Nestlé sales reflect the best of both worlds
Nestlé sales grew at more than twice the rate analysts expected as the Swiss food giant sold more Nespresso capsules to people working from home, and restaurants in Asia stocked up as they reopened.
The company is benefiting from the best of both worlds: people stuck at home buying coffee and convenience meals, and other markets reopening restaurants that need to replenish kitchen supplies.
Nestlé’s first-quarter report is one of several signals from companies — including Hermès and Pernod Ricard — that a consumer rebound is in full swing.
It also shows how the food industry is embracing e-commerce, as online sales surged 40% to make up a sixth of Nestlé’s total sales.
Nespresso’s 17% sales growth turbocharged the results, which were strong worldwide. A surge in China made Asia its best-performing region.
Shoppers in the US loaded up on convenience meals, and Nescafé and Starbucks coffee products were strong in Europe.
Nestlé expects a full recovery in out-of-home sales to pre-pandemic levels at the earliest in 2022. In the meantime, it is coming up with new ways to revive the business, such as contactless coffee machines and supporting takeaway services.