Consumer goods producer Nestlé benefited in the first quarter from consumer hoarding behavior, particularly in Europe and the United States. For example, the company sold more ready-to-eat meals, dog and cat food and coffee drinks. The sales of ice cream and sweets were disappointing. Sales in China were also disappointing due to lockdowns and travel restrictions. Nestlé also noticed that due to the crisis, more consumers made their purchases online. This was noticeable in the shops of coffee brand Nespresso, for example. For the first time, Nestlé generated more than a tenth of its sales from online sales. Lockdowns also caused the sale of products in the hospitality industry, which is closed in many countries, to favor products that people can consume at home. Nestlé saw sales in the first three months amount to Swiss Francs 20.8 billion, or approximately 19.8 billion Euros. This was lower than in the same period a year earlier, due to the divestment of a number of business units. On a comparable basis, sales increased by 4.3 percent. Nestlé further announced its look at strategic options for its Yinlu brand in China. Under that name, the company sells canned peanut milk and rice pudding. Nestlé has decided to keep and further develop its Nescafé coffee drink branch.
