Quarterly results for Nestlé are falling into a familiar pattern for large food/CPG companies: Product lines spiking or ebbing depending on whether they’re primarily consumed in or out of the house.
In the quarter ending in September, overall sales increased 4.9% when currency fluctuations and sales/acquisitions are discarded.
Sales of ice cream and other dairy products were up 10.6%, according to a Barclays estimate quoted in the Wall Street Journal. Coffee and pet food were also up, reflecting the increased tendency of consumers to stay home during the pandemic. On the other hand, sales of “out of home” products, including premium bottled water and candy snacks, were down 26%.
Over the long term, Nestlé, which recently shifted its North American ice cream brands into a joint venture, plans to emphasize its health-sciences division more, the Journal says. While it represents only about 3% of overall sales, that division has been beefed up by recent acquisitions. Health products like nutrition supplements have seen higher demand as consumers seek to strengthen their immune systems during the pandemic.
