innovation case study nestle

How Nestlé Became The World's Largest Food Company

Table of contents.

Let’s trace the origins of Nestlé and its exceptional legacy of 150+ years that have led it to become a company with:

• Market cap of $326.07 Billion as of Feb 9, 2023
• Over 2000 brands worldwide
• Monumental presence in 186 countries
• A workforce of nearly 276,000 employees
• Revenue of CHF 87.1 billion in 2021
• 354 factories in 79 countries

Grab a Kit Kat or sit back with a cup of freshly brewed Nescafe, and let’s go back to 1866 , the year it all began.

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A Merger Lays The Foundation Of Nestlé’s Success

The story of Nestlé begins with Henri Nestlé of Vevey, a namesake of the company, and unsurprisingly, its founder. But it is also linked with two brothers, Charles and George Page, who were located far away in America at the time.

While the world of business was not a global village back then, perhaps it was fate, the love for milk, or sheer successful marketing strategy that brought the businesses of the two together to form the Nestlé we see today.

The creation of Anglo-Swiss Condensed Milk Company

Charles Page was a U.S. consul who visited Switzerland and became intrigued by its Swiss cows and beautiful meadows. The country had been a primary milk production center since the 19th century due to its available resources of high-quality cows and attracted people with a passion for milk production from far and wide. 

Page was one such individual with a different aspiration: he wanted to create condensed milk. Easy to store and transport, condensed milk, according to him, was the next big thing in the entrepreneurial world. 

Therefore, with his brother George Page, he created the Anglo-Swiss Condensed Milk Company and opened the doors of the first-ever condensed milk factory in Switzerland, in the town of Cham, in 1866.

Henri experiments

Meanwhile, Henri Nestlé was a local pharmacist in Vevey who loved experimenting with anything and everything he could get his hands on. This meant creating incredible food fusions was right up his alley.

During the 1860s, infant mortality rates remained a grave problem in Switzerland. As a man with 13 siblings, Henri understood the woes of infants. Yet, the turning point came when he saw that premature babies faced difficulty in consuming breast milk.

Invoking his creativity, he combined available resources and his scientific knowledge to produce “ Farine Lactee ” in 1867, an infant formula made with cow’s milk, wheat flour, and sugar.

This proved to be a breakthrough, and soon, sales increased to 1000+ cans in 1871 and more than 2000 in 1873. Two years later, Nestlé’s products could be found worldwide, including but not limited to Indonesia, Egypt, and the U.S.

As sales increased exponentially, Henri gave his company a logo symbolizing his family name that meant “Little Nest”. The logo, therefore, contained a bird’s nest.

Today, the logo has been simplified but remains its original idea and charm as an ode to the founder.

A rivalry emerges

In 1875, Henri retired, and the company was led forth by three local businessmen in Vevey. However, simultaneously, the Anglo-Swiss Condensed Milk Company expanded to newer markets in Europe, and upon discovering Nestlé’s infant formula and its success, it developed a rival product and floated it into the market.

To Nestlé, this was nothing less than a declaration of industry war, and soon after, Nestlé added a new product to its portfolio: a Farine Lactee condensed milk. Fierce competition developed, followed by price wars and predatory market strategies.

As both companies competed for a greater market share and ROI on their rival products, it did not come as a surprise when both began generating lower revenues and making losses.

The price war lasted roughly for about 30 years until the death of all three – Henri, George, and Charles.

In 1905, the current directors of the companies agreed to halt their rivalry and combine their businesses for greater market share, revenues, and expanded reach over the globe.

As a result, Nestlé and Anglo-Swiss Condensed Milk Co. was founded – that eventually became Nestlé.

Certificate for 100 shares of the Nestlé and Anglo-Swiss Condensed Milk Co., issued 1. November 1918

Key takeaway 1: leave emotion out of strategy

For many years, Henri and the Page brothers went head to head in the milk industry, expanding into European markets, creating substitute rival products, adopting predatory pricing strategies, and undercutting price benchmarks. 

All this only yielded the worst for both businesses in the form of reduced revenues, higher price elasticity of demand, and a confused clientele.

Their saving grace was the strategic decision of the directors to call a truce and join forces – shared winners over lone losers. With the main competition becoming the same company, the focus was brought back to improving operations and opting for practices the business could sustain. Resultantly, the only path now was onwards and upwards.

This means foresight, strategy, and impartial business sense take priority over emotional responses, especially in the business world.

World War I, Government Contracts, & Innovative Strategies

Most companies take a few years to establish themselves in their local markets, minimizing risks. Only once they are comfortably settled and have enough brand appeal and resources to expand do they risk entering the global market.

But Nestle is not like most companies, is it?

Henri Nestle had become a big player in the Western Europe Market, and Page Brothers were leading the way in Britain. Thus, the merger already allowed Nestle to be the go-to condensed milk brand.

From there, it was always going to spread itself and capture as much of the global share as it could, and so it did. Within a decade, this newly merged company had taken its operations around the world, establishing factories in the UK, Europe, the United States, and Asia.

An unexpected opportunity

WWI broke out in 1914, and the scale of disruption around the globe was huge.  Almost every industry was affected. Some thrived and grew, but many collapsed or barely survived.

Nestle also faced an initial period of hardship where it was difficult to maintain its supplies due to severe shortages, and maintaining a smooth distribution network in Europe was near impossible. Hence, most of their supplies ran out of catering to the needs of locals.

However, the war presented a unique opportunity. The demand for milk shot up, and consequently, governments around the world sought contracts with major milk producers and distributors.

Nestle acquired several of these contracts that enabled it to not only come out of the difficult situation it was in but also rapidly expand its operations. It developed most of its factories in the US, where supply and distribution were easier, and recovery began. In fact, by the end of the war, the company had over 40 factories in the world, nearly doubling Nestlé’s overall production.

Moving forward by embracing innovation

Of course, the circumstances around WWI were unusual and worked in favor of Nestle. But it wasn’t the only reason the firm grew at such a pace. Research and innovation had defined the companies that came together to form Nestle. Hence, the same qualities were inherited and ingrained in Nestle. At a time where global infrastructure was going through a phase of transformation, Nestle was at the forefront of it utilizing it and spreading it.

For instance, railways and steamships were the new business logistics, and they became the company’s ticket into established and untapped urban markets overseas. Print media became the main face of modern marketing. Nestle cleverly capitalized on it by projecting its brand through newspapers, magazines, and billboards. The adverts focused on what made the company stand out: quality, taste, nutrition, safety, and affordability – characteristics Nestle still proudly stands by.

All while these advancements were being embraced, Nestle didn’t lose sight of what they were truly about: their products. Hence, as far as production is concerned, they continued to introduce more efficient methods in their factories, expanding their capacity and boosting quality.

Key takeaway 2: growth follows the ambitious

Both World Wars were make-or-break events. From a decrease in demand to a disruption in supply, Nestle faced all sorts of challenges. But Nestle, even before it merged, was always looking for opportunities to grow, and the government contracts gained during the war were essentially the result of it. If Nestle didn’t have its operations worldwide, it would never have captured the governmental radar. It may have survived the shortage; it may not have.

These contracts allowed the company to grow, which worked perfectly with its innovative strategies, such as tapping urban markets and marketing using print media to enhance the brand appeal and create brand affinity. This highlights the importance of being proactive and always looking for potential opportunities, even in challenging times. 

World Wars & Expanding The Product Portfolio

1918 , the year WWI finally ended.

The fighting did stop, but the unstable economic situation the world was in couldn’t be fixed easily. Nestle’s government contracts were up, and it found itself amongst the many companies facing the force of the crisis. To add to their difficulties, consumers that had shifted to condensed milk during the war shifted back to fresh milk as supply resumed.

The company went into a loss for the first time in 1921 .

Timely response

At that point, sales were down, and production costs were high for Nestle. Its operations needed an overhaul to reach sustainability. For this purpose, Swiss banker Louis Dapples was handed the task of reorganizing the company.

Not only was he able to match production and sales, but the move also helped Nestle clear its outstanding debt. Thereafter, the company spent a good part of the decade staying afloat and focusing on sustaining its operations.

More than a milk company

First milk, and then condensed milk; despite having a global reach, Nestle hadn’t really made an effort to expand its product portfolio.

Perhaps, till the 1920s , it had never felt the need to. It had been growing at a rapid pace and adding several countries to its customer base. Now, as growth stagnated and consumer demand shifted to fresh milk, something different had to be done.

Thus, they made a series of acquisitions that opened their doors to new industries, the most notable of which was the Kohler Swiss Chocolate company in the mid-1920s . Consequently, chocolate became the second most important product of Nestle.

‍ Nestlé buys Switzerland's largest chocolate company Peter-Cailler-Kohler

Alongside chocolate, the company also introduced malted milk, a powdered beverage named Milo, and powdered buttermilk for small children.

Malted chocolate drink Milo launches in Australia

The Nescafe revolution

The chocolate business was going well for Nestle, but they were yet to launch the product that would change the company’s future forever.

In 1930 , the Brazilian Coffee Institute approached the company with a unique problem. Brazil had a huge surplus of coffee, but there was no real demand or use at the time. Nestle spent the next 8 years researching and experimenting with products to develop from this coffee.

While the Brazilians suggested coffee cubes, Nestle had a better idea instead.

Voila, in 1938 , Nestle launched “Nescafe” an instant soluble coffee solution, the first of its kind and one of the most popular Nestle products to date. This was later followed by Nestea, another incredibly popular product that continues to drive the tastes of many across the globe today.

Nestlé launches NESCAFÉ in Switzerland on 1 April 1938

The USA again becomes the helping hand

There was immense potential in Nescafe, but at the same time, Nestle began to experience the severe impacts of WWII even before it broke into a worldwide conflict. The company’s revenues nosedived from $20 million in 1938 to $6 million in 1939 .

Although Switzerland remained neutral in both world wars, the situation in Europe was highly volatile, and business could not be conducted normally. Again, Nestle looked towards America by shifting its base of operations to Connecticut, far away from the conflict.

Their previous experience during WWI had allowed the company to form healthy relationships with the states, which helped them settle in. Unfortunately, the USA could not stay away from the war for too long and joined the allies in 1941 .

For Nestle, it was a complete blessing; Nescafe became a staple food for the US military as it was easily preservable, and the taste has already become a hit. Hence, without having to spend a fortune on advertisements, the coffee product penetrated worldwide, and funnily, its first brand ambassadors were allied soldiers.

Nestle sent tons and tons of Nescafe to the frontlines and managed to turn around their sales completely. From making $100 million in 1938 to reaching up to $225 million in 1945 .

Key takeaway 3: diversify and innovate

The end of WWI and the economic depression brought by it made life difficult for almost every business, including Nestle. Plus, the fact that customers preferred fresh milk instead of condensed milk meant that Nestle found it difficult to sustain its business. 

Customers’ demands and preferences, as well as the market scenarios, can change drastically over time. Nestle learned that they needed to be flexible enough to adapt and bold enough to take risks. Otherwise, they will be left with no choice but to shut up shop. 

This is when the milk company gradually began expanding by introducing new products and exploring new markets. It, in turn, allowed the company to grow despite the difficult situation.

Hence, companies should never rest on their laurels and try to improve consistently, be it by innovating, branching out, and increasing the quality and quantity of products or services they offer.

Growth Through Acquisitions and Diversification

The end of the world war had set the perfect stage for Nestle to take its business to the next level. Sales were at an all-time high, Nescafe and Nestea were making waves, and through military and government supports, the company had opened up new markets for its products.

On top of it, the world did not go into a similar depression like WWI. Instead, it marked a period of stability and peace, one which firms everywhere looked to capitalize on. Likewise, Nestle did not waste any time in getting in on the action and making some very key and monumental moves. In fact, these post-war years are often termed as the most dynamic period in the company's history!

Seasoned Maggi Soups and Broadein Food Products

As the world recovered from the war, Nestle followed an aggressive acquisition policy acquiring multiple brands worldwide. The most significant name it added to its portfolio was fellow Swiss company, Maggi.

The journey for this soup and noodles company started somewhat around the same time as that of Henri Nestle. Its founder, Julius Maggi shared the same vision of serving nutritious yet convenient foods to the public.

After the war, in 1947 , Maggi went through a number of restructurings and changes in leadership. Resultantly, the best way for the company to move forward was to join hands with Nestle. Their established factories in numerous countries introduced the Maggi brand to the world, and it became a sensation. In fact, in many Asian regions, Maggi is synonymous with instant noodles.

The Magic of Maggi

Following Maggi’s acquisition, Nestle took over several other firms in the food industry, including:

• 1960 : Crosse & Blackwell, a British can and preserved food manufacturer
• 1963 : Findus, a Swedish frozen food company
• 1971: American fruit juices company Libby
• 1973: Stouffer, a frozen and prepared foods brand

With these moves, Nestle extended its product range and established a stronghold in the preserved foods industry.

Developing new & improving existing “convenience” products

While Nestle spread its wings by bringing other brands under its umbrella, it did not lose sight of the products it developed itself.

For instance, the Nescafe coffee, which had been a huge success during the war, continued its astonishing path upwards. From 1950 to 1959 , its sales almost tripled, and with the development of an anti-freeze version in 1966 , its sales quadrupled in the next decade.

Simultaneously, Nestle also worked on launching new products. In 1948 , it further embedded itself in American households with Nesquik, a chocolate powder that would instantly mix in cold milk. 

Owing to the product’s success, they even introduced the Nesquik Bunny to win over both adults and children.

During the same time, Nestle rebranded its infant cereals as Cerelac while launching an extensive range of canned foods under Maggi.

Diversifying beyond the food industry

By the 1970s , Nestle had well and truly occupied a dominant position in the food industry. It was now time to step out of the comfort zone and venture into new industries.

The big break came in 1974 when Nestle made a move for a Parisian hair care company, L'Oréal. Established in 1909 , this company had gone from making hair dyes to a full range of cosmetic care products. It has also formed a loyal customer base in France.

With big plans, Nestle offered the family owners of L'Oréal a 3% stake in Nestle in return for a 50% share. The offer was too attractive to refuse, and the two companies entered into a new partnership. This merger reaped multifold returns for both parties, and by the 1980s , the brand was the leader in its industry.

The cosmetic arena wasn’t the only one Nestle aimed to capture. There was an economic slowdown and general volatility between the French and Swiss markets. The price of cocoa and coffee went up more than three times. Nestle decided to take a risk and leap into waters it had never been in before.

In 1977 , it also became the owner of the American pharmaceutical company, Alcon. This, too, was a success with the brand operating in 75+ countries and being sold more than twice that number.

