UK chocolate demand lifts Nestle

The world’s biggest food and drink group Nestle today said a renewed focus on the UK chocolate market helped drive a 16% hike in annual earnings.

The Swiss giant, which makes Kit Kat, Aero and Smarties, said European sales rose 3% to 28.5 billion Swiss francs (€18.2bn) in 2007, as it was also buoyed by a strong performance by coffee brand Nescafe.

Earnings reached 10.7 billion Swiss francs (€6.6bn) from 9.2 billion Swiss francs (€5.6bn) a year earlier as price increases offset the impact of higher raw material and energy costs.

The company, which axed 645 workers at its York plant in 2006, also said performance was improved by cost-cutting measures.