KitKat and Cheerios maker Nestle has hiked prices and signalled further increases are on the way due to soaring costs.
The Swiss food group said it pushed its prices 3.1% higher during the last three months of 2021, compared with the same period the year before, to offset the increased cost of making its products.
Mark Schneider, chief executive of the firm, said shoppers should expect higher prices across the sector.
There is almost no place in the company that is exempt of inflation nowMark Schneider
“It’s a safe assumption that our input cost increases for 2022 will be higher than 2021, that is something that we have to reflect in our pricing,” he said.
“There is almost no place in the company that is exempt of inflation now.”
However, the company, which also makes Nescafe and Felix cat food, did not highlight specific products being impacted by price rises.
It comes amid a growing cost-of-living crisis for people who are also receiving surging energy bills.
Latest data from the Office for National Statistics showed that Consumer Price Index (CPI) inflation was 5.5% in the UK last month.
Nestle said it has had to ensure “responsible pricing” to offset the impact of rising commodity, labour, utilities and freight costs across its supply chain.
The food group reported that organic sales grew by 7.5% in 2021 as a whole, featuring 2% price increases for the year.
Mr Schneider added: “In 2021, we remained focused on executing our long-term strategy and stepping up growth investments, while at the same time navigating global supply chain challenges.
“Our organic growth was strong, with broad-based market share gains, following disciplined execution, rapid innovation and increased digitalisation.”