Nestle: KitKat maker Nestle reveals steep price hikes for coffee and chocolate

KitKat and Nespresso firm Nestle has pushed through double-digit price hikes for coffee and chocolate across some markets as it faces soaring commodity costs. The Swiss firm revealed it raised prices by 2.1% overall in the first quarter to counter surging coffee bean and cocoa costs. In some markets, price increases were in the double-digits, which impacted its underlying sales growth by volume, according to the firm. The group reported better-than-expected sales growth of 2.8% for the first three months of 2025, although the higher prices accounted for much of the rise, with sales by volume edging 0.7% higher. "Despite the significant level of the increases in many markets, the actions were implemented with limited customer disruption," Nestle insisted. Group chief executive Laurent Freixe said the impact of higher global tariffs "remain unclear at this stage". He added: "Overall, the situation continues to be dynamic, with heightened risks and uncertainty." Mr Freixe cautioned the firm is facing an "environment of heightened macroeconomic and consumer uncertainty". But he said Nestle is sticking to its full-year guidance, "based on our assessment of the direct impact of current tariffs and our ability to adapt". The group revealed it had seen a "pronounced" initial impact to consumer demand where large price hikes were passed on, but added this is easing as "consumer behaviour and the competitive environment adjust and stabilise". To receive the best stories in your inbox every day, click here to register for one or more newsletters from The Standard.