Retail News CRM

Tag: nestle

  • Nestle to stop sourcing from Indonesian palm oil producer AAL

    Nestle to stop sourcing from Indonesian palm oil producer AAL

    Food giant Nestle plans to stop sourcing from subsidiaries of Astra Agro Lestari (AAL), a major Indonesian palm oil producer accused by environmental groups of land and human rights abuses.

    The move comes as multinationals face increased reputational and legal pressure from consumers and governments to clean up their global supply chains in the fight against climate change.

    Nestle, maker of KitKat chocolate and Nespresso coffee, told Reuters that following a recent independent assessment, it instructed its suppliers to ensure palm oil from 3 subsidiaries of AAL no longer enters its supply chain.

    It did not specify the claims again AAL other than to say it had been on its ‘grievance’ list for several months.

    The Swiss-based group expects it will not be using any palm oil from the AAL subsidiaries by the end of the year.

    Lees ook:

  • Nestle launches Milo flavoured KitKat

    Nestle launches Milo flavoured KitKat

    It’s official, the KitKat team is launching its biggest collaboration ever with the NEW KitKat packed with MILO – an iconic pairing bringing KitKat and MILO together for the ultimate Aussie break.

    Set to satisfy all chocolate-lovers, KitKat packed with MILO combines the classic crisp wafer and smooth milk chocolate Australians know and love, with a delicious MILO choc-malt fudge filling. The new range will be available in three mouth-watering formats for your break – block, bar and chunky – each boasting a memorable MILO flavour.

    Nestlé Head of Marketing (Confectionery), Joyce Tan said: “We’re beyond thrilled and proud to announce KitKat’s biggest ever collaboration with KitKat packed with MILO.”

    “We know KitKat lovers are passionate about how they eat their KitKat and similarly, MILO fans have unique ways of enjoying their hot or cold MILO. So now, we can’t wait to see how Aussies enjoy their KitKat packed with MILO!”

    KitKat packed with MILO is available from late July available in three formats: KitKat packed with MILO Block (170g, RRP $5.00), KitKat packed with MILO Bar (45g, RRP $2.00) and KitKat Chunky packed with MILO (47g, RRP $2.00. You can also pre-order now at www.kitkat.com.au/milo

    Lees ook:

  • Nestle buys New Zealand honey brand

    Nestle buys New Zealand honey brand

    Nestlé has added to its portfolio of health-focused assets with the acquisition of New Zealand business The Better Health Company.

    Financial terms were not disclosed. The Better Health Company (TBHC) is the company behind the supplement brand Go Healthy, as well as Egmont Manuka honey.

    Nestlé acquired the business from China asset-management firm CDH Investments and TBHC’s founding shareholders. CDH Investments first backed TBHC in 2016 when it became its majority investor.

    Demand for gold as an investment has grown at an average annual rate of 15% since 2001, but what impact is an ever-sharper focus on sustainable investing having on this most robust of asset classes? Invesco’s Christopher Mellor discusses the efforts being made to ensure ethical and environmental provenance for those looking to incorporate responsible gold into their investment mix.

    Gold has always been a popular investment – and why not? Long viewed as a good hedge against inflation and economic turmoil, the metal’s price has often tracked counter to market swings.

    Yet amid the continued enthusiasm for the precious metal, investors are also increasingly conscious about its provenance, with investment strategies intrinsically linked to environmental, social and governance (ESG) goals. Traditionally, investors could only gain exposure to gold by physically buying bars and coins, entailing delivery, storage and insurance costs. A recent development is the rise of gold exchange-traded commodities (ETCs), which remove the costs of physical ownership, but also present potential issues around ensuring environmental and ethical merits.

    The deal is the latest acquisition made by the world’s largest food company as it looks to take on more businesses centred on health and wellness.

    Paul Bruhn, the head of the Oceania business for Nestlé’s Health arm, said the Go Healthy and Egmont brands “complement our global portfolio of active lifestyle and health-and-wellness nutrition brands very well”.

    The transaction also includes a manufacturing facility in Auckland for minerals and supplements.

    Jennifer Chappell, the CEO of Nestlé’s business in New Zealand, said: “This will strengthen our presence not just in New Zealand, but more broadly across the region, with the Go Healthy brand which is already present in Australia, China, Singapore, South Korea and Vietnam, and the globally-known Egmont brand.”

    Last month, the Swiss food giant snapped up Brazil-based health foods and supplements business Puravida.

    In February, Nestlé made an acquisition in the area of “nutrition products” with a majority stake in US-based Orgain, a supplier of protein powders, snack bars and shakes.

    Last year, the group snapped up the vitamins and supplement brands of US-based The Bountiful Company in a deal valued at US$5.75bn. That transaction included the Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride lines, as well as Bountiful’s private-label business.

    In May last year, we reported on a document issued among Nestlé executives the publication said stated more than 60% of the company’s mainstream food and drinks could not be considered healthy under a “recognised definition of health”.

