Switzerland-based Nestlé reported better-than-expected sales growth in the first three months of the year. The quarter saw sales increase by 5.6% to 23.5 billion Swiss francs (€24 billion).

The rise in sales was exclusively driven by price as volume of product sold actually decreased slightly during the period. The company’s sales performance was also hit by the stronger Swiss franc against the euro and Asian currencies.

Mark Schneider, Nestlé CEO, said that “portfolio optimization efforts and responsible pricing helped to offset the ongoing pressures from two years of cost inflation.”

By product, Nestlé’s infant nutrition continued to show strong growth across numerous markets, with the products the largest contributor to sales growth in China. As one of the world’s major branded-product makers, with names such as Nespresso, KitKat and Perrier part of its vast range, Nestlé is particulalry at risk from consumers trading down to cheaper own-label supermarket brands.

Data from grocery survey company Kantar has shown that trend is becoming increasingly pronounced in Ireland, with own-brand label consistently the fastest growing sector in recent months as grocery inflation hits regular record highs.

That trend was also seen in the first-quarter sales report from P&G, maker of Pampers nappies and Gillette razors, which showed a 10% increase in average prices across its categories but a 3% decline in volumes sold.

The decline in volumes point to major brands losing market share, meaning those companies will probably be keen to ?t prices as soon as possible.