While speaking to a German newspaper Allgemeine Zeitung, Chief Executive Mark Schneider, Nestle said that they will have to raise prices of its food products again this year, reported Reuters. This is because the impact of higher production costs has yet to be passed on to consumers, he said during the interview.
Though he added that the cost increase will not be as steep as it was in 2022.
Price hike in 2022
The cost of Nestle in the first nine months of last year was up 7.5 percentage points with an organic sales growth of 8.5 per cent.
The company that makes Maggi, Nescafe and Kitkat made this decision amidst inflations in many developed economies. These multi-decade high prices are driven by a raise in food and energy costs.
Nestle to invest Rs 5,000 crore in India
Nestle in the second half of 2022 had revealed that by 2025 it plans to invest close to Rs 5,000 crore in India. This investment will help Nestle accelerate its core business in India and make the best of new growth opportunities.
The investment in capital expenditure would be used in setting up new plants, acquiring and expanding the product portfolio of Nestle. Currently the company has 9 plants across the country and is in search for a new location to set up a new manufacturing unit.
Nestle to shut down frozen meals and pizza operation
In the last week the company revealed that in a span of next six months it will gradually shut down its frozen meals and pizza operations in Canada. This is in order for the company to concentrate on areas where there is potential for growth and redirect its resources towards expanding its product line.
The company is planning to offer additional focus on coffee, ice cream, confectionery, infant foods, health science products, pet food and premium water.
