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Nestle threatens Brexit price hike for UK's favourite sweets and cereals due to falling pound

First the misery of Marmitegate, now Kit Kats could be about to rocket in price, potentially becoming the next casualty of Brexit.

And that’s not all: Swiss manufacturer Nestle has warned that Nescafe, Shredded Wheat and several of its other brands may also go up in price, thanks to the pound’s falling value.

This comes in the wake of Marmite manufacturer Unilever’s bust up with Tesco after the brand threatened to lift its products’ prices - and the supermarket giant refused to play ball.

Just as the British public was reaching for the Bovril in desperation, a compromise was reached, allowing Unilever products to remain on Tesco’s shelves.

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My mate Marmite: available at a Tesco store near you  (Flickr/Dominika Komender)

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Dark days: Marmitegate resulted in stock shortages (SWNS) 

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Back where it belongs: Tesco’s shelves are having with Marmite once more (SWNS) 

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It’s not yet clear if this Kit Kat catastrophe will reach such a happy conclusion, however.

Nestle has said that the weak pound has posed a problem when importing cocoa and coffee from overseas, and increased prices may be a necessary consequence of this.

Nestle Chief Executive Paul Bulcke said: “The pound is going south and that is going to have some effect on certain imports and you cannot defy gravity.

"But I don’t say … our costs go up 1 per cent – bang, we pass that straight on to the consumer – they would punish you.”

Other brands made by Nestle in its 13 UK factories include Aero, Lion, Munchies, Milkybar, Polo, Rolo, Smarties, Yorkie, Blue Riband, Breakaway, Drifter, Toffee Crisp, After Eight, Dairy Box, Quality Street, Carnation evaporated milk, Nesquick, Purina petcare products and a range of cereals including Cheerios, Shreddies and Shredded Wheat. 

The UK is Nestle’s fifth-biggest market, representing 3 per cent of total sales, and the company said it was exploring other ways of taking the edge off financially besides increasing prices.

Little did any of the chocolate-loving Leave voters know back in June that the consequences of their actions would be so far-reaching.

Image: Flickr/Howard Lake