Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Nestle shopping experience:
1. Compare - without doubt the biggest advantage that the Nestle offers shoppers today is the ability to compare thousands of Nestle at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Nestle? Wrong! If the Nestle is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Nestle then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Nestle? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Nestle and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Nestle wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Nestle then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Nestle site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Nestle, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Nestle, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
{{Infobox_Company|name = Nestlé S.A.|company_logo = |type =
Public limited company (SWX:
NESN, )], Switzerland (1866)],
Switzerland, Founder
[Peter Brabeck-Letmathe, Chairman & CEO]|num_employees = 305,000 (2005)|industry = Food processing, [dairy products,
breakfast cereals, confectionery, bottled water, #Main Products|revenue = 98,5 billion
Swiss franc (2006)|net_income = 5,05 billion
Swiss franc (2006) 8.8%
profit margin packaged food company founded and headquartered in [Vevey, Switzerland. It results from a merger in 1905 between the Anglo-Swiss Milk Company for milk products established by the Page Brothers in Cham, Switzerland, in 1866 and the Farine Lactée Henri Nestlé Company set up in 1867 by Henri Nestlé to provide an infant food product. Several of Nestlé's brands are globally renowned, which made the company a global
market leader in many product lines, including milk,
chocolate,
confectionery, bottled water, coffee, creamer, food seasoning and pet foods.{{cite web |url = http://www.google.com/analytics/case_study_nestle.html
|title = Nestlé: Following the Customers' Tracks with Google Analytics
|publisher = Google Analytics
|author =
|date =
|accessdate = 2007-02-21
-->
The company stock is listed on the SWX Swiss Exchange. Some of Nestlé's business practices have been considered unethical, especially the manner in which infant formula has been marketed in
Developing country, which led to the Nestlé boycott from 1977.
Pronunciation
Some people in the English language-speaking countries pronounce
Nestlé's , as in the English verb
nestle. This was the pronunciation used in company merchandising in the UK for much of the 20th century, e.g. Nestlé's Milkybar. In TV ads in the United States,
Nestlé's is pronounced or . A common pronunciation of
Nestlé in Australia is . However, the brand is derived from the founder's family name from the French-speaking part of Switzerland, where Nestlé is properly pronounced .
International names
China: 雀巢, pinyin - (què cháo)
Thailand: เนสเล่
History
Nestlé was founded in 1860. In the 1860s Henri Nestlé, a pharmacist, developed a food for babies whose mothers were unable to breastfeed. His first success was a premature infant who could not tolerate his own mother's milk nor any of the usual substitutes. The value of the new product was quickly recognized when his new formula saved the child's life, and soon,
Farine Lactée Henri Nestlé was being sold in much of
Europe.
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, United Kingdom,
Germany and Spain.
World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestlé's production more than doubled.
The first Nestlé factory to begin production in the United States was opened in Fulton, Oswego County, New York. The factory however was closed in 2001, after the company decided that the cost of restoring, and updating the factory was not worth the effort. Employees of the factory were furious, and raised the company flag upside down the day the closing was announced.
After the war, government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the company's second most important activity.
Nestlé felt the effects of World War II immediately. Profits dropped from
US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups.
Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and
Stouffer's (1973). Diversification came with a shareholding in
L'Oréal in 1974. In 1977, Nestlé made its second venture outside the food industry by acquiring Alconian president,
Lula da Silva, inaugurates a factory in
Feira de Santana (
Bahia), February, 2007.In 1984, Nestlé's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation (trademark) and the British confectionery company
Rowntree's in 1988, which brought the The_Willy_Wonka_Candy_Company Brand to Nestlé.
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including
San Pellegrino (1997), Spillers Petfoods (1998), and
Ralston Purina (2002). There were two major acquisitions in
North America, both in 2002: in June, Nestlé merged its U.S. ice cream business into
Dreyer's, and in August a US$2.6 billion acquisition was announced of
Chef America, Inc. In the same time frame, Nestlé came close to purchasing the iconic American company
Hershey's, though the deal fell through.{{cite news |url = http://news.bbc.co.uk/2/hi/business/2050788.stm
|title = Nestlé buys US ice cream firm
|publisher = BBC News
|date = 17 Jun 2002
|accessdate = 2007-02-22
--> Another recent purchase includes the [Jenny Craig fitness firm for US$600 million.
