FOOD and beverage manufacturer Nestlé Philippines Inc. is still considering whether it will increase prices after April 30, the date when a deal to keep basic necessities and prime commodities unchanged expires.
“It’s really wait and see for now, because it will really depend on how the war in the Middle East will evolve and that will dictate us on how we will move,” Nestlé corporate affairs head Jose Uy III, told reporters on Thursday.
Nestlé Philippines is a wholly owned subsidiary of Switzerland-based Nestlé S.A. and operates manufacturing facilities in Cabuyao and Canlubang, Laguna; Cagayan de Oro; and Lipa and Tanauan, Batangas.
The company’s top brands in the Philippines include Nescafé, Milo, Bear Brand and Maggi, and the country remains a key market for Nestlé.
Nestlé Philippines is among the local companies that have agreed not implement a price hike until April 30 following discussions with the Department of Trade and Industry.
The others are Alaska Milk Corp., Century Pacific Food Inc., Commonwealth Foods Inc., Ecossential Foods Corp., Green Cross Inc., Lorenzana Food Corp., Marby Food Ventures Corp., Monde Nissin Corp., Nutri-Asia Inc., Peerless Products Manufacturing Corp., Philippine Spring Water Resources Inc., Procter & Gamble Philippines, Salinas Corp., San Miguel Foods Inc., Uni-President Philippines, Universal Robina Corp., Virginia Food Inc., Wellmade Manufacturing Corp. and Zest-O Corp.
Uy said that they had told Trade Undersecretary Jean Pacheco that Nestlé’s truckers, which are dealing with surging fuel prices, would have to raise their charges.
This could prompt Nestlé to raise the prices of its products, but Uy said “as of today, we are trying to hold the line.”
“We haven’t raised prices yet and I think some of the industry players are also trying to do the same,” he said in a mix of Filipino and English.
Uy said that government efforts to meet with manufacturers on a regular basis was helpful, particularly with regard to the fuel supply situation.
“According to [Energy] Secretary [Sharon] Garin, we still have supply until mid-May ... that means that we’re still able to operate and produce products,” he said.
“We will have to plan and optimize what to produce, and we will continue to prioritize basic necessities and prime commodities,” Uy added.
