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2013 EAR CSV Report

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1 Nestlé Equatorial African Region | Creating Shared Value | Message from the Region Head ................................................................................. 2 Nestlé - from Switzerland to Equatorial Africa ............................................................ 3 Nestlé EAR - At a Glance ............................................................................................ 4 Our Footprint ............................................................................................................. 5 Creating Shared Value - Our Path Forward ................................................................. 6 Nestlé in Society......................................................................................................... 7 Rural Development .................................................................................................... 8 Water ........................................................................................................................ 20 Nutrition .................................................................................................................... 24 Environment .............................................................................................................. 34 Occupational Health and Safety ................................................................................. 36 Nestlé in the Community ........................................................................................... 38 Nestlé and its International Commitments .................................................................. 50 Our Contacts ............................................................................................................. 52 Table of Contents
Transcript
Page 1: 2013 EAR CSV Report

1Nestlé Equatorial African Region | Creating Shared Value |

Message from the Region Head ................................................................................. 2

Nestlé - from Switzerland to Equatorial Africa ............................................................ 3

Nestlé EAR - At a Glance ............................................................................................ 4

Our Footprint ............................................................................................................. 5

Creating Shared Value - Our Path Forward ................................................................. 6

Nestlé in Society ......................................................................................................... 7

Rural Development .................................................................................................... 8

Water ........................................................................................................................ 20

Nutrition .................................................................................................................... 24

Environment .............................................................................................................. 34

Occupational Health and Safety ................................................................................. 36

Nestlé in the Community ........................................................................................... 38

Nestlé and its International Commitments .................................................................. 50

Our Contacts ............................................................................................................. 52

Table of Contents

Page 2: 2013 EAR CSV Report

2 | Creating Shared Value | Nestlé Equatorial African Region

Welcome to the first issue of the Creating Shared Value Report for Nestlé

Equatorial African Region.

Creating Shared Value (CSV) begins with the understanding that for our business

to thrive over the long term, the communities we serve must also prosper. It

explains how businesses can create competitive advantage, which in turn will

deliver better returns for shareholders, through actions that substantially address

a social or environmental challenge. Specifically, business will flourish and society

will benefit if products and services meet societal needs, resources are used more

efficiently across the entire value chain and conditions are improved for local

economic and social development.

In the past, corporate investment in community and environmental initiatives

were often seen as ‘obligations’ or simply philanthropy: added costs that had to

be borne to minimise operational risks and protect reputation. Creating Shared

Value redefines many of these obligations as opportunities to strengthen the

business long-term – adding value for shareholders and our stakeholders. Our

commitment to CSV marks us out as a company that systematically takes action

to produce value for the business, consumers, employees and suppliers, as well

as their families and communities.

We have analysed our value chain and determined that the areas of greatest

potential for joint value optimization with society are Nutrition, Water and Rural

Development – as these are core to our business activities. As a responsible global

corporation, Nestlé seeks financial returns, while also working towards social

and environmental gains. Thus, we have implemented several projects which

have added value to society directly and indirectly - by providing healthy, tasty

and nutritious products to our consumers, participating in sustainable rural

development, promoting health and nutrition awareness, and last but not least

ensuring that all our efforts meet environmental preservation requirements.

Nestlé Equatorial African Region (EAR) was formed in 2008 and now operates

in 21 countries. The way we do business is guided by complying with laws and

basic business principles, acting in an environmentally sustainable manner and

Creating Shared Value for our shareholders and society.

As you turn the pages of this report, we invite you to discover our diverse

CSV projects which are building sustainable communities across this region.

Ian J. Donald

Region Head and Chief Executive Officer

Nestlé Equatorial African Region Ltd.

"It is our strong conviction that we are here to make a difference and to do what is

best for the communities in which we operate."

Message from the Region Head

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3Nestlé Equatorial African Region | Creating Shared Value |

Nestlé - from Switzerland to Equatorial Africa

Henri Nestlé

The story began in Vevey, Switzerland in 1867, when

founder Henri Nestlé created the first infant food

upon realizing the need for a healthy and economical

product to serve as an alternative for mothers who

could not breastfeed their babies.

Today, Nestlé is the world’s largest nutrition,

health and wellness company with sales over

CHF 92 billion, 330,000 employees worldwide

and 443 factories present in 81 countries.

Nestlé came to Africa towards the end of the

19th century and established its industrial

presence in 1927 when the company opened

its first factory in South Africa.

Nestlé currently operates 29 factories on the

African continent and provides direct employment

to approximately 15,000 people and indirect

employment to more than 50,000. Nestlé products are

sold in all the 54 countries across the African Continent.

We have organized our presence in Africa into

regions: Maghreb, Central & West Africa, North

Eastern Africa, Southern Africa and Equatorial Africa.

Created in 2008, Nestlé Equatorial African Region

(EAR) was the latest structure of the group with the

headquarters in Kenya.

SEYCHELLES

Page 4: 2013 EAR CSV Report

4 | Creating Shared Value | Nestlé Equatorial African Region

People in the region:

450 million

21 Countries

10 RegisteredCompanies

Nestlé EAR Limited branches in 5 Countries

1000+ Employees

4 Factories

CHF 150 millionInvestment Announced

in 2010

HeadquartersNairobi

Nestlé EARAt a Glance

Page 5: 2013 EAR CSV Report

5Nestlé Equatorial African Region | Creating Shared Value |

Our Footprint"In this century, we expect African markets to offer additional economic opportunities, as we expand operations, introduce new products and

increase market share. This continued success translates to growth and opportunity for people and communities across the continent."

Peter Brabeck-Letmathe, Chairman, Nestlé S.A.

Nestlé Equatorial African Region Ltd. (EAR) is a wholly owned subsidiary of Nestlé S.A. in Vevey, Switzerland - the world’s largest nutrition, health and wellness company.