    According to the FT, the presentation excluded from its analysis products in sectors such as infant formula, pet food, coffee and medical nutrition. In response, Nestlé issued a statement to say it is “working on a company-wide project to update its pioneering nutrition and health strategy”.

    Lees ook:

  • Nestle opens $90 million pet food plant expansion at Blayney

    Nestle opens $90 million pet food plant expansion at Blayney

    With the last two years seeing more people adopting pets, the Purina factory is now set to meet the growing demand for wet cat food in Australia and beyond thanks to the newly installed state-of-the-art high-speed manufacturing technology.

    As well, the Purina team has expanded to meet the increased demand, with 20 new jobs now created on site, creating cat favorites such as Felix, Fancy Feast, Pro Plan and Purina One.

    Nestlé Blayney Factory Manager Charlene De Wit said the new facility is a testament to Nestlé’s commitment to local manufacturing and support for the Central West community.

    “We are proud to produce quality Purina pet food for our much-loved furry friends across Australia and around the region, right here in Blayney.

    “Our expanded facilities will allow us to scale up production of single-serve wet cat food by over 120% – as well as the dry cat and dog food we already produce,” Ms De Wit said.

    The opening brings Nestlé’s total investment in the factory to more than $200 million over the past 10 years, as the business has increased production and developed new capabilities. The wet cat food facility, opened in late 2014, was developed to create premium products with the taste profile cats prefer, and the simplicity their owners prefer.

    The expansion will position Nestlé Purina as a key regional supplier, with both wet and dry pet food exported from Blayney to New Zealand, Thailand and Japan.

    The new facilities will also see a significant quantity of local ingredients used in production. More than 85% of raw materials used at the Nestlé Blayney factory will be sourced locally, including meats and grains.

    Ms De Wit continued, “We have an incredibly dedicated and highly skilled team here at Blayney. By bringing leading technology to our factory and continuing to use high quality ingredients in our product, we are even more confident that we will continue to enrich the lives of pets and the people who love them for years to come.”

    The Nestlé factory in Blayney began operations in 1989, and now features world-class facilities to manufacture brands such as Felix, Fancy Feast, Pro Plan, Supercoat and Purina One.

    Lees ook:

  • Nestlé pledges to improve sustainable farming practices, end child labour

    Nestlé pledges to improve sustainable farming practices, end child labour

    Nestlé today announced a new plan to tackle child labor risks in cocoa production. At the center is an innovative income accelerator program, which aims to improve the livelihoods of cocoa-farming families, while also advancing regenerative agriculture practices and gender equality. A cash incentive will be paid directly to cocoa-farming households for certain activities such as enrollment of children in school and pruning among several others. Nestlé’s new plan also supports the company’s work to transform its global sourcing of cocoa to achieve full traceability and segregation for its cocoa products. As Nestlé continues to expand its cocoa sustainability efforts, the company plans to invest a total of CHF 1.3 billion by 2030, more than tripling its current annual investment.

    The income accelerator program (pdf, 11Mb) offers a novel approach to help support farmers and their families in their transition to more sustainable cocoa farming. The incentives will encourage behaviors and agricultural practices that are designed to steadily build social and economic resilience over time. With Nestlé’s new approach, cocoa-farming families will now be rewarded not only for the quantity and quality of cocoa beans they produce but also for the benefits they provide to the environment and local communities. These incentives are on top of the premium introduced by the governments of Côte d’Ivoire and Ghana that Nestlé pays and the premiums Nestlé offers for certified cocoa. This cocoa is independently audited against the Rainforest Alliance Sustainable Agriculture Standard, promoting the social, economic and environmental well-being of farmers and local communities.

    Cocoa-farming communities face immense challenges, including widespread rural poverty, increasing climate risks and a lack of access to financial services and basic infrastructure like water, health care and education. These complex factors contribute to the risk of child labor on family farms. Together with partners, including governments, and building on a promising pilot program, Nestlé’s new initiative sharpens focus on these root causes of child labor.

    “Our goal is to have an additional tangible, positive impact on a growing number of cocoa-farming families, especially in areas where poverty is widespread and resources are scarce, and to help close the living income gap they face over time,” said Mark Schneider, Nestlé CEO. “Building on our longstanding efforts to source cocoa sustainably, we will continue to help children go to school, empower women, improve farming methods and facilitate financial resources. We believe that, together with governments, NGOs and others in the cocoa industry, we can help improve the lives of cocoa-farming families and give children the chance to learn and grow in the safe and healthy environment they deserve.”

