Nestle may follow Unilever into Brexit price war

Swiss food distributor Nestle has hinted that it may follow in the footsteps of Unilever in raising its prices in the United Kingdom as a result of the collapse of the pound.

Nestle is one of the biggest producers of food products throughout the world and counts on such brands as KitKat, Nescafe and Shredded Wheat.

Rival Unilever increased the prices of all of its products in Britain following a dramatic drop in the value of its currency, which led to a dispute with supermarket chain Tesco, who decided not to sell the company's items.

Chief executive Paul Bulcke said Nestle was considering "all options" when asked about the possibility of a price rise.

"Let's first let the dust settle," Bulcke told a press conference on Thursday.

The company said on Thursday it was dampening its outlook for its full year sales growth. It had initially predicted a 4.2% gain but that has been replaced by a gain of 3.5%.

Shares in Nestle dropped 1.5% in early trading on Thursday.

Britain's retailers have come under pressure following the vote to leave the European Union in June and subsequent economic difficulties. Price wars and an increase in import costs have particularly affected them.