Nestle is under pressure to raise its product prices further in 2023 to offset higher production costs that it has yet to fully pass on to consumers, according to Chief Executive Mark Schneider.
The increases will not be as steep as they were in 2022, but “we have some catching up to do over the full year,” Schneider said.
In the first nine months of 2022, the world’s biggest food group, which makes KitKat chocolate bars and Nescafe, reported organic sales growth of 8.5%, of which price rises accounted for 7.5 percentage points. Inflation in many developed economies has been running at multi-decade highs, driven in large part by increases in the prices of food and energy.