This document provides an overview of Nestle's history and operations. It summarizes that Nestle was founded in 1866 with the creation of the Anglo-Swiss Condensed Milk Company. Over 150 years, Nestle has grown to operate in over 197 countries with over 300,000 employees and producing over 1 billion servings per day globally. The document outlines Nestle's strategic focus on nutrition, health and wellness and commitment to creating shared value for shareholders and society.
1. Introduction
Good Food, Good Life’: Celebrating 150 years of
Nestlé
It’s 1867 in Switzerland, and a premature baby cannot breastfeed, which is worrying in an era
when many infants die of malnutrition due to a lack of effective breast milk alternatives. Henri
Nestlé learns about the case and feeds the child his new ‘Farine Lactée’ infant food. It is the
only product that the boy can digest, and he survives.
Word of Nestlé’s success spreads rapidly, and through determination, commitment and a
pioneering spirit he builds a thriving business. His life-saving innovation is the model for all
those that follow throughout Nestlé’s 150 years, which show the company’s skill in meeting and
anticipating consumers’ changing needs.
Worldwide, people now consume more than one billion servings of Nestlé products per day. The
company operates in over 197 countries and employs almost 340,000 people. It’s a far cry from
the small-scale business that Henri Nestlé founded in Vevey, Switzerland. But Nestlé still
embraces his values, his famous ‘Nest’ logo, and its headquarters in the city.
2. Growing-up in an industrial age
Nestlé’s story proper begins in 1866, with the foundation of the Anglo-Swiss Condensed Milk
Company, which launched Europe’s first condensed milk. This was another life-saving product
in an era before refrigeration, when fresh milk spoilt easily in transit. In 1905, Anglo Swiss
merged with Nestlé’s company to form the Nestlé & Anglo-Swiss Milk Company, which
evolved into Nestlé from 1977.
The company’s early success was due to its investment in science-based products and modern
factories to produce them efficiently. Railways and steamships gave Nestlé & Anglo-Swiss
access to new urban markets worldwide, and it made savvy use of modern advertising media –
newspapers, magazines, billboards – to educate people on product benefits. Namely, nutrition,
quality, safety, affordability and taste.
It’s a blueprint for success that, bar a few necessary updates, still applies today. One other
benefit that Nestlé products have always offered is convenience, and this became especially
important after World War Two, when more women entered the workplace, and people
demanded foods that were easy to prepare.
By 1938, people could ‘start the day with a Nescafé’, the world’s first great-tasting instant
coffee, simply by adding hot water. By 1948 they could enjoy Nesquik, a cocoa-based powder
that dissolves easily in cold milk. And by 1957, they could finish the day with Maggi pasta
‘ready meals’ in cans, which were hugely successful.
Lightening the load in the kitchen
Cans weren’t new, but nutritious meals in cans were, and this quickly became a high-growth
segment for Nestlé. Such foods had a long shelf life, were easy to heat then eat, and you could
even enjoy them cold. Cans were also simple to transport, so you could consume them on a
camping trip, for instance, along with your cup of Nescafé. Such products helped to shape our
modern world, and life would never be the same.
From the 1960s, you could also enjoy the convenience of Nestlé frozen foods and ice creams,
which the company entered as domestic fridges and freezers grew in popularity. In 1986 Nestlé
went one step further by creating its own breakthrough Nespresso system, which changed the
way we experience premium coffee.
Nespresso is another Nestlé innovation that enhances people’s quality of life, everywhere, every
day. In doing so it brings pleasure, an emotion we associate strongly with chocolate. Nestlé first
entered this key business in 1904 when it took on export sales for Peter & Kohler, later adding
brands such as Cailler and KitKat.
3. Targeted nutrition:the future of food
Today Nestlé business spans beverages, waters, dairy, confectionery, pet-care, even skincare. In
2011 the company extended its leadership in Nutrition, Health and Wellness by creating Nestlé
Health Science, to develop nutritional healthcare products that target optimal brain health, for
example, or healthy aging.
Such innovations will help Nestlé address the global challenges of malnutrition, growing and
aging populations and obesity. This same passion for nutrition underpins a commitment to
improve products by reducing salt, sugar and saturated fats, and fortify them with vitamins,
minerals, vegetables and wholegrains.