    Creating cash incentives to grow income substantially

    The program rewards practices that increase crop productivity and help secure additional sources of income, which aim to close the gap to living income and help protect children. By engaging in these practices, families can additionally earn up to CHF 500 annually for the first two years of the program. The higher incentive at the start will help accelerate the implementation of good agricultural practices to build future impact. This incentive will then be leveled at CHF 250 thereafter as the program starts delivering tangible results. It is not paid based on the volume of cocoa sold and is inclusive to provide smaller farmers meaningful support, leaving no one behind. In a departure from normal practice, the program also offers financial incentives for the farmer’s spouse, who is typically responsible for household expenses and childcare. By dividing the payments between the farmer and the spouse, the program helps empower women and improve gender equality. Examples of practices that Nestlé is incentivizing include:

    • School enrollment for all children in the household ages 6-16;
    • Implementing good agricultural practices, such as pruning, which increase crop productivity;
    • Performing agroforestry activities to increase climate resilience, like planting shade trees;
    • Generating diversified incomes, for example through growing other crops, raising livestock such as chickens, beekeeping or processing other products like cassava.

    Payments will be delivered via a secure mobile service transfer that will ensure traceability directly from Nestlé suppliers to the intended recipient. Because cash flow throughout the year is often a challenge, cash incentives will be distributed when they are needed most. Based on feedback from farmers, this includes the back-to-school period and before the rainy season. Third parties, including International Cocoa Initiative and Rainforest Alliance, will work with Nestlé to monitor participation.

    Helping farmers implement sustainable, scalable practices

    Building on the positive results of an initial pilot in 2020 with 1,000 farmers in Côte d’Ivoire, in 2022 Nestlé will expand the program to include 10,000 families in the country, before extending it to Ghana in 2024. It will then assess the results of that test phase and adapt where necessary, before moving to reach all cocoa-farming families in its global cocoa supply chain by 2030.

    Nestlé will help ensure farmers have the resources, training and social and financial structures to make lasting changes by:

    • Enhancing the existing monitoring and remediation system to help identify, prevent and address child labor risk and increase school enrollment;
    • Offering families training through the Gender Action Learning System and on household financial planning and entrepreneurship;
    • Organizing and training local groups to perform pruning and other beneficial agricultural tasks within a given cooperative each year;
    • Providing income diversification opportunities for farmers and their spouses;
    • Helping set up Village Savings and Loans Associations (VSLA), focused on women, to encourage savings and provide loans for small business opportunities.

    Feedback and input from farmers and farmer cooperatives, as well as ongoing data collection and evaluation by third parties, will be used to inform, modify and improve the program as it scales up to more communities. In addition, independent oversight will be provided by a multistakeholder strategic advisory committee managed by IDH-The Sustainable Trade Initiative, a leading foundation that works to improve the sustainability of international supply chains.

    Tracing all cocoa from origin to factory

    As part of the program, Nestlé will transform the global sourcing of cocoa to achieve full traceability and segregation of its cocoa products from origin to factory. This new effort will help transform the supply chain of Nestlé and the broader industry. Nestlé will introduce a range of products with cocoa sourced from this innovative program, offering consumers the opportunity to support the improvement of the families’ livelihoods and the protection of children. This will start with a selection of KitKat products in 2023.

    “Our actions can help catalyze change on an important topic that is so close to our hearts. They will drive accountability and transparency across the industry, at a time when customers, employees and communities increasingly expect companies to deliver on their shared values,” said Magdi Batato, Executive Vice President and Head of Operations. “By increasing traceability at scale, we will help build consumer trust in our products and respond to the growing demand for responsibly and sustainably sourced cocoa.”

    Today’s announcement builds on Nestle’s longstanding efforts to tackle child labor risks in cocoa production. The company has invested in sustainability through the Nestlé Cocoa Plan since 2009. Through a robust monitoring and remediation system (pdf, 3Mb) instituted since 2012, 149,443 children have been assisted to protect them against the risk of child labor, and 53

    Lees ook:

  • Nestle trims L’Oreal stake with $10 billion sale

    Nestle trims L’Oreal stake with $10 billion sale

    Nestle SA said on Tuesday it would cut its stake in L’Oreal to about 20% by selling shares worth 8.9 billion euros ($10 billion) back to the French cosmetics brand, moving to reduce the weight of the beauty giant on its books for the first time in 7 years.

    The Nescafe maker’s holding in the beauty giant has been subject of intense scrutiny over the years, and the Swiss company has maintained its interest was both financial and strategic, even when activist investor Third Point urged disposal in mid 2017. Since then, L’Oreal shares have more than doubled.

    Seeking to reduce the weight of its L’Oreal holding while maintaining a level above 20%, allowing it to consolidate the investment on accounts, Nestle approached L’Oreal two months ago, kicking off a flurry of negotiations that involved chairmen of both companies, according to a source with knowledge of negotiations.

    Following the deal, Nestle said it would own 20.1% of L’Oreal, down from 23.3% previously. L’Oreal, meanwhile, would buy back shares representing 4% of its capital and cancel them at the latest on Aug. 29.

    L’Oreal, which is paying 400 euros per share, said the deal will have an accretive effect on the company’s earnings per share of more than 4% in a full year. The beauty company is paying with cash and debt.

