The price effect amounted to 7.5% for the period from January to the end of September, indicates the group that owns Nespresso coffee pods, Maggi broths and Smarties confectionery in a press release. He says, however, that he cannot continue to raise prices indefinitely because demand will decrease at some point. In Europe, the company raised the price of its food products by almost 6%, and by more than 11% in the United States.
The appearance of new meat alternatives from Garden Gourmet also boosted sales in the first nine months of this year. The turnover of meat substitutes thus increased by more than 10%, as did that of confectionery and water.
Nestlé’s organic growth, considered a key indicator for assessing its sales excluding currency effects and acquisitions or disposals, stood at 8.5%. In the third quarter alone, it accelerated further compared to the first half of the year to climb to 9.3%.
These figures slightly exceed the forecasts of analysts polled by the Swiss agency AWP, who expected an average of 69 billion in sales and 8.3% organic growth.
“We recorded strong organic growth while continuing to adjust our prices responsibly,” said its chief executive, Mark Schneider, quoted in the press release.
“The economic environment is difficult and has an impact on the purchasing power of many people,” he added, explaining that the group strives “to maintain offers that are economically accessible”.
The price effect over the past nine was strongest in North America, where it was 11.1%, followed by Latin America, up 10.5%. In Europe, it rose to 5.7%.
For 2022, the group has adjusted its organic growth target upwards, saying it expects it to rise to 8%, when it had already raised it to around 7 to 8% in July.
The boss of Nestlé warns that further price increases will still be applied next year. “It’s a situation that nobody wanted,” Mark Schneider told Bloomberg tv. “We still feel significant upward pressure from energy, some agricultural commodities and transportation costs.”