FMCG giant Nestle, which houses popular brands such as Maggi, Nescafe and KitKat, will have to again raise the prices of its food products this year. This will be done to offset higher production costs that it has yet to fully pass on to consumers, Nestle CEO Mark Schneider said.
The increases will not be as steep as they were in 2022, but "we have some catching up to do over the full year," CEO Schneider said, as per Reuters. Nestle was founded over 150 years ago in 1866.
In the first nine months of 2022, Nestle reported organic sales growth of 8.5%, of which price rises accounted for 7.5 percentage points.?
This decision comes amidst inflation in many developed economies already running at multi-decade highs, driven in large part by increases in prices of food and energy.
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Nestle had revealed in the latter half of 2022 that it plans to invest a mammoth amount of Rs 5,000 crore in India by the year 2025.?The move will help the company accelerate its core business in the country and leverage new opportunities for growth.
Sharing the investment plans of the Indian market, which is among Nestle's top 10 markets,?CEO Schneider said that Nestle has an investment plan of Rs 5,000 crore by 2025.
The?investment?would be in capex (capital expenditure), setting up new plants, acquisitions and expansion of the product portfolio of Nestle, which currently operates 9 plants across India, and is also looking at new locations to set up?manufacturing?capacity.?
"When you look into the investment in this country and the investment plan through 2025, we are talking about Rs 5,000 crore and that compares to Rs 8,000 crore over the last 60 years when we started manufacturing in this country," Nestle CEO had said.
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