    As a result of the transaction, which is expected to close in the coming days, the Bettencourt Meyers family, will see their stake rise to 34.7% from 33.3%, but will not be required to launch a takeover offer, as normally required for passing ownership thresholds above one-third of the capital.

    L’Oréal stock ended Tuesday up 3.96% at 424.8 euros while Nestle gained 0.1% to 121.9 Swiss francs.

    The packaged foods maker also said its board had decided to buy back 20 billion Swiss francs ($21.6 billion) worth of its shares between 2022 and 2024, adding that it would adjust this program should it make sizable acquisitions.

    Nestle said it would terminate its current share repurchase plan by the end of the year, having bought back shares for 12.7 billion Swiss francs or almost two-thirds of the program volume.

    L’Oreal around four years ago underscored https://reut.rs/3GqHqcP its readiness to buy Nestle’s 23% stake if the Swiss shareholder was to sell it.

    Nestle in October 2019 closed the sale of its skin health business for 10.2 billion Swiss francs, as the group moved to ditch underperforming businesses.

    Lees ook:

    Lees ook:

    Lees ook:

  • Nestlé calls on FMCG companies to help end recycling confusion

    Nestlé calls on FMCG companies to help end recycling confusion

    The Flexible Plastic Fund is a UK industry first and is being led by producer compliance scheme, Ecosurety, with support from the environmental charity, Hubbub.

    In collaboration with manufacturers, retailers and recyclers, the fund intends to improve flexible plastic recycling and reduce plastic pollution by giving the material a stable value. This will in turn increase the supply of recycled plastic enabling the industry to become more ‘circular’ and meet the forthcoming UK plastic packaging tax obligations. The fund should motivate investment in much-needed jobs and infrastructure to make flexible plastic recycling a financially sustainable system in the UK.

    New research from the University of Sheffield suggests there is strong consumer demand for recycling flexible plastic with 95% of participants saying they would be willing to recycle their flexible plastics1. Sainsbury’s and Waitrose have already signed up to support the initiative by hosting flexible plastic collection points in selected stores across the UK. Several other major retailers are set to follow suit. As a result, recycling this material will become increasingly accessible to consumers, as they will be able to recycle all types of flexible plastic packaging with participating retailers.

    With just 16% of UK local authorities2 currently offering a household collection of flexible plastics, the amounts of this material collected for recycling are low. Flexible plastics include plastic bags, wrappers, films, pouches, packets and sachets and is described as ‘plastic bags and wrapping’, ‘soft plastics’ or ‘flexible plastics’. The fund will guarantee a minimum value of £100 per tonne of recycled product to incentivize recyclers to process flexible plastic.

    The long-term ambition of the fund is to drive progress towards creating a circular, UK-based flexible plastic recycling market that allows flexible plastic recycling via household collections. As part of the UK’s drive to boost recycling, WRAP recently announced new recommendations to support flexible plastic recycling.

    Flexible plastic represented 22% of all UK consumer plastic packaging in 2019 but only 6% was recycled. This type of plastic must be processed in a different way to other plastics due to its unique properties – it often contaminates rigid plastic recycling and clogs up machinery – something that could be overcome by creating a separate flexible plastic recycling stream.

    The initiative will provide fully audited transparency – at least 80% of the plastics collected will be recycled in the UK – rising to 100% by 2023. Until 2023, where there are currently limits in UK capacity and technology, up to 20% could be exported to qualifying facilities in Europe only. All material will be fully traceable and tracked from the collector through to new products. Unlike many other schemes, recyclers will only be paid if the plastic is definitely recycled. The manufacturers contributing to the Flexible Plastic Fund will then be able to access the Packaging Recovery Notes (“PRNs”) generated by this high-quality, tracked recycling scheme.

    The recycled plastic will be turned into a range of products including non-food-grade plastic, non-food-grade film and food-grade film. Through its graded payment hierarchy, the Flexible Plastic Fund is actively incentivizing the development of a circular model of production where flexible plastic packaging can be recycled into plastic packaging, including food-grade, again and again.

    The Flexible Plastic Fund is calling for recyclers, manufacturers and retailers to get in touch to play their role in this vital scheme that is driving solutions to flexible plastic waste in the UK.

    Lees ook:

    Lees ook:

  • Nestle internal memo suggests 60 per cent of its products are unhealthy

    Nestle internal memo suggests 60 per cent of its products are unhealthy

    Nestle said on Monday it was working on updating its nutrition and health strategy after the Financial Times reported an internal document at the food giant described a large portion of its food and drinks as unhealthy.

    The newspaper said it had seen an internal presentation circulated among top executives early this year stating that more than 60 percent of Nestle’s mainstream food and drinks portfolio could not be considered healthy under a “recognized definition of health”.

    The paper said this assessment applied to about half of Nestle’s overall portfolio because categories like medical nutrition, pet food, coffee and infant formula were excluded from the analysis.