As Nestlé’ celebrates 150 years, the company holds true to its conviction that to prosper in the
long-term, it must create value for shareholders, the communities where it operates, and wider
society. It’s a conviction that enshrines Henri Nestlé’s values, as Nestlé looks forward to the next
150 years of ‘Good Food, Good Life’.
Management
Nestlé has a Boardof Directors,led by ChairmanPeter Brabeck-
Letmathe, who was the former Nestlé CEO. The day-to-day management
of the Nestlé business is taken care of by Executive Board. The 14
designatedBoard Members manage diverse parts of the global business.
General Organization of Nestlé S.A.
Chairman of the Board: PeterBrabeck - Letmathe
• Cheif Executive Officer: Paul Bulcke
o Zone EMENA: Europe, Middle East, North Africa: Luis Cantarell
o Operations: Magdi Baato
o Zone AMS: America: Laurent Frexie
o Nestle Business Excellence: Chris Johnson
o Strategic Business Units, Marketing & Sales: Patrica Bula
o Zone AOA: Asia, Ocenia & Sub-Saharan Africa: Wan Ling Martello
4. o Cheif Financia Officer: Francois Xavier Roger
o Innovation, Technology & R&D: Stefan Catsicas
o Nestle Waters: Marco Sttembri
o Human Resources: Peter Vogt
o Nestle Professional: Martial Rolland
o Nestle Nurition: Heiko Schipper
o Corporate Governance Compliance & Coporate Services: David P.Frick
o Corporate Communications: Eugenio Simioni
Strategy
With Nestle’s Nutrition, Health and Wellness strategy Nestle support people who want to live a
healthier lifestyle. Industry-leading research and development drives innovation and supports the
constant renovation of our food and beverage portfolio. In addition, our researchers are exploring
the role of nutritional therapies to maintain or improve health and investigating how we can help
people look after their skin. By sharing our insights on global Nutrition, Health and Wellness
challenges, by building partnerships and by engaging with policymakers, stakeholders and key
opinion leaders we strive to have a positive impact on the societies in which we operate.
We empower people to make informed decisions when they choose what to eat. Through Start
Healthy Stay Healthy, our interactive, sciencebased education programme, we help parents and
caregivers provide their children with the nutrition they need in the crucial first 1000 days of life.
Our United for Healthier Kids programme, takes this further, helping parents and caregivers
establish healthier eating, drinking and lifestyle habits for children as they get older, and our
Nestlé Healthy Kids programme is helping to deliver a healthier lifestyle for children by teaching
nutrition and encouraging physical activity.
We are on track to deliver on our commitments to reduce the amount of salt, sugar and saturated
fats in our products and remove trans fats, while maintaining consumer preference. We are
enhancing our portion guidance and improving our labelling, printing GDAs (Guideline Daily
Amounts) on the front of packs, making it easier for people to read them.
In recent years we have reinforced and expanded our Nutrition, Health and Wellness strategy
with the creation of Nestlé Health Science and Nestlé Skin Health. Nestlé Health Science is
advancing the role of nutritional therapy to change the course of health for consumers, patients
and for our partners in healthcare. With Nestlé Skin Health we are entering the field of
5. specialised medical skin treatment by offering science-based solutions for the health of skin, hair
and nails over the course of people’s lives.
We strive to meet the fast-changing expectations of our consumers because like them, we care
deeply about quality, food safety, the environment and sustainability. Responsible behaviour
wherever we operate is at the very heart of what we do. It is our fundamental belief that for a
company to prosper over the long term we need to create value for shareholders while at the
same time creating value for society. We call this Creating Shared Value. Trusted leadership in
Nutrition, Health and Wellness is our strategic ambition, Creating Shared Value is how we go
about it. The inclusion of the Nestlé in society report, alongside this Annual Review and the
Financial Statements in the 2015 Annual Report package, reflects how Creating Shared Value is
fully embedded into internal management processes and the way we do business.
The Nestlé Strategic Roadmap is the compass that guides our organisation, driving internal
alignment behind our goals. The roadmap shows how we deliver profitable growth, the
competitive advantages that we leverage and the organisation we have chosen, in order to be
effective and efficient. It is the framework that we use to establish priorities and drive execution.
