London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Nestle, Absolut To Hike Prices Again Amid High Costs

Nestle, Absolut To Hike Prices Again Amid High Costs

Nestle, which makes Nespresso capsules, Maggi bouillons, KitKat chocolate bars and Purina pet food, said sales rose by 8.4 percent to 94.4 billion Swiss francs (95.5 billion euros, $102.3 billion) in 2022.
Swiss food giant Nestle and liquor group Pernod Ricard, owner of Absolut vodka and Jameson whiskey, announced fresh price hikes today due to inflation even as consumers across the world face a cost-of-living crunch.

Nestle, which makes Nespresso capsules, Maggi bouillons, KitKat chocolate bars and Purina pet food, said sales rose by 8.4 percent to 94.4 billion Swiss francs (95.5 billion euros, $102.3 billion) in 2022.

But its real internal growth -- a measure of sales volumes -- was up just 0.1 percent year-on-year, much lower than in 2021, suggesting that consumers were buying fewer of its products.

"Last year brought many challenges and tough choices for families, communities and businesses," Nestle chief executive Mark Schneider said.

"Inflation surged to unprecedented levels, cost-of-living pressures intensified and the effects of geopolitical tensions were felt around the world," he added, referring to the fallout from Russia's invasion of Ukraine.

The company raised its prices by 8.2 percent on average last year as the cost of milk, grains and energy rose.

"Continued pricing action is needed to repair some of the damages we've taken from inflation," Schneider said in a conference call.

Last week, British consumer group Unilever, which makes Magnum ice cream, Cif surface cleaner and Dove soap, also reported rising sales in 2022 after raising its prices by 11.3 percent on average.

But the group said its sales volume fell 2.1 percent and warned that it would continue to face higher costs.

Nestle's underlying profit margin fell slightly to 17.1 percent.

Net profits fell by 45 percent to 9.3 billion francs in 2022 but the comparison with 2021 is deceptive since the disposal of shares Nestle held in L'Oreal boosted 2021 earnings.

Nestle's board proposed a dividend of 2.95 francs per share, a 0.15-franc increase.

For 2023, the company expects sales growth of between six and eight percent when excluding exceptional changes, down from the 8.3 percent registered on this basis in 2022.

It hopes to hold, if not improve, its underlying trading operating profit margin, setting a target range of between 17.0 and 17.5 percent.

Pricier liquor

French spirits giant Pernod Ricard, whose other brands include Beefeater gin, Martell cognac and Havana Club rum, posted a net profit of 1.8 billion euros ($1.9 billion) for the six months to December, up 29 percent from the same period in 2021.

Sales were up 19 percent to 7.1 billion euros in the same span thanks to a 10-percent price hike, with more increases looming.

"Costs were very high in this first half," chief financial officer Helene de Tissot told AFP, adding that glass, logistics and ingredients such as grains and rectified spirit are more expensive.

Shipping bottles to Asia and the United States is one of the group's biggest expenses.

"To protect our margins... we raised our prices significantly," De Tissot said, adding that prices would have to go up as production costs remain high.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×