Nestlé in Africaand Middle East:Winning in theNew RealityNandu NandkishoreExecutive Vice PresidentZone AOANestlé Investor ...
Agenda1. Introducing Africa and Middle East2. Winning in The New Reality3. Performance1   September 25th, 2012   Nestlé In...
An immense territory of limitless possibilities                                                               Australia   ...
More often known for its political and social unrest…                                                               2012 P...
Getting organized in various economic regions                                                                       GAFTA:...
Very diverse in terms of population, culture or GDP        Population                                 Highest GDP 14’100  ...
Accelerated GDP growth: the ascent of the roaring giants                                                                  ...
8 trends affecting AfricaSource : McKinsey 7    September 25th, 2012   Nestlé Investor Seminar, Shanghai
Increasing urbanization                  Top 18 cities Population          Source : UN Habitat8   September 25th, 2012    ...
Digital boom via cellular in North Africa and Middle East        % population         100%                                ...
… and in Sub Saharan Africa as well        % population         100%           80%                                        ...
Agenda1. Introducing Africa and Middle East2. Winning in The New Reality3. Performance11   September 25th, 2012   Nestlé I...
Africa and Middle East are growth engines for the future              Growth achieved through Organic Growth              ...
The Nestlé Strategic Roadmap toWin in The New Reality13   September 25th, 2012   Nestlé Investor Seminar, Shanghai
A long term presence over 130 years, investing                                      Unmatched                             ...
Multi-tier strategy with the right product portfolio            Unmatched                                                 ...
The PPP model: a holistic approach                                                           Emerging                     ...
MAGGI 1 Brand in CWAR : Maggi Fortified CWARNumber Fortified Number 1 Brand in                               Nutrition,   ...
MAGGI Fortified Powder Success in the                            Nutrition,                                               ...
Kit Kat campaign in Middle East with                              Consumer      Innovation andunparalleled results        ...
Increasing distribution in the various channels                                                              Whenever,    ...
NESCAFE whenever, wherever, however                                                                      Out-of-home      ...
Nestlé Pure Life : servicing the consumer                                                Out-of-home                      ...
7 factories and production units inaugurated                                                                              ...
R&D Abidjan                                                                            Unmatched                          ...
Maximizing sustained and high quality local sourcing    Corn is the main ingredient for                               Ca...
Interchange of cultures and best practices                                                         People,                ...
133’000 + people earn their living directly from                                    People,                               ...
Agenda1. Introducing Africa and Middle East2. Winning in The New Reality3. Performance28   September 25th, 2012   Nestlé I...
A balanced portfolio with Number 1 Brands                                                                                 ...
Competition Landscape                                                     Top 10 Food Companies in Africa and Middle East ...
Crisis procedures & Business Continuity Plansthat ensure safety of people and assets                                      ...
Conclusion                 Nestlé is well positioned to accelerate     its growth in                Africa and Middle East...
Upcoming SlideShare
Loading in...5
×

Winning in the new reality Nestlé in Africa and the Middle East

2,662

Published on

Presentation to the 2012 Nestlé Investor Seminar, September 25, Shanghai, China

Published in: Investor Relations
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,662
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
125
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Winning in the new reality Nestlé in Africa and the Middle East

