Nestlé has posted organic sales growth of 8.5% for the first nine months, driven by price hikes aimed at offsetting cost inflation.

The packaged food giant recorded sales of CHF 69.13 billion ($69 billion approx.) and raised its full-year guidance, saying it now expects organic growth of “around 8%,” up from its previous forecast of a 7-8% increase.

Volumes remained resilient this year, while higher pricing accounted for the majority of the organic sales increase.

“We delivered strong organic growth as we continued to adjust prices responsibly to reflect inflation,” said Nestlé CEO, Mark Schneider. 

“The challenging economic environment is a concern for many people and is impacting their purchasing power. That’s why we aim to keep products affordable and accessible while considering the interests of all our stakeholders.” 

He added: “Our real internal growth remained resilient despite a high base of comparison and continued supply chain constraints, with limited demand elasticity.”

In the first nine months, Nestlé reported high-single-digit sales growth for its coffee business, and the company has also announced plans today to acquire the Seattle’s Best Coffee brand from Starbucks, further expanding its position in the category in North America.

Seattle’s Best Coffee offers whole bean and ground packaged coffee, as well as K-Cup pods, available across the foodservice and grocery channels. 

Under the Global Coffee Alliance, Nestlé distributes Starbucks consumer products and foodservice beverages across more than 80 markets. Nestlé says that the deal for Seattle’s Best will strengthen the alliance “by allowing both companies to focus on their core strengths”.

The transaction is expected to close by the end of 2022, subject to board and regulatory approvals. Terms of the deal have not been disclosed.