EAR was set up in April 2008 and oversees the Nestlé operations in 21 countries: Kenya, Angola, Burundi, Comoros, Democratic Republic of Congo (DRC), Djibouti, Eritrea,

Ethiopia, Madagascar, Mauritius, Mozambique, Malawi, Republic of Congo, Rwanda, Seychelles, Somalia, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

Nestlé EAR facts

Permanent staff: Over 1000 throughout the region

Four factories: Angola, Kenya, Zimbabwe and the DRC

Clusters:

SOUTHERN CLUSTER EAST AFRICAN CLUSTER INDIAN OCEAN ISLANDS CLUSTER OTHER CLUSTERS

Zimbabwe ZambiaTanzania Kenya Rwanda

Madagascar Comoros AngolaBurundi Somalia Uganda

MalawiDjibouti Eritrea Ethiopia

Seychelles Mauritius MozambiqueSouth Sudan

Ongoing developments: Expansion and modernization of factories in Kenya and Zimbabwe

Main brands sold in the region:

NESCAFÉ®, MILO®, NIDO®, CEREVITA®, NAN®, CERELAC®, MAGGI®, KITKAT®, CREMORA®, MOÇA®, RICOFFY®, NESQUIK®

DRC & Republic of Congo

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6 | Creating Shared Value | Nestlé Equatorial African Region

Helping improveyields, incomes

and quality of life

Value for Society

Encouragingresponsible

practices amongsuppliers

Value for Nestlé

Securing suppliesof high-quality raw ingredients

Promoting moresustainable

methods in thesupply chain

Agriculture and rural development

Farmers andcommunities

Supplier standards

Value for Society

Conservingnatural

resources

Providing jobopportunities in safe, high quality

workplaces

Value for Nestlé

Loweringmanufacturing

and distribution costs

Helping employeesreach their

potential

Environment, manufacturing and people

Food and beverageproducts

Workforcedevelopment

Value for Society

Widening access to nutritional

products consumers prefer

Generating localinvestment for

economic growth

Value for Nestlé

Building brandsand entering new markets

Achievingcompetitive

shareholder returns

Products and consumers

Responsiblemarketing

Sales and growth

Creating Shared ValueOur Path Forward

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7Nestlé Equatorial African Region | Creating Shared Value |

Nestlé inSociety

For a company to be successful in the long term and create value for its shareholders,

it must also create value for society. We call this Creating Shared Value (CSV).

It encourages businesses to create economic and social value simultaneously by

focusing on the social issues that they are uniquely capable of addressing.

In 2006, Nestlé became the first organisation to adopt this approach, but our

history of working together with society stems back to our roots. For maximum

impact, Nestlé has focused its CSV efforts and investments on three areas

- nutrition, water and rural development - as these are core to our business

activities and vital for our value chain.

CSV builds on a strong base of performance in environmental sustainability and

compliance, as illustrated in the Nestlé in Society Pyramid above. In addition,

we recognise the vital role of our people and the importance of engaging and

collaborating with other organisations.

CreatingSharedValue

nutrition, water,rural development

EnvironmentalSustainabilityprotect the future

Compliancelaws, business principles, codes of conduct

Page 8: 2013 EAR CSV Report

8 | Creating Shared Value | Nestlé Equatorial African Region

Rural Development

Page 9: 2013 EAR CSV Report

Rural Development

9Nestlé Equatorial African Region | Creating Shared Value |

Agriculture is one of the main pillars of Africa’s economy. About 70% of

the population lives in rural areas (World Bank, 2010) and mainly in extreme

poverty. Most rely on agriculture as their main source of income. Enhancing rural

development is therefore fundamental in EAR to eradicate hunger and poverty,

while attaining the Millennium Development Goals (MDGs).

Increased global awareness around rural development as one of the key elements

to address poverty and hunger in rural areas has led to many initiatives being

implemented by the NGOs (non-governmental organizations), government and

the private sector.

True to its commitment towards the MDGs, Nestlé has made rural development

one of its CSV key focus areas. With our CSV projects we aim at building a

better society by providing technical assistance and advice to farmers on yield

improvement, higher quality crops and the optimal use of resources. At Nestlé,

we believe that increasing income of the farmers through creating employment

and economic development opportunities, are the right tools to eradicate poverty

and hunger.

Page 10: 2013 EAR CSV Report

East Africa DairyDevelopment Project - Kenya

10 | Creating Shared Value | Nestlé Equatorial African Region

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11Nestlé Equatorial African Region | Creating Shared Value |

Rural Development

The East Africa Dairy Development Project (EADD) is a regional industry development

program implemented by Heifer International. The project is funded by the Bill &

Melinda Gates Foundation as part of an agricultural development grant that aims

to impact the lives of 179,000 families - or approximately one million people - by

doubling household dairy income by the 10th year through integrated intervention in

dairy production, market access and knowledge application.

Nestlé has been participating in this project since 2009 with two specific objectives:

(i) to put our expertise at the service of the dairy community and

(ii) to establish a sustainable long term procurement line of milk powder

Under the EADD program, Nestlé is developing a ‘model milk village’ in Kabiyet

(Western Kenya) impacting more than 6000 farming families. Through technical

assistance, Nestlé Kenya is working with the entire value chain to establish best

dairy practices. This intervention is allowing farmers to improve the quality of

their fresh milk thereby enhancing their livelihoods.

In addition, a comprehensive approach to community engagement has been

adopted in Kabiyet which is in line with our focus on rural development.

Specific initiatives are: Women empowerment by providing alternative sources

of income (poultry farming) and environmentally friendly sources of energy for

cooking and lighting (biogas).

Armed with this experience, Nestlé would like to extend this initiative to other

dairy co-operatives across Kenya.

"Thanks to Nestlé and EADD, I have benefited from training on how to produce clean and hygienic milk and to produce high quality feeds for my cows. Now I can get 8 litres of

milk per cow whereas before I was getting only 5 litres per cow."

Aziz Kosgei, Dairy Farmer

"I am working for the improvement of quality & quantity of the fresh milk throughout the value chain."