  1. 1. Nestlé in Africaand Middle East:Winning in theNew RealityNandu NandkishoreExecutive Vice PresidentZone AOANestlé Investor Seminar, ShanghaiSeptember 25th, 2012
  2. 2. Agenda1. Introducing Africa and Middle East2. Winning in The New Reality3. Performance1 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  3. 3. An immense territory of limitless possibilities Australia  6% of the Nestlé Group sales  6% of the world GDP  18% of the world’s Population2 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  4. 4. More often known for its political and social unrest… 2012 Planned Elections Potential for (Presidential, political or social Parliamentary,…) conflict3 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  5. 5. Getting organized in various economic regions GAFTA: Greater Arab Free Trade Area AMU : Arab Maghreb Union CFA franc zone COMESA : Common market for Eastern and Southern Africa EAC : East African Community ECCAS : Economic Community of Central African States ECOWAS : Economic Community of West African States IGAD : Intergovernmental Authority on Development SADC : Southern African Development Community All countries are members of the African Union (AU) Source : UNEP 20054 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  6. 6. Very diverse in terms of population, culture or GDP Population Highest GDP 14’100 in million Lowest GDP 2’800 Highest GDP 9’600 80 280 Lowest GDP 5’100 120 Highest GDP 104’300 Lowest GDP 2’300 370 Highest GDP 16’000 Lowest GDP 340 415 Highest GDP 15’100 Lowest GDP 400GDP: per capita inUSD at purchasing Highest GDP 16’200 60power paritySource : CIA World Factbook Lowest GDP 7’500 5 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  7. 7. Accelerated GDP growth: the ascent of the roaring giants 5% 4% 4% 4% 4% 3% 2% 2% GDP Average forecast growth (2011-15) Western North World Transition Latin Asia & Middle East Sub-Saharan Europe America economies America Australasia & North Africa (incl Japan) AfricaSource: EIU - Deloitte6 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  8. 8. 8 trends affecting AfricaSource : McKinsey 7 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  9. 9. Increasing urbanization Top 18 cities Population Source : UN Habitat8 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  10. 10. Digital boom via cellular in North Africa and Middle East % population 100% Cellular Subscribers 80% 60% 40% Internet Users 20% Fixed Lines 0% 2000 2005 2010Source : ITU (2011) 9 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  11. 11. … and in Sub Saharan Africa as well % population 100% 80% Cellular 60% Subscribers 40% Internet 20% Users Fixed Lines 0% 2000 2005 2010Source : ITU (2011)10 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  12. 12. Agenda1. Introducing Africa and Middle East2. Winning in The New Reality3. Performance11 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  13. 13. Africa and Middle East are growth engines for the future Growth achieved through Organic Growth x3 Capital Investments = $1.8 billion last 5 years The objective is to triple the business by 2020 at Constant Currency12 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  14. 14. The Nestlé Strategic Roadmap toWin in The New Reality13 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  15. 15. A long term presence over 130 years, investing Unmatched geographicbehind People, Brands and Factories presence 51 Factories (first factories in 1927 in Turkey & South Africa) 25’000 Nestlé employees (over 98% locals)14 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  16. 16. Multi-tier strategy with the right product portfolio Unmatched product and brand portfolio15 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  17. 17. The PPP model: a holistic approach Emerging markets and Popularly Positioned Products  PPP products have an OG well above the average  In Africa PPP products represent around 40% of the total sales16 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  18. 18. MAGGI 1 Brand in CWAR : Maggi Fortified CWARNumber Fortified Number 1 Brand in Nutrition, Health and Emerging markets and Popularly Wellness Positioned Products  100 million units sold everyday  Fortified : Iron, Iodine  In Nigeria : 3 cubes = 10 NAIRA (CHF 0.06) =17 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  19. 19. MAGGI Fortified Powder Success in the Nutrition, Health and Emerging markets and PopularlyMiddle East Wellness Positioned Products Strengthened leadership with 350 million additional servings generated this year 3.5 million consumers reached through grass route activities Fortified with Iron18 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  20. 