Merger to remember & the future of coffee

Nestle never looked to slow down despite its numerous acquisitions and diverse brand offerings.

In 1984 , it offered a mind-blowing $3 billion to buy out the food company, Carnation. Many believe this to be one of the largest acquisitions outside the oil industry – at least at the time. The scale of the deal was such that it took a year for it to be approved and finalized.

It wasn’t just being in the same industry that sparked Nestle’s interest; it was also the fact that Carnation had a diverse portfolio, including a profitable pet food brand, Friskies, and Contadino tomato products.

Nestle also added UK confectionery company Rowntree Mackintosh to its list of acquisitions in 1988 , giving it ownership of popular chocolates, Kitkat and Smarties. In the same year, it also included Buitoni-Perugina, a major Italian pasta and confectionery company to its mix.

Alongside the mergers, Nestle was also actively working on making a comeback with its coffee products. Thus, in 1986 , it rolled out Nespresso, a premium version of its coffee, different from the previous freeze-dried budget version. The idea behind it was simple: present a DIY system for any person who wanted to enjoy luxury coffee.

Key takeaway 4: seek opportunities in both new and existing industries

Many firms that plan to diversify their portfolios lose grip on their main industry. Nestle wasn’t one of them. Its initial strategy for growth post-WWII was to cement its hold in the food industry with a series of acquisitions and new product offerings. Then, it made its move in other industries while still improving on its basic offerings of food, coffee, and chocolate-related products.

Nestle grew exponentially by tactfully merging and acquiring companies it thought would add value to its brand. This paid off handsomely and turned Nestle into a force to be reckoned with. It highlights the need for brands to enhance their value offerings, using whatever means they have at their disposal, right from diversifying to collaborating with others.

International Force - Nestle's Global Strategy

With the fall of the Berlin wall in 1989, markets in Central and Eastern Europe, as well as China opened up. Trade barriers disintegrated, liberalization picked up the pace, and economic markets around the globe started to integrate well.

This proved to be quite beneficial for Nestle. There were new diverse markets to expand to and favorable policies that encouraged them – not that they needed any second invitation. 

Onwards & upwards with tactful acquisitions

From the late 1990s to the late 2000s, Nestle went on an aggressive acquisition spree and acquired the following companies:

• San Pellegrino group , the leading Italian mineral water business, in 1998 paved the way for Nestle to launch Nestle Pure Life and lead in Europe while making a way into developing countries worldwide.
• Spillers Petfoods in 1998 enabled Nestle to cement its position as a key player in the pet food business around the globe and Europe in particular.
• Ralston Purina , U.S.'s pet food business, in 2002 and merged with Nestlé Friskies Petcare, creating a market leader in the pet care industry, Nestlé Purina Petcare.
• The U.S. ice cream business merged with Dreyer's in 2002, establishing Nestle as the leader in the U.S., the world's largest ice cream market. 
• Movenpick Ice Cream in 2003 to complement Nestle's super-premium ice cream brands portfolio in North America and Italy.
• Delta Ice Cream in 2005 as Nestle's realized that the ice cream business was a profitable opportunity and the company could make inroad in the growing Greek and Balkans ice cream market.
• Chef America Inc in 2002 as Nestle continued with its horizontal integration and expanded into the frozen foods market, which was growing.
• Jenny Craig and Uncle Toby's in 2006 as Nestle wanted to stay true to its commitment to nutrition, health, and wellness and reinforce its presence in the U.S., the world's largest nutrition and weight management market.
• Medical Nutrition division of Novartis Pharmaceutical in 2007 as it was complementary to Nestle's Healthcare Nutrition Business and enhanced Nestle's capabilities to cater to the needs of its customers with special nutritional requirements.
• Henniez in 2007 to augment its position in the competitive Swiss bottled water market, leveraging the solid industrial capacity and distribution network of the company.
• Gerber , the iconic U.S. baby food brand, in 2007 became the number 1 player in the U.S., the world's largest baby food market, transforming Nestle Nutrition into a global leader.

A number of other partnerships were also made, such as the one with Belgian chocolatier Pierre Marcolini , helping Nestle augment its position in the food and nutrition industry while allowing it to diversify in health, wellness, and beauty.

Now, why did Nestle do that?

The answer is to remain attuned to the changing consumer tastes and remains ahead in a market that never stays still.

Sure, continuous innovation is essential, but Nestle didn't just rely on that and continued to acquire businesses and benefit from synergies to become the undisputed leader in the business world.

All this while, Nestle has remained true to its roots and continued to delight its customers worldwide.

Realizing that with expanding its global footprint, there was bound to be an array of issues that it needed to deal with effectively, Nestle launched a Group-wide initiative called GLOBE (Global Business Excellence) .

The primary purpose behind this initiative was to harmonize and simplify business processes and empower Nestle to make the most of its competitive advantage while alleviating the risks and drawbacks.

Key takeaway 5: growth & diversification through acquisition

From San Pellegrino in 1997 to Henniez and Gerber in 2007, Nestle's relentless strategy to acquire an array of businesses in different markets, ranging from pet care and baby food to ice cream and bottled water, strengthened its overall position and breathed new life into the company.

Nestle not only wanted to expand to new product lines but also become the market leader in all of them, in different parts of the world. The fastest and most effective way to do just that was through strategic acquisitions. 

In an ever-evolving market, staying still or focusing solely on a select few activities is risky for large businesses. The key, at times, to grow is to embrace an external growth strategy by acquisitions in different industries with distinctive lines of business.

Commitment To Innovation

Nestle stays firmly committed to its goals of helping people, families, and pets around the globe live happier and healthier lives. From meeting the ever-evolving needs of the modern consumer to providing safe and premium-quality of food on-demand, Nestle does it all.

However, it understands that dramatic shifts are happening in the market with consumer demands dynamically changing, new entrants offering endless choices, and people living and shopping in ways never seen before.

Winning in such an environment requires disruption and a hybrid-growth model. No one understands that better than Nestle, and here’s how it is driving value from its base portfolio while embracing new ventures to scale up.

Nestle: 150-year-old start-up innovating from within

Unlike other business entities that outsource the innovation part and fail to prepare for the future, Nestle has strategically decided to combine its scale and capabilities with the mentality and speed of a start-up.

InGenius , Nestlé's employee innovation accelerator, is the ultimate platform that encourages intrapreneurship within the company. Internal start-ups within the company are launched , and employees are encouraged to think big and creatively.

Moreover, Nestle’s global R&D accelerator program brings together scientists, students, and employees, empowering them to come up with new innovative products.

Lean designs, fast prototyping, quick testing, continuous hustling, and room for big risks make the incubator program a success. The goal of the internal start-ups is to help promptly develop new product lines from scratch within 9 months, paving the way for the future of food.

What’s more is that employees are given challenges to solve, ranging from improving the quality of food to helping achieve the net-zero target. On top of this, Nestle also helps young social entrepreneurs, outside its fold, by offering them holistic support, mentorship, and access to its R&D and innovation experts by partnering up with Ashoka – an organization that identifies and supports social entrepreneurs.

Rethinking & reinventing

To better tap into today’s consumer trends, Nestle goes the extra mile to revive the brands with modern innovation.

It does this by introducing new varieties of products and adding unique flavors to attract new customers and retain existing ones. For instance, in 2017 alone, Nestle launched 1000 new products. Yes, that’s right!

From bringing in new flavors of juices and milk to launching frozen organic meals and non-dairy desserts, among others, it tries its best to exceed its customers’ expectations.

Enhancing capabilities

Fueling growth through innovation and improving operational efficiency are two key components of Nestle’s value creation model.

While innovation is considered everyone’s job at Nestle , increasing operational efficiency is also stressed.

Each and every aspect of the business, be it hiring people, using data analytics to make decisions based on logic, optimizing supply chains, or deploying manufacturing solutions, is reviewed and revamped to increase efficiency and deliver desired business outcomes.

Future of food

Nestle, together with Swiss academic and industrial partners such as ETH Zurich, Ecole Polytechnique Fédérale de Lausanne (EPFL), and companies Bühler and Givaudan, announced a joint research program, Future of Food , that will help develop nutritious, tasty, sustainable, and trendy food and beverage products.

It's just another example of Nestle leveraging innovation and partnerships to move forward. Plus, it highlights Nestle’s commitment to providing healthy food while doing right by the environment.

The future is healthy, sustainable, and personalized

Nestle is actively working on providing healthier diets to people worldwide. It's even reformulating its popular products such as Kit Kat and Maggi, among others, to reduce the sugar, salt, and saturated fat in them while also transitioning its brands towards organic.

In addition to this, it is actively working towards ensuring its supply chains have zero environmental impact and reducing its carbon footprint by changing its plastic packaging.

Nestle has announced that it will phase out all packaging that’s not recyclable by 2025 and ensure the packaging it uses is eco-friendly.

Last but not least, Nestle, in its quest to stand out and scale, is emphasizing the need to please customers in every way possible. It aims to do that by delivering customers exactly what they want, how they want it, and in the taste, and shape they want it.

Meeting the needs of consumers on an individual level, according to Nestle will make all the difference. Hence, it is investing in it. Nestle acquired a start-up in UK, Tails.com, which provides tailored diets to dogs on a monthly basis based on age, breed, and weight among other factors.

Key takeaway 6: innovate, innovate, and innovate

Ascending to the top is one thing, but remaining at the top is the real challenge. Nestle’s strategy of launching incubators, experimenting with products, enhancing capabilities, and thinking ahead to create a new future highlights the importance the company places on innovation.

Nestle never hesitates to be bold and go out of its way to innovate to accelerate its growth and achieve scale. It realizes the value that can be derived from innovation and hence, leaves no stone unturned in thinking out of the box and putting its money where its mouth is.  More than anything else, this fundamental strategy has helped the company dominate and remain a customer favorite.

Nestle In The New Normal

Nestle: the multi-national company that adapts

A vital company in the challenging times of Covid-19, Nestle made many changes in its processing and manufacturing processes to continue supplying good food. As supply chain challenges intensified, Nestle focused its efforts on streamlining the supply chain end-to-end, from sourcing supplies to logistics. 

Nestle had 8.1% organic growth in the first half of its fiscal year 2022.

Nestle: the best employer

Making the health and safety of its employees a priority, Nestle implemented enhanced safety measures on and off its premises, including factories, distribution centers, labs, and offices.

Nestle responded to Covid-19 effectively and made sure its employees are protected and motivated by:

• Allowing working from home 
• Restricting travel and exposure to the virus
• Introducing the best hygiene practices
• Implementing effective social distancing measures
• Giving a special 14-day COVID-19 leave
• Offering financial support in the form of loans

Nestle: the company that gives back to the community

Nestle extended a helping hand to those in need in the crisis. It provided holistic support to medical institutions, food banks, food delivery organizations, and relief organizations in the local communities who are on the frontline. 

Not only did Nestle donate essentials such as food and bottled water but also money. Nestle joined forced with the International Federation of the Red Cross and Red Crescent Societies (IFRC) and donated  CHF 10 million . Plus, in order to speed up the vaccination and ensure fair distribution of vaccines, it partnered up with COVAX and donated  CHF 2 million. 

Key takeaway 7: stay resilient 

There’s no doubt that the Covid-19 pandemic disrupted the global markets and adversely impacted Nestle in ways more than one. However, Nestle managed to survive and thrive by continuously adapting, being proactive, and striving to do right by the people and the communities it served, as evident from its increased market share and growth during the period.

Nestle in a nutshell

Nestle products are recognized, consumed, and valued in all corners of the world. It is a company that has ingrained itself in the day-to-day life of people and continues to raise the bar higher. From innovation, people management, and a long-term strategic approach to the quality of products and services, social responsibility, and competitiveness, Nestle ticks all the boxes.

Here are the four main lessons derived from the growth of Nestle from a relatively small Swiss-based company established in 1866 to one of the most successful, admired, and profitable multinational companies in the world:

Key takeaway 1: globalize but also localize

A company as big as Nestle, which operates in almost all countries worldwide, has achieved success by localizing its offerings and catering to the needs of each individual market.

Sure, it could have made generalized global strategies and campaigns, but it took the difficult path by localizing everything from sourcing, product planning, production, marketing, and even its brand strategy.

It highlights the importance of being customer-centric regardless of who you are as a company and where you operate.

Key takeaway 2: innovate – change is an opportunity

Whether it be changing consumer demands, the evolving marketplace, or crisis situations, Nestle has never stopped innovating. Sure, it has paid the price of a few campaigns gone wrong, but one thing that it has been relentless at is continuing to strive to be a step ahead.

Nestle does it all, from committing to sustainability to coming up with new creative ways of providing more value to all stakeholders. It serves as a lesson for brands in this modern digital age. You can only survive and succeed if you innovate. Period.

Key takeaway 3: grow through acquisitions

Nestle has over 2000 brands. Yes, that’s right. Nestle has rapidly grown, gained a competitive advantage, increased its market share, achieved synergies, and enhanced efficiency in its business by acquiring companies.

It actively looks for potential acquisition opportunities and doesn’t hesitate to take risks. This showcases that if you want to grow as a company, you need to broaden your horizons and partner up with others. Foresight, strategic decisions, and impartial business sense are critical - now more than ever. 

The external growth strategy has worked wonders for Nestle by allowing it to expand into new industries and distinctive production lines - all of which have contributed immensely to its growth over the years. Simply put, if you can’t beat them, just join them, or well, in Nestle’s case, buy them.

Key takeaway 4: importance of brand & values

As a company, your values are bigger than your revenue. If you truly focus on and stick to your values, you can attract consumers and scale your company. Nestle has done just that by not only saying but becoming the “Good food, Good Life” company.

It firmly abides by its core principles of “ Unlocking the power of food to enhance the quality of life for everyone, today and for generations to come .”

Every decision that is made, every product that is launched, every customer that is served, is served to shape a better and healthier world. No wonder Nestle has become a global icon from a local favorite.

Designing Sustainable Technologies, Products and Policies pp 447–456 Cite as

Integrated Product Development at Nestlé

• Namy Espinoza-Orias 4 ,
• Karen Cooper 4 &
• Sofiane Lariani 4  
• Open Access
• First Online: 04 July 2018

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3 Citations

Nestlé’s purpose is to enhance the quality of life and contribute to a healthier future. In practice, it is translated into product development through a life cycle, multi-criteria, and integrated approach engaging internal and external stakeholders. An overview of the company’s values is presented as well as its creating shared value business principles, followed by an explanation of the Sustainability by Design program and how it is embedded into product innovation and renovation. The integrated development of a breakfast solution for children who skip breakfast exemplifies this approach. Being proactive and understanding that what matters to consumers entails all aspects of the product—going beyond quality and including sustainability—enriches the product development process, informs decision-making timely, provides consumers with a product they prefer, delivers competitive advantage, and supports the fulfilment of Nestlé’s public commitments.

