nestle corp

1. Nestle Corp.
Brent Hanson
Justin Chen
Lance Rambousek
Randee Birkeland

2. History
• Founded in Vevey, Switzerland by Henri Nestle
• Combination of two companies
• Popular during WWI and WWII

3. Industry Analysis
• Brief for candy industry
• Health Issues
• Challenges
• Future Trends

4. Definition and History
• Definition of candy industry
- It’s a part of snack industry and belongs to food industry.
• History of candy industry
- Can be dated back to mid 1800’s.

5. Health Issues
• As a part of food industry, Candy industry is also facing
health issues mainly as followings:
• - Tooth Decay
• - Obesity

6. Challenges
• Substitutes to candy in snacks risk the profit of candy
industry.
• - Chips and crisp
• - Biscuits and cookies
• - Popcorn

7. Future Trends
• -Improved technology
• -High profit
• -Fierce competition in market

8. Global Analysis
• Nestle and Ethiopian Government
• Nestle and Infant Formula
• Nestle and Kit Kat
Kit-Kat Commercial

9. Company Analysis
STRENGTHS
• Strong brand name recognition
some of the most recognized brands in the candy and chocolate industry:
-Nestle Crunch
-Pixy Stix
-Wonka Products
-Butterfinger
-Baby Ruth

10. STRENGTHS Cont.
• Internationalization throughout the industry
• Very recognizable in nearly every country
• Chocolate and Candy are popular worldwide
• Very low operating costs
– Allows Nestle to undercut pricing stategies of competitors

11. WEAKNESSES
• Candy division is small portion of company revenue----only
11% of annual sales---Nestlé's revenues
• Company interests are more targeted toward other
industries, not candy
• Dependence on Foreign production
-many Nestle products are made overseas for low costs

12. OPPORTUNITIES
• Healthier approach to candy
Countries including U.S. are becoming more health conscious
• Strong opportunity to join bubble gum market

13. THREATS
• Competitors
• U.S. market slump
• Foreign Labor
• Tainted ingredients (Melamine)

14. Competitor Analysis

15. Hershey’s Company
• Largest North American candy company
• Headquartered in Hershey, Pennsylvania
• Largest chocolate factory in the world
• Twizzler’s, Reese’s, Milk Duds, Jolly Ranchers
• Produces Kit Kat for Nestle

16. Mars Incorporated
• One of the largest private owned companies in the United States
• Headquartered in Hackettstown, New Jersey
• International Headquarters is Brussels, Belgium
• Skittles, Starburst, M&M’s, Snickers
• Recently purchased Wrigley Jr. Company

17. Pearson’s Candy Company
• St. Paul, Minnesota headquarters
• Salted Nut Roll, Mint Patty, Nut Goodie
• Very centralized – 80% of revenue from Salted Nut Roll and
Mint Patty
• Several ownership changes

18. Cadbury plc
• Worlds largest candy company
• Based in London, England
• Cadbury Cream Eggs, Trident Gum, and Halls cough drops
• 60 countries, 50,000 employees
• Sold United States subdivision to Hershey’s

19. Recommendations
• Short Term
– Find more efficient and labor friendly production practices
– Create even more low cost products to match the budgets of homes.
– Produce environmentally friendly packages

20. Recommendations Cont.
• Long Term
– New product lines
– Health?
– Expansion into untapped markets
– Combine candy segment with another competitor

21. Conclusion
Nestle is one of the top producers of candy in
the world. They share just a small share in the
global market as well as just 11% of their own
companies revenue, but their ability to
transition into foreign markets and produce top
brands lets them compete with all other
companies worldwide.