KitKat maker Nestle to hike prices again despite 8.2% rise last year

KitKat maker Nestle has announced it will raise prices again this year, after an 8.2% increase in 2022.

The firm said it would be forced to charge more to cover the increasing cost of ingredients, but has not yet revealed how much prices will increase.

Its CEO Mark Schneider said the company saw its profits drop by 45% because of the "many challenges and tough choices for families, communities and businesses".

Net profits came in at 9.27 billion Swiss francs (£8.34 billion) - far lower than the 11.58 billion francs (£10.42 billion) expected by analysts.

Mr Schneider said: "Last year brought many challenges and tough choices for families, communities and businesses.

"Inflation surged to unprecedented levels, cost-of-living pressures intensified, and the effects of geopolitical tensions were felt around the world.

"Looking to 2023, we expect another year of robust organic growth, with a focus on restoring our gross margin, stepping up marketing investments and increasing free cash flow.

"Nestle’s value creation model puts us in a strong position to achieve our 2025 targets and to generate reliable, sustainable shareholder returns."

Nestle sells more than 2,000 brands covering coffee, pet care, baby food, drinks, cereals and prepared dishes.

The news comes after prices have jumped since the war in Ukraine affected commodities such as food, fuel and energy.

In the year to January, grocery prices soared 16.7%. NationalWorld’s supermarket price tracker includes more than 790 products from a range of supermarkets to measure how much value brands have increased since April 2022. You can keep up to date on our exclusive supermarket price tracker news here. 

Many big business companies have also increased their prices across the board. Coca-Cola said it will raise the price of its fizzy drinks again this year, after increasing them by 11% in 2022. Rival Pepsi also increased prices by 14% during the year.

McDonald’s is increasing prices by up to 20% for some items, including its Mayo Chicken, which is going up from 99p to £1.19. Last year it hiked the price of a cheeseburger by the same amount.

Wetherspoon has also upped prices across a range of its popular drinks and menu items. Prices have gone by around 7.5% which adds up to 29p on a pint and around 75p on food.