Nestle Is Not Immune to Inflationary Pressures, but Wide Moat Supports Best-in-Class Performance

Although Nestle's performance during the pandemic has been nothing short of stellar, we believe the main drivers of this outperformance have benefited from pandemic-led lockdowns--millions of households have adopted pets, and consumption of coffee at home has been boosted by work-from-home trends. While we don't expect a reversal of these trends in the future, we do expect outperformance to be less pronounced in the years ahead. We expect organic growth to slow below 4% by the end of our explicit forecast period.