Operational pillars
Consumer engagement
Operational efficiency
Whenever, wherever, however
Innovation and renovation
Growth drivers
Nutrition, Health and Wellness
Emerging markets and Popularly Positioned Products
Out-of-home consumption
Premiumisation
Competitiveadvantages
Unmatched product and brand portfolio
6. Unmatched research and development capability
Unmatched geographic presence
People, culture, values and attitude
Our objective is to be the leader in Nutrition, Health and Wellness, and the industry reference for
financial performance, trusted by stakeholders.
In addition, we have set out six strategic priorities. Firstly, Make Choices: put resources behind
the ideas, products and categories that help us on our journey to recognised Nutrition, Health and
Wellness leadership, and to deliver sustained financial performance. Secondly, Grasp
Opportunities: see the opportunity in change and trends, and translate them into concrete
business opportunities. The third is Value What Consumers Value: all that we do should create
value for consumers and drive out waste. Fourth, Engage with Stakeholders: we want to be
trusted by all consumers and stakeholders as a genuine and responsible member of the
community. Fifth, Embrace Digital: deepen the connection with consumers through the growing
e-commerce channel and through real-time listening, engagement and dialogue. Sixth is Win
through People and Teams: we need the right people with the right capabilities and effective
leadership at all levels to engage, empower and enable everyone to give their best.
As we strive to become a more agile and higher-performing organisation we ensure that we
embed our strong culture and values across all our operating companies, especially those that are
newly acquired, all within the framework of compliance which governs all that we do. We take a
long-term view, framed in a robust set of principles and values that are based on respect: respect
for people, respect for future generations, respect for the environment and respect for the diverse
world we live in.
Nestle In Society
We've made 39 commitmentsthatwe aimto meetby2020 or earlier,tosupportour long-termgoal of
CreatingSharedValue.Explorethe interactive graphic tofindouthow we're doing.
Nutrition
Build knowledge leadership in children’s nutrition.
Lead the industry in nutrition and health research through collaboration.
Provide nutritionally sound products designed for children.
Help reduce the risk of undernutrition through micronutrient fortification.
Reduce saturated fats and remove trans fats in our products
Encourage consumption of whole grains and vegetables
7. Rural Development
Roll out the Rural Development Framework to understand the needs of farmers.
Implement responsible sourcing in our supply chain.
Roll out the Nestlé Cocoa Plan with cocoa farmers.
Continuously improve our green coffee supply chain.
Nestle In Pakistan
Nestlé Pakistan is proud of its commitment to excellence in product safety and quality and to
providing value and aims to be the leading Nutrition, Health and Wellness Company. As a
socially responsible corporate, we always focus on environment friendly operations, ethical
business practices and our responsibility towards the communities.
Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took over
management in 1992.
The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line
with internationally accepted best practices and ethical performance culture. Nestlé’s existing
products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term performance.
The Company’s priority is to bring the best and most relevant products to people, wherever they
are, whatever their needs are, and for all age groups.
Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on
Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to
serve the consumers. Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health &
Wellness. Ever since 1867, when Henri Nestlé invented the first infant food, nutrition has been in
our DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that
food choices affect their health and quality of life.
Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers
of the Company’s image, and we continue to enhance the quality of life of Pakistanis.
8. Vision
Nestlé’s vision is to be the globally recognised leading Nutrition, Health and Wellness (NHW)
Company.Nestlé Pakistan subscribes fully to this vision and the values that come with it.
In particular, we envision:
Leading a dynamic, passionate and professional workforce, proud of our heritage and positive
about the future
Meeting the nutritional needs of consumers of all ages – from infancy to old age, from nutrition
to pleasure, through an innovative portfolio of branded food and beverage products of the
highest quality
Delivering shareholder value through profitable long-term growth, while continuing to play a
significant and responsible role in the social, economic, and environmental sectors of Pakistan
Mission
To positively enhance the quality of life of people of Pakistan by all that we do through our
people, our brands, products and our Creating Shared Value (CSV) initiatives.
Ambition
To be the leading Nutrition, Health and Wellness Company in Pakistan.
SWOT Analysis
STRENGTH
Strong brand name.
Socially responsible company.
Innovative.
Multinational.
Quality products.
The world’s largest processed food and Beverage Company.
Presence in almost every country.
Strong brands like Nescafe, Maggi and Cereal.
High quality and strong R&D team.
Dedicated and focused company.
WEAKNESS
Selective investment due to uncertain economic and political conditions.
Lack of awareness among the target market.
