Nestle, Unilever Forgo Price Increases To Focus On Moving Product
First-quarter sales growth at Nestle and Unilever was driven almost entirely by shifting more goods, in a stark illustration of how hard it is for consumer products makers to raise prices in a competitive retail environment.
Multinational makers of everything from soup to soap are under pressure to boost revenues as consumers flock to fresher products and newer brands. The large retailers they sell through face their own pressure to keep prices down, as they battle new competition from drug stores and Amazon.com.
The result has been mounting tension, which recently erupted in a clash between Nestle and European retailers that saw some of the Swiss company's goods briefly taken off store shelves. That row was itself an echo of a 2016 standoff between Unilever and British supermarket giant Tesco.
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