inflation certainly won’t be a course of action management want to have to take.”

“But nonetheless, it’s the position Nestlé finds itself in and doesn’t look likely to go away anytime soon,” he added.

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