Tahir Mahmood, Agronomist at Nestlé Kenya

"Nestlé’s intervention has allowed us to improve our milk quality which makes our business sustainable. The partnership has made farmers, the board of directors and the staff view the dairy farming and dairy operations as a significant source of income and prosperity."

Abraham Rugut, Chairman of Kabiyet Dairy Ltd.

Page 12: 2013 EAR CSV Report

12 | Creating Shared Value | Nestlé Equatorial African Region

National Dairy Empowerment Scheme - Zimbabwe

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13Nestlé Equatorial African Region | Creating Shared Value |

Rural Development

In order to boost milk production and meet the growing demand in the country,

Nestlé in 2011 launched a scheme in Zimbabwe with two distinct dairy projects.

The first project is aimed at assisting Nestlé contracted farmers to increase the

quantity and quality of their fresh milk. A gap analysis was undertaken and

farmers are now being supported in addressing those gaps. This takes the form

of technical assistance, infrastructural investments as well as identification and

acquisition of good breed heifers for them.

The second project is a rural development project which encourages communities

and educational institutions to take up dairy farming as a means of sustaining

their livelihoods. Heifers are distributed to beneficiaries, the value of which

they pay in installments. This scheme is backed by mandatory training on good

farming practices.

The project includes a women empowerment component and already the Zimbabwe

Women Land and Agricultural Trust has benefited from Nestlé’s assistance. Over

a period of 10 years, 4000 cows will be distributed to approved beneficiaries.

"I cannot believe that the day has finally come for my organization to benefit from this scheme. I met people from Nestlé at a conference in Malawi and after several meetings

it was finally agreed that our two organisations would partner in empowerment of women farmers through the Nestlé Dairy Empowerment Scheme."

Ms. Mazhawidza, Director of the Zimbabwe Women Land and Agriculture Trust

"We hope this programme carries on for a long time and that more farmers will be included to boost the dairy industry in Zimbabwe." Alester Ziyanga, large scale commercial dairy farmer

"I am challenging Nestlé to incorporate more young dairy farmers into this scheme, so that there will be institutional memory in as far as dairy production is concerned." Dakarai Mapuranga, small scale commercial dairy farmer

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14 | Creating Shared Value | Nestlé Equatorial African Region

Coffee Sain Project - Tanzania and Uganda

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15Nestlé Equatorial African Region | Creating Shared Value |

Rural Development

It is a well-known fact that the Equatorial African Region produces some of the

best coffees in the world. Consequently, Nestlé is playing its role in assisting

coffee farming communities to enhance the quality of their production and, as a

result, to elevate their living standards.

As a sign of commitment, Nestlé has sponsored two scientists from the Tanzania

Coffee Research Institute (TaCRI) and the Uganda Coffee Development Authority

(UCDA) for a one-year scholarship to study somatic embryogenesis in Nestlé’s

Research and Development centre in Tours, France.

Somatic Embryogenesis (SE) is a highly efficient propagation technique. It is a

substitute to the traditional vegetative propagation method. Applying the SE

technique will help Uganda and Tanzania to propagate improved Robusta and

Arabica varieties that are more resistant to diseases and of better cup quality

profile. The plan aims at assisting the Ugandan and Tanzanian coffee farming

communities achieve better quality beans within a shorter growing period, thus

also allowing higher yearly overall crop output, with related revenue increase.

"At a time when farmers are hungry for more clones of improved disease resistant coffee hybrids, while the efforts made by TaCRI (Tanzania Coffee Research Institute) to meet

this demand in vain, a good friend appeared to assist at a very critical point. The options of conventional vegetative propagation are time consuming and limited in capacity of

seedlings that can be produced. It is true that somatic embryogenesis is the fastest and most efficient way to produce clones, but is also initially expensive. Here is where we

received the much needed assistance. Thank you, Nestlé."

Damian Mtenga, Tanzania Coffee Research Institute

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16 | Creating Shared Value | Nestlé Equatorial African Region

The Nescafé Plan - Kenya

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17Nestlé Equatorial African Region | Creating Shared Value |

Rural Development

"A timely resuscitation plan to the coffee farmers at a time

when production was at its lowest and consumption is rising.

Farmers are experiencing increased productivity and are

largely benefiting from the initiative."

Peter Kimata, Project Manager, CMS Ltd.

"Since the project began, I have seen great improvement

in the output of my coffee beans and with support from the

agronomist provided by the Nescafé Plan."

John Mwangi Maina, Farmer

"Nescafé is the world’s leading coffee brand. As a leader we

have the responsibility to continue to supply good quality

coffee to consumers, while ensuring that coffee farming

remains attractive for farmers and is sustainable across

the value chain. If we want to be successful in the long term

we need to create value for our shareholders as well as the

communities in which we operate, this is Creating Shared

Value for us." Ian J. Donald, CEO and Head, Nestlé EAR

The Nescafé Plan is a global initiative by Nestlé S.A. which brings under one umbrella the company’s

commitment on coffee farming, production and consumption which will help Nestlé further optimize

its coffee supply chain. Nestlé will be investing CHF 350 million globally in support of the Nescafé Plan

project over a 10 year period (2011-2020).

To start the roll out of the Nescafé Plan in Kenya, Nestlé has entered into a partnership with

Coffee Management Services (CMS) Ltd, to implement the project which will initially run for 3 years.

The project targets 9 farmers co-operatives societies with 27 wet mills and over 26000 farming

households in different coffee growing zones. Nestlé is assisting coffee farmers in the region to improve

their agricultural practices as demand for Nescafé grows in the region. Nestlé has been buying coffee

from Kenya for over 30 years.

Through this initiative Nestlé aims to work with Kenyan coffee farmers on 3 crucial aspects:

• Farmers connect: which is designed to improve quality, ensure stable production and increase farmer revenue

• Nescafé better farming practices: which aims at reducing coffee farming footprint, increase yields on existing land and increase farmers' income

• Nescafé Plan expertise and provision: which is designed to provide farmers with elite varieties

The objective is to adhere to the Common Code for the Coffee Community (4C) which is the baseline

sustainability criteria in the coffee sector. Nestlé and its local partner CMS Ltd, have recently launched a

project for improving opportunities for women and youth in coffee farming.

