Picture: http://www.nestle.com/AllAbout/History/AllHistories/1866-1905.htm"The story of the Nestle Baby Formula Controversy begins almost three decades ago with the publication of a pamphlet called "The Baby Killer" in 1974 by Mike Muller and War on Want, a London-based activist group concerned with problems of the Third World (Akhter 1994). The pamphlet claimed that Third World babies were dying because their mothers were feeding them infant formula that was being marketed by multinationals such a Nestle of Switzerland and United Kingdom's Cow and Gate (Akhter 1994). The aftermath of the publication led to an international crisis for Nestle."
YẾNPic: http://www.weblo.com/property/Groceries_Food_/Nestle/486032/Henri Nestlé develops the first breast milk substitute. In his "Memorial on the Nutrition of Infants" printed in 1869, Henri Nestlé wrote: "During the first months, the mother's milk will always be the most natural nutriment, and every mother, able to do so, should herself suckle her children."
Other purchases CooperVision (contact lens maker), Chunky, Bit-O-Honey, Oh Henry!, Goobers, Sno Caps, Hills Bros Coffee Company, and Carnation
GIANGThe World Health Organisation estimates that 1.5 million infants die around the world every year because they are not breastfed. This figure has been stated in this and other forms by WHO and UNICEF many times over the years. For example, see UNICEF's publication State of the World's Children 2001 which states:"Improved breastfeeding practices and reduction of artificial feeding could save an estimated 1.5 million children a year."
http://www.babymilk.nestle.com/who-code-compliance/history/Pages/TheWHOCode.aspxhttp://www.authorstream.com/Presentation/aSGuest24494-229708-Nestles-Case-Autosaved-nestle-s-Entertainment-ppt-powerpoint/http://www.babymilk.nestle.com/who-code-compliance/history/Pages/TheWHOCode.aspxhttp://www.scribd.com/doc/36922876/24419732-Nestle-Ppthttp://www.babymilkaction.org/pages/history.htmlThis paper explores the initial controversy caused by Nestle Company and other multinational companies' marketing of baby formula to impoverished nations. The paper looks at the pamphlet, "The Baby Killer", which raised public awareness about the problem of how the baby formula was being marketed and the resulting infant deaths and looks at Nestle's response to the pamphlet. The paper also examines the consequences of the pamphlet in terms of how private voluntary organizations and international agencies have subsequently been able to influence the way companies do business in Third World nations, as well as the continuing controversy concerning predatory marketing in Third World countries.
Nestlé’s Infant Formula and Breast Milk Is Nestlé a baby killer??
History Heinrich Nestle was born Aguest 10,1814 Frankfurt main in Germany He was the eleventh of fourteen children of Johann Ulrich Matthias Nestle and Anna Maria Henri Nestle combined cow’s milk with wheat flour and sugar to produce a substitute of mother’s milk for does children who couldn’t accept breast feeding He also began manufacturing and selling carbonated mineral water.
History, ctn. The company was involved in the production of nuts oil, rum, and vinegar. Nestle launched the world’s first instant coffee in 1938. By the 1960’s, Nestle was one of Switzerlands biggest company with over 200 factories around the world.
Nestle’s location Formally known as Nestle’s Alimentana S.A. main headquarters is located: Nestlé Offices Worldwide HEADQUARTERS: Nestlé S.A. Avenue Nestlé 55 1800 Vevey Switzerland General Enquiries: (Tel) +41 21 924 2111 (Fax) +41 21 924 4800
Mission Statement At Nestlé, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness, Nestlé products bring consumers the vital ingredients of taste and pleasure. As consumers continue to make choices regarding foods and beverages they consume, Nestlé helps provide selections for all individual taste and lifestyle preferences. Research is a key part of our heritage at Nestlé and an essential element of our future. We know there is still much to discover about health, wellness and the role of food in our lives, and we continue to search for answers to bring consumers Good Food for Good Life.