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1 Introduction

In 2016, Nestlé celebrated its 150th anniversary and is currently the largest food and beverage company worldwide. From the beginning, when Henri Nestlé invented the Farine Lactée to save the life of an infant, Nestlé’s purpose has been to enhance the quality of life and contribute to a healthier future. What drives our value creation, both for business and society, is a nutrition, health and wellness strategy. With more than 2000 brands, whose products are sold across seven product categories in 191 countries, understanding and anticipating consumer needs in an ever evolving and competitive environment is imperative for Nestlé’s long-term business success. This is precisely the starting point of our integrated product development. It follows a life cycle, multi-criteria process, with the engagement of internal and external stakeholders and the firm inclusion of Nestlé’s values, business principles and public commitments against which our company and products are held accountable.

The purpose of this paper is to explain how key elements bring in practice product innovation and renovation with a competitive advantage. Our values framework, business model, Sustainability by Design program and integrated product development approach are reviewed. A breakfast solution for schoolchildren who skip breakfast is presented as an example of consumer-centric product development.

2 Creating Shared Value, the Nestlé Way

Guided by values rooted in respect, Nestlé works alongside partners and stakeholders to create shared value (CSV) across all the activities of the company, which contribute to society while ensuring the long-term success of our business.

Three interconnected focus areas are identified wherein our purpose is realized:

Individuals and families: to whom Nestlé offers products and services that enable them to lead healthier and happier lives.

Our communities: helping those we live and work with in developing into thriving and resilient communities, enhancing rural livelihoods, and respecting and promoting human rights.

Our planet: stewarding resources for the future, caring for water, acting on climate change and shaping sustainable consumption.

Our CSV priorities and efforts are supported by 42 specific, public commitments with clear short-term timelines (2020) as well as three overarching medium term (2030) ambitions for our focus areas. In particular, Nestlé aims to help 50 million children lead healthier and happier lives, help improve the livelihoods of 30 million in communities directly connected to our business activities and strive for zero environmental impact in our business operations [ 1 ].

The recently updated and reframed commitments as well as newly introduced ones [ 1 ] go further and deeper than the first set of them launched back in 2012. The commitments were defined taking into account stakeholder recommendations and issues material to our consumers, stakeholders and the company. The materiality assessment is carried out every two years in collaboration with SustainAbility—an independent consultancy specialized in corporate sustainability—using a formal process entailing extensive consultations of stakeholders, investors and key opinion leaders. Issues of concern in the environmental, social and governance areas are identified and assessed in order to determine their business impact in terms of risks and opportunities along with the level of interest stated by stakeholders. The commitments were also aligned in scope and timeline with the Sustainable Development Goals (SDGs) [ 2 ].

In particular, those SDGs where Nestlé has specific responsibilities as a member of the private sector and can have the most positive and meaningful impact are emphasized. This is achieved by mapping our material issues to the SDGs; as a result, it is possible to find where our activities contribute, directly or indirectly, to the realization of the SDGs.

3 Sustainability by Design

In order to embed sustainability into our products, the Sustainability by Design program led by the Nestlé Research organization assesses the sustainability aspects at the earliest phase of the product development cycle. The aim is to optimize the impacts across the entire value chain through an iterative approach that spans the product development process. The various elements taken into account are schematised in Fig.  1 .

Elements considered in the sustainability assessment of products at Nestlé

From the early stages of a product development, projects are systematically evaluated with the following steps:

Identification—as early as possible—of the opportunities or hotspots, either environmental or social. A tool has been developed that guides projects through the process of discussing its potential impact on individuals and families, our communities and the planet. Project managers collaborate with sustainability champions to identify which societal commitments their project may affect, positively or negatively. This is revisited at key moments in the project, i.e. when passing a stage gate or a major change occurs.

Comparison to the Nestlé materiality matrix (Fig.  2 ), which summarizes the issues of concern to the company and its stakeholders. As the 42 commitments are not exhaustive to all potential issues, this enables project managers to understand if their project may assist in other areas of concern.

2016 Nestlé materiality matrix (Nestlé, 2017)

An action plan is developed to either mitigate or leverage the potential impacts and is then recorded as part of the project process. The actions can consist of carrying out further in-depth assessments as the project progresses and more information becomes available.

The tool covers every step in the value chain from ingredients, processing in our factories, packaging, consumer use right through to end of life. It allows a deep dive into specific aspects; for example, into ingredients and responsible sourcing, linking into the Procurement side of the company.

At this point, a project is also assigned a specific rating for potential environmental sustainability impact, which is a key KPI tracked at a strategic level across the project portfolio. This tracking allows the calculation of time spent on projects of different ratings, an important indicator as to whether the portfolio will deliver against our environmental commitments. This rating can be reviewed or ratified at various points in the project process.

The assessment itself ends at this point, having taken approximately an hour but delivering key information on how the project will deliver against sustainability and an action plan for improvement.

Following up on the agreed actions usually involves the use of EcodEX, a simplified environmental life cycle assessment tool developed with an outside IT company, Selerant [ 3 ]. This tool allows the comparison of multiple scenarios, for instance a current product in the market versus an innovation. Early use allows detailed quantitative information on potential environmental issues and benefits to be available for decision making at a point where there is more design freedom and less cost to make changes.

Future potential work to develop this tool may include a stronger social focus and Nestlé is evaluating the latest methodologies in this area.

4 Integrated Product Development

Consumer centric product development, renovation or innovation must also take into account the different elements influencing the decision to buy food and beverage products. These are taste, price, healthiness, convenience and sustainability [ 4 ].

The incremental approaches optimizing one element at the time in a complex environment where Nestlé has to come up with heathy, sustainable products that the consumer wants and can afford, have quickly shown their limitations.

Therefore, Nestlé Research put in place a holistic approach, called PrIME, optimizing at the same time consumer healthiness, preference, sustainability and affordability. Integrating these four elements into product development through deep understanding of consumer needs and preferences has helped identifying optimal recipes by maximizing these different elements simultaneously.

Nestlé is applying the PrIME approach to product design and packaging to optimize the whole product experience by:

Mastering healthiness and sensorial product features. For example, delivering product sweetness with less sugar through optimal product design.

Improving the packaging functionality to ensure:

Inclusions of all individuals (for instance the elderly), and

Frustration free packaging experience.

Nestlé Research has developed this consumer centric product development approach in all key global brands for the past years and we are now deploying it in the main markets to support our local brands.

This consumer-centric approach is built around a process that uses a collection of standardized methodologies and tools to connect people understanding and product knowledge. The management of our knowledge and data is the foundation of this process and the way to accelerate it, iteration after iteration. Therefore, several activities are in place to optimize the management and sharing of consumer and product knowledge and data. PrIME is using data from different sources and big data techniques to ensure we constantly satisfy the evolution of needs of individuals and families.

PrIME consists of the following steps:

Identification of consumer value drivers: what is important for the individuals and families? How do they like consuming their products? What are their needs? What are their dissatisfactions? This first step is important to dive into the heart of the consumer preferences but not sufficient to decode individuals and family’s needs.

Understanding people needs and behaviours is at the heart of this approach. We use state of the art consumer research to translate multi-dimensional needs into objective product features and attributes.

Consumer centric product and technological mastership is ultimately the way to:

a. Fast track product development. b. Identify our product knowledge gaps and develop innovative, differentiating and sustainable technologies to better satisfy the consumer on the elements cited above: healthiness, preference, sustainability and affordability. c. Control our manufacturing settings and provide day after day high and sustainable product quality to individuals and families.

The PrIME approach has shown its success developing efficiently and effectively the products the consumer wants first time right and contributes to push us to  constantly innovate in technologies relevant for consumers, communities and the planet.

4.2 Nutritional Considerations for Product Development at Nestlé

Nestlé Research developed in 2004 the Nestlé Nutritional Profiling System (NNPS) that guides the nutritional dimension of formulation and reformulation of Nestlé products nutritional product development [ 5 ]. The NNPS translates nutritional recommendations from the World Health Organization and other international and national organizations—taking also technical feasibility into account—into tangible product targets, e.g. the amounts of nutrients to limit and nutrients to encourage in a product. If all targets defined by the NNPS are met, then the product achieves the Nutritional Foundation (NF). The nutritional assessment is facilitated through a tool, globally rolled out in Nestlé and used by more than 1000 product developers and nutritionists. This assessment is a fundamental step within the development process and guides further improvements in the products.

5 Case Study: Nestlé Nido GoldenStart©

Although breakfast is considered the most important meal of the day, it is common that children skip breakfast frequently, thus missing the opportunity to consume a meal rich in nutrients recommended for a wholesome diet. Existing studies and reviews on breakfast consumption habits in different regions and countries [ 6 , 7 , 8 ] report that between 10 and 30% of schoolchildren skip breakfast.

The reasons leading to skipping breakfast are varied, and include socio-demographic factors, limited nutritional knowledge, lack of time and planning for breakfast (preparation and/or consumption), absence of hunger in the morning, limited or no availability of breakfast foods that are affordable and convenient, as well as concerns about body weight [ 9 , 10 , 11 ].

A review was made to summarize recommendations for a complete, healthful breakfast in order to offer guidance on its ideal composition and energy intake [ 12 , 13 ]. A breakfast should provide between 20 and 25% of the overall daily energy intake, a range that already takes into account the number of eating occasions in a day (breakfast, lunch, dinner and snacks). A complete breakfast meal should consist of solid and liquid foods, with the purpose of maximizing nutrient intake and reducing or closing nutrient gaps. Foods containing protein, whole grains, fruits and vegetables are specifically recommended.

Following the holistic approaches described earlier (Sustainability by Design, PrIME and nutritional assessment through the NNPS), Nestlé developed a breakfast solution targeting the segment of schoolchildren aged 4–8 who are breakfast skippers. This product, marketed under the brand Nido GoldenStart©, provides the right combination of essential nutrients required for breakfast and 12% of the daily energy intake for this age group. Its ingredients are milk, cereals and fruits, delivered in a convenient ready to drink format (beverage carton, 200 ml). A first generation of the product (powder beverage) was launched in Central America in 2015; a second generation ready to drink version was launched in Ecuador in September 2017.

The various steps followed in the integrated product development process can be recapped as follows:

Consolidation of consumer data: The drivers of preference, expressed in terms of sensory attributes (taste, texture, aroma, colour, etc.) were identified by mining internal consumer insight data.

Definition of the right nutritional targets through the NNPS and a project to define specific nutritional targets for complete breakfasts and “breakfast-on-the-go”.

Product and process mastership: Product experts at Research and Development units as well as factories represented the key unit operations required to screen the potential ingredients, design the recipe, define the process parameters and finally manufacture the product.

A large number of possible recipes was reduced to an optimal number. These recipes were produced for consumer trials considering factors such as consumer and sensory data, recipe cost and technical constraints.

Preference mapping: The recipes most liked by parents and children were selected and the reasons for liking or disliking them were explored. In parallel, a monadic sensory profiling was performed with an expert panel to understand the consumers’ feedback. A satiation test was also conducted to assess the effect of the product texture on satiation and thus validate the portion size.

Validation test: The superiority of the final recipe was validated using a number of internal methods, among which the Nutritional Foundation (NF) and 60/40+ taste preference criteria can be highlighted. 60/40 is a Nestlé method whereby consumers are asked to state their preference in a blind test between an own product and a competitor or benchmark. A Nestlé product passes the test when more than 60% of the consumers would prefer it to the competitor product or benchmark. The “+” equals achieving the Nutritional Foundation, meaning all nutritional targets defined by the NNPS are met.

Environmental sustainability evaluation: The eco-design of the product was carried out using the EcodEX tool. On a basis of 100 kilocalories delivered, Nido GoldenStart© showed improved environmental performance on all five environmental indicators assessed (climate change, freshwater consumption scarcity, abiotic depletion, ecosystems quality and land use impact on biodiversity) when compared to a reference product.

Moreover, the integrated development of Nido GoldenStart© satisfies a clear consumer need while contributing to the achievement of Nestlé commitments on:

Inspiring people to lead healthier lives: Empower parents to foster healthy behaviours in children (not skipping breakfast).

Offering tastier and healthier choices: Launching more nutritious foods and beverages especially for children. Increase the fibre and grains content in our foods and beverages.

Safeguarding the environment: Assess and optimize the environmental impact of our products.

6 Conclusions

This holistic and comprehensive approach, as applied by Nestlé, delivers competitive advantage, leads to the fulfilment of public commitments at company level and drives our contribution as member of the food industry to the attainment of the Sustainable Development Goals. Informed decision-making takes place at the various steps of project execution, risks and opportunities are identified, with early warning brought up in a timely manner.

However, given the breadth of technical areas concerned and what is at stake, the interpretation of data and insights resulting from this way of working can be complex and raise some challenges. The deployment of support tools can only be justified as long as they are used properly and extensively. Deciding which business function will take up the identified actions for improvement, either Research and Development, Operations, Markets or a combination requires alignment of objectives and priorities as well as clear allocation of resources. For a company as large as Nestlé, it is fundamental to progress from starting the conversation and raising awareness on integrated product development, to consistently accomplishing it.

Being proactive and understanding that what matters to consumers entails all aspects of the product—going beyond quality and including sustainability—enriches the product development process and provides consumers with a product they prefer.

https://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-csv-full-report-2017-en.pdf . (Accessed 04.04.2018).  

http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E . (Accessed 30.05.2017).

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Espinoza-Orias, N., Cooper, K., Lariani, S. (2018). Integrated Product Development at Nestlé. In: Benetto, E., Gericke, K., Guiton, M. (eds) Designing Sustainable Technologies, Products and Policies. Springer, Cham. https://doi.org/10.1007/978-3-319-66981-6_50

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Case 5.1 Organizational transformation at Nestlé

Case 5.1 Organizational transformation at Nestlé [i]

Swiss-based Nestlé S. A., the world’s largest food manufacturing company, employs around 2 70 ,000 people and has factories or operations in practically every country in the world. [ii] However, Nestlé does not focus simply on building and exploiting global brands. As noted by former CEO Peter Brabeck-Letmathe, “There is a trade-off between efficiency and effectiveness in global brands .. . Operational efficiency comes from our strategic umbrella brands. But we believe there is no such thing as a global consumer, especially in a sector as psychologically and culturally loaded as food.” [iii] Although Nestlé does not believe in homogeneous consumer preferences, it has started to integrate its businesses at the regional level and even the global level – it has become much more than a holder of a portfolio of national units.

