Peter Vogt, Halal-A Key Compenent of Nestle's Business Model_IHMC 2010, Day 1

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  • MMC – April 2008 P. Bulcke 05/06/10 07:58 We have the broadest and deepest portfolio in the industry. Through our products and services we can be part of people's live from morning to the evening, in every stage of their lives... With Nestlé Nutrition, we have now a 12 bio. CHF stronghold in science based advanced nutritional products. More than double the size of its next competitor. No other company in the industry has that reach.......
  • MMC – April 2008 P. Bulcke 05/06/10 07:58 Innovation/Renovation is the driving force behind our vision and performance. Throughout the world we have unique R&D capabilities based on 1 Research Centre (NRC), 23 R&D Centers and 280 Application Groups, combined with 200 R&D projects with universities and research institutes. Additionally, our "open Innovation" model allows us to leverage the R&D capabilities of our major suppliers. This is a unique and strong competitive advantage, for us to leverage.
  • MMC – April 2008 P. Bulcke 05/06/10 07:58 Nestlé has been present with products and operations in nearly every country of the world for many years. This has given us strong, time-tested management expertise, with deep understanding of local operational particulars and consumer expectations. This global presence – with depth and expertise – is unique and cannot be duplicated by any of our competitors.
  • MMC – April 2008 P. Bulcke 05/06/10 07:58 Finally, the 4 th and most significant competitive advantage is our people with their culture, values and attitudes. Our way of working is guided by our Corporate Business Principles. Our way of behaving is reflected in the Management and Leadership Principles & Code of conduct . These are important elements of our unique Nestlé culture. "Nestlé on the Move" has given a new dynamism. Our people are motivated, hard-working, aligned and passionate about Nestlé – this is consistent in every market in the world. Our people represent the most important resource of our future success.
  • Peter Vogt, Halal-A Key Compenent of Nestle's Business Model_IHMC 2010, Day 1

