Sunday 23 October 2016

Could Kit Kat be the next Victim after Marmite

Kit Kat

Kit Kats and other Nestle products could be set for a price, days after Marmite and other products temporarily disappeared from Tesco shelves.

Nestle warned costs could be hiked as the weaker pound takes its toll on the company's outlook.

The Swiss company has cut sales targets after the sterling plunge and is now considering its options.

Full-year growth forecasts were lowered to 3.5 percent, while the firm reported an organic growth rate of 3.3 per cent in the three quarters to September, against previous expectations of 4.2 per cent.

Chief executive, Peter Bulcke, said: "The pound is going south and that is going to have some effect on certain imports and you cannot defy gravity.

"But I don't say … our costs go up one per cent — bang, we pass that straight on to the consumer — they would punish you."

The threat of a hike comes after Unilever clashed with Tesco amid a row over price rises. The supermarket refused to pay more for products, such as Marmite, following the fall in the pound.

For a short time, it meant shoppers were unavailable to buy some of their favourite products.



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