In December 2005 Nestlé bought the Greece company Delta Ice Cream for Euro240 million. In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice cream maker with a 17.5% market share.{{cite news |url = http://news.bbc.co.uk/2/hi/business/4627810.stm
|title = Nestlé takes world ice cream lead
|publisher = BBC News
|date = 19 Jan 2006
|accessdate = 2007-02-22
-->
In November 2006, Nestle purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B.In April 2007 Nestlé bought baby food manufacturer Gerber Products Company for $5.5 billion.{{cite news|url = http://money.cnn.com/2007/04/12/news/international/bc.gerber.nestle.reut/index.htm?section=money_latest|title = Nestlé to buy Gerber for $5.5B|publisher = CNN| date = 12 April 2007|accessdate = 2007-04-12-->
Products
Nestlé has a wide range of products across a number of markets including coffee (
Nescafé),
water, other beverages,
ice cream, baby food, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.For a list of some of these brands, see
List of Nestlé brands.
Business
Management
The executive board, a distinct entity from the
board of directors, includes:
- Peter Brabeck-Letmathe, Chairman & CEO
- Carlo Donati, vice president, chairman of the board, and CEO of Nestlé Waters
- Frits van Dijk, EVP of Asia, Oceania, Africa, Middle East divisions
- Lars Olofsson, EVP of Strategic Business Units and Marketing
- Francisco Castañer, EVP of Pharmaceutical and Cosmetic Products, Liaison with L'Oréal, Human Resources
- Michael Powell, EVP of United Kingdoms Diivision
- Paul Bulcke, EVP of Americas divisions
- Paul Polman, EVP of Finance, Control, Legal, Tax, Purchasing, Export
- Luis Cantarell, EVP of Europe divisions
- Richard T. Laube, Deputy EVP of Nutrition Strategic Business units
- Werner J. Bauer, EVP of Research and Development, Technical, Production, Environment.
Current members of the board of directors of Nestlé are: Günter Blobel, Peter Böckli, Daniel Borel,
Peter Brabeck-Letmathe, Edward George, Rolf Hänggi,
Nobuyuki Idei,
Andreas Koopmann,
André Kudelski,
Jean Pierre Meyers, Carolina Müller-Möhl, Kaspar Villiger.Secretary to the Board
Bernard Daniel.
Nestlé has a good business reputation among Switzerland's largest companies.{{cite paper |url = http://www.reputationinstitute.com/press/06-04-06_Swiss_Reptrak_pr.pdf
|title = The Reputations of Switzerland Largest Companies:
|publisher = Reputation Institute
|format = .PDF
|date = 5 April 2006
|accessdate = 2007-02-22
--> {{cite web
|url = http://intranet.csreurope.org/news/csr/one-entry?entry_id=114272
|title = World's Most Respected Companies: Diverse Qualities Vie for Attention
|publisher = CSR Europe
|author = Malte Sussdorff
|date = 15 Dec 2000
|accessdate = 2007-02-22
-->{{cite news
|url = http://www.thetimes100.co.uk/case_study.php?cID=7&csID=231&pID=1
|title = Nestlé's Case Study
|publisher = thetimes100.co.uk
|author =
|date =
|accessdate = 2007-02-22
--> Students and Teacher business studies resource centre
Earnings
In 2003, consolidated sales were
Swiss franc87.979 billion and net profit was CHF6.213 billion. Research and development investment was CHF1.205 billion.
- Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical products.
- Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world.
Joint ventures
Nestlé holds 26.4% of the shares of
L'Oréal, the world's leading company in
make-up and beauty. The
Laboratoires Inneov is a
joint venture in nutritional cosmetics between Nestlé and L'Oréal, and
Galderma a joint venture in dermatology with L'Oréal. Others include
Cereal Partners Worldwide with
General Mills,
Beverage Partners Worldwide with
The Coca-Cola Company, and Dairy Partners Americas with Fonterra.
