Pandemic coffee surge propels Nestlé sales
Nestlé’s revenues grew faster than anticipated in the three months to March, thanks to an increase in home coffee consumption, with customers snapping up Nespresso pods, Nescafe instant coffee, and Starbucks-branded items.
On an organic basis, which excludes the impact of acquisitions, divestitures, and currency fluctuations, the world’s largest foodmaker posted revenue growth of 7.7% in the three months, up from 4.3 percent last year and far higher than the 3.3 percent analysts had predicted.
The increase in the metric was fueled in part by a 17.1% increase in Nespresso product revenues, as well as higher sales of instant coffee and Starbucks-branded coffee sold in stores under a three-year agreement agreed upon by CEO Mark Schneider.
According to Schneider, the company is gaining market share. He continued, “We are pleased with Nestlé’s solid organic sales growth in the first quarter, which was driven by broad-based contributions from most geographies and product categories.” “Retail revenues increased significantly, while out-of-home outlets showed signs of improvement.”
