Food and drink giant Nestle reveals fall in sales volumes as shoppers faced higher prices

It said the increases helped drive organic growth of 7.8 per cent over the period, but this came as the volume of products bought by customers fell by 0.6 per cent as they pulled back following the price increases.

On Thursday, Nestle chief executive officer Mark Schneider said: “Growth was driven by pricing as we continued to navigate historic inflation levels.”

Prices rose sharpest in its European business, where shoppers faced an 11.1 per cent hike, leading to a 2.3 per cent fall in volumes.

Nestle said total sales across the company were down 0.4 per cent to 68.8 billion Swiss francs over the nine months to September as it was also significantly impacted by foreign exchange rates.

In Europe, total sales were 1.3 per cent higher as lower volumes were offset by its price increases.

It added that its Purina PetCare business particularly drove growth, amid strong performance from Felix, Gourmet and Purina One.

Nestle said KitKat continued to gain market share as its confectionery arm, which also includes brands such as Smarties and Quality Street, saw high single digit growth, supported by higher pricing.

Strong demand for Nescafe also helped drive “mid single-digit growth” in its coffee business.

Mr Schneider said: “The recovery of our volume and mix is under way.

“We are seeing the benefits of our portfolio optimisation initiatives and increasing marketing investments behind our billionaire brands.

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