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|company_logo =[[Image:Nestlé.svg|240px]]
|company_logo =[[Image:Nestlé.svg|240px]]
|type =[[S.A. (corporation)|Société Anonyme]] ({{SWX|NESN}})
|type =[[S.A. (corporation)|Société Anonyme]] ({{SWX|NESN}})
|foundation =[[Vevey]], [[Switzerland]] (1866)
|foundation =[[Vevey]], [[Switzerland]] (1166)
|founder =[[Henri Nestlé]]
|founder =[[Henry Nestlé]]
|location =[[Vevey]], [[Switzerland]]
|location =[[Vevey]], [[Switzerland]]
|area_served =Worldwide
|area_served =Worldwide

Revision as of 13:48, 15 September 2010

Nestlé S.A.
Company typeSociété Anonyme (SIX: NESN)
IndustryFood processing
PredecessorHollandia Edit this on Wikidata
FoundedVevey, Switzerland (1166)
FounderHenry Nestlé
HeadquartersVevey, Switzerland
Area served
Worldwide
Key people
Peter Brabeck-Letmathe (Chairman), Paul Bulcke (CEO)
ProductsBaby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods (list...)
RevenueCHF 107.6 billion (2009)[1]
CHF 15.70 billion (2009)[1]
CHF 10.43 billion (2009)[1]
Total assetsCHF 110.9 billion (2009)[1]
Total equityCHF 53.63 billion (2009)[1]
Number of employees
278,000 (2009)[1]
Websitewww.nestle.com

Nestlé S.A. (French pronunciation: [nɛsˈle]) is among the largest consumer packaged goods companies in the world,[2] 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, whose name meant "Little Nest". 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.

Pronunciation

Today, in English-speaking countries, "Nestlé" is increasingly Template:Pron-en). However, the original pronunciation was /ˈnɛsəl/, as in the English verb "nestle". This pronunciation was common throughout much of the 20th century, and was reinforced in the 60s television advertisement jingle for /ˈnɛsəl/'s Milky Bar." Recent changes in its spoken form in advertising influenced it to become more akin to its native pronunciation [nɛsle] in French-speaking Switzerland. The old pronunciation, however, is still used today in some regions such as the Black Country. "Nestle" in Alemannic German (Alemannisch – as spoken in southwestern Germany and in Switzerland) refers to a small nest (Nest being the same word in English and German). The -le ending makes the word into a diminutive.

History

Nestlé headquarters in Vevey.

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 of 1867 Charles A. and George Page, two American 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.[3]

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 Nestlé.

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 in L'Oréal 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 Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), February, 2007.

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.[4] 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.[5]

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.[6][7][8]

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.[9]

Products

Main article: List of Nestlé brands

Nestlé has 6,000 brands,[10] 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.

Business

Japan headquarters
The Nestlé Tower in Croydon. This serves as their headquarters in the United Kingdom.

Management

The executive board, a distinct entity from the board of directors, includes:

  • Peter Brabeck, Chairman of the Board of Directors, Nestlé S.A.
  • Paul Bulcke, Chief Executive Officer, Nestlé S.A.
  • Werner Bauer, Executive Vice President, Nestlé S.A., Chief Technology Officer, Head of Innovation, Technology, Research & Development
  • Friz van Dijk, Executive Vice President, Nestlé S.A. Asia, Oceania, Africa, Middle East
  • Luis Cantarell, Executive Vice President, Nestlé S.A. United States of America, Canada, Latin America, Caribbean
  • José Lopez, Executive Vice President, Nestlé S.A. Operations, GLOBE
  • John J. Harris, Executive Vice President, Nestlé S.A. Chairman & CEO of Nestlé Waters
  • Nandu Nandkishore, Executive Vice President, Nestlé S.A. CEO of Nestlé Nutrition
  • James Singh, Executive Vice President, Nestlé S.A. Finance and Control, Legal, IP, Tax, Global Nestlé Business Services
  • Laurent Freixe, Executive Vice President, Nestlé S.A. Europe
  • Petraea Heynike, Executive Vice President, Nestlé S.A. Strategic Business Units, Marketing, Sales and Nespresso
  • Marc Caira, Deputy Executive Vice President, Nestlé S.A. Head of Nestlé Professional Strategic Business Division
  • Jean-Marc Duvoisin, Deputy Executive Vice President Nestlé S.A. Head of Human Resources and Centre Administration
  • David P. Frick, Senior Vice President and ex officio Member of the Executive Board

According to a 2006 global survey of online consumers by the Reputation Institute, Nestlé has a reputation score of 70.4 on a scale of 1–100.[11]

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.

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.

Controversy and criticism

Marketing of formula

Main articles: infant formula and Nestlé boycott

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.[12] Nestlé's policy[13], 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.