Page 18: 2013 EAR CSV Report

My Own Business - KenyaCreating Entrepreneurs

18 | Creating Shared Value | Nestlé Equatorial African Region

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19Nestlé Equatorial African Region | Creating Shared Value |

Rural Development

Nestlé has launched a new programme to encourage entrepreneurship in Kenya.

The ‘My Own Business’ (MYOWBU) initiative is led by Nestlé Professional, the

business unit that supplies food and beverage solutions to the out-of-home industry,

such as hotels, restaurants, catering units, offices and consumers on-the-go.

This programme creates job opportunities for youth and women while promoting

the Nescafé brand in busy public areas in Nairobi. The initiative encourages

entrepreneurial spirit amongst local communities, while allowing Nestlé to get

closer to its consumers.

Training and development

MYOWBU gives operators the tools and expertise to run their own enterprise. They

are given training on sales, management, hygiene standards, safety requirements

and quality levels.

More than 50 street sellers from neighbouring communities have been provided

employment opportunities by existing local food operators. These operators

organize daily vending locations, set targets and working hours, manage

payments, ensure product safety and maintain equipment.

Since its roll out in mid 2012, the programme has seen success with the operators

exceeding their daily targets by more than 30% on average.

Following the success of its first implementation, Nestlé aims to introduce the

projects not only on a country-wide scale, but a regional scale extending to

Congo, Ethiopia, Angola and Mozambique.

Page 20: 2013 EAR CSV Report

20 | Creating Shared Value | Nestlé Equatorial African Region

Water

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21Nestlé Equatorial African Region | Creating Shared Value |

Water

At the current rate, the overuse of freshwater will severely slow down economic

development. Worse, it will be the cause of massive food shortages within the next

15 to 20 years. Aggravating the problem will be a further 2.3 billion people on the

planet by 2050, adding to existing demands for food and energy, which both

critically depend on freshwater.

Water is a local issue. But the effects of local shortages quickly become global

issues in today’s interlinked economies. While we can have an impact through our

own operations, a truly sustainable solution can only come from a collaborative

response from multiple stakeholders; so we are actively promoting global dialogue

on water while also engaging in direct actions locally in our own right.

At Nestlé, our commitment in water use and stewardship, first announced in

2006, is our key to driving water performance through our operations, supply

chain and within communities. Our commitment for environment sustainability

and CSV impacts both our company and society.

The values for Nestlé are:

1) continuously improving the environmental performance

2) efficient operations; reduced impacts

3) natural resource and cost savings

4) long term availability of raw materials and water; sustainable and profitable

growth

For society, we want to raise environmental standards, to generate higher incomes

and better standards of living, to improve food security, and to reduce the waste

of water.

"Water is a natural resource which is taken for granted by many communities who consider it infinite; the current rate of pollution will render this precious commodity

objectionable and harmful. We are all responsible for its protection at all cost." Professor Ratemo W. Michieka, University of Nairobi, Kenya

Page 22: 2013 EAR CSV Report

22 | Creating Shared Value | Nestlé Equatorial African Region

Community Water Projects - Kenya

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23Nestlé Equatorial African Region | Creating Shared Value |

Water

Access to clean drinking water is a major concern for communities in which we

operate. In Kenya, Nestlé has kick-started its water initiative in Kabiyet-Central

Rift Valley, with the establishment of its model dairy village.

Nestlé has constructed a clean drinking water facility in Tegeiyat Primary School

that caters for 130 families and 400 children in ensuring all year access to safe

drinking water. Prior to this initiative, people in the area needed to walk for

3kms. to access drinking water.

In Ngomeni-Eastern Kenya, Nestlé’s financial contribution for a water project

will assist communities to harness reliable water resources for domestic and

agricultural use. This is an important step to contain the spread of water borne

diseases and to improve food security in the area.

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24 | Creating Shared Value | Nestlé Equatorial African Region

Nutrition

Page 25: 2013 EAR CSV Report

Nutrition

25Nestlé Equatorial African Region | Creating Shared Value |

Declining food security and nutrition in Africa continues to present a very

worrisome picture with the latest data showing striking disparities across the

board. The prevalence of underweight ranges from 6% in Northern Africa to

35% in Eastern Africa. The continent is home to 300 million people who are

under nourished, representing about 30% of the population. Sub-Saharan Africa

is the most affected sub-region, where stunting is particularly high, alongside the

increasing deficiencies of essential micronutrients.*

Fortunately, there has been a significant, even seismic shift, in moving nutrition

up the development agenda. Governments and NGOs, together with the private

sector are making deliberate efforts in reversing decades of under investment in

nutrition. As the world’s leading nutrition, health and wellness company providing

Good Food, Good Life to consumers anytime, anywhere, Nestlé recognises the

significance of global micronutrient deficiencies and the unique role it can play in

the fight against malnutrition and obesity.

* Source: UNICEF

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26 | Creating Shared Value | Nestlé Equatorial African Region

Healthy Kids Global Programme

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27Nestlé Equatorial African Region | Creating Shared Value |

The objective of the Nestlé Healthy Kids Global Programme is to raise nutrition,

health and wellness awareness of school age children around the world.

Healthy Kids Programmes (HKP) are based on multi-partnership approaches,

targeting children between the ages of 6-16. They are designed and implemented

in collaboration with national health authorities, child nutrition experts and/or

education authorities and health experts. The programs must fulfill stringent

criteria and vary as each country circumstances are taken into account.

Nestlé globally works together with over 250 other organisations such as;

NGOs, nutrition institutes, national sport federations, local governments.

In the Equatorial African Region, the HKP targets around 23,000 children in

5 different countries:

1) Kenya, and the DRC, where the programme focuses on malnutrition and

micro-nutrient deficiencies

2) Zimbabwe, where the programme focuses on the importance of good

nutrition and regular physical activity

3) Mauritius and Mozambique, where combating unhealthy eating habits are

the main focus

Healthy Kids Programme in Kenya

Malnutrition levels in Kenya have exceeded the global emergency threshold.

