Nestle has made good on its vow to up prices to protect margins, with a 10% hike on average in the first quarter of 2023.
Ice cream and pet food saw the highest rises. said the Haagen Dazs and Kit Kat owner, which the food and beverage group said reflected “significant cost inflation”.
Earlier this year, Mark Schneider, chief executive, had warned that the group had had enough of margins being squeezed and would raise prices to compensate.
In a statement with its first quarter update, Schneider said underlying sales had risen by 9.3% with the price hike of 9.8% offset by a drop in volumes of 0.5% as people baulked at the new prices.
Kit Kat buyers weren’t bothered seemingly, with Schneider highlighting confectionery's strong performance alongside Purina pet food and coffee including Nespresso.
Schneider added: “Nestle delivered strong organic growth in the first quarter, as our teams worked diligently to protect volume and ensure resilient mix.
“Portfolio optimisation efforts and responsible pricing helped to offset the ongoing pressures from two years of cost inflation."
Total sales increased by 5.6% to Sfr23.5bn (£21.2bn) with foreign exchange movements knocking 4% off the final total.