The media learned about Nestle’s plans to increase selling prices for baby food by 9%

Company Nestle plans to increase selling prices for products for children, including breast milk substitutes, breakfast cereals and instant cocoa, by 9% from September 4 due to the weakening of the ruble. About it informed Kommersant with reference to a letter sent to retailers. The company itself declined to comment.

According to the text of the letter, the reason for the increase in selling prices was the depreciation of the ruble by almost 30% since the beginning of the year and the rise in prices for raw materials and sugar on the international market. In particular, according to the New York Mercantile Exchange on August 22, the cost of cocoa beans reached $3,300, which is 23% more than in January 2023.

The Ministry of Agriculture promised to “further clarify” the position of Nestle. The ministry noted that the cost of basic raw materials for the production of baby food and dry breakfasts in Russia as a whole is at a stable level.

As noted by the executive director of Rusbrand (including baby food manufacturers) Alexei Popovichev, another reason for increasing selling prices may be the demographic factor associated with a decrease in the birth rate. This, in turn, leads to reduced sales. So, according to NielsenIQ, in the first half of 2022, sales of baby food decreased by 11.2% year-on-year, and in the six months of this year – by 2.2%. At the same time, in the first half of 2023, sales of ready-made breakfasts decreased by 15% in annual terms.