The number of children suffering from malnutrition has increased during the

past decade. While poverty is one of the main underlying causes of malnutrition,

insufficient nutrition education aggravates the problem. The HKP in Kenya was thus

designed to address the specific nutrition education needs of local children, keeping

in mind the resources available to them and to the local implementation team.

The programme brings an easy model of interaction with children in the areas of

nutrition, physical activity, hygiene and sanitation. The information provided in

the teaching materials has been developed in collaboration with key stakeholders

including teachers, Kenya Institute of Education, City Education, Ministry of

Education, and the School Health Programme. Lower primary children are the key

target audience as this is where behavioural change is greatly needed to ensure

that proper eating habits are adopted at an early age.

Nutrition

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28 | Creating Shared Value | Nestlé Equatorial African Region

Healthy Kids Programme in the Democratic Republic of Congo

In 2012, Nestlé started the Healthy Kids Programme in

the Democratic Republic of Congo, targeting children

between 9 and 12 years of age. The program creates

awareness about local foods and the importance of

a well-balanced diet, benefits of engaging in physical

activities as well as personal hygiene and their

surrounding environment. A colourful workbook for

interactive learning has been developed as part of

course material for the programme. Following the

completion of the pilot phase, the project envisages

to widen its scope and outreach to a larger group of

students across the country.

Healthy Kids Programme in Zimbabwe

In Zimbabwe, Nestlé and the National Association of Primary School Headmasters

(NAPH) signed a 3 year partnership towards the implementation of a kids athletics and

physical education programme, open for participation to all primary schools under NAPH.

The objective of the programme is to inculcate healthy habits amongst children.

Nestlé is assisting NAPH by incorporating nutrition education modules within the physical

education curriculum. The initiative further aims at involving the primary caregivers such as

teachers and parents who are the key influencers on health and lifestyle choices of the child.

A pilot phase in partnership with NAPH and the Ministry of Education has started targeting

schools around Harare. The students will be provided with a comic book that has a nutrition

and physical education component. The programme will be extended to the rest of the country

after the evaluation of the pilot phase.

"Physical Education had died down in our primary schools, but with the coming up of the Healthy Kids Programme, there has been a positive paradigm shift. Physical Education

is now taken seriously like any other subject in the curriculum."

Cynthia Khumalo, NAPH President

Page 29: 2013 EAR CSV Report

Healthy Kids Programme in Mauritius

HKP in Mauritius focuses on nutrition education in primary schools for children of

7-9 years. The key partners in the project are the Ministry of Education and the

University of Mauritius. The programme consists of the intervention of nutrition

experts in primary schools through the use of a video film which features a

“healthy kid” having a dialogue about different aspects of nutrition with an adult.

A food pyramid poster has been customised with local foods usually consumed

by children. It also includes key messages on nutrition. These altogether are

distributed to classes during the interventions of the implementation partners

from the university.

Healthy Kids Programme in Mozambique

The Mozambican Nestlé Healthy Kids Programme is a partnership project between

Nestlé Mozambique and the Ministry of Education, which aims at providing

continuous knowledge and awareness about the importance of good nutrition,

exercise, hygiene and sanitation in primary schools within the city of Maputo.

With this programme, Nestlé intends to create long-term value for the Mozambican

society and ensure student learning activities by publishing a manual named

“Educação em Alimentação e Nutrição” intended for primary basic schools

teachers, in line with the country’s education, development and learning objectives.

This initiative will meet the students’ nutrition knowledge while ensuring they

develop healthy, lasting habits.

29Nestlé Equatorial African Region | Creating Shared Value |

Nutrition

"The genuine efforts and commitment of Nestlé Products (Mauritius) Ltd. for engaging in a school health program for providing expert advice, specifically designed and

innovative pedagogical tools for healthy nutrition awareness and for overall wellness, are much appreciated. The prime beneficiaries were children, but parents and teachers

also learned much from the programme which allowed them to make better food choices for themselves and their family".

Dr. Prity Pugo Gunsam, Nutrition Consultant from the University of Mauritius

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30 | Creating Shared Value | Nestlé Equatorial African Region

Voli Vary Rice Project - Madagascar

Page 31: 2013 EAR CSV Report

31Nestlé Equatorial African Region | Creating Shared Value |

Madagascar’s economy is largely dominated by agriculture and rice cultivation

plays a predominant role in the country’s economy yet the average paddy yields

are low, leading to import of rice to meet the local demand. Micronutrient

deficiencies are high in Madagascar with 68.3% of pre-school age children and

50.1% of pregnant women suffering from anemia (WHO database, 2008). In

addition 32.9% of the population is at risk of inadequate intake of Zinc (Food and

Nutrition Bulletin, 2004). Food-based approaches, especially fortification of staple

foods, like rice, could be a cost effective way of addressing these malnutrition

issues. In October 2010, Nestlé Nutrition Institute Africa partnered with the

Ministry of Agriculture, Madagascar, the Nestlé Research and Development

Center and other institutions in Ivory Coast to initiate a bio-fortified rice project.

The pilot project is being implemented in Anjepy District, about 40kms. from

the capital Antananarivo. Nestlé has provided selected farmers with bio-fortified

rice varieties (NERICA) which they have grown over a 7-month period with the

assistance of an agronomist. A baseline survey was carried out in April 2012 to

assess the actual micronutrient deficiencies prevailing in women of child-bearing

ages and children under 5 years old. As of today, the first harvest has been

completed and we are currently entering the post-evaluation phase to determine

the impact of the bio-fortified rice varieties on the nutritional status of the

inhabitants in the Anjepy area. Subsequently, a second pilot phase would include

a larger group of farmers engaged in cultivation on the highlands in addition to

the lowlands in the district.

"The growing demand for food in the country requires that new agronomic solutions are explored and public-private partnerships, especially when it comes to the sharing of

tasks and data, prove to be a necessary response to this challenge."

