FMCG conglomerate Nestlé has said that more price rises will hit this year as it tackles inflationary pressures.
The food group, which owns KitKat, Smarties, Häagen-Dazs ice cream and Nescafé coffee, has already raised prices by 5.2% in the first three months of this year, but warned that more was yet to come.
Like its competitors and retailers, Nestlé has had to tackle increasing supply chain costs, pushed high first by the pandemic and then by the impact of war in Ukraine on staples such as sunflower oil and energy prices.
Food prices are currently at the highest level since records began 60 years ago, according to the United Nations.
Nestlé chief executive Mark Schneider said: “Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year.
“The Nestlé team addressed these headwinds and advanced our long-term strategy and sustainability objectives with agility and determination.
“We stepped up pricing in a responsible manner and saw sustained consumer demand.”
Nestlé’s price warnings come days after FMCG peer Danone unveiled a 7.1% price hike and said it would be prepared to increase prices further if necessary.
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