NESTLÉ PHILIPPINES, INC. said it could prioritize the production of basic goods if fuel supply tightens amid rising costs linked to the continuing conflict within the Middle East.
“We now have to plan and optimize what to provide, and we’ll 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 corporate, nevertheless, said it continues to have sufficient inventory and has no immediate plans to boost prices.
“Our inventories are still there. In fact, it’s not the identical as the standard. That is predicted because now, shipments sometimes are delayed,” he said.
“But we still have inventories that can delay until May.”
Global oil prices have surged amid the conflict within the Middle East, with Brent crude averaging about $103.01 per barrel as of April 14.
Nestlé is amongst manufacturers and retailers that committed to the Department of Trade and Industry not to extend the costs of basic goods until April 30.
Mr. Uy said the corporate 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 actually powered by 100% renewable energy, although some operations still depend upon fuel.
“But after all, to run the factories, the primary lines, we want steam, and in addition that’s still depending 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 necessity for sustainability investments.
“Sustainability is a business imperative — and in an uncertain world, it’s one in all the neatest investments we are able to make,” he said in the course of the forum.
Nestlé launched its Net Zero Roadmap in 2020, targeting net-zero emissions by 2050 through supply chain reforms, including regenerative agriculture and the shift to renewable energy. — Beatriz Marie D. Cruz