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.
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.”