Inflation Pushes Nestle’s Prices Up 5.2% — Here’s How Much Your Coffee and Frozen Pizza Will Cost
Frozen pizza, Hot Pockets and Nespresso lovers out there, beware. Nestlé — maker of DiGiorno frozen pizzas — announced it had hiked its prices by 5.2% in the first three months of the year, reflecting “significant cost inflation.” The company also warned of further price increases “over the course of the year.”
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And North American consumers took the biggest hit, with an 8.5% price increase, according to a financial release. Latin America saw the second biggest increase, with prices of Nestlé products up 7.7%.
For example, Nestlé said that Nespresso prices were up 3.1% in the first three months of the year.
The water category — which includes Perrier and San Pellegrino — saw a whopping 7.2% increase, according to the release.
Meanwhile, the prepared dishes category saw an increase of 6.4%, and the pet care category — which includes Purina — saw a 7.7% increase.
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“In these first months of the year, the war in Ukraine has caused unspeakable human suffering. We remain focused on supporting our colleagues there and providing humanitarian relief, while standing with the international community in the call for peace,” Mark Schneider, Nestlé CEO, said in the release.
“Amid this challenging environment, we delivered strong organic sales growth with resilient [real internal growth]. We stepped up pricing in a responsible manner and saw sustained consumer demand. Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year. The Nestlé team addressed these headwinds and advanced our long-term strategy and sustainability objectives with agility and determination. We confirm our guidance for the year,” he added.
This comes against the backdrop of world food commodity prices having made a significant leap in March — up 12.6% from February — representing their highest levels ever as the Russia-Ukraine war spread shocks through markets for staple grains and vegetable oils. The data referenced was provided by the Food and Agriculture Organization of the United Nations (FAO) on April 8. These prices were also 33.6% higher than those recorded in March 2021, as GOBankingRates previously reported.
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