KUALA LUMPUR – Nestle (Malaysia) Bhd is set to adjust prices for selected products in response to the recent surge in global cocoa prices, said chief executive officer Juan Aranols.
However, he emphasised that the company aims to keep the price increases minimal and plans to implement only moderate adjustments for certain products.
“The company is cautious about price increases, which can affect customers’ purchasing power.
“However, due to the volatility in the commodity markets – of course, we will not fully pass on the impact – there may be some price increases that we have to undertake in the next few months,” he told reporters following the launch of the Nestlé Salary For Life 2024 contest here today.
According to news reports, the futures prices for cocoa rose by almost 6% last week.
Looking ahead, Aranols said Nestle anticipates subdued consumer sentiment this year due to factors like food inflation, driven by international commodity prices.
“However, we remain positive and are committed to providing safe, high-quality products that stand out against competitors,” he said.
Forbes recently highlighted that cocoa prices hit a historic peak owing to a significant decline in supply.
Aranols echoed this sentiment two days after Nangyang Siang Pau’s revelation that prices for Milo, primarily sold to coffee shops and restaurants for out-of-home consumption, are set to rise come July.
Citing sources, the daily’s report noted that a box of Milo containing six bags would climb to RM578 from RM369. They cautioned that this hike could potentially result in higher charges for a cup of Milo for customers. – April 22, 2024