Nestlé S.A.
(French pronunciation: is one of the largest food and nutrition companies in the world,
founded and headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the
Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and
Charles Page, and the Farine Lactée Henri Nestlé Company, which was founded in 1866 by
Henri Nestlé. The company grew significantly during the First World War and following the
Second World War, eventually expanding its offerings beyond its early condensed milk and
infant formula products. Today, the company operates in 86 countries around the world and
employs nearly 283,000 people.
History
Nestlé headquarters in Vevey.
The company dates to 1867, when two separate Swiss
enterprises were founded that would later form the core of
Nestlé. In the succeeding decades the two competing
enterprises aggressively expanded their businesses
throughout Europe and the United States.
In August 1867 Charles A and George Page, two brothers from Lee County, Illinois, USA
established the Anglo-Swiss Condensed Milk Company in Cham. Their first British operation
was opened at Chippenham, Wiltshire in 1873.[2]
In September 1867, in Vevey, Henri Nestlé developed a milk-based baby food and soon began
marketing it. The following year, 1868, saw Daniel Peter begin seven years of work perfecting
his invention, the milk chocolate manufacturing process; M. Nestlé's was the crucial cooperation
M. Peter needed to solve the problem of removing all the water from the milk added to his
chocolate and thus preventing the product from developing mildew. Henri Nestlé retired in 1875,
but the company, under new ownership, retained his name as Farine Lactée Henri Nestlé.
Henri Nestlé.
In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the
Nestlé Company added condensed milk, so that the firms became direct and fierce rivals.
In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a
result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding
company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup
mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early
1900s, the company was operating factories in the United States, United Kingdom, Germany and
Spain. World War I created new demand for dairy products in the form of government contracts;
by the end of the war, Nestlé's production had more than doubled.
After the war, government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing debt.
The 1920s saw Nestlé's first expansion into new products, with chocolate the company's second
most important activity.
The logo that Nestlé's used till the 1970s.
Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in 1938
to US$6 million in 1939. Factories were established in developing countries, particularly Latin
America. Ironically, the war helped with the introduction of the company's newest product,
Nescafé("Nestlé's Coffee"), which was a staple drink of the US military. Nestlé's production and
sales rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated
and companies were acquired. In 1947 came the merger with Maggi seasonings and soups.
Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's
(1973). Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its
second venture outside the food industry by acquiring Alcon Laboratories Inc.
In 1984, Nestlé's improved bottom line allowed the company to launch a new round of
acquisitions, notably American food giant Carnation and the British confectionery company
Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestlé.
The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in
February of 2007.
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world
markets developed into more or less integrated trading areas. Since 1996 there have been
acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina
(2002). There were two major acquisitions in North America, both in 2002: in June, Nestlé
merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was
announced of Chef America, the creator of Hot Pockets. In the same time frame, Nestlé came
close to purchasing the iconic American company Hershey's, one of its fiercest confectionery
competitors, though the deal fell through. Another recent purchase included the Jenny Craig
weight loss program for US$600 million.
In December of 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In
January of 2006, it took full ownership of Dreyer's, thus becoming the world's biggest ice cream
maker with a 17.5% market share.
In November of 2006, Nestlé purchased the Medical Nutrition division of Novartis
Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as Ovaltine.
In April of 2007, returning to its roots, Nestlé bought baby-food manufacturer Gerber for $5.5
billion.
In December of 2007, Nestlé entered in a strategic partnership with a Belgian chocolate maker
Pierre Marcolini.[citation needed] Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4
January, 2010. The sale was to form part of a broader US $39.3 billion offer, by Novartis, for full
acquisition of the world’s largest eye-care company.
Products
Nestlé has 6,000 brands, with a wide range of products across a number of markets including
coffee (Nescafé), bottled water, other beverages (including Aero (chocolate) & Skinny Cow),
chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and
refrigerated foods, confectionery and pet food.
Business
Japan headquarters
The Nestlé Tower in Croydon. This serves as their headquarters in the United Kingdom.
Management
The executive board, a distinct entity from the board of directors, includes:
Peter Brabeck, Chairman of the Board of Directors, Nestlé S.A.
Paul Bulcke, Chief Executive Officer, Nestlé S.A.
Werner Bauer, Executive Vice President, Nestlé S.A., Chief Technology Officer, Head of
Innovation, Technology, Research & Development
Friz van Dijk, Executive Vice President, Nestlé S.A. Asia, Oceania, Africa, Middle East
Luis Cantarell, Executive Vice President, Nestlé S.A. United States of America, Canada,
Latin America, Caribbean
José Lopez, Executive Vice President, Nestlé S.A. Operations, GLOBE
John J. Harris, Executive Vice President, Nestlé S.A. Chairman & CEO of Nestlé Waters
Nandu Nandkishore, Executive Vice President, Nestlé S.A. CEO of Nestlé Nutrition
James Singh, Executive Vice President, Nestlé S.A. Finance and Control, Legal, IP, Tax,
Global Nestlé Business Services
Laurent Freixe, Executive Vice President, Nestlé S.A. Europe
Petraea Heynike, Executive Vice President, Nestlé S.A. Strategic Business Units,
Marketing, Sales and Nespresso
Marc Caira, Deputy Executive Vice President, Nestlé S.A. Head of Nestlé Professional
Strategic Business Division
Jean-Marc Duvoisin, Deputy Executive Vice President Nestlé S.A. Head of Human
Resources and Centre Administration
David P. Frick, Senior Vice President and ex officio Member of the Executive Board
According to a 2006 global survey of online consumers by the Reputation Institute, Nestlé has a
reputation score of 70.4 on a scale of 1–100.
