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Nescafé is the latest big brand to raise its prices in the wake of the EU referendum vote.
Brexit has been blamed for Nescafé’s 14% price rise to £3.15. Nestlé has also increased the price of its Pure Life Water by 22%, with the 500ml bottle now costing £2.80, up more than 50p.
The Swiss-owned company has stated it is considering its UK investments after the vote to leave the EU, although its final decision rests on whether the country takes the hard Brexit route.
Retailers reacted to the increases in price from suppliers:
“I’ve noticed price rises at the local cash and carry. It seems to be across the board. Our milk supplies have gone up twice in the past few weeks. Customers have noticed it and started commenting. I’ve stuck the letters from suppliers up on my milk fridge, my coffee machine and so on. I’ve changed my buying patterns – I’m trying to find products at the old price or find different brands that are better value.” Peter Lamb, Lambs Larder, Tunbridge Wells
“Wages have been rising, rates have been rising, all our costs are going up, so we need prices to go up as well to pay for our increased bills. As long as we don’t lose margin, and the rises are fair across the board – the same for us and Sainsbury’s – then it’s OK. Customers have noticed it, but we’re in an affluent area, so they accept it and carry on as normal.” Ravi Kaushal, Premier Burlington, Chiswick, London
“We’ve noticed the price rises. We’ve also noticed that it’s harder to get a deal as people won’t budge on prices. We’re shopping around more, seeing where we can find things at better prices. Londis are doing pretty well with their prices. If the margin is tight, we might pass the cost on, but if there’s a high margin we can sometimes swallow it.” Nishi Patel, Londis Thamesmead/Bexleyheath, Kent
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