Nestlé’s Company Owns and controls various companies in the food and cosmetics industry - I973 Nestlé benefits from catering services, restaurants, and hotel operations with the Stouffer Corporation -1975 the company bought food processor Libby, McNeil & Libby -1979 Beech-Nut the baby food maker became apart of the list
Company In 1980 the company expanded it marketing of products to countries like Europe, Africa, North America, Latin America, The Caribbean, Asia, and Oceania - Diary products, instant drinks, and culinary/sundry were among the top three - Infant foods, Infant formula, and dietetic tallied in at less than 10 percent of the corporation’s sales Generated Sales of 12.5 billion in 1983
EARNINGS OF NESTLE Nestle, the worlds largest food company, brushed off fears of commodity price inflation and global slowdown to post the forecast 15.8 percent rise in 2007 net profits sending its shares higher. Like 2007 the year 2008 is also the year of global growth. In 2008, consolidated sales were CHF 109.9 billion and net profit was CHF 18.04 billion. Research and development investment was CHF 1.977 billion. 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’s Main Brands Nestlé expands across many different markets including beverages, ice cream, baby foods/formulas, soups, frozen foods, snacks, pet care and of course candy. Some of Nestlé’s main brands include: Kit Kat, Butterfinger, Smarties, Crunch, Quality Street, Milkybar/Galak, Tollhouse Nestea, Nescafé, Taster’s Choice, Nesquick, Carnation, Libby’s Stouffer’s, Lean Cuisine, Hot Pockets, Buitoni, Powerbar Purina, Friskies, Fancy Feast, Dog & Cat Chow, Tidy Cats Deer Park, Ice Mountain, Pure Life, Arrowhead Good Start, Nan, Lactogen, Beba
Infant Formula IndustryDevelopment and marketing ofmilk food product for infants beginin 1867 - Creation of the product progressed due to the urgent need of a substitute for infants who could not consume any food Infant formula foods were matured around the 1920’s - As an alternative to breast milk Sales boost after WWII and reached it climax in 1957 Market took a downturn around 1970’s - Nestle’s decided to market to countries like Africa, South South Africa, and Far East because of population growth
Infant Formula Industry cont. Total sales including of infant formula and other milk products was about $1.5 billion. Nestle makes up about 40-50% of the market in developing countries -U.S. companies American Home Products, Bristol Meyers, and Abbot Labs make up about 20% - Foreign corporations come in at about 20-30% - $600 million of sales came from developing countries The market in 1981 was expected to grow at about15 to 20% per year
The Crisis began... “Some 1.5 million children still die every year because they are inappropriately fed” WHO 2001 "Marketing practices that undermine breastfeeding are potentially hazardous wherever they are pursued: in the developing world, WHO estimates that some 1.5 million children die each year because they are not adequately breastfed. These facts are not in dispute." UNICEF
1.5 million real lives "Use my picture if it will help," said this mother at the Childrens Hosptial, Islamabad, Pakistan. Photo: UNICEF. A baby dies every 30 seconds from unsafe bottle feeding The babies are twins: the child with the bottle is a girl - she died the day after this photograph was taken - but her brother was breastfed and thrived. The mother was told that she wouldn’t have enough milk for both children, and so breastfed her son while the grandmother bottle-fed her daughter. But she would almost certainly have been able to feed both babies, since the more a baby suckles, the more milk is UNICEF, Islamabad Children’s produced. Hospital, Pakistan.
