This document discusses several mega trends and challenges facing the packaging industry, including changing consumer demographics and behaviors, the digital world, concerns over food safety, and increasing market polarization. It provides an overview of Nestle as a company and explores some of their initiatives to address these trends, such as developing premium and affordable product lines, emphasizing sustainability in packaging design, and leveraging digital technologies.

1. MEGA TRENDS
Challenges for the
packaging Industry

2. Mega Trends
• The changing consumer
• The changing retail environment
• The digital world
• Concerns on food safety
• Market polarisation
• Sustainability

3. Nestlé at a glance
 CHF 83.6 billion in sales in 2011
 328,000 employees
 461 factories
 10,000 brands
 1 billion Nestlé products sold every day
 A product for every moment of every day, from
morning to night and from birth to old age

5. The Changing consumer…….
60 Million
Population
47+
Half Adults
10 Million
Disabled
8.5 Million
Arthritis
9 Million
Hearing loss
2 Million
Visual Loss
11 Million
Children
14 Million
Grandparents
1 in 10
Left Handed
8% Men
0.4% Women
Colour Blind
3.4 Million
Asthma
1.5 Million
Diabetes
50 : 50
Gender

6. Age band
Even today, half the UK
adult population are aged
47 or over.
Cambridge University (UK)
InclusiveInclusive
Population Change

8. Put yourself into the shoes of the
shopper/consumer

11. CONCENTRATION
Top5RetailersShareofGrocerySales
Exploration ConcentrationPenetration Maturity
Value of Top5
in EUR Billion
USA, 307.0
Germany, 113.5
France, 138.3
UK, 122.1
Italy, 40.8
Spain, 44.8
Mexico, 28.3
China, 19.1
Japan, 79.5Brazil, 21.9
0%
20%
40%
60%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Data sources: MVI research
High and increasing Trade Concentration
3

12. Alternative business models
Control over total value chain &
direct consumer contact
Direct consumers contact (category
shop, shop in shop)
Dolce Gusto
Nespresso
Brand channel exclusivity
13
Controlled delivery chain (street
vending, home delivery)
Purina
Channel
New channels
Fully
integrated
value chain
Dis-tribution
model
…

13. MAISON CAILLER / 2012 (Switzerland, and global roll out)
ISON CAILLER®, the prestigious inventor of milk chocolate in Switzerland, offers the most intimate exploration of chocolate for the perfect gift or your own personal treat.
nding, Product and packaging design have been developed internally.
Maison Cailler

14. BabyNes – Advanced Nutrition System (Switzerland)

16. NUTRITION INFORMATION
LOGO / BRANDING
INGREDIENT LIST

17. Scanning QR and barcodes
• Code takes you to website
or application
• Technology very strong in
Japan, and is expanding to
many other markets

18. Augmented reality
Chocapic France Launch
The very first augmented reality
consumer good product launched on the
Market !
Nestlé cereal boxes has an
“integrated 3D animation” function that
encourages consumers to log onto brand
websites

19. Internet connections
www.chocapic.com website : Total Visits
Packsonshelf
X 15
average connectionsWe decided to focus the buzz campaign on one
of the two brands (CHOCAPIC) to compare the buzz effect on visits and sales.

20. Choose a product Start the app Film the barcodeBe located Get sorting advices

21. Choose a product Start the app
& be located
Like or SuggestFilm the barcode Tell more by adding
video, picture or text.

24. Concerns about Food safety

25. A complex supply chain
Resin
Manufacturer
Converter
Food Packer
Trade
Consumer
Pigment
Manufacturer
Printing Ink
Manufacturer
Upstream
Downstream
Adhesive
Manufacturer
It is in the interest of all partners of the packaging
value chain to have a full knowledge of the
products they sell, including the raw materials they
purchase.

26. Ann. 2
Vade-Mecum
for Vendors
Ann. 1
CoC Template
Ann. 2
CoC Example
Ann. 3
Confidentiality
Must be shared with suppliers
List of
substances
Abstract
Guidance
Note on
Packaging Inks
Overview on packaging safety and
compliance
GI-80.008
Nestlé Standards
on Materials in
Contact with Food
GI-80.103-1
Certificate of
Compliance
GI-80.104
Monitoring/
Surveillance
GI-80.100-1
The Packaging
Safety Process
GI-80.105-2
Packaging
Supplier Audit
GI-80.002-1
Specifications

27. Polarisation of the market
Premiumization
PPP

28. Polarisation of the market
PPP

29. Polarisation of the market
Premiumisation
Mainstream
Emerging

30. 30
>30,000
22,000-30,000
14,000-22,000
3,000-14,000
< 3,000
Emerging Consumers
30
Increase in people who can afford to buy Nestlé products regularly

31. • Meet nutritional needs in developing countries
- low price
- high nutritional value
- smaller, more affordable, pack sizes
• Different business model, different types of
advertising, micro distributors
Products for emerging markets – Popularly Positioned Products

34. Cost Challenge
Hurdles:
- Down size = More packaging / kg
- Product requires same protection.
- Added fortifications might require better protection.
PM over-cost
> 20%
Equivalent price /kg
PPPPPP

37. Polarisation of the market
Premiumization

38. Premium and luxury products
• More than just products – the complete experience
• Nestlé Nespresso
• Premium chocolate: Centre of Chocolate Excellence
• Luxury ice creams
• Pet foods
• Waters
Premiumization

45. 1. Eco Design based on Life Cycle
Assessment
2. Promote recycling & recovery & use of
recycled materials
3. Materials from sustainably managed
renewable resources
4. Lightweighting
Sustainability by Design

46. Holistic approach to reducing environmental impact
Recovery
Disposal
DOWNSTREAM IMPACT
UPSTREAM IMPACT
Raw material
production
Processing Filling
Distribution PackagingUse

47. Eco Design

48. Packaging lightweighting
Eco-Shape® bottle Nestlé Waters

49. Purina Project Density :
Reduction of 144’000 pallets
640 Tonnes less packaging material
• product development
• packaging development
• logistics
• marketing & communication.
Excellent feedback from consumers
& press
-

51. Contains over 92% renewable materials: PLA & paper
Certified Sustainable Forestry Initiative (SFI) paper.
Soy based printing inks.

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