The inherited unique features at Nestle´

During his tenure as CEO from 1997 to 2008, Peter Brabeck-Letmathe as well as his predecessor Helmut Maucher, identified two unique features at Nestlé that should not change: first, the commitment to decentralization to cater to local tastes, and second, the minor role of information technology in everyday operations, relative to the importance of its employees, brands and products. At that time, Nestlé operated more like a holding company, with country-by-country responsibility for many functions.

Such an organization certainly helped Nestlé on the marketing side. Local managers could change the product taste, formulation and packaging according to local preferences. For example, Nescafé, Nestlé’s instant coffee brand, had 200 different variants: in Russia, Nescafé was very thick, strong and sweet, totally different from the bitter flavour in Western Europe. In Britain, Kit Kat consisted of chocolate and wafers, but in Japan, Kit Kat had a lemon cheesecake flavour. [iv]

However, such a decentralized organization leads to efficiency losses. Until the mid-1990s, 42 Nestlé factories located in the US still purchased their raw materials separately. As a result, a single supplier charged different Nestlé factories more than 20 different prices for vanilla. Moreover, the downplaying of information communication technology (ICT) aggravated the inefficiencies. For example, even though senior managers at Nestlé USA knew about the existence of different prices for vanilla, they had difficulty finding out which factories were over-charged, as each factory used a different purchasing code for vanilla.

Consolidating the business

As Nestlé expanded, competitive environments forced it to become more efficient. In spite of its status as the largest food manufacturing company in the world, its profit margins were lower than those of its main competitors, such as Unilever, Heinz and Danone. Starting in the late 1990s, Nestlé embarked upon a fundamental transformation of its business organization. It shifted away from its longstanding geographic/functional focus to incorporate some product-oriented organization. The geographic focus still dominates, however.

A decentralized front end (markets and businesses)

Nestlé currently operates its downstream activities with three geographic zones and seven strategic business units (SBUs). Zone organizations refer to the major regions – Zone Europe, Middle East and North Africa, Zone Americas and Zone Asia, Oceania and Sub-Saharan Africa, with zone executive officers responsible for market/region business targets [v] . The seven SBUs (Powdered and Liquid Beverages; Water, Milk products and Ice cream, Nutrition and Health Science; Prepared dishes and cooking aids; Confectionery; and PetCare;) [vi] develop business strategies for selected market clusters, accelerate innovation and renewal, and introduce ‘brand boards’ to develop strategic brands.

To achieve focus in its branding, Nestlé operates with international umbrella brands, such as: Nestlé, Purina PetCare, Maggi, Nescafé, Nespresso, Nestea, San Pelegrino, Perrier, and Buitoni. However, strong local brands are still kept, such as the Golden Morn cereal brand in Nigeria and the Rolo brand in the UK. Moreover, the regional market head is responsible for the SBUs, and the country market head is responsible for the market/country performance. The country market head also functions as a business portfolio strategist in a given market. In this way, the former decentralized structure is still kept alive for many downstream activities.

In some countries, including many African countries, Nestlé still remains completely decentralized, with powerful country managers responsible for the operations in their host countries, as local features remain particularly idiosyncratic there.

A regionally or globally run backline (factories and shared services)

To be cost-efficient, Nestlé has streamlined its upstream/back office activities by integrating the management of its factories into regional and even global management units. For example, in four and a half years between the end of 1998 and mid-2003, Zone Europe, Middle East and North Africa closed or sold 68 factories, reducing the number of factories in Europe from 179 to 140 even after acquiring 29 factories during the period. The reduction in number of plants reflects the rationalization efforts at the back end of the value chain, in order to gain scale economies and better international coordination. Similarly, in New Zealand, Australia and the Pacific Islands, Nestlé integrated the functions of accounting, administration, sales and payroll.

Moreover, Regionally Shared Service Centres have also been established, to provide back-office functions for each region. For example, in the Americas Zone, Nestlé Business Services provides the purchasing, HR/payroll, retail sales execution, disbursement, general accounting, operations accounting, ICT maintenance, transportation, tax and legal services for all the operating companies in the region.

Finally, the three geographic units have started to implement regional ICT systems and common standards. For example, the three geographic units had been using different inventory, accounting and planning software; in 2001, Nestlé introduced a single company-wide resource planning system called ‘GLOBE’ (Global Business Excellence), in order to standardize companywide ICT systems and to leverage scale economies in its back-end activities.

Results of the GLOBE project

The initiation of the GLOBE project in 2001 reflected a strong movement by Nestlé to improve on its apparent inefficiencies in operational and financial practices. Implementing a companywide SAP system required tremendous efforts, and though senior management initially faced resistance from employees, the system promised significant benefits.

By 2010, the GLOBE project had been implemented in over 90 countries, providing Nestlé with global data standards, a common IT platform, and improved operations. [vii] Implementing data standards allowed Nestlé to consolidate data from all of its subsidiaries across each geographic region and to transfer information readily between counterparts in transactions. Strategic decisions could be made faster and with greater confidence as information could be gathered in minutes instead of days. The common IT platform allowed Nestlé to reduce the volume of data used by 65 per cent from 2006 to 2010. [viii] In addition, Nestlé was able to leverage better its scale by consolidating purchases with suppliers across its multiple product lines, saving billions of dollars in the process [ix] .

Ultimately, the GLOBE project helped Nestlé to identify areas within its value chain where inefficiencies were present. This organizational re-engineering at Nestlé allowed the firm to become better positioned for future acquisitions, as part of its international expansion strategy. [x]

From GLOBE to ‘Nestlé Business Excellence’ to ‘ServiceNow’

Building on the solid IT infrastructure implemented and shaped by the GLOBE project, Nestlé decided in 2014 to create the new Executive Board function “Nestlé Business Excellence”, which combines Nestlé’s corporate support functions GLOBE and Nestlé Business Services as well as its corporate initiative Nestlé Continuous Excellence. The goal of this new Executive Board Function is to bring speed and agility to all support functions. [xi] As explained by Paul Bulcke, Nestlé’s CEO at that time (from 2008 to 2016): “While always privileging a decentralized structure to stay close to the local consumer and keep agility in execution, we are increasing our efforts to better leverage our scale. We are looking into how our company is organized and operates to keep an optimal balance between category and geographic focus. By taking these steps, we are building our company for continued growth and performance.” [xii]

As Nestlé is continuously looking to further improve its ICT infrastructure, it implemented the so-called “ServiceNow” platform in 2020, combining more than 25 applications in one system. Gian Paolo Perrucci, Senior Platform Group Manager Common Tools & Services at Nestlé, notes, “We had a [ICT] landscape that was very fragmented and we wanted to have one single platform where everything would sit on top. And we chose ServiceNow with an ambition to provide a better user experience to our users and more efficient ways of working to our IT workforce” [xiii] . The ServiceNow platform allows product managers to implement an app as relevant to their needs, thus giving them autonomy. At the same time, the platform is shared across the organization and consequently provides a common strategic direction.

Grouping markets into clusters

Inside each SBU, Nestlé groups its markets into clusters, not by region but by other similarities, such as consumer preferences or the stage of market development. For example, in its coffee business, Nestlé has defined two clusters, according to consumers’ coffee drinking habits. The first cluster, where soluble coffee is the norm, includes the UK, Japan and Australia; the second cluster consists of the USA, Germany, France and Spain, which are only emerging markets for soluble coffee. In those markets, roast and ground coffee are dominant. Similarly, Nestlé groups its confectionery markets into four different clusters based on consumers’ eating habits.

Managers within the same cluster can develop strategies together, share best practices and innovations, and achieve synergies in manufacturing and some marketing services. Managers also transfer knowledge across clusters, although that is less common.

Moving away from the independent subsidiary model

Nestlé is transferring knowledge more between subsidiaries. For example, Nestlé Purina PetCare was the market leader in the US in 2004, with a 31 per cent market share of total pet food sales. However, in Europe, Nestlé Purina PetCare had only 24.5 per cent in 2004, well behind the 40.1 per cent market share of Mars, the market leader. To catch up, managers started to apply in Europe several concepts that had worked in the US, such as the ‘small serving’ concept. In the mid-1990s, US consumers still bought primarily multi-serve cans for their pets. In recent years, however, small serving cans (e.g., cans containing only a single serving) gradually became more popular. Accordingly, Nestlé Purina PetCare North America developed a very profitable small serving can called Fancy Feast. Nestlé Purina PetCare then introduced small serving cans in Europe, which helped it to narrow its market share gap with Mars.

In Europe, managerial attention in the past had usually not focused on the entire region, but unfortunately on only some of the national markets, thereby missing significant business opportunities. For example, the efforts of European PetCare focused on France and the UK, the top two markets in Europe, but not Germany, the number three European market. In Germany, Nestlé PetCare employed a specialist strategy by focusing on premium, high-end products. As explained by John Harris, the head of European PetCare, “We as a company have never been strong in Germany, we’ve never focused a lot of resources in Germany and it’s not in our strategic plan to become a dominant player in Germany. In Germany we want to be a player but we are not willing to invest what is required to be the number one player. ” [xiv]

In 2004 and 2005, then-CEO Peter Brabeck-Letmathe stressed the need for substantial changes in organizational functioning at Nestlé, including a stronger business focus by delegating profit responsibilities to business executive managers or divisional managers and establishing regionally/globally shared services (see Figure 5.7 for the organizational structure in 2012). [xv]

‘ Nestlé on the Move ’

In 2002, after Nestlé started consolidating its decentralized management processes, it found that its organizational functioning included numerous dysfunctional incentives and systems. It placed value on seniority rather than skill; created loyalty to direct managers rather than to the organization; and fostered internal competition rather than value creation. [xvi]

Organizational structure at Nestlé in 2012

Nestlé realized that if it wanted to properly execute its long-term strategy it would need to change its modus operandi. Over a period of several years, a change process called ‘Nestlé on the Move’, shifted the company from a hierarchical structure to a network structure consisting of network ‘hubs’. [xvii] This horizontal approach allowed the company to become more flexible by making departments more autonomous when trying to meet business targets. Hierarchical levels within factories, for example, were decreased from an average of five to seven levels to just three or four. [xviii] The decrease in vertical levels reduced the probability of promotion; however, Nestlé decided to place greater emphasis on moving employees across different regions and functions.

Nestlé’s strategic direction also evolved to focus more on becoming a leader in nutrition, health and wellness. In 2007, the company announced that the role of CEO and Chairman would be separated. Peter Brabeck-Letmathe, continued his role as Chairman until his retirement in 2017, having served as the Chairman for twelve years and Paul Bulcke accepted the new role of CEO. Paul Bulcke had achieved great success as head of Zone Americas and his younger age provided reassurance that Nestlé would be forward looking, building upon his strategic leadership. [xix]  Bulcke remained in the CEO position for eight years, until he in turn was appointed as the Chairman in 2017, again following in Brabeck-Letmathe’s footsteps [xx] . Under Bulcke’s leadership, the company continued its journey on becoming the leading Nutrition, Health and Wellness Company.

Furthermore, Ulf Schneider was appointed CEO in 2017, succeeding Paul Bulcke. In contrast to his predecessors, Schneider was an ‘outsider’, joining Nestlé from the German health and medical care company Fresenius Group [xxi] .

The affirmation of the Nutrition, Health and Wellness strategy

  First introduced as Nestlé’s strategic vision to become a leading nutrition, health and wellness company in the late 1990s, Nestlé renewed this vision in 2018, when it announced the implementation of the accelerated long-term, value creating, Nutrition, Health and Wellness (NHW) strategy, sharpening its focus on food, beverage and nutritional health products [xxii] . Furthermore, by enhancing its focus, Nestlé seeks to deepen resource commitment to its key growth initiatives and facilitate the implementation of its accelerated long-term value creation strategy [xxiii] .

This review and confirmation of the NHW strategy comes after Nestlé continued to struggle in terms of net income margins, despite having significantly higher gross income margins than those of its main competitor, namely Kraft. It also follows the inception of the new SBU for Nutrition and the re-structuring of the infant nutrition business, moving from a globally managed to a regionally managed business in 2017 [xxiv] . Nestlé’s re-organization of its ICT setup in 2018 marked another decision that enhanced Nestlé’s operational effectiveness [xxv] .

Further decisions from 2019, in line with its NHW strategy, are the sale of Nestlé Skin Health [xxvi] as well as the inception of the new SBU Waters, which succeeds Nestlé Waters business and is now integrated into the three geographical Zones (see Figure 5.8 for the organizational structure in 2021). The re-structuring of the water business means changing it from a stand-alone, globally managed business with headquarters in France, to one managed locally in the company’s various regions [xxvii] , once again affirming Nestlé’s commitment to decentralization and to cater to local tastes.

Organizational structure at Nestlé in 2021 [xxviii]

• What was Nestlé’s initial organizational approach as an MNE (centralized exporter, international projector, international coordinator or multicentred MNE)?
• Has Nestlé transformed itself towards a less homogeneous, more multidimensional model? Can you identify certain Nestlé subsidiaries with specific roles – e.g., strategic leaders or contributors?
• Has Nestlé been able to transfer knowledge from ‘strategic leader’ subsidiaries to other types of subsidiaries? Please identify an example in the case.
• What is different between the subsidiary network discussed in this case and the model in the paper by Bartlett and Ghoshal?
• Can you provide an update on Nestlé’s international organizational approach, using materials available on the Web?

[i] Information from Nestlé company information and Carol Matlack, ‘Nestlé is starting to slim down at last but can the world’s No. 1 food colossus fatten up its profits as it slashes costs?’, Business Week (2003), 56.

[ii] CNN, ‘Global 500’, (2011) and Derek du Preez, ‘Recipe for success – scaling ServiceNow globally at Nestlé’, diginomica , May 14, 2021, https://diginomica.com/recipe-success-scaling-servicenow-globally-nestle?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+diginomica2+(diginomica).

[iii] Alex Benady and Haig Simonian, ‘Nestlé’s new flavour of strategy: global selling: the world’s largest food company has put marketing at the heart of its plans for future growth, says Alex Benady’, Financial Times (2005), 13.

[iv] ‘Daring, defying, to grow – Nestlé’, The Economist 372 (2004), 64.

