Nestle Raises Prices And Cuts Items As Costs Rise After Middle East Conflict

According to CNBC, Nestle is raising prices, reformulating products and cutting items that consumers are unwilling to pay more for as it deals with higher energy, freight and raw material costs following the conflict in the Middle East, CEO Philipp Navratil told Reuters. He said the war has had little direct effect on sales, but it is adding inflationary pressure for suppliers. The Middle East accounts for about 2% to 3% of Nestle's roughly 90 billion Swiss francs ($111 billion) in total sales. Navratil said the company may also buy brands as it reviews its portfolio, after recently selling a stake in its bottled water business and exiting vitamins. He also said food manufacturers should be involved in discussions over proposed front-of-pack sugar, salt and fat warning labels in India. Navratil said Nestle has removed thousands of tons of sugar, salt and fat from its products and argued that labeling should reflect portion sizes.