20. Kit Kat campaign in Middle East with Consumer Innovation andunparalleled results communication Renovation• New Kit Kat “Extra Crispy Extra Creamy”• Single-minded Consumer Communication• Excellent Visibility & In-Store Execution Highest ever Sales, Market Share, Awareness and Social Media reach19 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  21. 21. Increasing distribution in the various channels Whenever, wherever, however1 Open Markets 2 Small Stores 3 Modern Trade and Urban areas20 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  22. 22. NESCAFE whenever, wherever, however Out-of-home Whenever, wherever, consumption however • Taking NESCAFÉ to the • Selling hot NESCAFÉ cups • Empowering unemployed youth doorsteps of consumers in the streets to set up small scale business • Making ~ 10 USD a day • a minimum of 200 USD per selling NESCAFÉ in choked month areas • >1000 salesmen • > 2000 jobs created • >500 saleswomen21 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  23. 23. Nestlé Pure Life : servicing the consumer Out-of-home Whenever, wherever,with multiple healthy hydration solutions consumption however Double digit growth 13 countries From Retail to Home & Office Service 2Billion Liters 1.5 1 0.5 0 2010 2011 201222 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  24. 24. 7 factories and production units inaugurated Operationalsince 2011 efficiencyJan 2011 AlgeriaFeb 2011 NigeriaJan 2012 Turkey (CPW)Apr 2012Aug 2012 Saudi Arabia (Waters) Angola TOFAAug 2012 South AfricaSept 2012 Congo Inauguration of the TOFA factory in Angola with Small modular flexible units Mrs Idalina VALENTE, Minister of Trade «PPP» Factory, Kinshasa, Congo Mr Joaquim DAVID, Minister of Geology, Mines and Industry23 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  25. 25. R&D Abidjan Unmatched research & development capability R&D Abidjan’s role is to screen and develop African raw materials for improved performance based on: • agricultural aspects • easy processing • quality & safety • nutritional aspects • business needs Serigne DIOP Head of R&D Abidjan24 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  26. 26. Maximizing sustained and high quality local sourcing Corn is the main ingredient for  Cassava to replace imported corn  Milk: partnership with the East Nestlé GOLDEN MORN Porridge starch African Dairy Development Board (EADD) in Kenya and Uganda. 30% of grain crops are lost in the  Farmers trained in sustainable region (humidity & poor practices) agricultural practices and given  Nestlé advises farmers on high-yield cassava varieties feeding, breeding and milking 30 000 farmers trained by Nestlé in mycotoxin management  from ~10T to ~20T per ha practices.  4 000 farmers depend economically  Farmer’s real income expected to on this activity double over 10 years.25 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  27. 27. Interchange of cultures and best practices People, culture, values & attitude Developing the next generation of young professionals 3 Training Hubs Accra | Nairobi | Dubai 256 In-patriates 106 Ex-patriatesThis include F&B, CPW, Nespresso, NPP, Globe, R&D, Water & Nutrition.26 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  28. 28. 133’000 + people earn their living directly from People, culture,Nestlé values & attitude …and more households 26’000 + 116’000 Nestlé Farmers, employees Sales & Distributors Staff, Third party dependants (drivers, security, agencies…)27 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  29. 29. Agenda1. Introducing Africa and Middle East2. Winning in The New Reality3. Performance28 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  30. 30. A balanced portfolio with Number 1 Brands Petcare 1% Confecti onery Water 8% Dairy & 10% Ice Cream 28% Nutrition 14% Beverages Culinary 23% 16%29 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  31. 31. Competition Landscape Top 10 Food Companies in Africa and Middle East Source : Euromonitor 2011* - Sales at Retail Price in mio USD South Africa Iran Iran S. Arabia Solico Food Pegah Dairy * Packaged Food, Pet Care, Hot drinks; not an exclusive list of companies (indicative list only)30 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  32. 32. Crisis procedures & Business Continuity Plansthat ensure safety of people and assets Security  Egypt & Tunisia: Nestlé operations interrupted for several days in 2011 Market Zone to ensure staff safety. Head Management No impact on Sales. MARKET CENTER  Côte d’Ivoire: Activity restarted after 1 month of interruption in 2011.  Daily Crisis Meetings Impact on sales compensated by  Situation Updates  Contingency Plans the rest of the region  Position Statements31 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  33. 33. Conclusion Nestlé is well positioned to accelerate its growth in Africa and Middle East while delivering the Nestlé model thanks to the solid foundations set with its manufacturing footprint, strong Brands, and talented People32 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×