Nestlé is in a strong position to weather the impact of tariffs, according to the company’s CEO. Laurent Freixe stated that Nestlé benefits from its localized manufacturing footprint, with the majority of products being manufactured in the markets where they are sold. For example, in the U.S., Nestlé produces about 90% of its products domestically.
Freixe emphasized that Nestlé has mechanisms in place to mitigate any potential impact from tariffs, such as adjusting pricing or sourcing strategies. The company’s CFO, Anna Manz, mentioned that Nestlé’s guidance for 2025 does not account for any tariff impact, but warned that new duties could lead to an inflationary environment.
Despite challenges in certain product categories, such as frozen items, Nestlé is implementing strategies to attract consumers, including price adjustments and quality improvements. The company also plans to increase prices for cocoa and coffee products, depending on consumer response.
Nestlé’s organic sales for 2024 saw a modest increase, with North America being a key market for the company. Although the region faced challenges in certain segments, Nestlé is optimistic about future sales growth due to recent initiatives.
Looking ahead, Nestlé is focused on investing in growth initiatives and innovation to drive business performance. The company aims to streamline operations and cut costs, with plans to reinvest savings into strategic areas. Additionally, Nestlé has no current plans to sell its waters and premium beverages unit but remains open to potential partnerships or divestments.