Nestlé 1 Nestlé Type Société Anonyme (SIX: NESN [1] ) Industry Food processing Founded Vevey, Switzerland (1866) Founder(s) Henri Nestlé Headquarters Vevey, Switzerland Area served Worldwide Key people Peter Brabeck-Letmathe (Chairman), Paul Bulcke (CEO) Products Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods (list...) Revenue CHF 107.6 billion (2009) [2] Operating income CHF 15.70 billion (2009) [2] Profit CHF 10.43 billion (2009) [2] Total assets CHF 110.9 billion (2009) [2] Total equity CHF 53.63 billion (2009) [2] Employees 278,000 (2009) [2] Website www.nestle.com [3] Nestlé S.A. (French pronunciation: [nɛsˈle]) is the largest nutrition and foods company in the world, [4] 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 individuals. Pronunciation Today, in English-speaking countries, "Nestlé" is most commonly pronounced /ˈnɛstleɪ/). However, the original pronunciation was English pronunciation: /ˈnɛsəl/, as in the English verb "nestle". This pronunciation was common throughout much of the 20th century, but changes in its spoken form in advertising influenced it to become more akin to its native pronunciation [nɛsle] in French-speaking Switzerland. The old pronunciation, however, is still used today in some regions such as the Black Country. "Nestle" in Alemannic German (Alemannisch – as spoken in southwestern Germany and in Switzerland) refers to a small nest (Nest being the same word in English and German). The -le ending makes the word into a diminutive.
Transcript
Nestlé 1
Nestlé
Type Société Anonyme (SIX: NESN [1])
Industry Food processing
Founded Vevey, Switzerland (1866)
Founder(s) Henri Nestlé
Headquarters Vevey, Switzerland
Area served Worldwide
Key people Peter Brabeck-Letmathe (Chairman), Paul Bulcke (CEO)
Nestlé S.A. (French pronunciation: [nɛsˈle]) is the largest nutrition and foods company in the world,[4] founded andheadquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, whichwas 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 andfollowing the Second World War, eventually expanding its offerings beyond its early condensed milk and infantformula products. Today, the company operates in 86 countries around the world and employs nearly 283,000individuals.
PronunciationToday, in English-speaking countries, "Nestlé" is most commonly pronounced /ˈnɛstleɪ/). However, the originalpronunciation was English pronunciation: /ˈnɛsəl/, as in the English verb "nestle". This pronunciation was commonthroughout much of the 20th century, but changes in its spoken form in advertising influenced it to become moreakin to its native pronunciation [nɛsle] in French-speaking Switzerland. The old pronunciation, however, is still usedtoday in some regions such as the Black Country. "Nestle" in Alemannic German (Alemannisch – as spoken insouthwestern Germany and in Switzerland) refers to a small nest (Nest being the same word in English and German).The -le ending makes the word into a diminutive.
The company dates to 1867, when two separate Swiss enterprises werefounded that would later form the core of Nestlé. In August of thatyear, Charles A. and George Page, brothers from Lee County, IL in theUnited States, established the Anglo-Swiss Condensed Milk Companyin Cham. In September, in Vevey, Henri Nestlé developed amilk-based baby food and soon began marketing it. In the succeedingdecades both enterprises aggressively expanded their businessesthroughout Europe and the United States. (Henri Nestlé retired in 1875,but the company, under new ownership, retained his name as FarineLactée Henri Nestlé.) In 1877 Anglo-Swiss added milk-based babyfoods to its products, and in the following year the Nestlé companyadded condensed milk, so that the firms became direct and fierce rivals.
Henri Nestlé.
In 1905, however, the companies merged to become the Nestlé and Anglo-SwissCondensed Milk Company, retaining that name until 1947, when the name NestléAlimentana SA was taken as a result of the acquisition of Fabrique de Produits MaggiSA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland.Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’scurrent name was adopted in 1977. By the early 1900s, the company was operatingfactories in the United States, United Kingdom, Germany and Spain. World War Icreated new demand for dairy products in the form of government contracts; by the endof the war, Nestlé's production had more than doubled.
After the war, government contracts dried up and consumers switched back to freshmilk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s sawNestlé's first expansion into new products, with chocolate the company's second most important activity.
Nestlé's logo used until 1970s.
