NESTLÉ PHILIPPINES, INC. said it may prioritize the production of basic goods if fuel supply tightens amid rising costs linked to the ongoing conflict in the Middle East.
“We have to plan and optimize what to produce, and we will prioritize basic necessities and prime commodities,” Nestlé Philippines Head of Corporate Affairs José T. Uy III said on the sidelines of a forum on Thursday.
The company, however, said it continues to have sufficient inventory and has no immediate plans to raise prices.
“Our inventories are still there. Of course, it’s not the same as the usual. That is expected because now, shipments sometimes are delayed,” he said.
“But we still have inventories that will hold up until May.”
Global oil prices have surged amid the conflict in the Middle East, with Brent crude averaging about $103.01 per barrel as of April 14.
Nestlé is among manufacturers and retailers that committed to the Department of Trade and Industry not to increase the prices of basic goods until April 30.
Mr. Uy said the company is preparing contingency plans as fuel supply risks could affect production, transport, and logistics costs.
Energy Secretary Sharon S. Garin earlier said the Philippines has enough fuel supply to last about 50 days, or until early June.
Nestlé Philippines said its factories, offices, and distribution centers are now powered by 100% renewable energy, although some operations still depend on fuel.
“But of course, to run the factories, the main lines, we need steam, and also that’s still dependent on LPG (liquefied petroleum gas). That’s why we’re launching our second biomass boiler to be less dependent,” Mr. Uy said.
Meanwhile, Nestlé Philippines Chief Executive Officer Mauricio Alarcón said geopolitical uncertainty highlights the need for sustainability investments.
“Sustainability is a business imperative — and in an uncertain world, it is one of the smartest investments we can make,” he said during the forum.
Nestlé launched its Net Zero Roadmap in 2020, targeting net-zero emissions by 2030 through supply chain reforms, including regenerative agriculture and the shift to renewable energy. — Beatriz Marie D. Cruz
