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Nestlé is “immunity” due to the influence of tariffs. The chief executive of the company The world’s largest food producer enjoys localized manufacturing footprints.
Laurent Freixe is benefiting from reporters by closely watching global trade and tariffs, while most of the products sold are manufactured in the market. For example, in the United States, Nestlé produces about 90%of its selling in Korea.
“We are in a unique and privileged position,“ We are unique and privileged. To reporters After Nestlé’s 4Q revenue was released.
Food and beverage producers closely follow the impact of the Trump administration’s tariffs on the business. Coca -Cola CEO James Quincey told the drink producer earlier this week. You can switch to more plastic bottles in aluminum cans. If the input cost of the product is too expensive.
For nestle, The company, headquartered in Switzerland, said, “There are many epidemiology to alleviate the tariffs we see. Price is to change sourcing. ” According to CFO Anna Manz.
She noted that in 2025, the guidelines for Nestlé do not affect the impact of tariffs. Manz is hard to predict what will happen by trade policy, but Manz warns that “the inflation environment can be charged relatively quickly in the inflation environment.”
Targets will increase the cost at the time when the CPG company is already feeling pressure due to long -term inflation. Companies have raised prices to increase sales and offset higher costs, but this move reduced consumers to buy or switch to personal labels or more innovative brands.
Nestlé had a hard time coming back to consumers, especially frozen items such as pizza. The company recently took measures to improve the quality of the United States to lower prices and overcome customers.
NESTLé is planning to raise additional prices for cocoa and coffee, and two products are giving up at record prices. Manz told reporters that consumers told reporters as “very flexible categories,” but they would depend on how consumers react.
Thursday, the company reported that organic sales fell sharply from 7.2%year -on -year to 2.2%in 2024. In 2023, sales declined to $ 130 billion (91,354 billion Swiss franc).
Nestlé said North America, which is responsible for more than a quarter of its sales due to the weaknesses of coffee creamers and frozen foods, is responsible for more than a quarter of sales. Coffee Creamer was influenced by supply constraints that need to be improved. Recently, the opening of a new factory in ArizonaThe company said.
Nestlé predicted “improvement of organic sales” throughout the entire business this year as the initiative recently began. There are initial signs of changes in the propulsion, and sales growth in 2024 will be strengthened from 2.1%to 2.3%in the second half of the first six months.
“We start investing on the growth platformIn our innovation, big bets and organizations are sorted and moved in the right direction, ”said Freixe. “It takes time to move the needle, but you’ll see Nestlé moving in the right direction.”
Nestlé announced plans to reduce the cost of at least $ 2.8 billion by 2027 in November.Savings invested in different parts of the business. At the time, Nestlé said that water and premium beverages would be separated into stand -alone business, but Freixe said he was no longer trying to sell the department.
The division, including brands such as perrier and sanpellegrino, has been struggling recently, with less than 4% of global sales. The company can sell some of the business or start partnerships, Freixe said.