Earnings
In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion.
Research and development investment was CHF 2.02 billion.
Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18%
from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet
products, 6% from pharmaceutical products and 2% from baby milks.
Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from
US), 16% from Asia, 21% from rest of the world.
Joint ventures
Nestlé holds 26.4% of the shares of L'Oréal, the world's largest company in cosmetics and
beauty. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestlé and
L'Oréal, and Galderma a joint venture in dermatology with L'Oréal. Others include Cereal
Partners Worldwide with General Mills, Beverage Partners Worldwide with Coca-Cola, and
Dairy Partners Americas with Fonterra.
Ethical and sustainable efforts
In 2000 Nestlé and other chocolate companies formed the World Cocoa Foundation. The WCF
was set up specifically to deal with issues facing cocoa farmers (disease had wiped out much of
the cocoa crop in Brazil) including ineffective farming techniques and poor environmental
management. The WCF focuses on boosting farmer income, encouraging sustainable farming
techniques and environmental and social programmes.
Nestlé is a founding participant in the International Cocoa Initiative (ICI), an independent
foundation set up in 2002 and dedicated to ending child and forced labour in cocoa growing, and
eliminating child trafficking and abusive labour practices.
In October 2009 Nestlé announced its Cocoa Plan. The company will invest CHF 110 million in
the Plan over ten years to achieve a sustainable cocoa supply. On the 23rd October 2009 Nestlé
and CNRA, the Ivorian National Centre for Plant Science Research, signed a frame agreement
for cooperation in plant science and propagation, with a target of producing 1 million high-
quality, disease-resistant cocoa plantlets a year by 2012. The aim is to replace old, less
productive trees with healthier new ones.
This is a selected list of the main brands owned by Nestlé. Brands are categorized by their
targeted markets.
Contents
Coffee:
Nescafé, Taster's Choice, Ricore, Ricoffy, Nespresso, Bonka, Zoégas, Loumidis.
Water:
Nestlé PURE LIFE, Nestlé Aquarel, Perrier, Evian, Montclair, Vittel, Contrex,
S. Pellegrino, Acqua Panna, Levissima, Vera, Viladrau, Arrowhead, Poland Spring,
Santa Maria, La Vie, Deer Park, Al Manhal, Ozarka, Hepar, Aberfoyle.
Other Beverages:
Nestea, Nesquik, Nescau, Milo, Carnation, Libby's, Caro.
Shelf Stable Dairy Products:
Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera,
Moca, Klim, Gloria, Svelty, Molico, Nestle Omega Plus, Bear Brand, Coffee-mate, LC1, Chmyto
La Laitiere, Sveltesse, Yoco.
Breakfast Cereals:
Nestlé, Nestlé Quik.
Infant Foods:
Nestlé (this includes Good Start, SMA, Follow-Up, Follow-Up Soy, Alsoy, Nursoy, Nestlé Baby Cereal),
Nan, Lactogen, Beba, Nestogen, Cérélac, Neslac, Nestum, Guigoz.
Performance Nutrition:
PowerBar.
HealthCare Nutrition:
Nutren, Peptamen, Modulen.
Culinary Products:
Maggi, Buitoni, Thomy, Winiary.
Frozen Foods:
Maggi, Buitoni, Stouffer's, Hot Pockets.
Ice Cream:
Nestlé, Frisco, Motta, Camy, Savory, Peters, Haagen Dasz, Movenpick.
Refridgerated Products:
Nestlé, Buitoni, Herta, Toll House.
Chocolate, Confectionary, and Biscuits:
Nestlé, Crunch, Cailler, Galak/Milkybar, KitKat, Quality Street, Smarties, Baci, After Eight, Baby Ruth,
Butterfinger, Lion, Aero, Polo, Frutips.
Food Services and Professional Products:
Chef, Davigel, Minor's, Santa Rica.
Pet Care:
Friskies, Fancy Feast, Alpo, Mighty Dog ,Gourmet, Mon Petit, Felix, Purina Dog Chow,
Pro Plan, ONE, Beneful, Tidy Cats.
Pharmaceutical Products:
Alcon, Galderma.
Cosmetics:
L'Oreal, Laboratoires Innéov, Maybelline, Garnier, Lancome, Biotherm, Ralph, Lauren, Giorgio Armani,
Guy Laroche, Matrix, Redken.
Nestle India has made Bollywood actoress Deepika Padukone as the brand ambassador for coffee brand
Nescafe.
"Good food, Good life/Makes The Very Best"
