Food company CEO Mark Schneider said there was no part of the company that was not affected by rising inflation, and in any case its impact could not be offset; Rakit Bankizer said it would try to absorb some of the costs so that they would not be fully borne by consumers
Rising prices of products due to supply problems and rising inflation do not stop.
This week, for example, the Heineken brewery warned against rising prices, and now, according to a BBC article, Nestle, the maker of Kit Kat and Nescafe, has warned that prices will rise following production costs this year. CEO Mark Schneider said there is no division in the company that has not been affected by inflation, and only in part can its impact be offset.
Rakit Bankizer, the company that owns the Durex condom brand and cleaning products Detol, also announced that prices will go up, but added that it hopes to absorb most of the increases itself. Rakit’s costs rose 11% in 2021, but company CEO Laxman Narasimhan said prices would not necessarily go up by the same rate, as the company has ways to “minimize” and manage the rises, and “care about the competitiveness of our brands” The company said it had already raised prices by 3.1% in the last quarter.
Jeff Carr, Nestlé’s chief financial officer, said the company’s expenses had risen “across the board”, from crude oil and plastics costs, to shipping and wages. But he also said the company would “absorb a significant portion” of the increased operating costs, through “efficiency” , And “correct purchasing.” He said, “We do not pass the cost on to consumers directly. “Some of the increases will fall on consumers, but we are minimizing that.”
Consumer goods companies have already warned of price increases due to the rise in raw material, energy and labor costs. These are likely to increase the pressure on households, which are facing a cost of living crisis.