Nestlé felt the effects of World War II immediately. Profits dropped fromUS$20 million in 1938 to US$6 million in 1939. Factories were established indeveloping countries, particularly Latin America. Ironically, the war helpedwith the introduction of the company's newest product, Nescafé, which was astaple drink of the US military. Nestlé's production and sales rose in thewartime 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 mergerwith Maggi seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) andStouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its secondventure 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, notablyAmerican food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which broughtthe Willy Wonka Brand to Nestlé.
The Brazilian president, Lula da Silva,inaugurates a factory in Feira de Santana (Bahia),
February, 2007.
The first half of the 1990s proved to be favorable for Nestlé: tradebarriers crumbled and world markets developed into more or lessintegrated trading areas. Since 1996 there have been acquisitionsincluding San Pellegrino (1997), Spillers Petfoods (1998), and RalstonPurina (2002). There were two major acquisitions in North America,both in 2002: in June, Nestlé merged its U.S. ice cream business intoDreyer's, and in August a US$2.6 billion acquisition was announced ofChef America, the creator of Hot Pockets. In the same time frame,Nestlé came close to purchasing the iconic American companyHershey's, though the deal fell through.[5] Another recent purchaseincludes the Jenny Craig weight loss program for US$600 million.
In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006 it took fullownership of Dreyer's, thus becoming the world's biggest ice cream maker with a 17.5% market share.[6]
In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B, alsoacquiring in 2007 the milk flavoring product known as Ovaltine. In April 2007 Nestlé bought baby foodmanufacturer Gerber for $5.5 billion.[7] [8] [9]
In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini. Nestléagreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale forms part of a broader US $39.3billion offer by Novartis to fully acquire the world’s largest eye-care company.[10]
ProductsNestlé has 6,000 brands,[11] 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.
The Nestlé Tower in Croydon. This serves astheir 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 Statesof 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
• Richard Laube, Executive Vice President, Nestlé S.A. CEO ofNestlé Nutrition
• James Singh, Executive Vice President, Nestlé S.A. Finance andControl, Legal, IP, Tax, Global Nestlé Business Services
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 BoardAccording to a 2006 global survey of online consumers by theReputation Institute, Nestlé has a reputation score of 70.4 on a scale of1–100.[12]
Earnings
In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion. Research and developmentinvestment was CHF 2.02 billion.[2]
• Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepareddishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical productsand 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 venturesNestlé holds 26.4% of the shares of L'Oréal, the world's largest company in cosmetics and beauty. The LaboratoiresInneov is a joint venture in nutritional cosmetics between Nestlé and L'Oréal, and Galderma a joint venture indermatology with L'Oréal. Others include Cereal Partners Worldwide with General Mills, Beverage PartnersWorldwide with Coca-Cola, and Dairy Partners Americas with Fonterra.
Controversy and criticism
Marketing of formulaOne of the most prominent controversies involving Nestlé concerns the promotion of the use of infant formula tomothers across the world including developing countries, an issue that attracted significant attention in 1977 as aresult of the Nestlé boycott.[13] Nestlé's policy[14] , however, states that breastmilk is the best food for infants;however, women who cannot or choose not to breast feed for whatever reason do need an alternative to ensure thattheir babies are getting the nutrition they need.
Melamine in Chinese milkIn late September 2008, the Hong Kong government claimed to have found melamine in a Chinese-made Nestlé milkproduct. The Dairy Farm milk was made by Nestlé's division in the Chinese coastal city Qingdao.[15] Nestlé affirmedthat all its products were safe and were not made from milk adulterated with melamine. On October 2, 2008 theTaiwan Health ministry announced that six types of milk powders produced in China by Nestlé contained traces ofmelamine. Nestlé has announced that it will begin a recall of milk products produced in China.[16] [17]
Zimbabwe farmsIn late September 2009, it was brought to light that Nestlé was buying milk from illegally-seized farms currentlyoperated by Robert Mugabe's wife, Grace Mugabe. Mugabe and his regime are currently subject to European Unionsanctions.[18] Nestlé later stopped buying milk from the dairy farms in question.[19]
Palm oil useRapid deforestation in Borneo and other regions to make way for oil palm plantations sends massive amounts ofcarbon dioxide into the atmosphere.[20] In particular, where peat swamp forests are cleared, destroying the habitat formany threatened species of animals such as the orangutan, much public attention[21] has been given to theenvironmental impact of palm oil and the role of multi-nationals such as Nestlé in this.[22] There is ongoing concernby various NGO's including Greenpeace.[23]
Nestlé were met with "a deluge of criticism from consumers, after a large number of Facebook users posted negativecomments about the company's business practises."[24] Nestlé's attempt to engage with the issue were met withcriticism, including headlines stating: "Nestlé fails at social media",[25] and "Nestlé Loses Face On Facebook"[26] .Nestlé Chairman, Peter Brabeck-Letmathe, in answer to a question from Greenpeace, told the Company’s AnnualGeneral Meeting in Lausanne on April 15 2010 that in 2009 Nestlé used 320,000 tonnes of palm oil worldwide,comparing this with the 500,000 tonnes of palm oil used for biodiesel in Germany and Italy alone.[27]
In May 2010 Nestlé said it was inviting The Forest Trust, a not-for-profit group, to audit its supply chain andpromised to cancel contracts with any firm found to be chopping down rainforests to produce the palm oil which ituses in KitKat, Aero and Quality Street. Greenpeace welcomed the agreement promising to monitor it closely .[28]
Retrieved 2010-03-26.[3] http:/ / www. nestle. com/[4] "Nestlé: Following the Customers' Tracks with Google Analytics" (http:/ / web. archive. org/ web/ 20070220225956/ http:/ / www. google.
