Now Reading:

Nestle not worried by rising raw materials costs


Nestle not worried by rising raw materials costs


Nestle says strong demand in emerging markets will help it offset a steep rise in raw materials costs this year.

The world’s biggest food maker is offering reassurances that it is well placed to cope with rising commodity prices by making cost savings and increasing the amount that it charges customers.

It beat sales forecasts for 2010 when it said raw material prices rose significantly, particularly in the second half of the year.

Underlying sales growth in 2010 rose six percent, but in emerging markets it was up by 11.5 percent.

It expects rising prices for ingredients like milk, cocoa, coffee, sugar and grain to add about eight to 10 percent to its cost base.

Rivals Danone and Unilever recently said they were confident about passing on higher costs, but Kraft Foods cut its 2011 forecast for earnings growth because it expects some consumers to be put off by price increases.

Every story can be told in many ways: see the perspectives from Euronews journalists in our other language teams.

Next Article