Nestle Malaysia is set to raise prices of selected products according to CEO Juan Aranols.
He said that the increase will be minimal to avoid impacting consumers too much. However, the revision is necessary due to volatility in the commodity market.
Cost of cocoa has increased
Nestle is expecting subdued sentiment this year due to factors like food inflation. The cost of cocoa has risen six percent last week.
“The company is cautious about price increases, which can affect customers’ purchasing power.
“However, due to the volatility in the commodity markets – of course, we will not fully pass on the impact – there may be some price increases that we have to undertake in the next few months,” he told reporters at the launch of the Nestlé Salary For Life 2024 contest.
The company also made headlines last week after being accused of adding sugar into baby food by Swiss organisation Public Eye. The group, which campaigns to promote human rights by Swiss companies, claimed that Nestle was making babies addicted to sugar in developing and emerging countries.
Samples from Bangladesh, India, Pakistan, South Africa, Ethiopia, and Thailand were found to have between 1.6g and 6g of sugar per serving.
Babies that are exposed to sugar at an early age have been found to consumer more sugary products later in life. Leading to an increased risk of obesity and diabetes.
