Nestlé is considering raising prices for UK consumers to cope with the devaluation in sterling.
The company’s chief executive Paul Bulcke has said that raising prices is one option available to the company to compensate for the fall in the value of the pound, according to The Telegraph.
Bulcke said Nestlé would hike prices “responsibly” and in discussion with trade partners, but his comments follow the battle between Tesco and Unilever earlier this month when Unilever goods disappeared from Tesco shelves.
Tesco faced shortages of dozens of household products after it refused to stump up a 10% price increase on Unilever brands.
The spat was resolved after share prices at both companies fell.
Tesco UK boss Matt Davies said earlier this week that the grocer would do “everything” it could to keep prices low, but this could prove a difficult task.
Davies dubbed food price inflation “a bad, bad thing” and said it was “our focus” to drive prices down despite the plummeting value of the pound.
Price hikes from major manufacturers are likely to hit retailers and consumers from early next year. British Retail Consortium chairman Richard Baker has said that the increases are inevitable.
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