Beruflich Dokumente
Kultur Dokumente
Werner Bauer
Every day of the year, over one billion consumers choose to buy a Nestlé
product. I say choose because this is a purely voluntary act - they could be
buying from a competitor. It therefore comes as no surprise that consumers
are very much front-of-mind when it comes to Nestlé R&D: its mission is to
find ideal solutions to help consumers improve the quality of their lives.
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Responsibilities of the CTO
Innovation Partnerships
2
Nestlé R & D
275
Application 1,300 R&D Investment
Markets Groups people CHF Billion
2005 1.50
Suppliers 17
Research & 2004 1.43
Development
Centres 2003 1.21
Ladies and Gentlemen, we spent 1.5 billion Swiss francs on R&D in 2005,
equivalent to 1.6% of our yearly turnover. This is the largest amount spent
on R&D in the food industry. We have 2,400 people working at the NRC and
the 17 research and product development centres worldwide, and 1,300 in
the 275 application groups which adapt product ideas to local market
conditions. However, even if we do have the best R&D set-up in the world,
by the sheer law of numbers there are potentially more good ideas for new
products outside Nestlé than inside the company.
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Partnering in Basic Research
Today, we are on a permanent look-out for new ideas. This is why we are
increasingly working in open partnership with many of our suppliers, with
start-up companies through our venture capital funds, and with a wide array
of research institutes across the world: the number of such partnerships has
trebled over the last five years. Indeed, the agreement with EPFL we are
signing here today is typical of this approach.
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Innovation runs through the
whole company
Integrated cross-functional
teams
Research Development
Value-adding, profitable
Strategic innovation and renovation
Business Units Regulatory
Use of global platforms
Market Intellectual Relevance to local consumers
Research Innovation Property
Renovation
Competitive
Analysis Supply
Chain
Marketing
Manufacturing
Sales
Consumer
Services
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The Nestlé Innovation Model
What is
What do technically
consumers possible ?
need ?
What is
commercially
achievable ?
If you look at the Nestlé innovation model, I have largely covered the R&D
side. But there are two more aspects which are at least as important as
R&D, and which are fully integrated into our model: major market trends and
consumer insight.
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Major Market Trends
-5.7%
Indeed, hard discounters and private label are continuing to grow in Europe
and are now worth over 100 billion euros. Market polarisation is already clear
in Nestlé's existing product range: from premium light ice cream and premium
wet dog food in North America and Europe, to our number one brand in rural
India, a superior value-for-money chocolate wafer.
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Popularly Positioned Products
4
Addressing nutrient deficiencies,
3 improving the lives of millions of
consumers with relevant and
2 4 billion people nutritious products
earn less than
1 1’500 USD per year
In other words, it is not enough to address the needs of the 2.5 billion
consumers who earn more than 1,500 US dollars per year, we also have to
think about the 4 billion people who earn less than 1,500 dollars per year,
providing them with products relevant to their nutritional needs. A recently-
launched programme of Popularly Positioned Products, or PPPs, is providing
products with high nutritional value to the less well-off in the north-east of
Brazil. I expect we will see many more such initiatives in future in other parts
of the world.
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Most consumers see a strong link
between food and their health
And this brings me to the third leg of the Nestlé innovation model: consumer
insight. In all our major markets, it is perfectly obvious that the vast majority
of consumers see a strong link between food and their health.
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Consumer trends
"Natural"
• Bio
• Organic
• Freshness
• Natural
Liquification
• Convenience / On the Go
• Wholesome / Fresh
• Functional Benefits
• Innovation / New Occasions
Not only that, but this fact can be broken down into three distinct sub-trends:
(1) food has to be natural and fresh; (2) it has to contribute to nutrition, health
and wellness in a tangible way, either by adding new benefits such as
vitamins or fiber, by boosting existing benefits, or by reducing certain
substances such as sugar, fat or salt; and (3) people are increasingly
consuming liquid products as this is often more convenient, and because
liquids are excellent vectors for functional benefits.
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Nutrition, Health and Wellness
All these factors will be central to our innovation and renovation drive as we
renew Nestlé's entire product range over the next four years.
All mainstream products, which consumers buy mainly because of the pleasure
their taste provides, will have to go through the 60/40+ process. This means that
no new or renovated product will be put on the market if it does not achieve
consumer preference of over 60% in blind tasting, and if its nutritional properties
are not superior to those of the nearest competitor's product, either because it
has added benefits or because the amount of certain existing ingredients have
been reduced.
