How is the Middle East conflict affecting Nestlé's costs and pricing strategy, according to CEO Philipp Navratil?

According to CEO Philipp Navratil, the Middle East conflict is driving inflation and higher supplier costs — particularly for energy, freight, and raw materials — prompting Nestlé to raise prices, reformulate products, pursue efficiency savings, and eliminate items consumers are unwilling to pay more for; he emphasized that 'each and every supplier of ours will have some increase in costs' and that Nestlé must 'mitigate them... making sure consumers come along if we have to increase prices.'

What is the direct sales impact of the Middle East conflict on Nestlé, and how does Navratil distinguish it from indirect cost effects?

The Middle East accounts for only about 2% to 3% of Nestlé’s ~90 billion Swiss francs in total sales, so the direct impact on sales has been limited; however, Navratil stressed there are 'primary effects in terms of inflation in what we buy, in terms of input costs,' clarifying that while the U.S.-Israeli war against Iran has had 'little direct impact on sales,' it is contributing significantly to upstream inflationary pressures faced by suppliers.

Nestle CEO Says Middle East Conflict Driving Inflation, Higher Supplier Costs

Sep 10, 2026

Nestle CEO Philipp Navratil stated that the Middle East conflict is driving up input costs and inflation, prompting price hikes and product reformulations. Concurrently, the FAO Food Price Index reached a high since January 2023, signaling broader industry pressure on food manufacturers.

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Nestle CEO Says Middle East Conflict Driving Inflation, Higher Supplier Costs

Nestle CEO Says Middle East Conflict Driving Inflation, Higher Supplier Costs

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