Nestlé faces another consumer problem this year, this time, it's linked to the upcoming US presidential election.
The company specifically revealed that US voters experiencing anxiety in the election about to take place next month is affecting consumer demand. With just a few weeks to go, there is currently a tight race between VP Kamala Harris and Donald Trump. Shoppers are especially uncertain about the results, which also negatively impacts spending habits.
CFO Anna Manz, noted that there has been a slowdown in sales in the US, particularly in the pet care sector, per Reuters. But this is not the first time shoppers gave Nestlé a blow. Earlier this year, VCPost learned that the company had to cut down its sales forecast after their price hikes were protested by shoppers.
Nestlé Sales Due to Upcoming US Elections
The company, known for Nescafé and Kit Kat, reported a 0.3% drop in organic sales around North America alone. This was recorded over the past nine months and is converted into $21.42 billion.
To clarify, pet care has been performing well ever since the pandemic, after more people adopted pets. But the current work and inflation climate is causing consumers to rethink their pet decisions, which was worsened by concerns about who will win the US presidential elections in November.
Swiss Info shared that this case is leading consumers to be more cautious, like opting for cheaper product alternatives instead of premium brands.
With a decline in the full-year sales outlook, the company will now consider changes necessary to its current operating structure and senior leadership.
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