[v] Nestlé S.A., Half-Year Report January – June 2021, 2021.

[vii] ‘2010 Half year results roadshow transcript’, Nestlé press release . www.nestle.com/ Common/NestleDocuments/Documents/Library/Presentations/Sales_and_Results/ 2010_HYResults_Roadshow_Transcript.pdf (11 August 2010).

[viii] Deborah Ball, ‘After buying binge, Nestlé goes on a diet; departing CEO slashes slow sellers, brands; “no” to low-carb Rolo’, Wall Street Journal (23 July 2007). A.1.

[ix] Rudy Puryear, Bhanu Singh and Stephen Phillips, ‘How to be everywhere at once’, Supply Chain Management Review (1 May 2007). 11.

[x] Deborah Ball, ‘After buying binge, Nestlé goes on a diet; departing CEO slashes slow sellers, brands; “no” to low-carb Rolo’, Wall Street Journal (23 July 2007). A.1.

[xi] ‘Decisions of the Nestlé Board of Directors: Creation of a new Executive Board function and redefinition of Zones Europe and AOA’, Nestlé press release. https://www.nestle.com/media/pressreleases/allpressreleases/new-executive-board-function-redefinition-zones (26 September 2014)

[xii] Ibid .

[xiii] Derek du Preez, ‘Recipe for success – scaling ServiceNow globally at Nestlé’, diginomica , May 14, 2021, https://diginomica.com/recipe-success-scaling-servicenow-globally-nestle?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+diginomica2+(diginomica).

[xiv] Nestlé company information, 2006.

[xv] Peter Brabeck, ‘Business focus and the organization’, Nestlé Investor Seminar , www.ir. nestle.com/NR/rdonlyres/264B68C6-072A-46BE-9E60-69E22C82E0F1/0/ PBL_presentation. pdf (15–16 June 2004).

[xvi] Robert Hooijberg, ‘Breaking out of the pyramid’, IMD International (June 2007).

[xvii] Ibid .

[xviii] Robert Hooijberg, James G. Hunt, John Antonakis, Kimbery B. Boal, Nancy Lane Elsevier, ‘Nestlé on the move’, Perspectives for Managers 156 (April 2008).

[xix] ‘Nestlé Board designated Paul Bulcke as future CEO’, Nestlé press release . www.nestle.com/ Media/PressReleases/Pages/AllPressRelease.aspx?PageId=171&PageName=AllArchived PressReleases.aspx (20 September 2007).

[xx] ‘Nestlé Board of Directors and Executive Board’, Nestlé press release , https://www.nestle.com/media/pressreleases/allpressreleases/management-changes (27 June 2016)

[xxi] ‘Nestlé Board of Directors and Executive Board’, Nestlé press release , https://www.nestle.com/media/pressreleases/allpressreleases/management-changes (27 June 2016)

[xxii] ‘Nestlé Outlines Value Creation Progress’, Nestlé press release . https://www.nestle.com/media/pressreleases/allpressreleases/nestle-value-creation-update-july-2018 (02 July 2018)

[xxiii] ‘Nestlé to sharpen its Nutrition, Health and Wellness strategic focus, will explore strategic options for Nestlé Skin Health’, Nestlé press release . https://www.nestle.com/media/pressreleases/allpressreleases/nestle-explores-strategic-options-nestle-skin-health (20 September 2018)

[xxiv] ‘Nestlé reorganizes infant nutrition business, announces changes to Executive Board’, Nestlé press release . https://www.nestle.com/media/pressreleases/allpressreleases/infant-nutrition-business-management-changes (15 November 2017).

[xxv] ‘Nestlé Announces Re-Organization of its Global Information Technology Activities’, Nestlé press release, https://www.nestle.com/media/pressreleases/allpressreleases/nestle-reorganization-global-information-technology-activities (29 May 2019).

[xxvi] ‘Nestlé closes the sale of Nestlé Skin Health’, Nestlé press release, https://www.nestle.com/media/pressreleases/allpressreleases/nestle-closes-sale-nestle-skin-health (02 October 2019)

[xxvii] ‘Nestlé announces changes to its waters business, establishes Group Strategy and Business Development function’, Nestlé press release, https://www.nestle.com/media/pressreleases/allpressreleases/waters-business-group-strategy-business-development (17 October 2019)

[xxviii] ‘Nestlé – The organizational chart displays its 37 executives, including Ulf Schneider and Paul Bulcke’, TheOfficialBoard , https://www.theofficialboard.com/org-chart/nestle#1408584 (22 June 2021)

The Brand Hopper

All Brand Stories At One Place

The Nestle Success Story and Key Factors Behind It

The Nestle Success Story and Key Factors Behind It 9 min read

Nestlé S.A., headquartered in Vevey, Switzerland, stands as a global powerhouse in the food and beverage industry. As the largest publicly held food company worldwide since 2014, Nestlé has left an indelible mark on the culinary landscape.

Nestlé’s extensive product portfolio encompasses an array of items, ranging from baby food, medical food, bottled water, breakfast cereals, coffee, and tea to confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Some of its iconic brands , including Nespresso, Nescafé, Kit Kat, Smarties, and Nesquik , boast annual sales exceeding 1 billion CHF (approximately US$1.1 billion) . Operating in 189 countries with 447 factories and employing around 339,000 people, Nestlé’s global presence is nothing short of remarkable. Additionally, the company holds a significant stake in L’Oreal, the world’s largest cosmetics company.

Nestlé’s origins trace back to the merger of the “Anglo-Swiss Milk Company,” established by brothers George and Charles Page in 1866, and “Farine Lactée Henri Nestlé,” founded by Henri Nestlé in 1867. Since its inception, Nestlé has experienced exponential growth, especially during and after the World Wars, diversifying its product offerings beyond condensed milk and infant formula. The company’s journey has been punctuated by numerous strategic acquisitions, further solidifying its global presence.

However, Nestlé has not been without controversy, facing criticism and boycotts over issues such as its marketing of baby formula in developing countries , allegations of child labor in cocoa production , and the production and promotion of bottled water . Despite these challenges, Nestlé remains a dominant force in the food and beverage industry, continuously evolving and shaping the way the world eats and drinks.

Success Story of Nestlé

Nestlé has a remarkable history spanning over a century. From its humble beginnings in Switzerland to becoming a global industry leader, Nestlé’s journey is a testament to innovation, resilience, and adaptability. Let’s delve into Nestlé’s history, exploring its origins, early challenges, key milestones, and the company’s transformative strategies that have solidified its position as one of the world’s most influential and successful corporations.

Founding and Early Years

Nestlé’s roots can be traced back to the mid-19th century, a time when industrialization was rapidly reshaping society and the way people produced and consumed food. Henri Nestlé , a German-born Swiss confectioner, played a pivotal role in laying the foundation of this iconic company. His invention of condensed milk, a revolutionary product that could be stored without refrigeration, was a game-changer for a world in transition.

• 1866: The Anglo-Swiss Condensed Milk Company, established in Switzerland by Charles Page and George Page, focused on producing condensed milk.
• 1867: In Vevey, Switzerland, Henri Nestlé introduced milk-based baby food, addressing a critical need for infant nutrition.
• 1875: Henri Nestlé retired, and the company retained his name as Société Farine Lactée Henri Nestlé.
• 1877: Anglo-Swiss began producing milk-based baby foods, sparking direct competition with Nestlé.
• 1879: Nestlé merged with Daniel Peter, the inventor of milk chocolate, marking the company’s entry into the chocolate industry.
• 1890: Henri Nestlé passed away, leaving a legacy of innovation and commitment to quality.

These early years set the stage for Nestlé’s expansion and diversification, as it continued to refine its products and cater to evolving consumer needs.

The 20th century witnessed a series of strategic mergers that propelled Nestlé to new heights. Collaboration with key players in the chocolate and food industry paved the way for significant growth.

• 1905: Nestlé merged with Anglo-Swiss to form the Nestlé and Anglo-Swiss Condensed Milk Company, later renamed Nestlé Alimentana SA in 1947.
• 1929: Peter, Cailler, Kohler, Chocolats Suisses merged with Nestlé, strengthening the company’s position in the chocolate market.
• 1984: Nestlé acquired Carnation, adding evaporated milk and brands like Coffee-Mate and Friskies to its portfolio.
• 1986: Nestlé Nespresso S.A. was founded, revolutionizing the coffee industry.
• 1988: The acquisition of Rowntree Mackintosh brought iconic brands like Kit Kat, Rolo, and Aero under Nestlé’s umbrella.

These mergers diversified Nestlé’s product range, making it a major player in the global food and beverage landscape.

Growth Internationally

The early 1990s marked a period of international expansion for Nestlé, driven by changing global markets and consumer preferences. Strategic acquisitions and partnerships played a pivotal role in the company’s growth.

• 1996: Nestlé acquired San Pellegrino, renowned for its mineral water, expanding its beverage portfolio.
• 2002: Nestlé merged its US ice cream business into Dreyer’s and acquired Chef America, known for Hot Pockets.
• 2007: Nestlé acquired Gerber, a prominent US baby-food manufacturer, further strengthening its presence in the infant nutrition market.
• 2010: Nestlé acquired Kraft Foods’ North American frozen pizza business.

During this era, Nestlé made a conscious effort to adapt to the changing health and wellness landscape by diversifying its product offerings.

Recent Developments

In the 21st century, Nestlé has continued to evolve, focusing on health and wellness, sustainability, and addressing the changing needs of consumers.

• 2013: Nestlé sold its Jenny Craig business unit to North Castle Partners.
• 2014: Nestlé explored strategic options for its frozen food subsidiary, Davigel.
• 2018: Nestlé announced a partnership with Starbucks to market its coffee globally.
• 2019: Nestlé committed to publishing Nutri-Score labels on its European products.
• 2020: Nestlé’s ice cream divisions in the USA and Canada were acquired by Froneri.
• 2021: Nestlé announced the sale of its water brands in the US and Canada to One Rock Capital Partners and Metropoulos & Co.

Nestlé’s response to the COVID-19 pandemic, which saw increased demand for packaged foods and pet products, contributed to strong sales growth.

Innovation and Sustainability

Nestlé has consistently demonstrated a commitment to innovation and sustainability. It has invested in research and development, launching products with preventive and corrective health properties. Initiatives like Nestlé Skin Health Investigation, Education, and Longevity Development (SHIELD) centers underscore the company’s dedication to healthcare innovation. Additionally, Nestlé has ventured into the plant-based food market, responding to the growing demand for sustainable and ethical food choices.

Challenges and Future Outlook

While Nestlé has achieved remarkable success, it has not been immune to challenges. Activist investors have called for changes in the company’s business structure and strategies. As the world continues to grapple with health and environmental issues, Nestlé faces the ongoing task of adapting to shifting consumer preferences and regulatory landscapes.

Nestlé’s journey from a Swiss-based condensed milk producer to a global leader in food and beverages is a testament to its ability to innovate, adapt, and diversify. With a legacy spanning over a century, Nestlé remains committed to providing quality products while addressing contemporary challenges related to health, sustainability, and changing consumer demands. As it navigates the evolving landscape of the food and beverage industry, Nestlé’s enduring success story continues to inspire and influence the world of business.

Success Factors of Nestlé

Nestlé, one of the world’s largest and most successful food and beverage companies, has achieved its status through a combination of strategic factors and core competencies. Let’s delve into the key success factors of Nestlé in detail:

Strong Brand Portfolio: Nestlé owns some of the most recognized and respected brands in the world, including Maggi, KitKat, Smarties, Milo, Nescafé, and Purina. Its brand portfolio includes over 2000 brands that cater to various consumer needs and preferences.

Global Presence: Nestlé has a strong presence in over 190 countries, with a large distribution network that enables it to reach consumers in remote corners of the world. Its global presence allows the company to tap into local markets, understand regional tastes and preferences, and tailor its products accordingly.

Product Innovation: Nestlé has consistently been at the forefront of product innovation, introducing new products and formats that have revolutionized the way people eat and drink. From the introduction of instant coffee to the creation of probiotic yogurt, Nestlé has continuously pushed the boundaries of what is possible in the food and beverage industry.

Quality Control: Nestlé has a stringent quality control process that ensures every product meets high standards of taste, nutrition, and safety. The company’s quality control processes cover everything from sourcing raw materials to manufacturing, packaging, and distribution.

Sustainability: Nestlé has made significant strides in reducing its environmental footprint through sustainable practices such as using renewable energy sources, reducing water consumption, and implementing waste reduction programs. The company’s commitment to sustainability has earned it numerous awards and certifications.

Research and Development: Nestlé invests heavily in research and development (R&D), with a focus on developing healthier, more sustainable products that meet changing consumer preferences. The company operates 23 R&D centers globally, employing over 4,100 scientists and experts who work closely with universities, startups, and other external partners to develop cutting-edge solutions.

Supply Chain Management: Nestlé has an efficient supply chain management system that enables it to source high-quality raw materials from around the world while maintaining ethical and responsible business practices. The company works closely with farmers, suppliers, and distributors to ensure that all products are produced and delivered safely and efficiently.

Marketing and Advertising: Nestlé has a robust marketing and advertising strategy that targets different consumer segments across various channels. The company uses digital platforms, influencer marketing, events, and traditional media to promote its brands and connect with consumers.

Acquisitions and Joint Ventures: Nestlé has expanded its portfolio through strategic acquisitions and joint ventures. The company has acquired several successful brands, such as Gerber baby food and Blue Bottle Coffee, and formed partnerships with companies like Starbucks and General Mills.

Long-Term Focus: Unlike many publicly traded companies that focus solely on short-term profits, Nestlé takes a long-term view when making decisions. The company’s leadership team has a legacy mindset, considering the impact of their actions on future generations and the planet.

Strong Leadership: Nestlé has had a series of visionary leaders throughout its history, each contributing to the company’s growth and success. Paul Bulcke, CEO from 2008 to 2016, was instrumental in transforming Nestlé into a more agile and innovative organization. His successor, Mark Schneider, has continued this legacy, further emphasizing sustainability and digital transformation.

In conclusion, Nestlé’s success can be attributed to a combination of factors, including its diverse product portfolio, global presence, focus on nutrition and health, commitment to sustainability, and adaptability to changing market dynamics. These factors have enabled Nestlé to not only maintain its market leadership but also thrive in a highly competitive industry.