Roughly 80 % of Singapore three- month-old infants were being breast- feed in 1951. - By 1971 on 5% of mothers nursed their infants In Mexico around 1966, fewer than 40% mothers nursed their infants Chile experienced three times as many deaths of infants before they became 3 months old in 1973
One year old childweighing 4 kg Wasted buttock and loose skin
Dilemma SET IN MOTION Nestlé’s was one of the many manufactures that was suspected of contributing to the high infant mortality rate in Developing countries in early 1970’s British charity organization (WOW) published twenty-eight page pamphlet called the The Baby Killer in 1974 - Targeting Nestlé of Switzerland and Unigate of Britain in the ill advised marketing efforts in Africa. - Publication of the pamphlet raised concern of the general Public Another version of the pamphlet created by The Germany- based Third World Working Group focused more on Nestlé - The activist alleged Nestlé “unethical and immoral behavior” - And renamed the pamphlet Nestlé Kills Babies
The Issue Sizeable amount of purchasers in developing countries live in poverty, waters are contaminated, lack of healthcare, and uneducated Mother’s in developing countries were misusing the product by: - Mixing with contaminated waters - Using unsterilized bottles and nipples - Diluting formula to stretch out feedings Studies conducted gave three reasons for the trend to more bottle feedings and less breast feedings 1. Sociocultural environment was changing 2. Healthcare professionals took part in the change to bottle feedings 3. Marketing and promotional factors played a key role
Nestlé Fights back As a result of the activists slander Nestlé sued for defamation - Trial lasted two years and Nestlé won - Courts advised the company to revisit their current marketing strategies - The case caused a public-relations disasters
Quality Control The story started in 1976 in Australia when Nestle’s Tongala Plant noticed an increase in bacteria in the milk that was tested - Bacteria found to be salmonella which causes gastroenteritis -Nestle’s tried to sterilized the equipment without stopping production and the dries ran for a full 8 months after the discovery. April of 1977, Colombian General Hospital death rate in the premature ward increased - Twenty-five deaths occurred before the bacteria was traced to Nestle’s Later that year the Australian Dept. of Health reported an additional 134 infants fell ill due to contaminated infant milk produced y Nestle’s - An estimated 20 million pounds of the contaminated milk was exported to Southeast Asia
Nestle’s Marketing Practices Nestle’s marketing strategies seem to be somewhat forceful - Marketing of the infant formula came in many forms which include radio, newspaper, magazines, billboards, and loudspeakers - Free samples of bottles, nipples, and measuring spoons were given out to mother’s - Milk Mother’s were used as well to influence mother’s decision bottle feed infants About 200 women were employed by Nestle - Registered nurses, nutritionists, or midwives which were called milk nurses - The nurses was criticized for being too persuasive - Promoting of the infant formula physicians and other medical personnel raised
Nestle still in the hot seat The Interfaith Center on Corporate Responsibility and Infant Formula Action Coalition(INFACT) lead a boycott of Nestle products and services Other agencies such as Protein Advisory Group(1970 and 1973), the World Health Assembly(1974) and the World Health Organization (1978) have been trying to lessen promotion and advertising practices
Nestle tries to address the problem Nestle agree to make changes to their promotional strategies - The International Council of Infant Food Industries (ICIFI) which was formed in 1975 by 9 infant food manufactures including Nestle The changes included to note that breast milk is the best choice, infant formula was to be advertised as a supplementary, and professional advice is recommended, and uniforms should be worn by registered nurses - End result the self regulation was not effective -Violations of the “code "continue to occur
Nestle’s boycotted again In July of1977 a boycott was established in the U.S. and Canada lasted until January 26, 1982 INFACT and boycotters had four demands 1. Stop use of milk nurses 2. Stop free samples 3.Stop promotion to health industry 4. Stop consumer promotion and advertising of infant formula *Nestle was singled out because of their 50% market share worldwide
Nestlé Fight back again The corporation decided to deal with the boycott as a public relations problem World largest PR firm Hill & Knowlton and Daniel J. Edelman PR specialist were hired. - After the unsuccessful attempts to improve Nestle image the company decided to fire the PR firm Nestle changed their plan to regain creditability again by: -Endorsing the WHO Code of Marketing fir Breast Milk Substitutes -Methodist Task Force on Infant Formula validated Nestle’s conformity with the code -The most effective effort was the Nestle Infant Formula Audit Commission (NIFAC) gained creditability with Edmund S. Muski
Result of Efforts Muskie Commission collaborated with WHO, International Nestle Boycott Committee(INBC), and UNICEF to solve the controversy of the WHO code -Nestle agreed to address that breast milk vs. bottle feeding - Labels would state the dangers of using contaminated water -Personal gifts to health officials were banned -Free samples were only provided to Mothers who were not able to breast-feed Nestle acknowledged their mistake President of Nestle Coordination Center for Nutrition Rafael D. Pagan Jr. said this “ We have all learned a lesson…”Boycotters and protesters agreed to suspend their boycotting in early 1984
Works citedhttp://www.research.nestle.com/tools/mission_statement.htmlhttp://www.nestle.com/AllAbout/History/AllHistories/1866-1905.htmhttp://www.weblo.com/property/Groceries_Food_/Nestle/486032/http://www.flickr.com/photos/28056346@N06/3761642955/http://www.research.nestle.com/tools/mission_statement.htmlhttp://www.nestle.com/MediaCenter/PressReleases/AllPressReleases/HYres ults2009.htm