Kit Kat owner Nestlé has increased its annual organic sales growth as it looks to “explore strategic options” for its peanut allergy treatment, Palforzia.
Ahead of an investor meeting today (29 November), the FMCG giant boosted its annual sales outlook to between eight and 8.5%, which previously sat at an 8% projection in October.
This comes as the food company could be divesting Palforzia, which was acquired for over £2 billion in 2020, due to “slower than expected adoptions from patients and healthcare professionals,” Nestlé said, as reported by The Financial Times.
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A review is set to be completed within the first half of next year on the tratment aimed at consumers aged four to 17 who have confirmed peanut allergies.
Chief executive Mark Schneider told investors that Palforzia now appears to be a niche therapy as Nestlé’s health science division is focusing on medical nutrition and consumer products.
This comes as Nestlé reported its strongest sales growth in 14 years last month, as consumers continue to buy products from brands such as KitKat and Perrier, despite a 7.5% increase in prices.
Speaking of price rises, Schneider said: “We delivered strong organic growth as we continued to adjust prices responsibly to reflect inflation,” adding “we aim to keep products affordable and accessible while considering the interests of all our stakeholders.”
