Nestle CEO: Inflation Will Hit Us Harder in 2022

The transcript discusses the impact of inflation on pricing and operating margins, particularly in the context of premium products like Nespresso. It highlights global inflationary pressures and the challenges of adjusting prices due to contractual obligations with retailers. The conversation also covers strategies for responsible pricing, especially in emerging markets, and the company's active role in acquisitions and portfolio management to align with growth trends.

What strategy did the company use to manage rising input costs in 2021?

• Outsourcing production

• Layoffs

• Hedging and internal efficiencies

• Increased advertising

Why is responsible pricing necessary according to the transcript?

• To increase market share

• To offset inflationary pressures

• To reduce competition

• To improve brand image

What is a challenge mentioned in adjusting prices due to inflation?

• High production costs

• Contractual obligations with retailers

• Lack of consumer demand

• Limited product availability

What are the two potential scenarios for inflationary pressures mentioned?

• Deflation and hyperinflation

• Regular inflationary cycle and temporary inflation

• Stagflation and recession

• Economic boom and bust

How does the company plan to handle price increases in emerging markets?

• By ignoring inflation

• By implementing aggressive price hikes

• By being particularly responsible

• By reducing product quality

What is the company's approach to acquisitions and divestitures?

• Focus on low-cost acquisitions

• Prioritize strategic and cultural fit

• Avoid any changes to the portfolio

• Only divest underperforming assets

What was a key factor in the company's acquisition of the Bountiful Company?

• Immediate profitability

• High market share

• Strategic fit and financial discipline

• Low competition