    Kepler Cheuvreux analyst Jon Cox said that including these categories would significantly reduce the proportion of products potentially considered unhealthy.

    “Given the group’s confectionery, ice cream, and pizza businesses, the real figure for the group based on 2021 estimates would be 28 percent, which is hardly a surprise,” he said in a note. He said the report could point to changes in the product portfolio, notably an exit from mainstream confectionary.

    Nestle said in a statement it was working on a “company-wide project” to update its nutrition and health strategy and was looking at its entire portfolio to make sure its products helped meet people’s nutritional needs.

    It said it had reduced sugars and sodium in its products by about 14-15 percent in the past seven years and would continue to make its products healthier.

    Lees ook:

    Lees ook:

  • Nestle buys Nuun as it continues to boost its nutritional portfolio

    Nestle buys Nuun as it continues to boost its nutritional portfolio

    Nestle’s Health Science division has bought US nutritional products maker Nuun as it continues to build its portfolio of health and nutrition products.

    Founded in Washington, Seattle in 2004, Nuun is considered a pioneer in the separation of electrolyte replacement from carbohydrates. Its core product is a low-sugar electrolyte tablet for the sports beverage market and its portfolio has expanded into a range of effervescent tablets and powders containing additional minerals and vitamins for energy, relaxation and overall well-being.

    Nuun is the top-selling sports drink supplement brand in running, cycling, outdoor and natural foods stores in the US.

    This is Nestle Health Science’s second such acquisition in less than a month, following the significantly larger-scale purchase of The Bountiful Company’s core brands including Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride. With more than 7000 employees worldwide, Nestle Health Science is a global business unit of Nestle with products distributed in more than 140 countries.

    Nestle Health Science CEO Greg Baher described Nuun as a leader in the fast-growing functional hydration category with quality, clean, plant-based products.

    “Everyday, health-conscious consumers are becoming more aware of how functional hydration products can add to their overall well being as well as support them during exercise by replacing the minerals that the body loses. That growing awareness is reflected in the steady growth of the category,” he said.

    Nuun CEO Kevin Rutherford said his company and Nestle shared the philosophy that nothing is more important than health and well-being.

    “In joining Nestle Health Science, Nuun will further its mission of ‘hydration that empowers the world to move more.’ The Nuun team has built an incredible business and now with the reach, expertise and capabilities of Nestle, I’m confident that together we will grow even more.”

    Terms of the deal were not disclosed, and the sale will be settled in the third quarter of this year, shortly after the Bountiful Company’s deal.

  • Coffee and dairy help Nestle beat expectations in Q1

    Coffee and dairy help Nestle beat expectations in Q1

    Food giant Nestle confirmed organic sales should grow more than 3.6 percent this year after strong demand for coffee, dairy and petcare products boosted growth in the first quarter.

    The world’s biggest food group has weathered the Covid-19 pandemic well so far as consumers locked up at home bought more packaged foods for themselves and their pets.

    It also expanded eCommerce and its health science portfolio as consumers bought more online and worried about their health.

    Organic sales increased by 7.7 percent, versus 4.3 percent in the year-ago period, the maker of KitKat chocolate bars and Nescafe instant coffee said in a statement on Thursday. This was ahead of a forecast for 3.3 percent organic growth in a company-compiled consensus https://www.nestle.com/investors/analysts-consensus.

    “Retail sales saw solid growth and out-of-home channels saw signs of improvement. We confirm our guidance for the year and our mid-term outlook for sustained mid-single-digit organic growth,” Chief Executive Mark Schneider said in the statement.

    Organic growth stood at 7.2 percent in the Americas, at 4.4 percent in Europe, and at 9.1 percent in Asia, Nestle said. Asia was in negative territory in the year-ago period as the pandemic hit there first.

    In terms of categories, petcare was up 8.7 percent, powdered and liquid beverages including coffee rose 9.9 percent, and dairy increased 15.7 percent. Nutrition and health science fell 0.5 percent, dragged down by nutrition.

    Lees ook:

  • MCG giants keen to restoring biodiversity

    MCG giants keen to restoring biodiversity

    Leading FMCG companies including Nestlé, Kellogg Company, Danone, Mars and Unilever have formed a new coalition aimed at protecting and restoring biodiversity within their supply chains and product portfolios.

    The One Planet Business for Biodiversity (OP2B) initiative launched by Danone CEO Emmanuel Faber at the United Nations Climate Action Summit in New York on Monday includes 19 companies with combined total revenues of around $500 billion.

    The coalition is focused on scaling up regenerative agriculture practices, boosting biodiversity and increasing the resilience of food and agriculture systems; as well as eliminating deforestation and protecting high-value ecosystems.

    Mark Schneider, Nestlé CEO, said protecting and restoring biodiversity “is essential to safeguard food production and food security”.

    “Nestlé has for many years worked with farmers to manage their land sustainably and will continue to lead activities enhancing biodiversity,”
    Schneider said.

