© Reuters. FILE PHOTO: The Nestle company logo on a Milky Bar chocolate bar in Manchester, Britain, April 25, 2017. REUTERS/Phil Noble
(Reuters) – Nestlé will have to further raise the prices of its food products this year to offset higher production costs that it has yet to fully pass on to consumers, Chief Executive Mark Schneider told a German newspaper.
The increases will not be as steep as they were in 2022, but “we have to catch up throughout the year,” Schneider told the Frankfurter Allgemeine Zeitung in an interview to be published on Sunday.
In the first nine months of 2022, the world’s largest food group, which makes KitKat and Nescafé chocolate bars, posted organic sales growth of 8.5%, of which price increases accounted for 7.5% percentage points.
Inflation in many developed economies has reached multi-decade highs, driven in large part by increases in food and energy prices.
