Kit Kat sales help boost Nestle

Food giant Nestle today said it was on course to hit its full-year targets after coffee business Nespresso and household favourite Kit Kat lifted sales.

The world’s largest food business boosted group sales in the first nine months of its financial year by 4.1% to 82.8 billion Swiss francs (€61bn), while sales in its core food and beverages arm were up 4.5% to 77 billion Swiss francs (€57bn).

The group said major investment in marketing and new products helped maintain growth seen in the first half, despite battling against higher commodity prices.

Chocolate prices have risen steeply recently as the price of cocoa has soared.

Nestle is said to have hiked prices for the second time in nine months on some of its most popular lines, reportedly adding 4p to Kit Kat and Aero bars earlier this month.

Paul Bulcke, Nestle chief executive, said: “Our performance is the result of clear strategic alignment and focus on execution throughout the whole organisation, both in developed and emerging markets.”

Worldwide sales of espresso brand Nespresso grew by 20%, and were particularly strong in its biggest European Markets, the group said.

Nestle said the UK, and the rest of western Europe, saw good growth helped by new Nescafe coffee and chocolate brands, such as Kit Kat which celebrated its 75th anniversary.

Nestle’s bottled water business, which includes the Perrier and S.Pellegrino brands, also saw market share growth in the UK and other key markets.

But yesterday, French rival Danone warned the economic climate and government austerity measures would hit consumption in Europe, despite a higher-than-expected 15% increase in sales to €4.3bn.