    The OP2B coalition members also include L’Oreal, Balbo Group, Barry Callebaut, DSM, Firmenich, Google , Jacobs Douwe Egberts, Kering, Livelihoods Funds, Loblaw Companies Limited, Migros Ticaret, Symrise and Yara.

    Mars launches #PledgeForPlanet

    Mars is going a step further to tackle climate change, with the launch of its #PledgeForPlanet initiative, which calls on suppliers to set science-based targets and embrace renewable energy.

    “Climate change is a real and tangible threat to society. For example, in our business, we already see it in the risk to livelihoods for smallholder farmers who provide most of our raw ingredients,” Mars CEO Grant F. Reid said.

    “Risks to the resiliency and sustainability of our supply chain and the future of the farmers we work with is top of mind. But, as a family business that thinks in generations and aspires to make a positive difference in the world, our responsibilities and our ambitions go beyond risk mitigation. We are committed to doing our part for the good of the planet.”

    The initiative follows the company’s investment of $1 billion towards its Sustainable in a Generation Plan which looks beyond its own direct operations and into its extended supply chain.

    Lees ook:

  • Vietnam is Nestlé’s fastest-growing market in South East Asia

    Vietnam is Nestlé’s fastest-growing market in South East Asia

    Nestlé South-East Asia posted solid growth last year underpinned by double-digit growth in Vietnam. The growth was based on strong momentum gained by five of its biggest brands, MILO, NESCAFÉ, MAGGI, NAN and Nestlé itself. This year, the Swiss giant plans to improve organic sales growth and underlying margins as it progresses toward its 2020 target.

    Chris Johnson, Executive Vice President, Chief Executive Officer Zone, Asia, Oceania and sub-Saharan Africa (AOA), speaks to Retail News about how one of the biggest companies in the world has set its business goals for 2019 and contributes to the Vietnam’s overall socio-economic development.

    Can you share the highlights of Nestlé’s business performance last year?

    Nestlé Vietnam has had strong performance in the last four years and we are among the fastest growing food FMCG companies in Vietnam.

    Although Vietnam is not a huge market for Nestlé, it is the fastest growing market in Asia. And its contribution to growth has been important. We have much confidence in the growth potential of Nestlé Vietnam based on a strong and growing economy and burgeoning middle class and population.

    If we look at other countries, sometimes we are strong in one or two categories, but here we have a broad presence in a number of categories. MILO is the strongest brand for Nestlé Vietnam along with four other brands including NESCAFÉ, MAGGI, Nestlé itself and NAN – infant nutrition.

    Last year our efforts were recognized by the government with an award for being the 59th biggest corporate tax payer from the Ministry of Finance, a Certificate of Merit for significant contribution to the FDI sector over the last 30 years in Vietnam from the Ministry of Investment and Planning, a place in the list of top 10 sustainable businesses in Vietnam by the Vietnam Council for Sustainable Development, and an award for prominent employer in manpower development from the Ministry of Labour.

    This year we expect Vietnam will continue to be an important, growing contributor to Nestlé.

    Nestlé Vietnam is a key contributor to not only the growth of Zone AOA but also the Nestlé Group.

    What is Vietnam’s role in the development of Nestlé in Asia?

    Vietnam is important not only because we have a strong business here but also because of the coffee landscape. Vietnam is the second biggest coffee producer in the world and the biggest in robusta. Nestlé is the biggest buyer of coffee in Vietnam with an annual purchase volume of 20-25 percent of the total coffee output. We also invested above $600 million into the economy via coffee purchase and exports.

    In 2011 Nestlé unveiled the NESCAFÉ Plan, among whose important aspects was helping Vietnamese farmers with their crops. Our agronomists provide farmers with training in good agriculture practices and technical assistance. We have distributed 27 million high-yield plantlets since 2011, encouraged farmers to reduce water usage 20 percent and increase their income and resilience through better farming practices, and have provided 200,000 training sessions to farmers to develop the industry.

    The reason we do this, the core philosophy of Nestlé, is that this is not about donations, it is good business for us that Vietnamese coffee farmers do well. That assures we have good-quality supply for the world. Vietnam is a good example of how Nestlé operates well for other countries.

    How does Nestlé plan for short-term and long-term investments in Vietnam for 2019 and subsequently?

    We have a long-term vision and a firm belief in the potential of the country. In 2017 we inaugurated the Bong Sen factory in North Vietnam and a new distribution center in the South.

    In 2018 we further expanded our business, notably through a new distribution center in the northern province of Hung Yen and the NESCAFÉ Dolce Gusto production line in the southern province of Dong Nai. This year will be another year of growth with more and more capacity in line with our ambition in Vietnam.

    Our growth priority remains, and our 2019 activities will continue our long-term strategy that is set for 2017-2020. We want to introduce new products that meet new consumer needs, and Creating Shared Values – CSV will always remain a big driver of our goals.

