KitKat maker Nestle puts up prices by nearly 10%

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KitKat maker Nestle increased its prices by an average of nearly 10% in the first three months of 2023.

The Swiss food and drink giant said ice cream and pet food saw particularly sharp rises.

The group, which owns brands such as Haagen Dazs, said the prices of ice cream and milk products increased by 11.8% over the quarter, and pet food brands, such as Felix, saw a 12.2% jump.

Nestle said its overall pricing increased by 9.8% over the quarter as it sought to pass on the impact of “significant cost inflation”.

Nestle purina
Petcare and ice cream products saw the sharpest price increases (Nestle/PA)

Nestle said it saw overall growth of 9.3% as the price rises contributed to a small decline – 0.5% – in the volumes of its products being bought by shoppers.

It reported that total sales increased by 5.6% to 23.5 billion Swiss francs (£21.2 billion) after it also factored in a 4% knock from foreign exchange rates.

The group’s Purina Petcare business particularly helped drive growth, while coffee sales were also strong, with growth across its Nescafe, Starbucks and Nespresso brands.

Confectionery sales also saw double-digit growth, with a “strong” performance from KitKat.

“Portfolio optimisation efforts and responsible pricing helped to offset the ongoing pressures from two years of cost inflation.

“Following a strong start to the year, we confirm our full-year 2023 outlook and remain focused on creating value for all stakeholders.”

It comes a week after a group of investors at the food group called on the business to set targets to makes its products healthier.

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