FMCG News: Nestlé sales rise
Today, we look at how Amazon has retained its title as the world's most valuable retail brand, how Nomad foods is benefiting from frozen foods and how Nestle sales have risen on vitamins and pet care during the pandemic. Enjoy!
Nestlé sales rise on pet care and vitamins boom during pandemic
The biggest food company in the world has revealed that it has enjoyed the highest growth in sales for the past 5 years during this pandemic period. A non-trivial aspect of this sudden boom in profits has come from consumers wanting to spend more on pet care and dietary supplements for themselves. The sales growth for the Swiss food giants had risen by 3.6% during 2020 and by 3.5% a year earlier, displaying that this gradual rise in profits wasn’t caused by the pandemic but it has continued to succeed despite it.
The sales of Purina pet care products and various health supplements supplied by the Health Science division has aided in compensating for lower sales of other products that Nestle usual are known for, such as chocolate and bottled water.
Nestle appears to be laughing all the way to bank as Brits continue to adopt more animals during the pandemic, as well as existing pet owners having little more to do with their extended free time than to spoil the cat or the dog. It’s a positive story among so many bleak ones of late and perhaps we may start to associate Nestle less with chocolate in the future and more with chocolate Labradors.
Amazon retains title of the world’s most valuable retail brand
Brand Finance has dropped the goods and revealed the latest retail ranking of the most valuable retail brands in the industry – choosing from over a hundred brands within the sector and all decision making has taken the COVID-19 pandemic into account while selecting. The results have shown us that various retail brands are dealing with the pandemic to varying degrees of success, with e-commerce brands grappling for the top spot, recording an average brand value growth of 38%. The department stores of the country have been suffering the most, losing 11% of brand value on average since March 2020.
Amazon has retained the title of the world’s most valuable retail brand (was anyone really surprised?), recording a massive 15% growth in their brand value amounting to US$254.2 billion. The online retail juggernaut is one of the few brands that has benefitted considerably from the pandemic, satisfying the needs of many consumers during the retail shutdown, and, let’s face it, has stopped many of us from going crazy over the last year.
Nomad foods continues to benefit from shift to frozen food
Nomad Foods, who are the owners of the brands; Birds Eye, Findus, and Aunt Bessie’s, continued its recent robust performance during the tail end of 2020 as consumer of good old frozen English grub kept their freezers well and truly stock with our islands finest.
The full results of the well-earned rise in profits, show the group’s organic revenue increased by more than expected. 9.5% more than expected, in its fourth quarter. This means full-year sales will have grown 8.7% with adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) totalling up to roughly €467 million. Very nice indeed.