Confident consumers have swallowed higher supermarket prices so far this year, but the risk of indigestion is growing. For companies that make staple goods, asking for more money is delicate.
On Wednesday, the world’s biggest food company Nestlé NSRGY 1.19% said sales increased by an impressive 6.5% in the third quarter compared with the same period last year. Demand for its products is strong and Nestlé has been able to pass on the higher cost of inputs such as plastic and transport to shoppers, a sign of healthy pricing power. The company’s shares were up 3% in early trading.
Nestlé’s costs of goods sold will increase by around 4% this year, meaning it will shell out an extra 1.8 billion Swiss Francs, equivalent to $1.95 billion, on everything from packaging to trucking. Dannon yogurt-maker Danone said Tuesday that its input costs will be 8% higher this year. The difference can probably be explained by what the two companies sell. Nestlé has a big coffee business where hedges have protected it from spiraling commodity costs, although these will roll off soon.
- The Case Against Trump is a Diversion From the Monetary Collapse and a Defeat in Ukraine
- Rothschilds, Rockefellers, and More Redpills
- Proof of What JADE HELM 15 really is and why they are doing it. This is VERY important you read. Your life may depend on it.
- The Fed Just Broke EVERYTHING!! (This Is Bad)
- James O’Keefe: “Linda Malone, Maryland elections admin, RESIGNS day after @OKeefeMedia expose showing thousands of contributions through individual Annapolis, MD home addresses”
- CDC Posts Airports Warning Signs Today March 31, 2023
- The TRUTH about the bank runs. Regulators are LYING to you!
- This is beyond disturbing!
- “What I did NOT KNOW was that Mr Macron was not vaccinated. I did not know that most of the members of the government were not.”
- Things Are Starting To Get Really Crazy Out There…