Nestlé says it is raising prices "in a responsible way" and expects to grow by 6 to 7 % this year, driven by rising sales of coffee, pet food and plant-based products.
Out-of-home consumption picks up
The world's largest food producer looks back on a solid third quarter, in which sales rose by 6.5 %. Sales of coffee brands Nescafé, Nespresso and Starbucks did remarkably well. Pet food and animal care also performed strongly, as did Garden Gourmet's plant-based products. The group notices a resurgence in out-of-home consumption and also increases its focus on e-commerce, which already accounts for over 14 % of group sales.
Nestlé is now raising its outlook for the full year: the company expects to grow by 6 to 7 % and maintain an operating margin of 17.5 %. The group is facing rising costs and, hence, raised prices by 2.1 % in the third quarter.
"We have responsibly increased our prices while maintaining strong real internal growth", says CEO Mark Schneider. More large multinationals have announced hefty price increases in recent weeks, causing concern among food retailers, who will have no choice but to pass the price changes on to consumers.