Nestle Malaysia committed to deliver most affordable prices to consumers
KUALA LUMPUR: Malaysia’s largest food and beverage company, Nestle ( Malaysia) Bhd is committed to provide the most affordable prices for its products inspite of rising cost of commodities and the weakening ringgit.
Managing director Alois Hofbauer said the food giant would strive to keep prices stable or increase it by an absolute minimal amount if there was no other option available.
“For the past two years, price of our products have been stable as we work on internal efficiencies and avoid wastage to ensure we produce in the most cost effective and efficient way,” he told Bernama in an interview recently.
Hofbauer said the Nestle group has economies of scale in bulk purchasing and had the tools to manage prices of raw materials and finances through hedging.
“We do hedge from a period ranging from one month to 12 months,” he elaborated.
Hofbauer said the raw materials used for Nestle Malaysia’s production facilities include imported materials such as milk powder, coffee and cocoa.
He emphasised that Nestle Malaysia paid attention to quality products through substantial investment in technology, innovation and human resource at its production facilities in Malaysia.
Hofbauer disclosed that about 25 per cent of the products manufactured at Nestle’s production facili- ties in Malaysia were exported.
“We are not always the cheapest but you can trust that in terms of quality, health and nutrition, our products are the best in the market,” he said.
Keeping in mind the health and nutrition aspects, the sugar and salt content in best selling products such as Milo and Maggi Noodles have been reduced substantially. As for the group’s e- commerce business, he said Nestle Malaysia was aiming to provide another avenue for consumers to source products through the online platform which could provide a convenient shopping experience.
Nestle Malaysia recently launched its e- commerce campaign by establishing partnerships with online retailers, Lazada and 11street.
“We want to ensure that price is competitive for both online and retail stores.
“Price should not be the ultimate reason why you go online and there would always be promotional marketing features that determine price,” he added. — Bernama