Nestlé Malaysia Bhd has said that it will be adjusting the prices of selected products following the recent surge in global cocoa prices.

“The company is cautious about price increases, which can affect customers’ purchasing power. However, due to the volatility in the commodity market – of course, we will not fully pass on the impact – there may be some price increases that we have to undertake in the next few months,” said the chief executive officer of Nestlé Malaysia, Juan Aranols.

That said, Aranols reassured that the company will do its best to keep the increase minimal, implementing only moderate adjustments for certain products. He also did not name any specific products that will be impacted by the price readjustment exercise; some cocoa-related brands that are provided by Nestlé include Milo and KitKat.

“We [will] look first at other possible measures, especially savings and efficiency. But given the price of cocoa, for instance, has more than doubled in the last few months and continues to be at an incredibly high level, there will be some impact in terms of pricing,” said Aranols.

For context, cocoa prices have been skyrocketing since the start of 2024 as the world faces a significant shortage in supply – the worst to be seen in decades. This comes as farmers in West Africa struggle against bad weather, disease and failing trees.

In fact, recent figures by the International Cocoa Organisation indicated that a supply deficit of up to 374,000 tonnes is expected for the 2023/2024 crop year (up to 30 September), as compared to a deficit of 74,000 tonnes in the previous period. It was also reported that the futures prices of cocoa rose by almost 6% last week.

(Sources: The Edge Malaysia, New Straits Times)

• TAGS:
• Cocoa
• Cocoa Prices
• International Cocoa Organisation
• Juan Aranols
• KitKat
• Milo
• Nestlé Malaysia