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Tuesday, January 31, 2023

Nestle Reports Supply Chain Issues Amid Pandemic

The company that makes Quality Street and Lion bars has announced that it is having supply chain issues ahead of the Christmas season.

Nestle’s chief executive, Mark Schneider, told the BBC that the company was working hard to ensure that items made it to store shelves this winter.

Due to a persistent lack of HGV drivers, a variety of industries have experienced supply chain issues.

Factors such as global shipping constraints have also had a role.

“Like other businesses, we’re experiencing labor shortages and transportation problems,” he added, “but our UK team’s main focus is to work constructively with retailers to supply them.”

“We are working hard,” he said when asked whether he could ensure Quality Street will be in stores this Christmas.

Climate Change Playing A Large Role

Nestle, the company behind Aero and KitKat, is the world’s largest dairy producer, working with hundreds of thousands of farmers and millions of cows all over the world.

Chief CEO Mark Schneider was in the UK ahead of a key climate meeting in Glasgow next month to unveil a variety of non-dairy, plant-based alternatives to the company’s milk and chocolate in an attempt to significantly decrease the company’s greenhouse gas emissions.

Agriculture is responsible for 20% of global greenhouse gas emissions, with methane from spewing cows being a major source.

Nestle is also working on new forms of calf feed that create less methane per litre of milk produced, in addition to new non-dairy products.

What Does This Mean For Consumers?

Mr Schneider also conceded that it was responding to the business realities of a market that has seen customers shift away from dairy products and toward oat and soya-based alternatives, particularly among the younger and more wealthy.

“We believe that eating less meat and dairy is not only good for the environment, but it is also excellent for nutrition and health, as well as a significant business potential,” Mr Schneider added.

He predicted that these alternative goods would initially be more expensive than their dairy counterparts, but that the price would decrease with time.

“The initial unit will always be a little more expensive; this is a hurdle you must overcome, and then economies of scale will kick in at some time, making them more inexpensive, as we have seen with electric automobiles.”

“Some customers are ready to pay a premium now for items that help pave the way,” he added.

Cedric Blackwater
Cedric Blackwater
Cedric is a journalist with over a decade of experience reporting on local US news, and touching on many global topics. He is currently the lead writer for Bulletin News.

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