Increased sales of coffee during the pandemic have boosted the financial results of Nestlé.
The Swiss-based conglomerate posted an organic sales increase of 7.5% for the year, contributed by a 9.7% increase in sales for coffee. Other top-performing segments include pet food and health products. Total sales rose 3.3% to $94.46 billion. Profit was up 38% to $18.4 billion, driven in part by the sale of Nestlé’s share in the L’Oréal beauty line.
Nestlé’s coffee business has been helped by its 2018 deal for retail production and distribution of Starbucks-branded products. CEO Mark Schneider told the Wall Street Journal that Nestlé plans to build on that deal, by expanding its Starbucks business through its Nespresso pod brewing system and by increasing the reach of Starbucks products overseas.
Like many food processors, Nestlé has had to raise product prices. Schneider said he would try to hold the line on price increases on non-premium and nutritional products, especially in developing markets.