A warning has been issued to Nestlé fans who eat Shreddies and KitKats. Nestlé has warned that more price hikes could be on the horizon as it battles high cost inflation.
Mark Schneider, chief executive of the Swiss food group, said: “Cost inflation continues to rise sharply, which will require further pricing and mitigation measures during the year.” Mr Schneider said: “During these first months of the year, the war in Ukraine has caused untold human suffering.
“We remain focused on supporting our colleagues there and providing humanitarian assistance, while standing with the international community in the call for peace.” Matt Britzman, equity analyst at Hargreaves Lansdown, said: “Rising prices to keep things in the right direction following input cost inflation is certainly not going to be a course management will want to take.
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“But that is nonetheless the position Nestlé finds itself in and doesn’t look likely to go away any time soon, adding pressure to the group’s volume-driven strategy. So far, volumes have still been able to move in the right direction, helped by the recovery of out-of-home channels which saw demand plummet while restrictions were in place last year.”
Nestlé is responsible for the tastes of KitKat, a hugely popular chocolate bar in the UK. It also manufactures some of our main cereals, including Shreddies and Cheerios.
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