The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Swiss food and beverage giant Nestlé delivered an early Easter gift to investors by issuing an unexpectedly upbeat forecast of its growth prospects in 2008.

Nestlé said it expected to report “very strong organic growth” in the first quarter after a good start in January and February. Despite the increasingly gloomy economic climate, the company projects its growth over the full year to be close to the level of 2007, “and clearly above the long-term trend target of 5-6%".

Nestlé said it had pushed through price rises for its products, partially offsetting the impact of higher raw material costs, and contributing to increased revenue. The company also boosted its real internal growth (RIG) in the first two months of 2008, to achieve an “outstanding” result that will be reflected when Nestlé reports its quarterly sales on 21 April.

“The group’s organic growth is off to a very strong start in 2008,” said Peter Brabeck-Letmathe, Chairman and CEO of Nestlé. “This demonstrates the benefits of Nestlé’s strategic reorientation to nutrition, health and wellness reflected in the strong underlying momentum in our business, but also our strategy to respond immediately to exceptional cost evolutions in the commodity markets.

“We expect our raw material cost pressures to abate somewhat in the course of the year, and foresee price increases to trend lower in the second half of 2008, resulting in a full-year organic growth rate close to the level reached in 2007, clearly above our long-term target.”