Nestlé to raise prices of food products this year

Nestlé is reportedly hiking up the prices of its food products, and it will take effect this year. The company’s chief said it was forced to impose a new price increase to cope with higher costs of food production.

Then again, the Swiss food and beverage processing company said that the price hike would not be as high as last year. Despite the announcement, Nestlé’s CEO Mark Schneider told the German media that they have yet to fully pass high production costs to the consumers.

As per Reuters, Schneider first revealed the plan for a new price hike through an interview with Frankfurter Allgemeine Zeitung the past weekend. He shared that inflation in many countries, including the developed ones, is pushing the company to raise food prices as well.

Moreover, Schneider said that there is a possibility that this will not be the last price increase because they will continue to make adjustments in response to the continuous upsurge in input costs. The company said that aside from the production costs, transportation, commodities, and packaging are other things that are driving the higher prices.

TechStory reported that the Nestlé chief further confirmed that it had already imposed higher tag prices in some of its markets and more adjustments could be coming in the next few years. The company vowed to focus on improving the quality of its products so customers would get more value from the raised costs.

Finally, Nestlé is also looking for means to lower its carbon and waste footprint. Changing to sustainable materials may also help the company make its products more affordable again after all.

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