Also Read: Nestle: A Look at the Marketing Strategies and Global Presence

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Case study - Nestlé: Innovation for untapped occasions

When your brand is already the leader in the market, it can sometimes seem hard to find opportunities for growth. Understanding your market in its widest context, some lateral thinking and being open to suggestions is the recipe for success in this situation. Nestlé in France found themselves in exactly this position, as the leaders in the ambient dairy baby food market, they were keen to know more about the consumption habits of young children in order to identify new ways to expand their reach. The resulting work with Kantar revealed a previously untapped segment of the market which allowed them to launch a new product. This product quickly achieved a 11% penetration in its target market and was one of the top three innovations launched in the category in 2017.

THE NEED IDENTIFYING OPPORTUNITIES Nestlé has a range dedicated to babies under 36 months for all occasions through the day from breakfast to dinner. They are sold as ambient products which don’t need to be kept in the fridge.

Nestlé is the leader in the ambient dairy segment of baby food. Their main challenge was to compete with non-baby food products in the dairy market, for example, chilled yoghurts and desserts.

Consequently, Nestlé needed to better understand babies’ consumption not only of foods directly targeted at them, but also of chilled dairy products in order to create something that specifically met their nutritional needs.

THE APPROACH THE DESSERT OCCASION Understanding the needs of such young consumers is far from simple and not something that can be easily accessed from a lot of data sources. In this case the team were able to access Kantar’s Food Usage data. Usage enables us understand beyond what was bought to know who consumed it, when and what with. The panel in France is run continuously 52 weeks of the year looking at the behaviour of people in 13,000 households annually. This rich source of data was analysed to understand the dairy consumption of 12-35 old month children to try and spot new opportunities.

By looking at the eating occasions for desserts, the team were able to identify the range of products that babies were consuming. Along with yoghurts, fromage frais and other products, babies were also consuming “flans”, an egg custard type of dessert, but there wasn’t a dedicated version just for babies. This led the Kantar team to recommend that Nestlé created something specifically for this very special audience.

THE IMPACT A TOP INNOVATION Having identified the opportunity with usage data, the team at Nestlé conducted some additional ad hoc studies in order to develop a new product range, the P’tit Flan, especially created for babies. P’tit Flan was created without preservatives or colourings but containing protein and 87% milk which made it ideal for babies under 36 months. It was also made with 30% less sugar thanthe average flavoured-milk dessert.

Like the other products in the range, P’tit Flan doesn’t need to be kept in the fridge, which makes it an ideal choice for mothers who want to take food out with them and offered a point of difference with the non-baby food competitors.

Within five months of its launch in April 2017, P’tit Flan had reached an 11% penetration rate among families of young children with 29% of people repeat purchasing. It was one of the top three innovations in the category of the previous four years (2013-2017).

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Nestle Case Study: How Nestle’s Marketing Strategy Helped Them Grow as a Brand-2023

How many of you can answer this?

What is one common thing among Nescafe, Caregrow, KitKat, and Maggi?

Any guesses?

Yes, they are world-renowned brands, are familiar names in every household, and are products you must have consumed in your life at one point.

Anything other than these?

Yes. All these belong to one and only Nestle.

Be it in the fresh smell of hot coffee, a short break, or a bowl of tasty noodles- we cannot deny that all of us have enjoyed the awesomeness of Nestle’s products.

The brand has come a long way, crossing so many hurdles and achieving success, and it keeps growing.

Today, nestle is a brand that everyone is familiar with and uses in their day-to-day life.

Curious to know how?

In this Nestle case study, we are discussing everything about Nestle company, the marketing mix of Nestle, nestle competitors in India, marketing sales promotion techniques of nestle, and much more.

Nestle owns more than 2000 brands, from global stars to local ones.

How did Nestle achieve this level of success?

The brand has been in the market for more than 150 years, but many companies got this opportunity but failed. Nestle survived.

What is the secret of Nestle’s success?

This Nestle case study shows you a glimpse of nestle strategy and what digital marketing and social media strategies they followed that led to achieving this success.

So, let’s start by understanding a bit more about Nestle as a company.

Nestle had come a long way from when it entered the market by selling infant food in the 1860s with a motto to reduce child mortality rates.

Gradually, it became a renowned name in the wellness, healthy food, and pet care industry with its evergreen tagline, “Good Food, Good Life.”

Now, you must be thinking that how did Nestle reach this position? How can a company build a legacy which is so powerful that it has stood still since its birth?

The answer to this may lie in Nestle’s digital marketing and functional strategy.

Nestle Case study: Introduction of Nestle company

Nestle is a world-renowned manufacturer of packaged foods and beverages. It is the world’s largest food manufacturer operating in more than 186 countries and with over 2000 product brands.

The brand came to India in 1956. Since that time, from selling its first milk product in the 1960s to selling a wide variety of Nestle products in India, Nestle has grown exponentially in India.

With such exponential growth, Nestle’s umbrella keeps widening day by day. They are not only the largest food and beverage company in the world but also one of the best companies that have effortlessly collaborated with the online world and achieved immense success.

Gradually, Nestle India started making its presence felt in the FMCG sector, and now the brand enjoys a good market share in the food and beverage industry.

Being the most extensive food and beverage brand in terms of revenue, the pricing strategy of Nestle company, along with its targeting and positioning system, has played a vital role in reaching the position where it is currently.

Let us find out how it has served the Indian market with its products and services.

Nestle offers products in breakfast cereals, beverages, dairy, chocolates, nutritious foods like vending, and food services.

Popular food products like Kit Kat, Maggi, Milkmaid, Polo, and Nescafe come under Nestle’s products sold in India.

For more than 150 years, this iconic brand has been applying its expertise in Health, Nutrition, and Wellness to help its customers, pets, and families live a healthier and happier life.

However, they believe what is good today might not be suitable for tomorrow.

So, they keep exploring and focusing on pushing the boundaries to find more to experiment with foods, nutrition, and beverages.

Nestle unlocks the power of food to improve the quality of life for everyone, not just today but for generations to come.

The brand focuses on bringing more pleasure and enjoyment to the customers, how they can enable better health, and how they can make the best nutrition affordable to everyone.

Not just these, but the brand tries new ways to protect and improve natural resources.

History & Founder

Nestle was founded in 1905 by the union of the Anglo-Swiss Milk Company, set up in 1866 by brothers Charles and George Page and Farine Lactee Henri Nestle, founded by Henri Nestle in 1866.

Nestle originated in 1860 when two separate Swiss enterprises later created Nestle.

In the following decades, the two rival companies grew their businesses throughout the United States and Europe.

In 1866, George Page and Charles Page, brothers from Lee County, Illinois, USA, formed the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. The company’s British operation started in 1873 at Chippenham, Wiltshire.

It was during the First World War when the organization grew significantly, and again during the Second World War, the company increased its offerings beyond its initial condensed milk and infant food products.

Nestle Case Study : Facts & Figures

Here are a few interesting numbers about Nestle that sets it apart from others.

• Nestlé is the world’s largest food and beverage company.
• The brand has 276000 employees
• Nestle has acquired 30 companies

Nestle Case Study: Nestle competitors in India

Nestle has many major customer brands like Carnation, Kit Kat, Nestle-water, and Stouffers, among others.

Thirty of its brands netted more than $1 billion in earnings in the year 2010, which makes the company a vital force in the worldwide food and beverage industry.

With around 42 % of its sales being in North America, Nestle is one of the most geographically distinct companies in the food and beverage industry. It places it in a position that helps it edge over its competitors.

Its brands are well established in a considerable market share in leading economies like U.S. and Europe.

Danone and Unilever are important competitors for Nestle. These two are giants in the food and beverage industry, like Nestle.

In 2010, Unilever posted around 26% growth in yearly profits because of its accelerated sales in the food and beverage industry, especially ice cream, frozen food, tea-based beverages, and cooking products.

On the other hand, Danone stated around a 38 percent increase because of its improved share prices. In addition, a rise in its yogurt sales also enhanced the growth in earnings.

However, nestle handles positioned itself in the market by adopting a new accounting method which aided a decline in its cost of sales.

The company could also incorporate discounts, allowances, and promotions for its retailers through sales profits rather than the marketing line.

Though its sale was lesser for a year, nestle pricing strategy helped them match its peers, which in turn, made it a famous manufacturer even though the competition was so high.

Being the world’s most popular food manufacturer, nestle has intense competition with its rival company, Unilever.

Unilever has around 1,49,000 employees and operates in 160 countries, with its headquarters in London for food, home, and personal care.

The company is trying hard to beat Nestle in terms of the quality of their product, which has made Unilever the second company in the Western European ready meals market with a market share of around 8.6%, i.e., 0.3 points behind the iconic Nestle.

Nestle’s Target Audience and Products for Each Segment

The unique thing about Nestle is that it offers a wide range of products that covers audiences of different ages, from 2-year-old to working professionals.

Here’s a breakdown of Nestle’s Target Audience and the products meant for them.

• Target Audience
• Working Professionals
• General Audiences
• Koko Krunch, Caregrow, Lactogrow
• Sunrise, Nescafe
• Maggi, KitKat, Milkmaid

Everyone, especially coffee lovers, will know how Nescafe is a big hit among working professionals.

Nestle guarantees that Nescafe is the only coffee that would keep professionals fresh throughout the day, and who does not want to feel fresh?

Regarding kids, parents blindly trust the product “Caregrow” by Nestle. The product consists of cereals to keep young kids healthy.

However, nestle has several other products like KitKat, Milkmaid, and Maggi for the general audience.

It is how Nestle has designed something for everyone in India. In the coming section, we will dig into how Nestle has advertised itself and its products in the digital world.

Nestle’s Digital Marketing Strategies

By now, you must have understood that Nestle is the world’s largest food and beverage company in terms of revenue. So, it might be basic information for many of you.

But what if we say Nestle always tries to be one step ahead regarding marketing strategies and policies?

It has always focused on the most updated marketing ways no matter, whether it is digital marketing strategies or offline strategies.

Nestle’s marketing strategies will teach you to build marketing strategies that work and get a positive response from customers.

Let us start with Nestle’s Digital Marketing Strategies that must follow if they want to succeed as a brand.

Partner with influential celebrities

Nescafe, a product of Nestle, collaborates with celebrities to put forward their message and create more noise around their brand.

A few years ago, they announced Bollywood actress Disha Patani as their brand ambassador.

Recently, they launched a campaign with famous content creators called “Karne Se Hi Hona Hai,” which means “Only doing will make it happen.”

They created this campaign during the Covid Pandemic to inspire people and encourage them to keep working hard towards their dreams no matter their situation.

Through this campaign, they targeted the youth of India and asked them to dream, act, and achieve success.

• Run campaigns that foster connections and bring customers together

An ordinary 37-year-old guy named Arnaud, with 1,2000 Facebook friends, was challenged by the company to catch up with his friends over a cup of coffee.

So, he filmed these meetings and turned them into a 42-minute online video documentary. During the sessions, Arnaud enjoyed a cup of Nescafe with his pals.

The documentary was a big hit on social media. It got almost 8 million views on Facebook, around 63,050 likes, 4,850 comments, and 5,550 shares. 

The Facebook Page of Nescafe saw an increase in the number of fans by 400%.

Fans were excited by the documentary and wanted to know how to turn their online friendships into real-life relationships.

As a reaction, it created the “le Defi Nescafe,” a Facebook campaign to allow winners to reinvent the same experience.

More than 26,000 people applied, around 19,000 liked it, and nearly 1,725 shared.

Instantly, Nescafe became an online sensation by marketing itself as an item that stimulates connections and friendships.

2. Localization of Products

Localization is adapting an organization’s products to the local market. Nestle has gone huge on localization in various markets where it now manages.

For example, consider Japan, where the organization’s primary foray was through coffee-flavored chocolates.

Japan is traditionally a tea-drinking country, and the company established these candies so that kids could also get to know the taste of coffee.

Later, it introduced Nescafe and KitKat, and what happened is history.

3. Content Marketing

Nestle has created many video content on every brand’s YouTube channels. The content ranges from informative “how-to” videos to cooking tips to better insights on using the right products.

For example, the “Meri Maggi” has more than 530 videos with more than 5,71,000 subscribers.

Though video content is an expanding channel in Nestle’s marketing strategy, it has recognized other avenues to share relevant information with its consumers.

4. Out-of-Home Advertising

Nestle’s brands, including Maggi, Milo, KitKat, and Nescafe, use different ways to grab customers’ attention.

Whether benches, hoardings, or banners, Nestle’s brands have made it to the limelight for their contextuality and creativity.

What are the advantages of using OOH ads? First, most people correctly receive these ads. They are worth sharing.

People can take photos online, send them to their friends or relatives, and even marketers discuss them.

In addition, with the help of OTT, they can reach many people at a low cost.

Also, Nestle’s marketing strategies are exceptional and generate some customers.

5. Co-branding

Have you ever heard about Android KitKat?

A few years back, Google and Nestle united and invented an Android KitKat operating system.

Nestle was facing a new scandal with their pet product and wanted to capitalize on the image of Google. This movie created a buzz and surpassed the crisis.

Lately, nestle signed another deal with Starbucks to kill two different birds at a time.

First, the brand entered the new product development stage-i.e., roasted beans- and improved its brand by discovering a wide range of Starbucks Nespresso Capsules.

Did you understand how co-branding helped Nestle?

Co-branding is great for stepping into a new market and widening your reach. This marketing benefits startup that wants to create brand awareness or launch a new item.

It would help if you found companies that complement your products and collaborated with them to run co-branding promotional ads.

Nestle – Challenges Faced

Undoubtedly, Maggi was the most popular instant noodles brand in India. The brand had established its presence in India’s food industry, but suddenly it became controversial.

State food regulators stated that Maggi contains Monosodium Glutamate and lead above the recommended limits, which were dangerous, especially for kids.  

When nestle encountered lab results, it said that they had a world-class quality control procedure and that their products were safe for consumption.

Ultimately, the National Food Regulator FSSAI ordered to ban on the selling of Maggi, including product recall.

Consequently, various state governments imposed a temporary ban on selling Maggi noodles in a few states. As a result, the future of the company suddenly started looking dark.

Another acquisition of Nestle by the critics was they accused that the brand discouraged mothers from breastfeeding.

They showed that their baby formula is much healthier than breastfeeding, although they didn’t have any proof to support this.

It resulted in a boycott of Maggi for the first time after its launch in 1977 in the United States and slowly spread to Europe.

Several reports have acknowledged the widespread use of child labor in Cocoa production, slavery, and child trafficking, throughout the Western African plantations on which Nestle and other important chocolate companies depend.

As per the 2010 documentary, The Dark Side of Chocolate, the kids working are usually 12 to 15 years old. Nestle faced criticism from The Fair Labour Association for not properly checking.

