KitKat maker Nestle has said it will raise its prices again this year, despite rising 8.2% in 2022.
The world’s largest food company said it will be forced to charge more to cover rising ingredient costs.
Nestle, which also makes Buitoni pasta, Buxton sparkling water and Nescafe coffee, said it was taking a “massive” blow to its rims at the moment.
It refused to say how much prices would rise this year.
Chief Mark Schneider said the company suffered in 2022 from the “many challenges and difficult decisions facing families, communities and businesses” that resulted in lower spending on many of the company’s products.
Nestle’s net profit for the year was 9.27 billion Swiss francs (8.34 billion pounds), much less than the 11.58 billion Swiss francs (10.42 billion pounds) expected by analysts.
As a result, the company will spend 2023 “focused on restoring our gross margin,” Mr. Schneider said.
The news will come as a fresh blow to struggling British consumers already reeling from record inflation and soaring food prices.
Prices across the board have skyrocketed since the war in Ukraine hit the cost of commodities like food, fuel and energy.
Food prices rose 16.7% in January, keeping food inflation at a 45-year high.
Other big food companies are busy raising prices, with Coca-Cola saying it will raise the price of its carbonated drinks again this year after raising them by 11% in 2022. Rival Pepsi increased prices by 14% over the year.
- McDonald’s is increasing prices on five menu items
- Olive oil and milk prices rise as inflation falls
- War in Ukraine is said to trigger the “worst price shock in 50 years”.
McDonald’s announced on Wednesday that it was raising prices by up to 20% on some items, such as: B. the mayo chicken, which goes from 99p to £1.19. Last year, it increased the price of a cheeseburger by the same amount.
Nestle sells more than 2,000 brands across coffee, pet care, baby food, beverages, cereals and ready meals.
In the UK it is best known for confectionery such as KitKat and Smarties, cereals such as Shreddies and Cheerios, Nescafe and Nespresso coffee, Sanpellegrino lemonade and Purina pet food.
Last month the company announced it was cutting 94 jobs at its Dolce Gusto factory in the Midlands.
This year the company plans to close its confectionery factory in Newcastle – which has been making fruit pastilles, toffee crisps and rolos since 1958 – which will result in 475 job losses.
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