Nestle says consumers globally are shunning mid-sized pack formats as inflation pressures household budgets, with purchasing polarizing toward either smaller portions or mega-sized value packs. Marketing and sales boss David Rennie said there isn't a market where consumers aren't feeling cash-constrained, and that the middle gets squeezed in tough times. In the U.S., Jeff Hamilton, CEO of Nestle's Americas business, noted a pronounced strain on personal spending over recent months and said the company is focused on increasing sales volumes rather than raising prices. Nestle is adapting its portfolio, pricing, and pack sizes to cater to affordability-focused shoppers, while its coffee business adjusts prices based on volatile commodity costs and offers lower-priced products like instant coffee.
Nestle S.A.Consumers globally are shunning mid-sized packs due to inflation, pressuring Nestle's sales volumes and forcing a shift in portfolio.