Nestlé is targeting 4% annual growth through 2030, but the company faces increasing pressure from rising commodity and energy costs.
Reuters reports that Nestlé has been streamlining its business and focusing more heavily on coffee, pet food and nutrition as part of its growth strategy. The company has also sold some businesses, including parts of its vitamins and water operations, to concentrate on areas with stronger growth potential.
However, higher commodity prices could make that target more difficult to achieve. Wheat prices have been affected by poor harvests linked to heat and drought, while sugar prices also increased sharply in August. These costs are important for Nestlé because the company uses commodities such as wheat and sugar in products including noodles, cereals and KitKat.
Nestlé is also looking towards emerging markets such as India, Vietnam and Ethiopia for additional growth. The company recently announced a CHF 157 million investment in Thailand to expand its Purina pet-food production capacity. For Nigeria, Nestlé Nigeria remains one of the major listed food manufacturers. Its shares were trading at ₦2,800 on the Nigerian Exchange on September 10, according to NGX data.
