kit kat - Neighbourhood Retailer

KitKat maker Nestle puts up prices again

Linda Stewart — Fri, 29 Jul 2022 09:28:18 +0000

KitKat maker Nestle has put up its prices again due to “unprecedented” increases in costs.

The Swiss food giant said it had increased prices by 6.5% in the first half of this year. McDonald’s and Coca-Cola also announced price rises this week.

Companies are facing increased costs for things such as fuel, wages and ingredients, and consumer prices in the UK are rising at their fastest rate for 40 years.

Nestle, which also makes Cheerios and Smarties, had already increased prices by 3.1% in the last three months of 2021.

Chief executive Mark Schneider said price increases were implemented “in a responsible manner”.

“We limited the impact of unprecedented inflationary pressures and supply chain constraints on our margin development through disciplined cost control and operational efficiencies,” he added.

Price rises were highest in North America, at 9.8%, compared with 4.9% in Europe.

Nestle said organic sales had risen by 8.1% in the first half of the year. The firm raised its organic sales growth forecast for the year to between 7% and 8%.

Net profit fell by 11.7% to 5.2bn Swiss francs ($5.4bn; £4.5bn) as a result of one-off items, including higher taxes and write-offs of property and equipment in Russia.

In March, Nestle stopped investment in Russia and pulled its popular brands out of the country following the invasion of Ukraine. However, it still sells essentials such as baby formula and medical nutrition products there.

On Wednesday, McDonald’s said it was increasing the price of its cheeseburger for the first time in more than 14 years – from 99p to £1.19 in the UK .

It came after drinks giant Coca-Cola told Bloomberg its global prices had increased by an average of about 5%.

The post KitKat maker Nestle puts up prices again first appeared on Neighbourhood Retailer.

Nestle raises organic growth outlook to 7-8%

Linda Stewart — Thu, 28 Jul 2022 09:34:49 +0000

Nestle has raised its full-year sales growth forecast to 7-8% and just slightly lowered its margin guidance after cost inflation hurt less than expected and price increases boosted organic sales growth in the first half of 2022.

Consumer goods firms are facing sky-rocketing input costs for raw materials, energy and transportation, and while many consumers so far seem to accept the ensuing price increases, delays in implementing them are squeezing companies’ margins.

Peers Reckitt Benckiser, Unilever and Danone raised their full-year revenue forecasts this week after steep price hikes helped them beat second-quarter sales expectations.

At Nestle, the world’s biggest food group, net profit hit by one-off items including higher impairments and taxes fell 11.7% to 5.2 billion Swiss francs, the maker of KitKat chocolate bars and Maggi soups said in a statement, missing an average 5.815 billion Swiss francs in a company-compiled consensus.

The underlying trading operating profit margin declined to 16.9% in the first half of 2022, from 17.4% in the year-ago period, slightly higher than the expected 16.7%.

In the second quarter, underlying or ‘organic’ sales growth accelerated to 8.7%, from 7.6% in the first three months of the year, thanks notably to price increases of 7.7%, Nestle said.

First-half organic growth reached 8.1%, beating a forecast for 7.4% in the poll.

The company based in Vevey on Lake Geneva said it now expects organic sales growth of 7-8%, versus around 5% previously, and an underlying trading operating profit margin of around 17.0%, versus previous guidance for a margin between 17.0% and 17.5% this year.

The post Nestle raises organic growth outlook to 7-8% first appeared on Neighbourhood Retailer.

Nisa promotion helps shoppers stock up for a Big Night In

Linda Stewart — Mon, 18 Oct 2021 14:07:42 +0000

Nisa’s popular Big Night In promotion is back to help shoppers stock up on their favourite sweet and savoury treats to enjoy during a cosy night at home with friends and family.

As the colder, darker evenings draw in, Nisa retailers are preparing for an increase in big night in shopper missions with offers on a wide range of food and drink sure to cater for everyone.

Shoppers can enjoy great deals including Doritos Tangy Cheese, Chilli Heatwave or Cool Original 150g for just 89p, better than half price, a variety of Galaxy Fusions 100g bars at £1.50, KitKat 2 Finger 9-pack in Milk or Orange at £1.50 and Pepsi, Pepsi Max and Pepsi Max Cherry 2l for just £1.50.

Sweet share bags

Sweet share bags will be incorporated into the deal with competitive prices on treats including Maynards Bassetts Fizzy Fish, Tangy Wine Gums and Jelly Babies, and Nestlé Munchies Cookie Dough Pouch and Milkybar Giant Buttons Sharing Pouch – all available for just £1 each.

The Big Night In event is in stores now until 2^nd November, supported by themed POS to grab the attention of shoppers and also featured on Nisa’s consumer leaflets.

In addition, offers will be promoted online via Nisa’s website and social media channels, alongside a number of delicious Big Night In-themed recipes to provide shoppers with meal inspiration.

Laura O’Hearne, Promotions Manager at Nisa, said: “As the evenings draw in and colder weather arrives, shoppers will be spending more time at home and enjoying a night in front of the TV.

“Retailers can make the most of this opportunity by offering a good mix of promotions on food and drink to enable them to enjoy a big night in with family and friends, and increase basket spend by ensuring categories such as confectionery pouches, sharing crisp bags and share size soft drinks are given prominent placing in store with the relevant POS to disrupt and inspire shoppers.”

The post Nisa promotion helps shoppers stock up for a Big Night In first appeared on Neighbourhood Retailer.

Nestle concerns over supply chains pressure ahead of Christmas

Linda Stewart — Thu, 07 Oct 2021 13:13:48 +0000

Nestle, which makes Quality Street and Lion bars, says it is experiencing some supply chain problems ahead of the Christmas period.

But chief executive Mark Schneider said the company it is working hard to make sure products make it on to shelves this winter.

A number of sectors have had problems with their supply chains due to a chronic shortage of HGV drivers.

Factors including global bottlenecks with shipping have also played a part.

“Like other businesses, we are seeing some labour shortages and some transportation issues but it’s our UK team’s top priority to work constructively with retailers to supply them,” Mr Schneider said.

When asked by the BBC whether he could guarantee Quality Street would be in the shops this Christmas he replied: “We are working hard.”

Nestle is the world’s largest producer of dairy products. Mr Schneider was in the UK to launch a range of non-dairy, plant-based alternatives to its milk and chocolate in an attempt to further reduce the company’s greenhouse gas emissions.

Agriculture accounts for 20% of the world’s greenhouse emissions and methane from belching cows is a major contributor.

Along with new non-dairy products, Nestle is also working with new types of feed for cattle that produce less methane per litre of milk produced.

The post Nestle concerns over supply chains pressure ahead of Christmas first appeared on Neighbourhood Retailer.