After the energy companies, the food industry. This time, the war in Ukraine is not directly responsible as it is with oil and gas, but it is not very far behind. The rise in prices, general in the world, is one of the consequences of geopolitical tensions. Obviously, the Swiss agrifood giant is rubbing its hands.
Over the first nine months of its financial year, Nestlé recorded a turnover of 70.7 billion euros. This is an increase of 8.5% compared to the same period last year. But it is above all the strongest “organic growth” since 2008, that is to say just before the great international financial crisis.
Organic growth is the activity of the group calculated excluding the effect of exchange rates (the question of currencies for exports) and excluding acquisitions (without integrating the takeovers of companies which allow the group to grow). These 70 billion euros in turnover are therefore likely to change when the final accounts are drawn up at the end of the year for the publication of profits.
The Swiss multinational has just acquired the Seattle’s Best coffee brand from Starbucks. Nestlé has already partnered with Starbucks since 2018 for the marketing of coffee in mass distribution.
The products that sell the most despite inflation are coffee, with Nescafé and Starbucks; infant nutrition recorded double-digit growth. Then come the chocolates drawn by KitKat, the water with San Pellegrino. Otherwise, by product category, Purina brand pet products were a major contributor to this growth. Nestlé, which is savoring this episode, remains very cautious and waits to see, depending on the rise in prices, from when consumers will arbitrate and turn less to the group’s big brands.