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Popular chocolate bars like KitKat, Aero, Yorkie and more may soon see steep price hikes as owner Nestle reveals that its products have already gotten more expensive.
The firm, which also produces popular household coffee products through its Nescafe and Nespresso brands, says it is facing soaring commodity costs which has forced prices to rise.
The Swiss firm revealed that it already raised prices by 2.1 per cent overall in the first quarter to counter surging coffee bean and cocoa costs.
In some markets, price increases were in the double-digits, which impacted its underlying sales growth by volume, according to the firm.
The group reported better-than-expected sales growth of 2.8 per cent for the first three months of 2025, although the higher prices accounted for much of the rise, with sales by volume edging 0.7 per cent higher.
“Despite the significant level of the increases in many markets, the actions were implemented with limited customer disruption,” Nestle said.
Group chief executive Laurent Freixe said the impact of higher global tariffs “remain unclear at this stage”.
He added: “Overall, the situation continues to be dynamic, with heightened risks and uncertainty.”
Mr Freixe cautioned the firm is facing an “environment of heightened macroeconomic and consumer uncertainty”.
But he said Nestle is sticking to its full-year guidance, “based on our assessment of the direct impact of current tariffs and our ability to adapt”.
The group revealed it had seen a “pronounced” initial impact to consumer demand where large price hikes were passed on, but added this is easing as “consumer behaviour and the competitive environment adjust and stabilise”.
Recent figures show that the price of chocolate has increased across the board, rising by almost 50 per cent in just three years. At the same time, many products have gotten smaller in size, in a process some experts have dubbed ‘Chocflation.’
English (US) ·