© Getty Images / Noel Hendrickson
The giant increased prices by 8.2% last year, but says this was not enough to offset a rise in its own costs that had substantially dented profits.
According to Nestle CEO Mark Schneider, Nestle's price increases, which are expected to vary by market and category, will be "very targeted" and will only be implemented where "input cost inflation justifies it."
"We are still in a situation where we're repairing our gross margin and, like all the consumers around the world, we've been hit by inflation and now we're trying to repair the damage that has been done," Schneider said.
The executive provided no details on what projected increases will affect which of Nestle's 2,000 brands, a range spanning confectionery, frozen foods, and baby formula.
"Last year brought many challenges and tough choices for families, communities and businesses," the company's statement reads. "Inflation surged to unprecedented levels, cost of living pressures intensified, and the effects of geopolitical tensions were felt around the world."
Higher commodity costs and wages have brought the problem of pricing strategies into sharp focus for food-producing companies as they struggle to maximize their profits without turning away customers.
Unilever, Coca-Cola, Heineken, Colgate-Palmolive and Procter & Gamble have all flagged further increases in the prices of their goods in 2023, as they grapple with elevated commodity, energy and labor costs.
Reader Comments
Still making profits, you say ? Are you aware many of your consumers went in the red last year ? ARE YOU ? Insulting F**K. I hope the price increases made you lose customers, many customers.
The thing is if you go online, most of what is on offer is simply manufactured food stuffs, and if real food is left at the mercy of a "Shopper" that will select the food for you, by young people, and a culture that have been brought up on the fast food world of food production.
And a major producer, has the used the most basic of of selling, to say, that there will be a scarcity.
When in fact, the scarcity, comes will real food and produce, that has been destroyed and disrupted, due to mismanagement...And other sociopolitical issues. That the vast peoples of the world are unaware of, and also the changing cosmic climate.
It could be, what's for dinner.
Sorry if morbid. But not anymore morbid than cockroach surprise.
Wait till they sabotage your food supply once they realise we cannot be "used" to keep them in luxury.
The farmer who cannot afford to make a profit on his livestock is made to consider culling his animals to prevent losses....
What do you think they plan on doing anyway, they still have the option of mass poisoning and other things.
Seeing as nothing can convince people to keep food autonomy they invite a full on mass poisoning if not a sudden removal of the food supply in general (aiding and abetting FAMINE).
But did you listen and accept the warnings or did you scoff at the idea?
People chose "convinience" over "autonomy" happy to sell their future down the pan for a shitty microwave meal, thing is these supermarket giants OWN your ability to feed yourselves, if you don't make them money what incentive will they have towards "charity"?
A: none at all.
Im not saying I agree they should but Im trying to be realistic....no one is going to put a gun to their heads to make a loss so you can eat! That is a cold fact ignorant people closed their ears to when they still had time to prepare. Too late. But don't say you were not warned.
Our ability to defend land to live off of will be their point of challenge, the tipping point and fast decline hasn't happened but we are all wasting time online instead of being pro-active.
Your time IS YOUR OWN, the war so far is waged on wether they can keep you in perpetual fear or disuading you from making a concerted effort to safe yourself and others (many hands make light work....but can you overcome your differences they created to slow you down?).
Time waits for no man.