Professor Roger Andrianasolo, Chief Nutritionist at The National Institute of Public Health

Nutrition

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Nestlé - AIESEC Nutrition Project - Mauritius

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Nutrition

33Nestlé Equatorial African Region | Creating Shared Value |

Nestlé and AIESEC signed an MOU in 2012 to develop a Nutrition Awareness

Campaign in Mauritius. The campaign aimed at creating a holistic impact on the

society, not only to raise awareness about the importance of good nutrition and

its benefits but also to encourage Mauritians to have balanced nutrition and live

a healthier lifestyle.

The Nutrition Project resulted in:

• Creating awareness of the importance of good nutrition

• Imparting the importance of preventing diseases through good nutrition

• Developing responsible young leaders who will positively impact the

society by devising solutions to these problems

• Encouraging a movement of volunteerism where young people give

their time and energy to the development of awareness amongst

Mauritians about good nutrition and health issues

The project impacted 2000 beneficiaries, specifically students from tertiary

institutes. The awareness campaign was conducted through several workshops

as follows:

- Workshop on nutrition basics by the Nestlé training team to develop content

designed for students from University of Mauritius and Mauritius Institute of

Training and Development (MITD)

- Workshops on healthy eating habits, lifestyle behaviour affecting health and

nutrition, on cardiovascular diseases in Mauritius and their connection to nutrition

- Healthy lifestyle week and exhibition in all participating tertiary institutes

- Free screening of diabetes and cardiovascular diseases

- Maintain a blog with the purpose of educating students on healthy eating habits

Nestlé and AIESEC have renewed their engagement for a similar campaign in 2013

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Environment

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Environment

35Nestlé Equatorial African Region | Creating Shared Value |

Nestlé Equatorial African Region is operating in line with Nestlé’s global vision on environmental

sustainability, endeavouring to ensure that we create a positive impact on the environment.

The region has made tremendous strides in the reduction of its environmental footprint

with a keys focus in areas of water withdrawal, energy consumption, waste management

and conversion from ozone depleting substances to more environmental friendly gases.

Through several initiatives at the factory level we have recorded significant gains in our

performance such as 37.7% reduction in the amount of water consumed per tonne of

product despite an increase in the volume of goods manufactured.

This has mainly been driven through water reduction initiatives running in our factories.

The initiatives vary from engineering interventions, capital investments, good production

practices, employee participation and education and the formation of water use improvement

teams that have driven the gains.

The amount of energy consumed has also gone down causing a knock-down effect in the

amount of direct and indirect carbon dioxide emissions thereby significantly reducing the

air acidification potential.

In addition, we have also engaged in the conversion of cooling gases in the factories from

CFC’s and HCFC’s to the more environmentally friendly ammonia.

Reduce, Reuse and Recycle

Nestlé ensures its policies and practices comply with the

highest possible standards when it comes to the protection

of the environment. The “Packaging Source Reduction

Initiative” is one of the ways Nestlé upholds its commitment

to the environment. Locally, it involves the following initiatives:

1) We reduce the amount of packaging in our products

We do this while delivering our products in the most

ideal condition to our consumers across the region.

This helps drive cost efficiencies while actively reducing

waste caused by over packaging of products. This is

especially important in our region given the introduction of

our new affordable range of products and the subsequent

migration from tins to flexible packaging.

2) We optimize our sourcing

By doing so, we aim at reducing our carbon footprint

for material sourcing. In this regard, instead of importing

corrugated cartons we have identified new local suppliers

in the markets that we operate and have engaged into a

sourcing agreement with them.

3) We support recycling initiatives

In partnership with other manufacturers in Kenya, we are

working with a local recycling company to collect and

recycle packaging laminated waste. This initiative involves

collecting and shredding waste from dump sites. The waste

is then compressed and moulded into boards and dustbins.

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Occupational Health and Safety

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37Nestlé Equatorial African Region | Creating Shared Value |

Nestlé is committed to preventing accidents, injuries and illnesses

related to work, and to protecting employees, contractors and

others involved along all the operations.

The Nestlé policy on "Safety and Health at Work" sets out

everyone’s responsibility for achieving zero accidents, including

compliance, continuous improvement, behaviour and leadership

and participation.

The policy also covers community, supply chain, contractors

and others. Between 2010 and 2012, the number of recordable

injuries per hours worked has significantly reduced by 66%.

Both the Kenya and Zimbabwe factories have achieved and

continue to maintain accreditations to the ISO 14001 and OHSAS

18001 international standards on Environmental Management

and Occupational Health and Safety, respectively.

The focus is now on integrating safety and health in the

management of local business in such a way that all activities

are considered with a perspective of prevention of all types of

accidents and protection of people at work.

Health and Safety

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Nestlé in the Community

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Nestlé in the Community

39Nestlé Equatorial African Region | Creating Shared Value |

At Nestlé, we believe that, as a responsible corporate citizen, it is our duty to participate in enhancing the lives of the communities in

which we operate. We must be good citizens, and through our initiatives, create stronger communities. Through our various initiatives,

we have come to the conclusion that volunteerism is a most rewarding experience. There is a huge difference between a simple corporate

donation as opposed to involving employees in building more vibrant communities.

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Kangemi Resource Center - Kenya

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Nestlé in the Community

41Nestlé Equatorial African Region | Creating Shared Value |

Kangemi Resource Centre was opened in 2007 to support schools and teachers,

improve schooling conditions for children and empower the local community by

accessing information and communication technologies. The resource beneficiaries

are over 10,000 school going children and about 400 informal school teachers

from Kangemi in Nairobi, Kenya.

Nestlé started its relationship with the Kangemi Resource Center in 2011.

Our involvement is two-fold:

1) Employee volunteerism: Nestlé EAR staff visit the Center and spend

quality time with the children watching movies, playing volleyball, singing

or working with play-dough, painting etc

2) Infrastructure support: Donations, office desks, chairs and computers to

make the learning experience more comfortable for the children

Going forward, our aim is to impart nutrition education to the teachers of KRC

and assist them with the creation of nutrition gardens.

