Nestle Malaysia promises to keep product prices affordable

Managing director Alois Hofbauer said the food giant would strive to keep prices stable or increase them by an absolute minimal amount if there were no other option available.
“For the past two years, the prices of our products have been stable as we work on internal efficiencies and avoid wastage to ensure we produce in the most cost effective and efficient way,” he told the Bernama news agency in an interview recently.
Hofbauer said the Nestle group had economies of scale in bulk purchasing and had the tools to manage prices of raw materials and finances through hedging.
“We do hedge from a period ranging from one month to 12 months,” he said.
He said the raw materials used for Nestle Malaysia’s production facilities included imported materials such as milk powder, coffee and cocoa.
He said Nestle Malaysia paid attention to quality products through substantial investment in technology, innovation and human resources at its production facilities in Malaysia.
Hofbauer disclosed that about 25 per cent of the products manufactured at Nestle’s production facilities in Malaysia were exported.
“We are not always the cheapest but you can trust that in terms of quality, health and nutrition, our products are the best in the market,” he said, noting that the sugar and salt content in best-selling products such as Milo and Maggi Noodles had been reduced substantially.
As for the group’s e-commerce business, he said Nestle Malaysia was aiming to provide another avenue for consumers to source products through the online platform, which could provide them with a convenient shopping experience.
Nestle Malaysia recently launched its e-commerce campaign by establishing partnerships with online retailers, Lazada and 11street.
“We want to ensure that price is competitive for both online and retail stores. 
Price should not be the ultimate reason why you go online and there would always be promotional marketing features that determine price,” he said.