com/ analytics/ case_study_nestle. html). Google Analytics. Archived from the original (http:/ / www. google. com/ analytics/case_study_nestle. html) on 2007-02-20. . Retrieved 2007-02-21(30-10-08 for archive version).
[5] "Nestlé buys US ice cream firm" (http:/ / news. bbc. co. uk/ 2/ hi/ business/ 2050788. stm). BBC News. 17 June 2002. . Retrieved2007-02-22.
[6] "Nestlé takes world ice cream lead" (http:/ / news. bbc. co. uk/ 2/ hi/ business/ 4627810. stm). BBC News. 19 January 2006. . Retrieved2007-02-22.
[7] "Nestlé to buy Gerber for $5.5B" (http:/ / money. cnn. com/ 2007/ 04/ 12/ news/ international/ bc. gerber. nestle. reut/ index.htm?section=money_latest). CNN. 12 April 2007. . Retrieved 2007-04-12.
newsid_6156600/ bb_rm_6156676. stm) (in English). BBC news. . Retrieved 11 April 2010.[21] For example Dying for a Biscuit on BBC Panorama http:/ / www. bbc. co. uk/ programmes/ b00r4t3s
[22] The Telegraph newspaper claimed in 2007 that: "Vast swathes of pristine forest are disappearing in a slash-and-burn policy creating palm oilplantations to feed the demand of multi-nationals who accept no responsibility for the resulting degradation".http:/ / www. telegraph. co. uk/earth/ earthnews/ 3313623/ Need-for-cheap-palm-oil-drives-deforestation. html
[23] Greenpeace: "Ask Nestle to give the rainforest a break." (http:/ / www. greenpeace. org/ international/ campaigns/ climate-change/ kitkat)[24] http:/ / www. freshbusinessthinking. com/ news. php?NID=3951& Title=Nestle+ Loses+ Face+ On+ Facebook[25] http:/ / www. techeye. net/ internet/ nestle-fails-at-social-media[26] http:/ / www. freshbusinessthinking. com/ news. php?NID=3951& Title=Nestle+ Loses+ Face+ On+ Facebook[27] "Nestlé chairman calls for a moratorium on deforestation" on Nestlé's website (http:/ / www. nestle. com/ MediaCenter/ NewsandFeatures/
AllNewsFeatures/ Nestle_chairman_calls_for_a_moratorium_on_deforestation. htm), which also outlines the steps Nestlé has taken to addressthe problem.
[28] Tabacek, Kai (17 May 2010). "Nestlé uses NGO to clean up palm oil supply chain" (http:/ / www. guardian. co. uk/ sustainable-business/nestl-ngo-clean-up-palm-oil-supply-chain). The Guardian. . Retrieved 24 May 2010.
[29] Hickman, Martin (19 May 2010). "Online protest drives Nestlé to environmentally friendly palm oil" (http:/ / www. independent. co. uk/environment/ green-living/ online-protest-drives-nestl-to-environmentally-friendly-palm-oil-1976443. html). The Independent. . Retrieved 24May 2010.
[30] "Nestlé partners with TFT (The Forest Trust) to combat deforestation" (http:/ / www. nestle. co. uk/ PressOffice/ PressReleases/ May/NestlePartnersWithTFT). Nestlé Press Office. . Retrieved 24 May 2010.