9. Complex supply chain management.
Subsidiaries difficult to manage.
Too much product distracts from core business
OPPORTUNITIES
Pakistan is the 7th largest producer of milk in the world.
Credit policy can be adopted to increase sale.
Potential to expand to smaller towns and other geographies.
Expansion of product folio.
Further development of global brand.
Emerging market penetration.
More health based products.
THREATS
Global image may harm all brands if one brand fails.
New diet trends.
Immense competition from the organized as well as unorganized sector.
There is no entry barrier for new entrants.
Taste of consumer is difficult to change.
Inflation is getting higher and purchasing power of people is decreasing.
Competitors
Uniliver
Engro
Sheezan
Haleeb Foods
60%
30%
10%
Shares In Market
Nestle
Uniliver
Others
10. Historical Key Dates
1866: Foundation of Anglo-Swiss
Condensed Milk Co.
1867: Henri Nestlé's Infant cereal developed
1905: Nestlé and Anglo Swiss Condensed
Milk Co. (new name after merger)
1929: Merger with Peter, Cailler, Kohler
Chocolats Suisses S.A.
1934: Launch of Milo
1938: Launch of Nescafé
1947: Nestlé Alimentana S.A. (new name
after merger with Maggi)
1948: Launch of Nestea and Nesquik
1969: Vittel (initially equity interest only)
1971: Merger with Ursina-Franck
1973: Stouffer's (with Lean Cuisine)
1974: L'Oréal (associate)
1977: Nestlé S.A. (new company name)
Alcon (disposed in August 2010)
1981: Galderma (joint venture with L'Oréal
- full acquisition announced for 2014)
1985: Carnation (with Coffee-
mate and Friskies)
1986: Creation of Nestlé Nespresso S.A. and
Herta
1988: Buitoni-Perugina, Rowntree
(with KitKat)
1990: Cereal Partners Worldwide (joint
venture with General Mills)
1991: Beverage Partners Worldwide (joint
venture with Coca-Cola)
1992: Perrier (with Poland Spring)
1993: Creation of Nestlé Sources
Internationales (2002: Nestlé Waters)
1997: Creation of Nutrition Strategic
Business Division (2006: Nestlé Nutrition)
1998: San Pellegrino and Spillers Petfoods
Launch of Nestlé Pure Life
2000: PowerBar (disposal announced for
2014)
2001: Ralston Purina
2002: Schöller, Chef America
Dairy Partners Americas (joint
venture with Fonterra)
Laboratoires innéov (joint venture
with L'Oréal)
2003: Mövenpick and Dreyer's
2005: Wagner
2006: Creation of FoodServices Strategic
Business Division (2009: Nestlé
Professional)
Lactalis Nestlé Produits Frais
(associate)
Jenny Craig (disposed in 2013), Uncle
Tobys, Delta Ice Cream
2007: Novartis Medical Nutrition, Gerber,
Henniez
2008: Ruzanna
2010: Kraft Food's frozen pizza,
Waggin'Train, Malher, Technocom, Vitaflo
2011: Creation of Nestlé Health Science and
Nestlé Institute of Health Sciences
Yinlu, Hsu Fu Chi (partnerships) in
China
2012: Wyeth Nutrition
2013: Pamlab
2014: Creation of Nestlé Skin Health
2015: Global launch of Cailler as first
super-premium chocolate brand
11. 2016: Nestlé celebrates its 150 years
List of
Nestle
Brands
Cereals
Cheerios (in some
non-US markets)
Chocapic
Cini Minis
Clusters
Cookie Crisp (in
non-US markets)
Crunch (chocolate)
Curiously Cinnamon
Curiously
Strawberry
Estrelitas
Fitness
Force Flakes
Gold Flakes
Golden Grahams (in