Different Campaigns by Nestle 

• Ask Nestle Campaign

In this campaign, Nestle India launched a digital tool, NINA, which stands for Nestle India Nutrition Assistant on AskNestle, which used Artificial Intelligence to offer real-time nutritional information on the foods we consume.

In addition, it assisted Indian parents in designing a nutritious customized meal plan for their kids below 12.

This campaign by Nestle was India’s first artificially intelligent assistant that permits one to find nutritional information for kids.

So, this is how Nestle India set its foot on digital fronts and started driving organic traffic and improved overall engagement compared to competitors.

2. #WeMissYouToo Maggi Campaign

Maggi suffered a massive loss after it got banned as Maggi contained a high amount of Monosodium Glutamate (MSG) and lead content- more than what is allowed.

It was hard for them to hope for a comeback, but Maggi did their best and experienced huge sales. As a result, the price and volume of Maggi are now much more significant than before.

How did they do so?

They did so through their different marketing campaigns. One among them was the #WeMissYouToo campaign.

In addition, they published a few videos showing how people are kissing Maggi and how their life was better with Maggi.

Videos showed how Maggi has been a staple food for many and how its absence had affected their lives. 

In campaigns, characters addressed Maggi as “yaar” or a “close friend” who is always there for them when in need. 

Therefore, they considered Maggi’s return as a huge celebration that brought people’s life to normalcy.

3. A Campaign for kids: Poora Poshan Poori Tasalli

Nestle Caregrow started this campaign in 2019. The campaign targeted couples living in the cities who had kids between the age of 2 to 5 years.

India is where parents are very concerned about their child’s health and nutrition right from birth. Nestle kept this in mind and decided to portray this care through its campaign. 

The brand portrayed how Indian mothers worry about their kids’ proper nourishment.

The brand came up with a new product, Caregrow, which controls a child’s hunger and offers all the essential nutrients for enhancing the child’s immunity and overall development.

4. Celebrate the Breakers- KitKat campaign

Across the world, people consume around 12 billion KitKat chocolates every year.

It is one of Nestle’s most famous chocolate products available in India. The company also released “KitKat Senses, a premium “slow-whipped” chocolate.

Nestle sought to influence Instagram to support its “Celebrate the Breakers” campaign by raising awareness and message association among enthusiastic 15- to 34-year-old Instagram followers.

Nestle came up with a new worldwide advertising campaign that takes a different approach altogether with a famous slogan, “Enjoy a break, enjoy a KitKat.”

“Celebrate the Breakers” was a new idea that identified the different forms of breaks that generally “breakers” take.

The animated movies showed KitKat chocolates are the best for enjoying a break in life.

Instagram was the appropriate platform for Nestle to showcase this idea graphically.

The brand posted a series of pictures with the hashtag “# mybreak over seven weeks ,” showing how people enjoy different types of breaks, like sleeping at their workplace, enjoying a party, or listening to their favorite music.

The images of KitKat match efficiently with its customers, as Instagram is a place where people share their daily moments and experiences.

Future Plans of Nestle

Nestle planned to invest Rs. 5,000 crores in India in the coming 3 ½ years, as per Mark Schneider, the company’s CEO.

The FMCG company, which has nearly 2,000 brands across the globe, believes that this initiative will help Nestle to improve its core business in India and enjoy new growth opportunities.

It marks the brand’s most significant investment in India since the year it started manufacturing.

Nestle is renowned in food, nutrition, health, and wellness.

Its competitive strategies mainly focus on overseas direct investment in ready-to-eat, dairy, and other food businesses.

Though there is rising competition, Nestle has remained on top for a long.

It maintains its dominance by balancing sales between high-risk and low-risk nations.

Over the years, Nestle has proven itself as a leader in the food and beverage industry with product innovation and innovative marketing strategies.

It creates campaigns that are memorable, relatable, and share-worthy.

As it is moving toward developing a solid presence in the future, digital marketing will play an essential role in the future growth of Nestle.

As Nestle continues to follow its values, mission, vision, and purpose, it will continue to grow. 

Streamlyn Academy is a digital marketing institute that delivers Internet Marketing & Programmatic Advertising courses to industry executives, entrepreneurs, and recent graduates.

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Nestlé’s Responsible Sourcing: Pioneering Sustainability and Social Impact – A Compelling Case Study

Introduction

In today’s globalized world, consumers are increasingly concerned about the ethical practices and sustainability efforts of the companies they support. Nestlé, one of the world’s largest food and beverage companies, has recognized the significance of responsible sourcing. This article delves into Nestlé’s commitment to responsible sourcing and how it aligns with its corporate values, environmental preservation, and social responsibility.

Table of Contents

• Understanding Responsible Sourcing 1.1 What is Responsible Sourcing? 1.2 The Importance of Responsible Sourcing
• Nestlé’s Sustainable Sourcing Strategy 2.1 Incorporating Environmental Sustainability 2.2 Social Responsibility in Sourcing 2.3 Ensuring High-Quality Standards 2.4 Collaborating with Suppliers and Farmers
• Traceability and Transparency 3.1 Ensuring Traceability in the Supply Chain 3.2 Transparent Communication with Stakeholders
• Impact on Local Communities 4.1 Empowering Farmers and Workers 4.2 Investing in Local Development Projects
• Addressing Key Challenges 5.1 Overcoming Supply Chain Complexities 5.2 Balancing Cost and Responsibility
• Certifications and Partnerships 6.1 Collaboration with NGOs and Industry Bodies 6.2 Third-Party Certifications
• Progress and Achievements 7.1 Measurable Goals and Results 7.2 Recognitions and Awards
• Consumer Awareness and Influence 8.1 How Responsible Sourcing Impacts Consumer Choices 8.2 Consumer Education and Engagement

Nestlé’s Sustainable Sourcing Strategy

Nestlé’s commitment to responsible sourcing is rooted in a comprehensive sustainable sourcing strategy. The company recognizes the pressing need to protect the environment and support local communities while ensuring a long-term supply of raw materials. This strategy is built on several key pillars.

Incorporating Environmental Sustainability

One of Nestlé’s top priorities is reducing its environmental footprint. The company is actively working towards sustainable agricultural practices, water conservation, and efficient energy consumption. Through partnerships with farmers, Nestlé promotes practices that minimize deforestation, protect biodiversity, and reduce greenhouse gas emissions.

Social Responsibility in Sourcing

Nestlé recognizes that responsible sourcing goes hand-in-hand with supporting local communities. The company aims to enhance livelihoods, promote gender equality, and ensure fair labor practices. By empowering farmers and workers, Nestlé contributes to the social and economic development of the regions it operates in.

Ensuring High-Quality Standards

Quality is non-negotiable for Nestlé. The company maintains stringent quality standards throughout its supply chain. From sourcing raw materials to processing and packaging, every step undergoes rigorous quality checks, ensuring that consumers receive safe and nutritious products.

Collaborating with Suppliers and Farmers

Nestlé understands that responsible sourcing requires collaborative efforts. The company works closely with its suppliers and farmers, providing training, resources, and incentives to adopt sustainable practices. This collaborative approach fosters long-term partnerships based on trust and mutual benefit.

Traceability and Transparency

Transparency is at the core of Nestlé’s responsible sourcing practices. The company believes that consumers have the right to know where their food comes from and how it was produced.

Ensuring Traceability in the Supply Chain

Nestlé invests in advanced technologies to achieve supply chain traceability. By leveraging blockchain and other tracking systems, the company can trace the journey of its products from farm to shelf. This transparency ensures accountability and helps identify areas for continuous improvement.

Transparent Communication with Stakeholders

Open and honest communication is vital for Nestlé. The company regularly engages with stakeholders, including consumers, farmers, NGOs, and governments, to share progress, address concerns, and gather feedback. This two-way dialogue reinforces Nestlé’s commitment to responsible sourcing.

Impact on Local Communities

Nestlé’s responsible sourcing initiatives have a significant positive impact on the lives of people in the communities it operates in.

Empowering Farmers and Workers

By providing training, resources, and access to markets, Nestlé empowers farmers and workers to improve their livelihoods. This empowerment contributes to poverty reduction and creates a more sustainable agricultural sector.

Investing in Local Development Projects

Nestlé goes beyond sourcing to invest in community development projects. These projects focus on education, healthcare, and infrastructure, aiming to uplift the overall well-being of the communities.

Addressing Key Challenges

Responsible sourcing comes with its challenges, and Nestlé is committed to addressing them proactively.

Overcoming Supply Chain Complexities

As a global company, Nestlé faces complex supply chain challenges. However, the company continues to invest in optimizing its supply chain, reducing inefficiencies, and ensuring responsible practices at every stage.

Balancing Cost and Responsibility

Responsible sourcing may incur higher costs, but Nestlé believes that the long-term benefits far outweigh the initial investments. The company strives to strike a balance between cost-effectiveness and sustainable practices.

Certifications and Partnerships

Nestlé actively collaborates with various organizations to enhance its responsible sourcing efforts.

Collaboration with NGOs and Industry Bodies

Nestlé partners with reputable NGOs and industry bodies, such as the Rainforest Alliance and Fair Trade, to strengthen its sustainable sourcing initiatives. These partnerships bring expertise, credibility, and new perspectives to the table.

Third-Party Certifications

To further demonstrate its commitment, Nestlé seeks third-party certifications for some of its products. These certifications provide independent validation of the company’s responsible sourcing claims.

Progress and Achievements

Nestlé’s dedication to responsible sourcing has yielded tangible results.

Measurable Goals and Results

The company sets clear and measurable goals to track its progress. These goals are aligned with the United Nations Sustainable Development Goals (SDGs) and focus on key areas such as environmental impact, social development, and responsible sourcing practices.

Recognitions and Awards

Nestlé’s efforts have been recognized globally. The company has received several awards and accolades for its responsible sourcing practices and sustainability initiatives.

Consumer Awareness and Influence

Responsible sourcing also impacts consumer behavior and choices.

How Responsible Sourcing Impacts Consumer Choices

Informed consumers increasingly prioritize ethically sourced products. Nestlé’s commitment to responsible sourcing resonates with these consumers, influencing their purchase decisions positively.

Consumer Education and Engagement

Nestlé engages in consumer education campaigns to raise awareness about responsible sourcing and its impact. By fostering dialogue and understanding, the company empowers consumers to make conscious choices.

Nestlé’s responsible sourcing approach reflects its dedication to ethical practices, sustainability, and the well-being of local communities. Through robust strategies, transparency, and collaboration, Nestlé sets an example for the food and beverage industry to prioritize responsible sourcing. By supporting Nestlé’s efforts, consumers can contribute to a more sustainable and responsible future.

• What is responsible sourcing? Responsible sourcing refers to the practice of obtaining raw materials and ingredients in a manner that prioritizes environmental protection, social responsibility, and ethical practices.
• Does Nestlé use sustainable agricultural practices? Yes, Nestlé actively promotes sustainable agricultural practices to reduce environmental impact and support long
• Does Nestlé use sustainable agricultural practices? Yes, Nestlé actively promotes sustainable agricultural practices to reduce environmental impact and support long-term farming viability. The company collaborates with farmers to adopt eco-friendly methods, conserve water, and protect biodiversity.
• How does Nestlé empower farmers and workers? Nestlé empowers farmers and workers through capacity-building programs, technical training, and access to financial resources. By equipping them with knowledge and resources, Nestlé helps them improve productivity and livelihoods.
• What steps does Nestlé take to ensure supply chain traceability? Nestlé utilizes advanced technologies like blockchain to achieve supply chain traceability. These technologies enable the company to monitor and track the movement of products throughout the supply chain, ensuring transparency and accountability.
• Does responsible sourcing impact the cost of Nestlé’s products? Responsible sourcing may lead to slightly higher costs, but Nestlé believes that the benefits, such as improved brand reputation and consumer loyalty, outweigh the expenses in the long run.

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2024 Nestlé Health Science Long Term Business Strategy Internship (Remote)

• Share This: Share 2024 Nestlé Health Science Long Term Business Strategy Internship (Remote) on Facebook Share 2024 Nestlé Health Science Long Term Business Strategy Internship (Remote) on LinkedIn Share 2024 Nestlé Health Science Long Term Business Strategy Internship (Remote) on X

At Nestlé Health Science, we believe that nutrition, science, and wellness must merge, not collide. Here, we embrace the intrinsic connections of these three pillars, harnessing their collective strength to empower healthier lives. Our broad product portfolio includes renowned brands like Garden of Life®, Nature’s Bounty®, Vital Proteins®, Orgain®, Nuun®, BOOST®, Carnation Breakfast Essentials®, Peptamen®, Compleat Organic Blends®, and more. We also have extensive pharmaceutical expertise, offering innovative medicines that aim to prevent, manage, and treat gastrointestinal and metabolic-related diseases.

At Nestlé Health Science, we bring our best for better lives. Our people are challenged to bring fresh, diverse views and make bold moves to empower healthier lives through nutrition. We know brilliant ideas can come from anyone, anywhere. Here we embrace the entrepreneurial spirit and collaborate with teams that champion focused and forward thinking. We are committed to fostering professional growth and celebrating the achievements of our people along the way. We offer dynamic career paths, robust development, opportunities to learn from talented colleagues around the globe, and benefits that support physical, financial, and emotional wellbeing.

Join us to innovate for impact and reimagine the future of health and nutrition for patients and consumers.

Position Summary:

This role contributes to the success of the organization by focusing on change management and communications activities tied to strategic transformation initiatives for the U.S. businesses at the direction of the Manager of Long-Term Business Strategy. Initiatives could include but not limited to Systems Integrations, Business Development Initiatives, Process Changes, and Strategic Planning. This position will be remote with potential to travel into the Hoboken, NJ office.

Key Responsibilities:

• Identify, implement, and drive activities to further Nestlé Health Science’s strategic priorities and long-term business strategy.
• Develop and execute change management and communications strategies and activities to mobilize and engage stakeholders and enable strategic initiatives across the organization.
• Engage with stakeholders across multiple functions for assigned transformation or integration projects, and work with them to integrate change management activities into the overall project plan.
• Create and manage measurement systems to track adoption, utilization, and proficiency of changes.
• Collaborate with the business and guide them in developing process or ways of working documentation needed to support the change.
• Assure coordination and management of relevant stakeholder groups across transformation projects; drive the project mission and case for change forward.
• Identify, resolve, and elevate issues and assure alignment of key stakeholders for assigned projects.
• Provide ongoing program management with key stakeholders to collect and communicate status of initiatives for consolidated presentations.
• Self-starter who is results-oriented, innovative, intellectually curious and takes initiative and risks.
• Ability to learn quickly, embrace change, and thrive in a fast-paced environment.
• Excellent communication (both written and verbal) and stakeholder management skills; excels in a team environment.
• Strong analytical and critical thinking skills, including the ability to routinely interface with varying levels of the organization quickly and interchangeably.