"Nestlé’s involvement at Kangemi Resource Centre goes beyond food donation.

It is about creating bonds between two worlds. Nestlé staff’s regular visits to the

Centre’s children put human faces on what remains otherwise a formal company

process. Thanks to this approach, people share a good time together. It is not a one-

way donation."

Alix d’Ansembourg, Director of the Kangemi Resource Centre

"The morning I spent in Kangemi Resource Centre was a truly memorable one. I

enjoyed interacting with the younger children and playing volleyball with the more

mature students! It is an extremely gratifying experience to be able to bring a smile

on the faces of these lovely children."

Jennipher Kwendo, employee at Nestlé EAR

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42 | Creating Shared Value | Nestlé Equatorial African Region

Teule Orphanage - Kenya

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43Nestlé Equatorial African Region | Creating Shared Value |

Teule Kenya (meaning chosen) is an NGO in Oloitokitok which rescues, supports

and re-integrates homeless/abandoned children back to their communities and

societies, after seeing them develop and become empowered through education,

leadership and mentorship influence.

Nestlé has been collaborating with Teule Kenya since 2011. We regularly

organize collects from staff which include toys, beddings, clothing and shoes

among others. Recently we have partnered with Nestlé colleagues in Switzerland

– Vevey and PTC Orbe, who participated in special events such as the Ironman

and the Gigathlon, to raise money to support the Center. One of the primary

objectives of Teule Kenya is to ensure food security for all the children in their

care by constructing green houses to grow vegetables. The long term objective

includes selling the surplus vegetables in the community so that the money can

be used to improve the living standards of the children. Nestlé is supporting the

construction of two such greenhouses. Nestlé employees have volunteered to

help plant the seeds.

"Nestlé and Teule Kenya: genuine partnership, direct child benefit, caring staff,

focused community impact. These words come to mind when I sum up our relationship

with Nestlé. Particularly our children at Teule have benefited - from the food & drink

donations, to computers given to our school, to the greenhouse technology being

provided. Sharing mutual values and building on those principles are at the core of

our relationship. Indeed ‘Good Food, Good Life’ is personified in our relationship."

Jon T. High, Team Leader & Founder, Teule Kenya

Nestlé in the Community

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The Laikipia HighlandsGames - Kenya

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45Nestlé Equatorial African Region | Creating Shared Value |

The Laikipia Highlands, in Kenya’s North Rift

Valley region, where several pastoralist tribes used

to coexist peacefully for ages, has in recent years

been the theatre of cattle rustling, tribal fights

and retaliation raids. Local communities have

been severely affected, with hundreds of people,

including women and children, killed in the

clashes, and thousands others being displaced.

In addition, the most severe drought experienced

over two generations has exacerbated the tension.

Access to water and pasture have thus become

an added bone of contention.

Two NGOs, the Gallmann Memorial Foundation

(GMF) and the Great Rift Valley Trust (GRVT),

involved for many years in community services

and reconciliation efforts in the region, have

launched from the beginning of 2009 a food relief

operation. Joining forces with the two NGOs,

Nestlé Kenya has provided NIDO powdered milk

to the people of Western Laikipia.

An estimated 28,000 women, children and elderly

have been fed since, and the programme is on-going.

Later in 2009, GMF and GRVT went beyond

the simple relief action, and created the Laikipia

Highlands Games, a unique sports event dedicated

to bring together youth from the warring

communities and to bridge divisions through

peaceful athletic competitions. These games have

since been held on an annual basis and Nestlé

was again supportive of the Highlands Game,

with MILO products distributed to participants.

"By combining peace and sports across such a tremendous array of tribes and communities currently involved in conflict, and by offering their youth the only opportunity to

interact, the Laikipia Highlands Games are crucial to the development of a peace process in the area."

Kuki Gallmann, Writer (I dreamed of Africa) and Founder of the Laikipia Highlands Games

Nestlé in the Community

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46 | Creating Shared Value | Nestlé Equatorial African Region

Kudyarawanza School - Zimbabwe

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47Nestlé Equatorial African Region | Creating Shared Value |

Kudyarawanza is a rural school located about 45kms. from Harare, the capital city

of Zimbabwe. The school has 15 classrooms and a total number of 470 students

are enrolled in the school. Nestlé Zimbabwe adopted this school in 2002 and since

then has been actively involved in its development.

Nestlé involved itself in the school activities to complement the efforts of the

community to educate these students by paying for school fees and purchasing

uniforms for some of the students.

The company donated a borehole to provide clean and safe drinking water for

both the school and the community at large. In addition, it helped to create

nutrition gardens from which the school will be able to sell any surplus produce

to the community.

Nestlé employees have been generous with their time by offering their services

within the school compound and also by providing donations towards the

school development. They have been instrumental in re-painting, re-flooring and

renovating the classrooms.

Nestlé in the Community

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Anse Jonchée SchoolUpgrade - Mauritius

48 | Creating Shared Value | Nestlé Equatorial African Region

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49Nestlé Equatorial African Region | Creating Shared Value |

Nestlé in the Community

49Nestlé Equatorial African Region | Creating Shared Value |

"Due to the lack of appropriate logistics, poor education environment and very limited financial assistance, the school was facing a high risk of being closed and thanks to

Nestlé, we could come to the help of those needy children by improving the social environment of the school."

Kishore Seegobin, the President of the Rotary club of Rose Belle

In 2011, Nestlé Mauritius in collaboration with the Rotary Club of Rose

Belle embarked on a community project in the village of Anse Jonchée to

upgrade its school and motivate parents to send their children to school.

Anse Jonchée is a small village in the Grand Port/Savanne district with a total of

600 inhabitants. The key activities of the community are fishing and farming.

The family average monthly salary is around $100. With the help of the local

NGOs, it was identified that many children were not attending school due to

a lack of financial assistance.

The classroom uplifting involved the purchase of a bookshelf for the proper

stacking of books, playing accessories and other education materials. The

windows were dressed with curtains and the classroom was re-painted.