On the other hand, the products of our newly-created Nutrition Division – infant,
healthcare and performance nutrition with sales of around 5.2 billion last year –
are bought because of their nutritional properties rather than because of their
taste. These products, ranging from advanced immune protection and allergy
prevention in infants to immune system reinforcement after chemotherapy, are
especially reliant on top-of-the-range R&D.
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Adding health to our products
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Adding nutritional value:
Branded Active Benefits
Bone Health
4
Calci-N
2
Placebo
0
8 years old girls (n=150) - Calci-N enriched nutrition versus placebo for 1 year
4 years later : Calci-N group had significant higher bone mineral density – still higher than
control
Bonjour JP et al (1997) J Clin Invest 99:1287-94, Bonjour JP et al (2001) Lancet 358:1208-12
13 CORPORATE TECHNICAL PRODUCTION AND R&D Name of chairman
November 2006
Let me just give you a couple of examples: clinical tests of Nesquik enriched
with Calci-N showed that, over a period of four years, the bone mineral
density of 8 year-old girls who had consumed the product was significantly
higher than those who hadn't.
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Adding nutritional value:
Branded Active Benefits
-12
Another good example is the enrichment of NesVita, a low-fat filled milk sold
in Asia, with ActiCol. Clinical trials clearly demonstrated the effectiveness of
this added health benefit, which inhibits the transfer of cholesterol from the
intestine into the blood.
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Our science helps to optimise
nutritional profiles
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Science Alignment with
Consumer Benefit Areas
Health Benefits
• Protection
• Growth & Development
• Digestive comfort
• Weight management
• Performance
• Healthy ageing
• Skin Health & Beauty
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Obesity: A major concern in growing
number of countries
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Metabolic health perspectives
in nutrition
Drug intervention
nutritional and
lifestyle landscape
Risk Management
Health
management Onset of Diagnostic
disregulation markers
Prognostic
markers
If you look at this graph, the green part is where nutritional and lifestyle
problems can basically be managed through appropriate nutrition. As soon as
you get into this yellow zone here, before you reach the red zone which
means you require medical treatment, there is an intermediary zone where the
situation can be approached through a judicious mix of goods – value-added
food products – and services, that is to say nutritional and lifestyle advice.
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Weight Management
Personalising nutrition & lifestyle
• One-on-one solutions
– programme tailored to client's
lifestyle
– personalised counselling on
nutrition & lifestyle
– nutritionally balanced, portion-
controlled dishes
Nestlé has now truly started down this path, first with the acquisition of
Proteika, a small company in France, and the creation of the Nutrition Home
Service there, which offer a combination of goods an services to consumers.
Then, earlier this year, Nestlé Nutrition entered the strategic weight-
management market in a bigger way with the acquisition of the Jenny Craig
company and brand.
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Nestlé Nutrition Council
Ladies and Gentlemen, ever since Henri Nestlé invented the farine lactée
Nestlé to save the lives of malnourished children over 140 years ago, science-
based research and development has been part of the DNA of this Company.
So before I give the floor to Bruce German and Sandrine Andrieu, I have to
say a few words about the Nestlé Nutrition Council, a consultative body
established 28 years ago. The NNC is made up of world-class scientists
providing Nestlé with general guidance on nutrition and food safety. As such,
the NNC is an integral part of the overall scientific research resources at the
Company's disposal.
One of its members, Professor Günther Blobel, a Nobel prize winner in
medicine, is also a member of Nestlé's Board of Directors. Furthermore, a
wide range of specialized or local bodies also advise us both on general and
specialised nutrition in area such as infant, healthcare and performance.
These Councils and the Nestlé Nutrition Institute are closely interlinked through
overlapping participants: for example, the vice chairman of the Japan Nutrition
Council, Peter van Bladeren, is also a member of the NNC.
I also have to mention the cycle of annual International Nutrition Symposia we
launched three years ago, having realised there was no proper world-class
scientific forum to discuss food and health. The first of these events dealt with
genomics and personalised nutrition, the second with metabolism and the third
– which has just taken place – with the brain. But more on that from the other
speakers.
Ladies and Gentlemen, thank you for your attention, and I am ready to answer
any questions you may have at the end of the presentations. Bruce German,
you have the floor. 20