non-US markets)
Golden
Morn (Nigeria)
Golden Nuggets
Honey Stars
Koko Krunch
Lion Cereal
Milo cereals
Nesquik Breakfast
Cereal
Nestlé Corn Flakes
Shreddies (UK and
Ireland)
TRIO Cereal
Yogurt
Acti-V (Philippines)
ActiPlus (Pakistan)
Fruit Selection
Yogurt (Philippines)
Hirz (Switzerland)
Longa
Vida (Portugal)
Molico (Brazil)
Munch Bunch
Nestlé Raita (mint
and cumin)
(Pakistan)
Rawaytee Maza
(Pakistan)
Ski
Sweet N Tasty
Yogurt (Pakistan)
Yelly (mango and
strawberry)
(Pakistan)
Coffee
Bonka
Buondi (Portugal)[2]
Christina
(Portugal)[3]
Dolca (Argentina)
Dolce Gusto
Ecco (Peru, Chile)
El Chaná (Uruguay)
International Roast
Kirma (Peru)
Loumidis (Greece)
Mountain Blend
Nescafé
Nespresso
Partner's Blend
Ricoffy
Ricoré
Ristretto
Sical[4]
Sunrise (India)
Taster's Choice
Tofa[5]
Zoégas
Water
Aberfoyle (Ontario,
Canada)
Acqua Panna
Al Manhal (Middle
East)
Alaçam (Turkey)
Aqua D'Or
Aqua
Mineral (Poland)
Aqua Pod
Aqua
Spring (Greece)
Aquarel (Spain)
Arctic (Poland)
Arrowhead (US)
Baraka (Egypt)
Buxton (UK)
Cachantun (Chile)
Calistoga (US)
Carola (France)
Charmoise
(Belgium)
Ciego
Montero (Cuba)
Contrex (France)
Cristalp (Switzerlan
d)
Da Shan YunNan
Spring (China)
Dar Natury (Poland)
12. Deep Spring
(California)
Deer Park (US)
Eco de los
Andes (Argentina)
Erikli (Turkey)
Frische
Brise (Germany)
Fürst Bismarck
(Germany)
Gerber (Mexico)
Ghadeer (Jordan)
Glaciar (Argentina)
Henniez
(Switzerland)
Hépar (France)
Hidden
Spring (Philippines)
Ice Mountain (US)
Κorpi (Greece)
La Vie (Vietnam)
Levissima (Italy)
Los Portales (Cuba)
Minéré (Thailand)
Montclair (Canada)
Nałęczowianka (Pol
and)
Nestlé
Selda (Portugal)
Nestlé Vera (Italy)
Neuselters (German
y)
Ozarka (US)
Pejo (Italy)
Perrier (France)
Petrópolis (Brazil)
Plancoët (France)
Poland Spring (US)
Porvenir (Chile)
Powwow
Pure Life/Pureza
Vital/Vie Pure
Quézac (France)
Recoaro (Italy)
Saint-
Lambert (France)
Sainte-Alix (France)
San Bernardo (Italy)
San
Pellegrino (Italy)
Santa Bárbara
(Brazil)
Santa Maria
(Mexico)
São Lourenço
(Brazil)
Sohat (Lebanon)
Springs (Saudi
Arabia)
Theodora (Hungary)
Valvert (Belgium)
Viladrau (Spain)
Vittel (France)
Water Line (South
Korea)
Waterman (China)
Zephyrhills (US)
Other drinks
Carnation
Caro (sold in the
USA as Pero)
Chocolate
D'Onofrio (Peru)
Chuckie
(Philippines)
Enviga (joint-
venture with Coca-
Cola, Beverage
Partners Worldwide)
Good Host
Growers Direct
Organic Fruit Juices
Ideal (Peru)
Libby's
Milo
Nescao (Peru)
Nescau (Brazil)
Nesfruta
(Philippines, India,
Pakistan, Indonesia,
Canada)
Nesquik
Nestea (joint-
venture with Coca-
Cola, Beverage
Partners Worldwide)
Nestomalt (Sri
Lanka)
Ovaltine (U.S. only)
Sjora
Ski up and go
(yogurt and cereal
drink)
Supligen
(Caribbean)
Sweet Leaf Tea
Tonimalt (France)
Vascolet (Uruguay)
Shelf stable
Carnation (acquired
by Alaska Milk
Corporation in 2007,
but under a long-
term license
agreement with
Nestlé in the
Philippines)
Coffee-Mate
Milo
Nestlé Omega Plus
Tendre Noix
Chilled
Chamyto (Brazil,
Mexico, Chile)
Chandelle (Brazil,
Chile)
Chiquitín (Mexico,
Chile)
Club (Mexico)
Hirz (Switzerland)
La Laitière (France,
Belgium)
La Lechera (Spain,
Mexico)
LC1 (Switzerland)
Le Viennois
(France, Belgium,
Switzerland)
Moça (Brazil)