Nestle: No increase in prices of products

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KUALA LUMPUR: Nestle (Malaysia) Bhd will not increase the prices of products following the introduction of the excise tax on sugary beverages, as the impact on its business was very minor.

“Although, we have a small product range of ready-to-drink and coffee being impacted, it is very limited and manageable.

“We are not increasing the price at this stage. We will find a way to absorb the impact,” chief executive officer Juan Aranols told the media at the company’s open house here today.

He, however said, the prices of the products would be higher if there is a rise in raw material prices.

“But, as of today, and over the next few months, we do not see any significant price increase for our products,” he added.

He said Nestle had been working for many years to make its products better from the nutritional point of view.

On July 1, the government imposed a new sugar tax, an excise duty of 40 sen per litre  imposed on sweetened beverages containing more than five grams of sugar or sugar-based sweetener per 100 ml.

It will also be imposed on carbonated, flavoured and other non-alcoholic beverages.

The government said this was a step towards addressing the problem of obesity in Malaysia. - Bernama