Wake up and smell the Brexit: Weak pound prompts price of Nestlé coffee to rise 14%

One of several big companies announcing they will charge more

Jon Sharman
Sunday 22 January 2017 17:54
comments

Coffee became the latest consumer good to wake up and smell the price of Brexit as a 100g pack of Nescafé Original has risen by 14 per cent on at least one supermarket shelf.

The Nestlé brand now costs £3.15 at Sainsbury’s, up from £2.75, after the corporation asked shops to pay more for its products.

A 500ml bottle of Pure Life water, which is also made by the multinational food conglomerate, has also risen by 22 per cent, from £2.29 to £2.80, according to The Sunday Times.

It follows Marmite, fish fingers and Walkers crisps, all of which have seen price rises blamed on Brexit.

Nestlé had warned some months ago it was considering price hikes after a fall in the value of the pound following the Brexit vote.

The Swiss food giant, which makes KitKats, Shredded Wheat and dozens of other famous brands, also said it would consider its investments in the UK in the light of Britain’s vote to leave the European Union.

But the company said it would wait to see what kind of Brexit deal the UK secures before deciding whether to scale back or not.

Microsoft has also admitted it will raise prices, as have car manufacturers.

Apple is pushing up the price of apps by 25 per cent to make up for the plunging value of the pound.

The prices are now the same as they are in dollars. Apps that were once 79p —the cheapest that developers can offer apps for—will now cost 99p, for instance.

A Sainsbury's spokesman said: “The cost of individual products is determined by a number of factors and prices can fluctuate, both up and down. We remain committed to providing our customers with great quality food and value.”

A Nestlé spokesperson added that the company was “used to dealing with all of the variables that could affect our cost pricing, including fluctuations in currency.”

They said: “We constantly review those costs and we will continue to manage all of these factors with a view to making cost price increases only when absolutely necessary.

“Retail pricing is at the sole discretion of the retailer and the final price the consumer pays for our products is set by individual retailers and we cannot comment on any changes they choose to make to increase or decrease their prices or when they choose to do so.”

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

View comments