Nestle has announced yet another price hike despite an 8.2% increase last year. The company behind the likes of KitKat, Aero and Nesquik said it would be forced to charge more due to the rising cost of ingredients, but has not yet revealed how much prices will increase.
Nestle’s CEO Mark Schneider said the company saw its profits drop by 45% because of the "many challenges and tough choices for families, communities and businesses".
The company’s net profits came in at 9.27 billion Swiss francs (£8.34 billion) - far lower than the 11.58 billion francs (£10.42 billion) expected by analysts. Mr Schneider said: "Last year brought many challenges and tough choices for families, communities and businesses.
"Inflation surged to unprecedented levels, cost-of-living pressures intensified, and the effects of geopolitical tensions were felt around the world. Looking to 2023, we expect another year of robust organic growth, with a focus on restoring our gross margin, stepping up marketing investments and increasing free cash flow.”
The price hike announcement comes after the Russia Ukraine war affected the prices of food, fuel and energy. In the year to January, grocery prices soared 16.7%.
Nestle is the latest brand to announce price increases, with Coca-Cola raising prices again following an 11% increase in 2022. Fizzy drink rival Pepsi also increased prices by 14% last year.
Pub chain Wetherspoons have also announced a price hike this year across its food and drink menus. Prices have risen by around 7.5% which adds up to 29p on a pint and around 75p on food.