Over the year to 31 December, Nestlé’s sales rose 7.5% on an organic basis to CHF87.1bn (€83.2bn), of which 2% came from price increases to offset “significant cost inflation”. This trend accelerated in the final quarter of the year, with prices up 3.1%.
The group stated that growth was also supported by continued momentum in retail sales, a steady recovery of out-of-home channels, and market share gains.
Nestlé’s coffee business was the single largest contributor to growth in 2021. Sales of Starbucks-branded products jumped 17.1% to CHF3.1bn, whilst the Nespresso division reported growth of 8.8% to CHF6.4bn
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The group stated that growth was also supported by continued momentum in retail sales, a steady recovery of out-of-home channels, and market share gains.
Nestlé’s coffee business was the single largest contributor to growth in 2021. Sales of Starbucks-branded products jumped 17.1% to CHF3.1bn, whilst the Nespresso division reported growth of 8.8% to CHF6.4bn
NamNews Implications:
- Nestlé is big enough in most markets to be able to ensure appropriate price rises across its brand and retail portfolios.
- “Significant cost inflation” has been factored into its price increases…
- …in a “super volatile environment”.
- Rivals need to reassess relative competitive appeal, by category, retailer and geography…
- ..Now
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