Nestle plans to raise prices, cut costs

The group would work to cut some product lines that appear less profitable in the light of higher commodity prices, but none of the 27 blockbuster brands that generate over 1 billion Swiss francs in sales.

 Nestle, the world's largest food company, will raise prices,
cull unprofitable products and speed up production rationalisation to prepare
for a lasting rise in commodity and energy prices. The group's focus on
name-brands, health food, and medical nutrition puts it at a competitive
advantage as prices for energy, grain and milk rise on surging demand.
The group will speed up a production rationalisation programme that has seen it
cut the number of food plants to 481 from over 500 worldwide in recent years
while dramatically increasing output. Nestle has been able to increase
productivity at its global factory network by improving co-ordination between
plants.