Water and sanitation facilities were also provided.

Furthermore, the school playground will be uplifted with proper playing

toboggans for safety purposes and embellishment of the school yard to make

the environment look ‘greener’. As a long term plan, Nestlé Mauritius and

the Rotary Club of Rose Belle will initiate negotiations with the local district

council to continuously support the children of Anse Jonchée through proper

maintenance of the school.

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Nestlé and its International Commitments

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51Nestlé Equatorial African Region | Creating Shared Value |

Nestlé as a group adheres to certain guiding principles and goals, and Nestlé

Equatorial African Region is no exception to the rule. We thus measure our

progress toward sustainability by supporting the principles outlined in the UN

Global Compact, the CEO Water Mandate and the United Nation’s Millennium

Development Goals.

UN Global Compact

Nestlé’s Corporate Business Principles incorporate the 10 UN Global Compact

(UNGC) Principles on Human Rights, Labour, the Environment and Corruption.

They reflect the basic concepts of fairness, honesty and respect for people and

the environment in all our business actions. We reiterate our strong support

to the UN Global Compact, its 10 Principles and to its Blueprint for Corporate

Sustainability Leadership.

From a local perspective, Nestlé Kenya Ltd and Nestlé Equatorial African Region

Ltd are now members of the UN Global Compact Chapter in Kenya.

The CEO Water Mandate

The CEO Water Mandate was launched in 2007 to better understand and advance

water stewardship in the private sector. It is based on six core elements, which

are vital to addressing corporate water management: direct operations, supply

chain and watershed management, collective action, public policy, community

engagement, and transparency. The eighth Water Mandate working conference

was held in Stockholm, Sweden in August 2011. During the conference, key

water-related challenges were discussed, with a particular focus on corporate

water disclosure and the role of business with respect to the human right to

water and sanitation.

The United Nation’s Millennium Development Goals

The eight Millennium Development Goals (MDGs) all have the target date of

2015 and form a blueprint agreed to by all the world’s countries and all the

world’s leading development institutions. The eight goals are:

Goal 1: Eradicate extreme poverty and hunger

Goal 2: Achieve universal primary education

Goal 3: Promote gender equality and empower women

Goal 4: Reduce child mortality

Goal 5: Improve maternal health

Goal 6: Combat HIV/AIDS, malaria and other diseases

Goal 7: Ensure environmental sustainability

Goal 8: Develop a global partnership for development

As a group, Nestlé regards the MDGs as highly important objectives.

We contribute to partnerships that harness local knowledge and capabilities, for

positive, sustainable change.

At Nestlé EAR and through our CSV initiatives highlighted in this report, we are

proud to contribute towards the realization of many of these goals.

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52 | Creating Shared Value | Nestlé Equatorial African Region

AngolaNestlé Angola LimitadaTensai Business CenterZona CS8, Gleba GV22Talatona - Luanda-SulC.P. 1138 Luanda, AngolaTel: +244 934 764604/605Mobile: +244 923 508491E-mail address: [email protected]

Democratic Republic of Congo (DRC)Nestlé Congo SPRL Coin des avenues Col Lukusa et Ngongo Lutete2ème Niveau Immeuble Citigroup BP 9192, Kinshasa/GombeTél: +243 81 555 4773E-mail address: [email protected]

EthiopiaNestlé Equatorial African Region LimitedEthiopia Branch Saris - in front of Yoseph ChurchNefaseilklafto sub cityEthiopia, Addis AbabaOffice: +251 911442559 E-mail address: [email protected]

KenyaNestlé Kenya LimitedPate Road, Industrial Area,P.O. Box 30265-00100Nairobi, KenyaE-mail: [email protected]

MadagascarNestlé Sea Trading - Madagascar BranchMG-Antanarivo 101Zone Industrielle ZitalBatiment SDS 1st. FloorAnkorondranoTel: +261 2022 23927Fax: +261 2022 250 30E-mail address: [email protected]

MauritiusNestlé Products (Mauritius) Limited6th Floor, Nexteracom BuildingTower 1 Ebene, CybercityTel: +230 249 3700 Fax: +230 248 9595

E-mail address: [email protected]

MozambiqueNestlé Moçambique LimitadaRua dos Deportistas, nº. 833Edificio JAT V, 3º andarMaputo, MozambiqueE-mail address: [email protected]

RwandaNestlé Equatorial African Region LimitedRwanda Branch P.O Box 6271 Byamana 18Niboye - Kicukiro,Kigali, RwandaTel: +250 788424430E-mail address: [email protected]

TanzaniaNestlé Equatorial African Region LimitedTanzania Branch Plot 565, Old Bagamoyo RoadKawe Beach, Infotech PlaceP.O. Box 105665 Tanzania, Dar es SalaamOffice: +255 222 78354Fax: +255 222 781359E-mail address: [email protected]

UgandaNestlé Equatorial African Region LimitedUganda Branch Plot 1, Bandali Rise, Luthuli Avenue, Bugolobi,P.O. Box 2984 Kampala, UgandaOffice: +256 41 423 5070Fax: +256 414 222496E-mail address: [email protected]

ZambiaNestlé Zambia Trading LimitedPlot 7403, Building C, Krimanvi Park, Mungwi Road Heavy Industrial Area, Lusaka, ZambiaOffice: +260 965 038 000E-mail address: [email protected]

ZimbabweNestlé Zimbabwe (PVT) Limited 38, Samora Machel AvenueP.O. Box 1668 Harare, Zimbabwe Office: +263 4 702393 -7 Mobile: +263 912 895931 Fax: +263 4250401E-mail address: [email protected]

Nestlé Equatorial African Region LimitedThe Atrium, Chaka Road P.O. Box 50813 - 00200, Nairobi, Kenya

Offi ce: +254 20 4984000/246 Cell: +254 711 043200/246E-mail: [email protected] Website: www.nestle-ea.com

Facebook page: www.facebook.com/nestleEAR

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