Nestle’s Vitamins Push Tested by Cost-of-Living Squeeze

Packaged-goods giants like Nestle SA and Unilever Plc have poured billions into acquisitions of vitamin brands in recent years, seeking growth beyond traditional businesses like stock cubes, ice cream, and soap. The bet appeared to pay off when COVID hit, turbocharging demand for supplements as worried consumers sought to boost their defenses against a new and mysterious virus. Over the past year, however, with the pandemic easing and a cost-of-living crisis squeezing household budgets, the vitamin business has fallen on harder times. In the United States, supplement sales fell 3.3 percent by units in the year through October, following three consecutive years of growth, according to data provider NielsenIQ. Nestle’s supplement sales were flat in the first nine months of 2022, and a return to high single-digit growth isn’t expected until the second half of next year. “Our vitamin, minerals, and supplement business has seen explosive demand as we have a lot of products focusing on immunity,” said Greg Behar, chief executive of the health science unit. “We see now a slight deceleration.”