Nestlé passed inflation through. The margin held. The shoppers didn't.
In 2022 Nestlé raised prices 8.2%. Its margin held at 17.3% through 2023, but real internal growth fell to -0.3%. If you price to protect margin, watch volume too.
Transcript
If you raise prices to protect your margin, watch volume, not just margin. Nestlé shows why.
In 2022, costs spiked. A company with strong brands can absorb the cost, or pass it to the shopper. Nestlé chose pass-through, aggressively. Pricing added 8.2%.
In the short run, it worked. Nestlé's margin held at 17.3% through 2023.
But real internal growth, the volume and mix under the price, was 0.1% in 2022, then turned negative, at -0.3% in 2023.
On September 1, 2024, Nestlé's board replaced Mark Schneider as chief executive. By 2025, reported sales were CHF 89.5 billion, down from a 2022 peak of CHF 94.4 billion. Price can buy you time. It does not buy back the shopper.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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