Nestle

Nestlé S.A. (French pronunciation: [nɛsˈle]) is the largest consumer packaged goods company in the
world, founded and headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of
the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and
Charles Page, and the Farine Lactée Henri Nestlé Company, which was founded in 1866 by
Henri Nestlé. The company grew significantly during the First World War and following the
Second World War, eventually expanding its offerings beyond its early condensed milk and
infant formula products. Today, the company operates in 86 countries around the world and
employs nearly 283,000 people.
History: The company dates to 1867, when two separate Swiss enterprises were founded that
would later form the core of Nestlé. In the succeeding decades the two competing enterprises
aggressively expanded their businesses throughout Europe and the United States.
In August 1867 Charles A and George Page, two brothers from, Lee County, Il established the
Anglo-Swiss Condensed Milk Company in Cham. Their first British operation was opened at
Chippenham,Wiltshire in 1873.
In September 1867, in Vevey, Henri Nestlé developed a milk-based baby food and soon began
marketing it. Henri Nestlé retired in 1875, but the company, under new ownership, retained his
name as Farine Lactée Henri Nestlé.

Henri Nestle

In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the
Nestlé company added condensed milk, so that the firms became direct and fierce rivals.
In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a
result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding
company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup
mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early
1900s, the company was operating factories in the United States, United Kingdom, Germany and
Spain. World War I created new demand for dairy products in the form of government contracts;
by the end of the war, Nestlé's production had more than doubled.
After the war, government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing debt.
The 1920s saw Nestlé's first expansion into new products, with chocolate the company's second
most important activity.
Nestlé's logo used until 1970s.
Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in 1938
to US$6 million in 1939. Factories were established in developing countries, particularly Latin
America. Ironically, the war helped with the introduction of the company's newest product,
Nescafé, which was a staple drink of the US military. Nestlé's production and sales rose in the
wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated
and companies were acquired. In 1947 came the merger with Maggi seasonings and
soups.Crosse & Blackwell followed in 1950, as did Findus (1963),Libby’s (1971) and Stouffer’s
(1973). Diversification came with a shareholding inL’Oreal in 1974. In 1977, Nestlé made its
second venture outside the food industry by acquiring Alcon Laboratories Inc.
In 1984, Nestlé's improved bottom line allowed the company to launch a new round of
acquisitions, notably American food giant Carnation and the British confectionery company
Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestlé.

The Brizaliian president,Lula da Saliva , inaugurates a factory in Feira de Santana (Bahia),

The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world
markets developed into more or less integrated trading areas. Since 1996 there have been
acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina
(2002). There were two major acquisitions in North America, both in 2002: in June, Nestlé
merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was
announced of Chef America, the creator of Hot Pockets. In the same time frame, Nestlé came
close to purchasing the iconic American company Hershey's, though the deal fell through
Another recent purchase includes the Jenny Craig weight loss program for US$600 million.
In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million. In
January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice cream
maker with a 17.5% market share.
In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical
for $2.5B, also acquiring in 2007 the milk flavoring product known as Ovaltine. In April 2007
Nestlé bought baby food manufacturer Gerber for $5.5 billion.
In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate maker
Pierre Marcolini.[citation needed] Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4
January 2010. The sale forms part of a broader US $39.3 billion offer by Novartis to fully
acquire the world’s largest eye-care company.

Products
Nestlé has 6,000 brands,with a wide range of products across a number of markets including
coffee (Nescafé), bottled water, other beverages (including Aero (chocolate) & Skinny Cow),
chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and
refrigerated foods, confectionery and pet food.

Earnings

In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion.
Research and development investment was CHF 2.02 billion.[1]

 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.

[edit] Joint ventures

Nestlé holds 26.4% of the shares of L'Oréal, the world's largest company in cosmetics and
beauty. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestlé and
L'Oréal, and Galderma a joint venture in dermatology with L'Oréal. Others include Cereal
Partners Worldwide with General Mills, Beverage Partners Worldwide with Coca-Cola, and
Dairy Partners Americas with Fonterra.

