• Nestle and other major packaged food companies are reducing prices in the U.S. to retain customers amid rising inflation and competition from private-label brands. Nestle's CEO noted that consumer confidence is declining, prompting the company to cut prices by 1% in response to shifting consumer behavior towards more affordable options. This strategic move aims to prevent further loss of market share to cheaper store brands, which have been gaining traction during economic uncertainty.

• The broader industry is witnessing a shift as consumers increasingly favor private-label products over established brands due to price disparities. Data indicates that private-label goods are growing four times faster than national brands in the U.S. This trend poses significant challenges for companies like Nestle and Unilever, which must navigate a competitive landscape while managing the impact of tariffs and inflation on their pricing strategies.