Nestle's Path to Recovery: Commodity Inflation and Leadership Transition
Nestle India's outgoing Chairman, Suresh Narayanan, discusses recovering from commodity inflation. Prices are stabilizing, but challenges remain with coffee and cocoa costs. Strategies include cost-saving measures and balanced e-commerce expansion. Leadership will transition to Manish Tiwary in 2025, maintaining growth post-Maggi crisis.
- Country:
- India
In an address at his final Annual General Meeting (AGM) as India's Chairman and Managing Director of Nestle, Suresh Narayanan shared insights into the company's resilience amidst fluctuating commodity prices. Despite pressures from commodity inflation, particularly with coffee and cocoa prices hitting decade-highs, the upcoming quarters signal a potential return to normalcy.
Over the past decade, under Narayanan's leadership during and post-Maggi crisis, Nestle India focused on mitigating the impact of food inflation through strategic cost-saving initiatives and responsible pricing strategies. The company's record reflects double-digit growth in 22 of the last 32 quarters, with recent quarters seeing the impacts of price hikes.
As Nestle prepares for a leadership transition to Manish Tiwary, former Amazon India Country Manager, the company's outlook remains cautiously optimistic. With new product launches and a balanced approach to e-commerce and traditional trade, Narayanan expressed confidence in Nestle India's continued growth and market prominence.
(With inputs from agencies.)
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