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Nestlé
Type [1]
Société Anonyme (SIX: NESN )
Products Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods (list...)
Revenue [2]
CHF 107.6 billion (2009)
Operating [2]
CHF 15.70 billion (2009)
income
Profit [2]
CHF 10.43 billion (2009)
Employees [2]
278,000 (2009)
Website [3]
www.nestle.com
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.
Nestlé 2
History
The company dates to 1867, when two separate Swiss enterprises were
founded that would later form the core of Nestlé. In August of that
year, Charles A. and George Page, brothers from Lee County, IL in the
United States, established the Anglo-Swiss Condensed Milk Company
in Cham. In September, in Vevey, Henri Nestlé developed a
milk-based baby food and soon began marketing it. In the succeeding
decades both enterprises aggressively expanded their businesses
throughout Europe and the United States. (Henri Nestlé retired in 1875,
but the company, under new ownership, retained his name as Farine
Nestlé headquarters in Vevey.
Lactée 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, however, 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.
Henri Nestlé.
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.
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, which was a
staple drink of the US military. Nestlé's production and sales rose in the
wartime economy.
Nestlé's logo used until 1970s.
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.
Nestlé 3
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 The Brazilian president, Lula da Silva,
Hershey's, though the deal fell through.[5] Another recent purchase inaugurates a factory in Feira de Santana (Bahia),
includes the Jenny Craig weight loss program for US$600 million. February, 2007.
In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006 it took full
ownership 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, also
acquiring in 2007 the milk flavoring product known as Ovaltine. In April 2007 Nestlé bought baby food
manufacturer Gerber for $5.5 billion.[7] [8] [9]
In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini. Nestlé
agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale forms part of a broader US $39.3
billion offer by Novartis to fully acquire the world’s largest eye-care company.[10]
Products
Nestlé 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.
Business
Nestlé 4
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 &
Japan headquarters
CEO of Nestlé Waters
• Richard Laube, 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 The Nestlé Tower in Croydon. This serves as
1–100.[12] their headquarters in the United Kingdom.
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.[2]
• 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.
Nestlé 5
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.
Marketing of formula
One of the most prominent controversies involving Nestlé concerns the promotion of the use of infant formula to
mothers across the world including developing countries, an issue that attracted significant attention in 1977 as a
result 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 that
their babies are getting the nutrition they need.
Zimbabwe farms
In late September 2009, it was brought to light that Nestlé was buying milk from illegally-seized farms currently
operated by Robert Mugabe's wife, Grace Mugabe. Mugabe and his regime are currently subject to European Union
sanctions.[18] Nestlé later stopped buying milk from the dairy farms in question.[19]
See also
• Big Chocolate
• Farfel the Dog
• Nestlé boycott
• Joseph Rowntree
External links
• Official website [31]
• Article on ownership structure of Nestlé and L'Oréal [32]
• Nestlé S.A. concentrates trading of its shares on SWX Swiss Exchange [33]
Data
• Yahoo! - Nestlé SA Company Profile [34]
References
[1] http:/ / www. six-swiss-exchange. com/ search/ quotes_en. html?security=NESN
[2] "Annual Report 2009" (http:/ / www. nestle. com/ Resource. axd?Id=93839A79-943E-4942-81B3-86461C0F2AAB) (PDF). Nestlé. .
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. . Retrieved
2007-02-22.
[6] "Nestlé takes world ice cream lead" (http:/ / news. bbc. co. uk/ 2/ hi/ business/ 4627810. stm). BBC News. 19 January 2006. . Retrieved
2007-02-22.
[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.
[8] Media releases (http:/ / www. novartis. com/ newsroom/ media-releases/ en/ 2007/ 1118074. shtml)
[9] "Media releases" (http:/ / www. novartis. com/ newsroom/ media-releases/ en/ 2007/ 1150584. shtml). Novartis.com. 2007-09-03. . Retrieved
2010-01-08.
[10] Thomasson, Emma (4 January 2010). "Novartis seeks to buy rest of Alcon for $39 billion" (http:/ / www. reuters. com/ article/
idUSTRE6030RK20100104). Reuters. . Retrieved 4 January 2010.
[11] Kowitt, Beth (July 5, 2010). "Nestlé". Fortune 162 (1): 20.
[12] (PDF) The Reputations of Switzerland Largest Companies: (http:/ / www. reputationinstitute. com/ press/ 06-04-06_Swiss_Reptrak_pr. pdf).
Reputation Institute. 5 April 2006. . Retrieved 2007-02-22.
[13] Tran, Mark. "Blogs.guardian.co.uk" (http:/ / blogs. guardian. co. uk/ businessinsight/ archives/ 2005/ 09/ 01/ branded. html). London:
Blogs.guardian.co.uk. . Retrieved 2010-01-08.
[14] . New York. http:/ / www. babymilk. nestle. com/ . Retrieved 2010-06-13.
[15] China milk scandal claims victim outside mainland, (accessed September 21, 2008 12:14 AM) (http:/ / news. yahoo. com/ s/ ap/
as_china_baby_formula_recall;_ylt=AnB1GihZ3skp0da. OyxM_m0DW7oF)
[16] "Taiwan says melamine found in Nestle milk powders" (http:/ / news. yahoo. com/ s/ ap/ 20081002/ ap_on_re_as/ as_asia_tainted_milk_22).
Associated Press. Yahoo! News. . Retrieved 2008-10-02.
[17] AFP. "Taiwan finds low levels of melamine in Nestle milk products" (http:/ / www. channelnewsasia. com/ stories/ afp_asiapacific/ view/
379798/ 1/ . html). Channel News Asia. . Retrieved 2008-10-02.
[18] "IOL.co.za - Nestle Defends Buying Milk from Mugabe Dairy" (http:/ / www. iol. co. za/ index. php?from=rss_News& set_id=1&
click_id=79& art_id=vn20090928074015118C579440). IOL.co.za. . Retrieved 2009-09-28.
[19] "Nestle shuts Zimbabwe milk plant citing harassment" (http:/ / news. bbc. co. uk/ 2/ hi/ africa/ 8428322. stm). BBC News. 23 December
2009. . Retrieved 2009-12-23.
[20] Harding, Andrew (2006-11-16). "Borneo fires 'catastrophe'" (http:/ / news. bbc. co. uk/ nolavconsole/ ukfs_news/ hi/ newsid_6150000/
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
Nestlé 7
[22] The Telegraph newspaper claimed in 2007 that: "Vast swathes of pristine forest are disappearing in a slash-and-burn policy creating palm oil
plantations 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 address
the 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 24
May 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.
[31] http:/ / www. nestle. com
[32] http:/ / www. nytimes. com/ 2004/ 02/ 05/ business/ worldbusiness/ 05nestle. html?ex=1391317200& en=9bfbfa3f4307cbb5& ei=5007&
partner=USERLAND
[33] http:/ / www. nestle. com/ Media_Center/ Press_Releases/ All+ Press+ Releases/ 30May05_SWX_Swiss_Exchange. htm
[34] http:/ / biz. yahoo. com/ ic/ 41/ 41815. html
Article Sources and Contributors 8
License
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