Whether it’s food, gas or rent, inflation has driven up prices around the world and increased the cost of living for everyday consumers. Eggs, for example, have skyrocketed and become especially hard to find on grocery store shelves. And lunch meat prices jumped 15.1% from December 2021 to December 2022, according to the US Bureau of Labor Statistics.
Giants like Nestlé are no exception to this upward price trend. The maker of the famous KitKat candy will have to raise the prices of its food products this year to offset rising production costs, according to chief executive Mark Schneider.
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Nestlé, the world’s largest food company, has already raised prices throughout 2022 to offset rising costs. The company said in October that it had raised prices by 7.5% in the first nine months of 2022 to reflect “significant cost inflation”. This was the greatest such hike in decades, The Financial Times reported.
Schneider warned in an October interview with Bloomberg Television that inflation would continue to be a problem in 2023, indicating further price hikes could be on the horizon. He also said Nestlé has yet to pass on its higher production costs to consumers, according to Bloomberg.
As of now, it’s still unclear how much Nestlé might raise prices in 2023. Schneider told the German newspaper, Frankfurter Allgemeine Zeitung, that the increases will not be as severe as some previous increases in 2022, but “we have some catching up to do over the whole year”. A Nestlé representative contacted by Eat this, not that! declined to comment on Schneider’s projected hikes, say exactly how much prices will rise this year or predict when the company might be able to mitigate the increases.
Another large consumer goods company also plans to raise prices in 2023 as it faces higher production costs. London-headquartered Unilever, whose brands include Ben & Jerry’s and Hellmann’s, said on Thursday it would continue to raise prices for its products in 2023 after an 11.3% increase throughout 2022. , according The Guardian.
The company expects cost inflation to continue this year and forecasts net material inflation in the first half of 2023 to be around $1.6 billion. However, Unilever said it plans to ease price increases in the second half of the year and believes net material inflation will be “significantly weaker” then as well.
Zoe Strozewski is a staff writer for Eat This, Not That! A Chicago native who now lives in New Jersey, she graduated from Kean University in 2020 with a bachelor’s degree in journalism. Learn more about Zoe
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