Melamine in Chinese milk

Main article: 2008 Chinese milk scandal

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.[14] 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.[15][16]

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.[17] Nestlé later stopped buying milk from the dairy farms in question.[18]

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.[19] In particular, where peat swamp forests are cleared, destroying the habitat for many threatened species of animals such as the orangutan, much public attention[20] has been given to the environmental impact of palm oil and the role of multi-nationals such as Nestlé in this.[21] There is ongoing concern by various NGO's including Greenpeace.[22]

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."[23] Nestlé's attempt to engage with the issue were met with criticism, including headlines stating: "Nestlé fails at social media",[24] and "Nestlé Loses Face On Facebook"[25]. 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.[26]

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 .[27][28][29]

E. Coli

In June of 2009, an outbreak of E. Coli O157:H7 was linked to Nestlé's refrigerated cookie dough originating in a plant in Danville, Virginia. In the USA, the outbreak sickened at least 69 people in 29 states, half of whom required hospitalization. Following the outbreak, Nestlé voluntarily recalled 30,000 cases of the cookie dough. How the dough became contaminated is unclear, because E. Coli is not known to live in any of its constituent ingredients.[30]

See also

Footnotes

  1. ^ a b c d e f g "Annual Report 2009" (PDF). Nestlé. Retrieved 2010-03-26.
  2. ^ "Nestlé: Following the Customers' Tracks with Google Analytics". Google Analytics. Archived from the original on 2007-02-20. Retrieved 2007-02-21(30-10-08 for archive version). {{cite web}}: Check date values in: |accessdate= (help)
  3. ^ 'Other industries', A History of the County of Wiltshire: Volume 4 (1959), pp. 220-253. Accessed: 14 August 2010
  4. ^ "Nestlé buys US ice cream firm". BBC News. 17 June 2002. Retrieved 2007-02-22.
  5. ^ "Nestlé takes world ice cream lead". BBC News. 19 January 2006. Retrieved 2007-02-22.
  6. ^ "Nestlé to buy Gerber for $5.5B". CNN. 12 April 2007. Retrieved 2007-04-12.[dead link]
  7. ^ Media releases[dead link]
  8. ^ "Media releases". Novartis.com. 2007-09-03. Retrieved 2010-01-08.
  9. ^ Thomasson, Emma (4 January 2010). "Novartis seeks to buy rest of Alcon for $39 billion". Reuters. Retrieved 4 January 2010.
  10. ^ Kowitt, Beth (July 5, 2010). "Nestlé". Fortune. 162 (1): 20.
  11. ^ "The Reputations of Switzerland Largest Companies:" (PDF). Reputation Institute. 5 April 2006. Retrieved 2007-02-22. {{cite journal}}: Cite journal requires |journal= (help)
  12. ^ Tran, Mark. "Blogs.guardian.co.uk". London: Blogs.guardian.co.uk. Retrieved 2010-01-08.
  13. ^ . New York http://www.babymilk.nestle.com/. Retrieved 2010-06-13. {{cite news}}: Missing or empty |title= (help)
  14. ^ China milk scandal claims victim outside mainland, (accessed September 21, 2008 12:14 AM)[dead link]
  15. ^ "Taiwan says melamine found in Nestle milk powders". Yahoo! News. Associated Press. Retrieved 2008-10-02.
  16. ^ AFP. "Taiwan finds low levels of melamine in Nestle milk products". Channel News Asia. Retrieved 2008-10-02.
  17. ^ "IOL.co.za - Nestle Defends Buying Milk from Mugabe Dairy". IOL.co.za. Retrieved 2009-09-28.
  18. ^ "Nestle shuts Zimbabwe milk plant citing harassment". BBC News. 23 December 2009. Retrieved 2009-12-23.
  19. ^ Harding, Andrew (2006-11-16). "Borneo fires 'catastrophe'". BBC news. Retrieved 11 April 2010.
  20. ^ For example Dying for a Biscuit on BBC Panorama http://www.bbc.co.uk/programmes/b00r4t3s
  21. ^ The Telegraph newspaper claimed in 2007 that: "Vast swathes of pristine forest are disappearing in a slash-and-burn policy creating palm oil plantations to feed the demand of multi-nationals who accept no responsibility for the resulting degradation".http://www.telegraph.co.uk/earth/earthnews/3313623/Need-for-cheap-palm-oil-drives-deforestation.html
  22. ^ Greenpeace: "Ask Nestle to give the rainforest a break."
  23. ^ http://www.freshbusinessthinking.com/news.php?NID=3951&Title=Nestle+Loses+Face+On+Facebook
  24. ^ http://www.techeye.net/internet/nestle-fails-at-social-media
  25. ^ http://www.freshbusinessthinking.com/news.php?NID=3951&Title=Nestle+Loses+Face+On+Facebook
  26. ^ "Nestlé chairman calls for a moratorium on deforestation" on Nestlé's website, which also outlines the steps Nestlé has taken to address the problem.
  27. ^ Tabacek, Kai (17 May 2010). "Nestlé uses NGO to clean up palm oil supply chain". The Guardian. Retrieved 24 May 2010.
  28. ^ Hickman, Martin (19 May 2010). "Online protest drives Nestlé to environmentally friendly palm oil". The Independent. Retrieved 24 May 2010.
  29. ^ "Nestlé partners with TFT (The Forest Trust) to combat deforestation". Nestlé Press Office. Retrieved 24 May 2010.
  30. ^ E. Coli Confirmed In Nestlé Samples
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