Nestle Starts Year With Strongest Price Increases in Decade

  • CEO Schneider expects cost inflation to keep rising sharply
  • Shoppers also face price hikes from Procter & Gamble, Danone

A bag of Nescafe instant coffee at Nestle SA's Nescafe plant in Orbe, Switzerland.

Photographer: Stefan Wermuth/Bloomberg
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Nestle SA is hitting consumers with its steepest increase in first-quarter pricing in more than a decade, lifting the cost for everything from Nespresso capsules to Purina dog chow to blunt the impact of surging food inflation on its profitability.

Pricing rose 5.2% in the first quarter, the most for that period since at least 2012, the maker of DiGiorno frozen pizzas saidBloomberg Terminal Thursday. Even Nespresso, a brand that has kept prices fairly stable for years, is getting more expensive, increasing 3.1%.