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Nestlé sales boosted by coffee surge

Consumers buying Starbucks-branded products, Nescafe instant coffee and Nespresso pods

A rise in the number of people drinking coffee at home saw Nestlé (SWX:NESN) increase its sales quicker than anticipated during the quarter ending in March.

This happened as consumers were buying up coffee products such Starbucks-branded products, Nescafe instant coffee and Nespresso pods.

The Swiss food and drinks conglomerate revealed sales growth of 7.7% in the past three months, surpassing the 7.3% from the year before and well higher than analysts’ expectations of 3.3%.

The rise was down to a 17.1% increase in the sales of its Nespresso products, in addition to its Starbucks-branded coffee sold in shops as part of a deal agreed three years ago by chief executive Mark Schneider.

Other drivers of Nestlé’s growth was the sale of its dairy products, as well as pet food.

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Schneider said the company was gaining market share. “We are pleased with Nestlé’s strong organic sales growth in the first quarter, building on broad-based contributions from most geographies and product categories,” he added. “Retail sales saw solid growth and out-of-home channels saw signs of improvement.”

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