Nestlé raises prices due to rising costs in the Middle East

Nestlé is raising prices, adjusting recipes, and discontinuing products for which consumers are unwilling to pay enough. The company says it has no choice, as CEO Philipp Navratil explains that the conflict in the Middle East is driving up the costs of energy, transportation, and raw materials.

Higher costs for everyone

The war with Iran is having a direct but limited impact on Nestlé’s revenue. The Middle East accounts for about 2 to 3% of the food group’s annual revenue of approximately 90 billion Swiss francs (95 billion euros). Nevertheless, according to CEO Philipp Navratil, the indirect consequences are significant.