[edit] Ethical and sustainable efforts

In 2000 Nestlé and other chocolate companies formed the World Cocoa Foundation. The WCF
was set up specifically to deal with issues facing cocoa farmers (disease had wiped out much of
the cocoa crop in Brazil) including ineffective farming techniques and poor environmental
management. The WCF focuses on boosting farmer income, encouraging sustainable farming
techniques and environmental and social programmes.[12]

Nestlé is a founding participant in the International Cocoa Initiative (ICI), an independent

In October 2009 Nestlé announced its Cocoa Plan. The company will invest CHF 110 million in
the Plan over ten years to achieve a sustainable cocoa supply. On the 23rd October 2009 Nestlé
and CNRA, the Ivorian National Centre for Plant Science Research, signed a frame agreement
for cooperation in plant science and propagation, with a target of producing 1 million high-
quality, disease-resistant cocoa plantlets a year by 2012. The aim is to replace old, less
productive trees with healthier new ones.[14][15]

Nestlé is launching a Fair Trade branded Kit Kat in the UK and Ireland from January 2010.[16]

[edit] Controversy and criticism

One of the most prominent controversies involving Nestlé concerns the promotion of the use of
infant formula to mothers across the world including developing countries, an issue that attracted
significant attention in 1977 as a result of the Nestlé boycott which is still ongoing.[17] Nestlé's
policy,[18] however, states that breastmilk is the best food for infants; however, women who
cannot or choose not to breast feed for whatever reason do need an alternative to ensure that their
babies are getting the nutrition they need.

[edit] Melamine in Chinese milk

In late September 2008, the Hong Kong government claimed to have found melamine in a
Chinese-made Nestlé milk product. The Dairy Farm milk was made by Nestlé's division in the
Chinese coastal city Qingdao.[19] Nestlé affirmed that all its products were safe and were not
made from milk adulterated with melamine. On October 2, 2008 the Taiwan Health ministry
announced that six types of milk powders produced in China by Nestlé contained traces of
melamine. Nestlé has announced that it will begin a recall of milk products produced in China.[20]
[21]

[edit] Zimbabwe farms

In late September 2009, it was brought to light that Nestlé was buying milk from illegally-seized
farms currently operated by Robert Mugabe's wife, Grace Mugabe. Mugabe and his regime are
currently subject to European Union sanctions.[22] Nestlé later stopped buying milk from the
dairy farms in question.[23]

[edit] Palm oil use

Rapid deforestation in Borneo and other regions to make way for oil palm plantations sends
massive amounts of carbon dioxide into the atmosphere. In particular, where peat swamp forests
are cleared, destroying the habitat for many threatened species of animals such as the orangutan,
much public attention has been given to the environmental impact of palm oil and the role of
multi-nationals such as Nestlé in this. There is ongoing concern by various NGOs including
Greenpeace.
Nestlé were met with "a deluge of criticism from consumers, after a large number of Facebook
users posted negative comments about the company's business practises."[28] Nestlé's attempt to
engage with the issue were met with criticism, including headlines stating: "Nestlé fails at social
media",[29] and "Nestlé Loses Face On Facebook".[28] Nestlé Chairman, Peter Brabeck-Letmathe,
in answer to a question from Greenpeace, told the Company’s Annual General Meeting in
Lausanne on April 15, 2010 that in 2009 Nestlé used 320,000 tonnes of palm oil worldwide,
comparing this with the 500,000 tonnes of palm oil used for biodiesel in Germany and Italy
alone.[30]

In May 2010 Nestlé said it was inviting The Forest Trust, a not-for-profit group, to audit its
supply chain and promised to cancel contracts with any firm found to be chopping down
rainforests to produce the palm oil which it uses in KitKat, Aero and Quality Street. Greenpeace
welcomed the agreement promising to monitor it closely.

Nestlé headquarters in Vevey.