    Once again, as the world’s top conglomerate in nutrition, health and wellness, we aspire to take a holistic view of our product offerings. This means we must improve our recipe to increase good nutrients, while reducing fat, sugar and salt. At the same time, we want to promote a healthier lifestyle for our Vietnamese consumers and Nestlé looks forward to more collaborations to fulfill this mission.

    The overall plan is to continue to grow, continue to focus on our five core brands in Vietnam. We believe Nestlé Vietnam can reach mid-double-digit growth in 2019.

    What activities have been undertaken in support of the United Nations’ sustainable development goals?

    Since its inception in 2011, the NESCAFÉ Plan has been hailed as one of the most successful public-private partnerships by the Ministry of Agriculture and Rural Development. In eight years we have distributed over 27 million high-yield, disease-resistant plantlets to help farmers replant over 21,000 hectares of aging coffee trees.

    In addition to supporting sustainable farming practices in accordance with international 4C standards, the program also assists farmers in managing coffee quality and supports them in updating market information.

    We see this initiative as a win-win situation because farmers can get a better life and improve their income by 30 percent while Nestlé benefits from high-quality coffee products.

    In addition to the NESCAFÉ Plan, MILO via the Activ Vietnam program in conjunction with the Ministry of Education and the Government’s Project 641 have embarked in grassroot sports development and promoting a healthier lifestyle in school.

    Nestlé Vietnam provided the market with two billion fortified servings in 2018 and has been collaborating closely with the Ministry of Health and the National Institute of Nutrition in the proposal of the national Recommended Daily Allowance (RDA).

    We also promote woman entrepreneurs under the NESCAFÉ Plan, improve women’s incomes in rural areas through the “Go rural” project with the Women’s Union. We are also a signatory to UN Women Empowerment Principles. We recognise that among others, gender equality and women’s empowerment are critical to Creating Shared Value for our business with a respect for diversity.

    How do you view the challenge of competition from local and foreign firms in the coming years?

    We always welcome competition. At the end of the day consumers benefit from competition because they have more choices. More importantly, that drives us to work hard and be competitive every day. We have been trying to do the right things in producing high-quality products while the market is becoming stronger and stronger thanks to competition.

    This is your first trip to Vietnam since you took over as Executive Chief Officer Zone Asia, Oceania and sub-Saharan Africa (AOA) in January. What is your most valuable takeaway from the trip?

    I have only been in the job now for about two months and Vietnam is the third market I have visited after China and India. The most valuable thing for me is to connect with the people working here. We have over 2,300 employees and I am very proud of the team here.

    The next step will be making sure that Nestlé Vietnam continues to cooperate with the government and farmers to ensure successful operations and make social contributions when doing business in the country.

  • Nestle India plans up to 3-dozen product launches in 2019, eyes higher exports

    Nestle India plans up to 3-dozen product launches in 2019, eyes higher exports

    FMCG major Nestle India has lined up nearly two-three dozen products that it plans to launch in calender year 2019 across categories in the country to drive its aggressive growth plans, Chairman and Managing Director Suresh Narayanan said.

    According to a report, the company, whose 6 percent revenues come from exports, is now looking to tap more overseas markets by targeting countries with higher Indian diaspora such as SAARC and South East Asia.

    “In 2018, our core brands have performed well…We look forward for greater acceleration as we go forward….We have two-three dozen projects (products) in pipeline for launch in 2019. These products are across categories,” Narayanan said.

    Reiterating the company’s focus on the Indian market, he said, “As an organisation the one clarion call that we are working to is that we are in the business of growth to thrive and not to survive…It is not a survival mode that we look at the opportunity in India or the opportunity for growth..but a thriving mode.”

    While the domestic market has been driving its growth, Narayanan said Nestle India would now look at expanding its export basket.

    The company is looking at tapping overseas market with higher Indian diaspora such as SAARC and South East Asia to expand its exports, he added.

    Commenting on fake news on nutrition, Narayanan said it was affecting choices and lives of people.

    Therefore, Nestle India in partnership with Google, using a chatbot mechanism, will launch a personalised information dissemination website called ‘Ask Nestle’, he added.

    “Ask Nestle seeks to be a reliable and anchor platform for nutrition and lifestyle information for customers. India is the only market where this website is being launched,” he was further said.

    When asked if the company will in future also link Ask Nestle with its own e-commerce website for selling its products, he said it is a possibility.

    “…Going forward it could morph into something bigger in terms of linking up with our own e-commerce intentions, if at all it happens. But today it is only for information sharing, dissemination and helping,” he said.

    When asked if there has been any impact on sales of Maggi noodles after Supreme Court revived government’s case in the National Consumer Disputes Redressal Commission (NCDRC) against Nestle India seeking damages of Rs 640 crore for alleged unfair trade practices, false labelling and misleading advertisements, Narayanan said “No”.

    When asked if the company is looking for manufacturing capacity expansion, he said: “…This is a question that is coming up with active consultation. That exercise is on but I can not share more at this stage”.

