Nestle sees sales slow after price rises worldwide

NESTLE has seen its sales slow in recent months after the Kitkat and Nescafe maker raised its prices around the world.

The food and drinks giant said pet products and coffee were selling well in the latest quarter, while sales of frozen food and dairy products were slower.

It reported total sales of 22.1 billion Swiss francs (£19.35bn) for the first three months of the year. This was a drop of 5.9% from the 23.5 billion Swiss francs (£20.6bn) reported the same time last year.

But prices were hiked by 4.6% year on year in Europe, and 3.4% globally.

Nestle said its Purina Petcare product was the biggest contributor to organic sales growth, fuelled by stronger demand for science-based premium brands Purina One, Fancy Feast and Friskies.

Coffee sales edged higher, particularly in Europe, driven by Nescafe and Starbucks products, while there was strong demand for Kitkats across the continent.

But it had a weaker performance in North America where sales dropped by nearly 8%, with intense competition and weaker demand particularly dragging on frozen food.

Nestle’s frozen food brands include Digiorno pizza, Stouffer’s frozen dinners and Hot Pockets sandwiches.

It also blamed temporary supply issues for vitamins, minerals and supplements affecting growth of its health science arm, which includes Peptamen and Optifibre.