    1. 1. HALAL – A KEY COMPONENT OF NESTLE’S BUSINESS MODEL 5th INTERNATIONAL HALAL MARKET CONFERENCE: BRUNEI DARUSSALAM 5 June, 2010 Peter R. Vogt Region Head for Nestlé Malaysia / Singapore / Brunei
    2. 2. AGENDA 1. Introduction to Nestlé 2. The Nestle HALAL Assurance System 3. HALAL – an Excellent Growth Opportunity
    3. 3. ... captures the very essence of Nestlé and the promise we commit ourselves to everyday, everywhere as the leading Nutrition, Health and Wellness Company
    4. 4. Introduction: Nestlé Group <ul><li>Founded in 1866 by Henri Nestlé </li></ul><ul><li>Employs over 280,000 people worldwide </li></ul><ul><li>456 factories in 84 countries </li></ul><ul><li>Sales of approx. USD 100 bn in </li></ul><ul><li>2009 </li></ul><ul><li>World’s largest food </li></ul><ul><li>manufacturer, headquartered in Switzerland </li></ul>
    5. 5. Nestlé Group <ul><li>Competitive Advantages </li></ul><ul><li>Products & brands </li></ul><ul><li>R&D capabilities </li></ul><ul><li>Global presence </li></ul><ul><li>People, culture and values </li></ul>
    6. 6. 1. Product and Brand Portfolio
    7. 7. 2. The industry's leading R&D capability
    8. 8. R&D Global Network – 2009 Minneapolis Solon St. Louis + NRC St. Joseph Marysville Vittel Amiens Lisieux Beauvais Tours York Singen Shanghai Singapore Sderot Casa Buitoni Konolfingen Orbe Bev. Centre Orbe NRC Lausanne Beijing + NRC Queretaro Fremont Rzezsow CPW - Welwyn Garden City 1 Science & Research Centre 27 PTC and R&D Centres 280 Application Groups CPW – Rutherglen Abidjan Broc CCE NRC Tokyo
    9. 9. 3. Global Presence 
    10. 10. 4. People, Culture, Values, Attitude
    11. 11. <ul><li>Established in Penang (Malaya) in 1912 </li></ul><ul><li>Employs over 5,000 people with 7 factories </li></ul><ul><li>RM3.7 billion in turnover in 2009 </li></ul><ul><li>Public-listed on Bursa Malaysia since 1989 </li></ul><ul><li>Leading HALAL food manufacturer </li></ul>Introduction: Nestlé (Malaysia) Berhad
    12. 12. OUR MISSION
    13. 13. Our Business Strategy Creating Shared Value Creating Shared Value Nutrition | Water | Rural Development Compliance Sustainability
    14. 14. Our Focus - Consumers
    15. 15. Our vision of Nutrition, Health and Wellness Pleasure Balance Understanding
    16. 16. <ul><li>1980: Established internal Halal committee </li></ul><ul><li>1992: Formal implementation of Halal policy </li></ul><ul><li>1994: Halal certification by JAKIM </li></ul><ul><li>1997: Established Nestlé Halal Guidelines for inter-market supply for the Nestlé Group </li></ul><ul><li>2004: Contributed towards the Malaysia Halal Food Standards </li></ul><ul><li>2009: Halal exports to >50 countries worth RM689 million </li></ul><ul><li>2010: Biggest Halal producer in the Nestlé world </li></ul>Nestlé Malaysia’s HALAL Facts
    17. 17. Pillars for Effective HALAL Implementation POLICY & STANDARDS COMMITMENT & DISCIPLINE CONTROLS & MONITORING
    18. 18. Nestlé Malaysia HALAL Policy As a responsible corporate citizen of Malaysia, we are mindful of our obligations to the country and its consumers. Nestlé Malaysia manufactures, imports and distributes only products which have been Certified “HALAL” by authorized certification bodies.
    19. 19. Our Internal Controls to Monitor Strict Compliance of HALAL <ul><li>The Nestlé Malaysia HALAL Committee </li></ul><ul><li>comprises of senior Muslim executives from multi disciplines & </li></ul><ul><li>from various work locations </li></ul><ul><li>the role of the committee is to advise the Company on matters </li></ul><ul><li>pertaining to HALAL compliance and certification </li></ul><ul><li>HALAL Audit </li></ul><ul><li>members of the Halal committee audits suppliers, distributors, </li></ul><ul><li>warehouses, customers, etc to ensure strict compliance of HALAL </li></ul><ul><li>standards and practices </li></ul><ul><li>Internal Guidelines </li></ul><ul><li>working with the Halal committee, the brand teams must meet </li></ul><ul><li>internal Halal guidelines on all products </li></ul>
    20. 20. Our Internal Controls to Monitor Strict Compliance of HALAL <ul><li>HALAL Inspections </li></ul><ul><li>Nestlé premises are subject to surprise checks by the authorities </li></ul><ul><li>who monitors and enforces HALAL compliance </li></ul><ul><li>All imported products by NESTLÉ Malaysia are certified HALAL </li></ul><ul><li>by the relevant certification bodies and this will involve traveling </li></ul><ul><li>to Nestlé factories worldwide for Halal inspections, accompanied by </li></ul><ul><li>a Halal Committee representative </li></ul><ul><li>All locally manufactured products are certified HALAL by JAKIM </li></ul><ul><li>HALAL Communication </li></ul><ul><li>All NESTLÉ Malaysia employees are well-informed about the </li></ul><ul><li>Company’s Halal Policy through various internal communication </li></ul><ul><li>channels </li></ul><ul><li>Our Consumer Services Team is also ready to respond to Halal queries from consumers who contact us at 1-800-88-3433 or </li></ul><ul><li>via our website. </li></ul>
    21. 21. Our Internal Controls to Monitor Strict Compliance of HALAL <ul><li>HALAL Implementation & Monitoring of : </li></ul><ul><li>raw materials/ingredients </li></ul><ul><li>suppliers </li></ul><ul><li>abattoirs </li></ul><ul><li>equipment & utensils </li></ul><ul><li>HACCP </li></ul><ul><li>quality management </li></ul><ul><li>sanitation & hygiene </li></ul><ul><li>storage </li></ul><ul><li>transporters </li></ul><ul><li>vending machines </li></ul><ul><li>packaging materials </li></ul><ul><li>business practices </li></ul>
    22. 22. The key messages: Halal Integrity: No compromise Halal is hygiene & food safety A great demand Good for everyone Social responsibility Nestlé Internal Controls Monitor Strict Compliance of HALAL
    23. 23. Nestlé Business in the main Islamic countries Number of factories 50 Companies/representative offices 62 Turnover 2008 in billion USD 5.2 Number of people 31,305 Gross fixed assets in billion USD 1.7
    24. 24. 85 Halal-certified factories worldwide majority are in Asia-Oceania-Africa :
    25. 25. 85 Halal-certified factories worldwide: 19 factories are certified in Europe
    26. 26. Strong Market Position in Asia, Oceania, Africa & the Middle East
    27. 27. Nestlé Worldwide … an extensive range of Halal products Popularly sought for as “Halal certified Food”: Culinary products Halal certification extends into Other Food and Beverage Categories Increase awareness
    28. 28. <ul><ul><ul><li>Europe – emerging market for HALAL </li></ul></ul></ul>Muslim migrants in EU countries (around 50 million) bring cultural diversity & popularity of ethnic foods with greater Halal awareness Growth in Halal food manufacturing & retailing, food service sector and the travel trade Higher demand of Halal convenience food as lifestyles evolve
    29. 29. The European HALAL food industry is worth USD 66.5 billion The biggest markets are France, Germany and the UK Halal range is sold through: Specialised wholesalers Small ethnic shops Modern trade - Carrefour, Tesco & Auchan Nestlé business is CHF 55 million Growing at 12 % per annum Reaching 10,000 shops with 150 products
    30. 30. HALAL Makes Good Business Sense Opportunities: 1. Wins consumer trust & confidence 2. Appreciated by non-Muslims for quality & safety 3. Export potential as Nestlé Malaysia continues to expand its export business to over 50 countries worldwide with export sales of RM689 million in 2009 4. Improves innovation in product development 5. Gives a competitive advantage over competitors who are not Halal certified (Halal certification is voluntary, not mandatory)
    31. 31. Challenges to Promote HALAL Challenges: 1. Harmonization of global Halal standards to ensure consistency and build trust among the global Muslim population 2. Establish global accreditation of Halal logo to enhance credibility and recognition among consumers 3. Surveillance and enforcement to weed out products displaying unauthorized Halal logos 4. Encourage SMEs in the food industry to be strictly Halal compliant to produce more and tap the global food market 5. Improve positive communication on HALAL practices for better understanding of its benefits, particularly on quality and safety.
    32. 32. THE END Contact Nestlé Malaysia at: www.nestle.com.my TERIMA KASIH

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