    Typically, our approach is to augment (capacity) at our existing factories, but it does not rule out a new manufacturing facility, Narayanan said.

    Nestle India, at present, has eight factories across the country.

    The company also did not rule out evaluating inorganic growth in the country and said it may consider it if any opportunity arises.

    Lees ook:

    Lees ook:

  • Nestlé launches Workplace by Facebook

    Nestlé launches Workplace by Facebook

    Nestlé has adopted Workplace by Facebook as its global internal communication tool, to connect its workforce and better serve consumers.  The announcement comes as the latest and largest wave of staff join the platform, part of a process that began only nine months ago. Today, around 210,000 of its employees worldwide use the platform to connect and collaborate. Nestlé has pledged to move quicker to turn good ideas into great products to meet fast-changing consumer demand. With the majority of its employees active on the platform, Workplace is already making a difference. Internal engagement is higher and responses faster. People are experimenting and collaborating more, as well as sharing information and ideas.

    Workplace offers familiar Facebook features such as News Feed, Groups, Chat, events and live streams, as well as seamless mobile integration.  Because Workplace is easy to use, it can connect everyone and reach employees where they are.

    The first wave of market adoption including Mexico, Brazil, the Middle East and South Africa saw 25 times higher engagement per post and very high rate of use on mobile devices. Amongst other advantages, managers can use Live video to connect directly with employees at different locations. Sales teams can also use Workplace for daily check-ins and to share information and best practice.

    Commenting on the move to Workplace, Nestlé Executive Vice President Chris Johnson, said: “Nestlé is a people-first environment. We really rely on our talented teams to manage more than 2,000 Nestlé brands worldwide. We help our employees develop and we give them the right tools, so Workplace is a perfect fit.”

    The move to Workplace is part of Nestlé’s commitment to empower people and sustain a high-performance culture. The company is moving more and more to offer open office configurations and more flexible working environments.

    Workplace is also a great example of Nestlé constantly embracing the best technology and systems. Filippo Catalano, Chief Information Officer at Nestlé: “Today, using Workplace by Facebook we are able to give our employees across the globe a platform to build connections, enabling faster and more engaging sharing of information.”

    Julien Codorniou, vice president of Workplace by Facebook said, “As the global work landscape continues to change and the demand for better collaboration, best-of-breed IT and mobile-first work increases, we are honored to partner with a company like Nestlé to help employees work together to allow for limitless innovation.”

    While a large majority of users has now joined the Workplace platform, the rollout will continue throughout 2019.

    Lees ook:

    Lees ook:

    Lees ook:

  • Alibaba promises US$200 billion global sourcing plan

    Alibaba promises US$200 billion global sourcing plan

    Alibaba has committed to help import US$200 billion worth of goods from more than 120 countries over the next five years. The company says the move underscores its long-term commitment to globalisation and boosting its efforts to meet the rising demand of Chinese consumers for high-quality international products.

    However, it could also be construed as a move to shore up alternative supply chains in the wake of growing trade tensions between the US Trump administration and China.

    “Globalisation is one of Alibaba’s most critical long-term growth strategies,” said Alibaba CEO Daniel Zhang in a statement. “We are building the future infrastructure of commerce to realize a globalised digital economy where trade is possible for every country around the world.”

    He said using Alibaba’s innovative technology and robust ecosystem, the company is positioned to make global trade more inclusive and fulfil its mission “to make it easy to do business anywhere in the digital era.”

    Zhang outlined Alibaba’s plan at its Global Import Leadership Summit held at the first-ever China International Import Expo in Shanghai. Between 2019 and 2023, Alibaba forecasts it will help import international goods from businesses of all sizes in top countries such as Germany, Japan, Australia, the US, South Korea and Singapore. Several top global brands including P&G, Nestle, JBS, and Refa, have confirmed their holistic partnership with the Alibaba ecosystem.

    By collaborating with various Alibaba businesses units, these brands have been able to effectively engage with China’s massive middle class, a primary engine powering China’s consumption growth.

    Alvin Liu, GM of Tmall import and export, said China’s middle class is booming. “As incomes are rising in China, consumers want faster access to and a wider variety of high-quality products from around the world. Tmall is uniquely positioned to help international brands tap into the growing China market as consumers seek to upgrade their lifestyle.”

    According to a joint report by Deloitte China, the China Chamber of International Commerce, and AliResearch, China’s robust economic growth in recent years has increased the number of middle-to-high income Chinese consumers, who are fuelling the demand for imported, quality goods.

    The report notes that China’s cross-border e-commerce market has grown remarkably, with the proportion of imports to total e-commerce sales growing from 1.6 per cent in 2014 to 10.2 per cent last year. The report also highlights that, between 2014 and 2017, the number of shoppers on Alibaba’s dedicated platform for cross-border shopping, Tmall Global, has grown 10-fold.