Areas of Study/Majors:

• Bachelor’s or Master’s Degree with focus on business administration, learning and development, organizational development, communications or other relevant field with a graduation year of 2025.

The approximate pay rate for this position is $25-27 per hour. Please note that the pay rate provided is a good faith estimate for the position at the time of posting. Final compensation may vary based on factors including but not limited to knowledge, skills and abilities as well as geographic location.

It is our business imperative to remain a very inclusive workplace.

To our veterans and separated service members, you’re at the forefront of our minds as we recruit top talent to join Nestlé. The skills you’ve gained while serving our country, such as flexibility, agility, and leadership, are much like the skills that will make you successful in this role. In addition, with our commitment to an inclusive work environment, we recognize the exceptional engagement and innovation displayed by individuals with disabilities. Nestlé seeks such skilled and qualified individuals to share our mission where you’ll join a cohort of others who have chosen to call Nestlé home.

The Nestlé Companies are an equal employment opportunity and affirmative action employer seeking diversity in qualified applicants for employment. All applicants will receive consideration for employment without regard to race, ethnicity, color, gender, gender identity, age, religion, national origin, ancestry, disability, perceived disability, medical condition, genetic information, veteran status, sexual orientation, or any other protected status, as defined by applicable law. Prior to the next step in the recruiting process, we welcome you to inform us confidentially if you may require any special accommodations in order to participate fully in our recruitment experience. Contact us at [email protected] or please dial 711 and provide this number to the operator: 1-800-321-6467.

This position is not eligible for Visa Sponsorship.

Review our applicant privacy notice before applying at https://www.nestlejobs.com/privacy

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Case Study: How Aggressively Should a Bank Pursue AI?

• Thomas H. Davenport
• George Westerman

A Malaysia-based CEO weighs the risks and potential benefits of turning a traditional bank into an AI-first institution.

Siti Rahman, the CEO of Malaysia-based NVF Bank, faces a pivotal decision. Her head of AI innovation, a recent recruit from Google, has a bold plan. It requires a substantial investment but aims to transform the traditional bank into an AI-first institution, substantially reducing head count and the number of branches. The bank’s CFO worries they are chasing the next hype cycle and cautions against valuing efficiency above all else. Siti must weigh the bank’s mixed history with AI, the resistance to losing the human touch in banking services, and the risks of falling behind in technology against the need for a prudent, incremental approach to innovation.

Two experts offer advice: Noemie Ellezam-Danielo, the chief digital and AI strategy at Société Générale, and Sastry Durvasula, the chief information and client services officer at TIAA.

Siti Rahman, the CEO of Malaysia-headquartered NVF Bank, hurried through the corridors of the university’s computer engineering department. She had directed her driver to the wrong building—thinking of her usual talent-recruitment appearances in the finance department—and now she was running late. As she approached the room, she could hear her head of AI innovation, Michael Lim, who had joined NVF from Google 18 months earlier, breaking the ice with the students. “You know, NVF used to stand for Never Very Fast,” he said to a few giggles. “But the bank is crawling into the 21st century.”

• Thomas H. Davenport is the President’s Distinguished Professor of Information Technology and Management at Babson College, a visiting scholar at the MIT Initiative on the Digital Economy, and a senior adviser to Deloitte’s AI practice. He is a coauthor of All-in on AI: How Smart Companies Win Big with Artificial Intelligence (Harvard Business Review Press, 2023).
• George Westerman is a senior lecturer at MIT Sloan School of Management and a coauthor of Leading Digital (HBR Press, 2014).

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2024 Nestlé Health Science Long Term Business Strategy Internship (Remote)

• Share This: Share 2024 Nestlé Health Science Long Term Business Strategy Internship (Remote) on Facebook Share 2024 Nestlé Health Science Long Term Business Strategy Internship (Remote) on LinkedIn Share 2024 Nestlé Health Science Long Term Business Strategy Internship (Remote) on X

At Nestlé Health Science, we believe that nutrition, science, and wellness must merge, not collide. Here, we embrace the intrinsic connections of these three pillars, harnessing their collective strength to empower healthier lives. Our broad product portfolio includes renowned brands like Garden of Life®, Nature’s Bounty®, Vital Proteins®, Orgain®, Nuun®, BOOST®, Carnation Breakfast Essentials®, Peptamen®, Compleat Organic Blends®, and more. We also have extensive pharmaceutical expertise, offering innovative medicines that aim to prevent, manage, and treat gastrointestinal and metabolic-related diseases.

At Nestlé Health Science, we bring our best for better lives. Our people are challenged to bring fresh, diverse views and make bold moves to empower healthier lives through nutrition. We know brilliant ideas can come from anyone, anywhere. Here we embrace the entrepreneurial spirit and collaborate with teams that champion focused and forward thinking. We are committed to fostering professional growth and celebrating the achievements of our people along the way. We offer dynamic career paths, robust development, opportunities to learn from talented colleagues around the globe, and benefits that support physical, financial, and emotional wellbeing.

Join us to innovate for impact and reimagine the future of health and nutrition for patients and consumers.

Position Summary:

This role contributes to the success of the organization by focusing on change management and communications activities tied to strategic transformation initiatives for the U.S. businesses at the direction of the Manager of Long-Term Business Strategy. Initiatives could include but not limited to Systems Integrations, Business Development Initiatives, Process Changes, and Strategic Planning. This position will be remote with potential to travel into the Hoboken, NJ office.

Key Responsibilities:

• Identify, implement, and drive activities to further Nestlé Health Science’s strategic priorities and long-term business strategy.
• Develop and execute change management and communications strategies and activities to mobilize and engage stakeholders and enable strategic initiatives across the organization.
• Engage with stakeholders across multiple functions for assigned transformation or integration projects, and work with them to integrate change management activities into the overall project plan.
• Create and manage measurement systems to track adoption, utilization, and proficiency of changes.
• Collaborate with the business and guide them in developing process or ways of working documentation needed to support the change.
• Assure coordination and management of relevant stakeholder groups across transformation projects; drive the project mission and case for change forward.
• Identify, resolve, and elevate issues and assure alignment of key stakeholders for assigned projects.
• Provide ongoing program management with key stakeholders to collect and communicate status of initiatives for consolidated presentations.
• Self-starter who is results-oriented, innovative, intellectually curious and takes initiative and risks.
• Ability to learn quickly, embrace change, and thrive in a fast-paced environment.
• Excellent communication (both written and verbal) and stakeholder management skills; excels in a team environment.
• Strong analytical and critical thinking skills, including the ability to routinely interface with varying levels of the organization quickly and interchangeably.

Areas of Study/Majors:

• Bachelor’s or Master’s Degree with focus on business administration, learning and development, organizational development, communications or other relevant field with a graduation year of 2025.

The approximate pay rate for this position is $25-27 per hour. Please note that the pay rate provided is a good faith estimate for the position at the time of posting. Final compensation may vary based on factors including but not limited to knowledge, skills and abilities as well as geographic location.

It is our business imperative to remain a very inclusive workplace.

To our veterans and separated service members, you’re at the forefront of our minds as we recruit top talent to join Nestlé. The skills you’ve gained while serving our country, such as flexibility, agility, and leadership, are much like the skills that will make you successful in this role. In addition, with our commitment to an inclusive work environment, we recognize the exceptional engagement and innovation displayed by individuals with disabilities. Nestlé seeks such skilled and qualified individuals to share our mission where you’ll join a cohort of others who have chosen to call Nestlé home.

The Nestlé Companies are an equal employment opportunity and affirmative action employer seeking diversity in qualified applicants for employment. All applicants will receive consideration for employment without regard to race, ethnicity, color, gender, gender identity, age, religion, national origin, ancestry, disability, perceived disability, medical condition, genetic information, veteran status, sexual orientation, or any other protected status, as defined by applicable law. Prior to the next step in the recruiting process, we welcome you to inform us confidentially if you may require any special accommodations in order to participate fully in our recruitment experience. Contact us at [email protected] or please dial 711 and provide this number to the operator: 1-800-321-6467.

This position is not eligible for Visa Sponsorship.

Review our applicant privacy notice before applying at https://www.nestlejobs.com/privacy

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A popular YouTuber's negative video of Humane's AI Pin raises questions about critical reviews in the age of innovation

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Hello there! If you're struggling to decide the foods worth buying organic, best-selling author Michael Pollan has some suggestions for the ones worth splurging on to avoid harmful chemicals .  

In today's big story, we're looking at a critical tech review that caused a bit of a stir on social media .

What's on deck:

Markets: Goldman Sachs quiets the haters with a monster earnings report .

Tech: Leaked docs show one of Prime Video's biggest issues, forcing customers to abandon shows .

Business: The best bet in business these days? Targeting young men who like to gamble .

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The big story

Up for review.

"The Worst Product I've Ever Reviewed… For Now"

Marques Brownlee, the YouTuber better known as MKBHD, didn't mince words with the title of his review of Humane's AI Pin .

In a 25-minute video , Brownlee details all the issues he encountered using the AI device. (Spoiler alert: There were a lot.)

Brownlee's review aligns with other criticisms of the device . But not all of those came from someone with as much sway. His YouTube channel has more than 18 million subscribers.

One user on X pointed that out , calling the review "almost unethical" for "potentially killing someone else's nascent project" in a post reposted over 2,000 times. 

Most of the internet disagreed, and a Humane exec even thanked Brownlee on X for the "fair and valid critiques." 

But it highlights the power of Brownlee's reviews. Earlier this year, a negative video of Fisker's Ocean SUV by Brownlee also made waves on social media . 

Critical reviews in the age of innovation raise some interesting questions.

To be clear, there was nothing wrong with Brownlee's review. Humane's AI Pin costs $700. Watering down his review to ease the blow would be a disservice to the millions of fans relying on his perspective before making such a significant purchase.

Too often, companies view potential customers as an extension of their research and development. They are happy to sell a product that is still a work in progress on the promise they'll fix it on the fly. ("Updates are coming!")

But in a world of instant gratification, it can be hard to appreciate that innovation takes time. 

Even Apple can run into this conundrum. Take the Apple Vision Pro. Reviewers are impressed with the technology behind the much-anticipated gadget — but are still struggling to figure out what they can do with it . Maybe, over time, that will get sorted out. It's also worth remembering how cool tech can be, as Business Insider's Peter Kafka wrote following a bunch of trips in Waymo's software-powered taxis in San Francisco . Sure, robotaxis have their issues, Peter said, but they also elicit that "golly-gee-can-you-believe-it" sense.

As for Humane, America loves a comeback story. Just look at "Cyberpunk 2077." The highly anticipated video game had a disastrous launch in 2020 , but redeemed itself three years later, ultimately winning a major award .

Still, Humane shouldn't get a pass for releasing a product that didn't seem ready for primetime, according to the reviews. 

And its issue could be bigger than glitchy tech. Humane's broader thesis about reducing screen time might not be as applicable. As BI's Katie Notopolous put it: " I love staring at my iPhone ."

3 things in markets

1. Goldman finally strikes gold. After a rough stretch, the vaunted investment bank crushed earnings expectations , sending its stock soaring. A big tailwind, according to CEO David Solomon, is AI spawning " enormous opportunities " for the bank. 

2. Buy the dip, Wedbush says. Last week's drop among tech stocks shouldn't scare away investors , according to Wedbush. A strong earnings report, buoyed by the ongoing AI craze, should keep them soaring, strategists said. But JPMorgan doesn't see it that way, saying prices are already stretched .   

3. China's economy beat analysts' expectations. The country's GDP grew 5.3% in the first quarter of 2024, according to data published by the National Bureau of Statistics on Tuesday. It's a welcome return to form for the world's second-largest economy, although below-par new home and retail sales remain a cause for concern .

3 things in tech

1. Amazon Prime Video viewers are giving up on its shows. Leaked documents show viewers are fed up with the streamer's error-ridden catalog system , which often has incomplete titles and missing episodes. In 2021, 60% of all content-related complaints were about Prime Video's catalog.

2. Eric Newcomer is bringing his Cerebral Valley AI Summit to New York. The conference, originally held in San Francisco, is famous for producing one of the largest generative AI acquisitions ever. Now, it's coming to New York in June .

3. OpenAI is plotting an expansion to NYC. Two people familiar with the plans told BI that the ChatGPT developer is looking to open a New York office next year. That would be the company's fifth office, alongside its current headquarters in San Francisco, a just-opened site in Tokyo, and spots in London and Dublin.

3 things in business

1. America's young men are spending their money like never before. From sports betting to meme coins, young men are more willing than ever to blow money in the hopes of making a fortune .

2. Investors are getting into women's sports. With women like Caitlin Clark dominating March Madness headlines, investors see a big opportunity. BI compiled a list of 13 investors and fund managers pouring money into the next big thing in sports.

3. Bad news for Live Nation. The Wall Street Journal reports that the Justice Department could hit the concert giant with an antitrust lawsuit as soon as next month. Live Nation, which owns Ticketmaster, has long faced criticism over its high fees.

In other news

Blackstone hires Walmart AI whiz to supercharge its portfolio companies .

Taylor Swift, Rihanna, Blackpink's Lisa: Celebrities spotted at Coachella 2024 . 

NYC's rat czar says stop feeding the pigeons if you want the vermin gone .

A major Tesla executive left after 18 years at the company amid mass layoffs .

Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say .

New York is in, San Francisco is very much out for tech workers relocating .

AI could split workers into 2: The ones whose jobs get better and the ones who lose them completely .

Oh look at that! Now Google is using AI to answer search queries .

A longtime banker gives a rare inside look at how he is thinking about his next career move, from compensation to WFH .

Clarence Thomas didn't show up for work today .

What's happening today

Today's earnings: United Airlines, Bank of America, Morgan Stanley, and others are reporting . 

It's Free Cone Day at participating Ben & Jerry's stores. 

The Insider Today team: Dan DeFrancesco , deputy editor and anchor, in New York. Jordan Parker Erb , editor, in New York. Hallam Bullock , senior editor, in London. George Glover , reporter, in London.

Watch: Nearly 50,000 tech workers have been laid off — but there's a hack to avoid layoffs

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