Controversy and criticism
Some of Nestlé's business practices have been controversial, especially the manner in which baby formula has been marketed in Developing country. The controversy ultimately led to the widespread Nestlé boycott, starting in 1977. Nestlé has since launched several
Fairtrade products across the world, including Partners Blend in the UK and several grind-at-home Fairtrade coffees in Sweden, which led to a new round of criticism.
Baby milk marketing
Since the late 1970s, Nestlé has attracted much criticism for its baby milk marketing policies in
Developing country. This has centered on its apparent recommendations for breastfeeding mothers to switch to its infant formula milk products, leading to the alleged deaths of 15 babies each year as a result of formula being mixed with contaminated water. Nestlé has allegedly violated the widely agreed-upon
International Code of Marketing of Breast-milk Substitutes ("International Code").{{cite news |url = http://news.bbc.co.uk/2/hi/africa/2667401.stm
|title = Baby milk marketing 'breaks rules'
|publisher = BBC News
|date = 17 January, 2003
|accessdate = 2007-02-22
--> This led to a boycott coordinated by the [International Nestlé Boycott Committee, informed by monitoring conducted by the [International Baby Food Action Network. In 1982, Nestlé implemented the International Code in developing countries. The instructions were reviewed and refined in 1984 in consultation with the WHO, [UNICEF and the International Nestlé Boycott Committee.
Nestlé itself still advertised breast milk replacements and used pictures of babies in its advertising in 2004.{{cite web |url = http://www.ibfan.org/english/codewatch/btr04/btr04contents.html
|title = Breaking the Rules, Stretching the Rules 2004
|publisher =
|author =
|date =
|accessdate = 2007-02-22
--> Nestlé has issued instructions to all its offices to ensure strict compliance with the International Code.
Post 2004 allegations of breaches of the International Code continue to be made by campaign organisations, such as IBFAN and the Save the Children Fund (May 2007) and
The Guardian newspaper.{{cite web |url = http://www.ibfan.org/site2005/Pages/article.php?iui=1&art_id=420&goto_news=1
|title = IFBAN
|publisher = International Baby Food Action Network
|author =
|date =
|accessdate= 2007-03-03-->
and{{cite web |url = http://www.savethechildren.org.uk/scuk/jsp/resources/details.jsp?id=5011
|title = SAVE THE CHILDREN
|publisher = Save the Children (UK)
|author = Save the Children (UK)
|date = 2007-05-15
|accessdate= 2007-05-15
--> and
Save the Children media briefing (acrobat format), accessed 15 May 2007 and
Guardian article "Milking it" ,Tuesday May 15, 2007, accessed 15 May 2007.
Ethiopian government
In December 2002, international aid agency Oxfam revealed that Nestlé was demanding millions of dollars in compensation from
Ethiopia. The
United States dollar6 million demand was issued for shares in an Ethiopian agricultural firm, which was nationalization by the Marxist
Mengistu Haile Mariam regime in 1975. Nestlé acquired ELIDCO’s parent company, the Schweisfurth Group, ten years later. Nestlé initially refused the Ethiopian government’s offer of a settlement worth around US$1.5 million (a figure based on the 2002 exchange rate between the dollar and the Ethiopian birr) but insisted on $6m (based on the exchange rate at the time of the nationalization). {{cite web ,
stating that that they would accept the US$1.5 million and that this money would be made available for famine relief projects in the region in consultation with the [International Red Cross and Red Crescent Federation.
{{cite press release | title = Nestlé and Ethiopia. A Statement by Nestlé CEO Peter Brabeck| publisher = Nestlé | date = 23 December 2002 | url =http://www.nestle.com/MediaCenter/PressReleases/AllPressReleases/EthiopiaStatementBrabeckCEO-23Dec02.htm?Tab=2002 | accessdate = 2007-06-11 -->
Nestlé Purina in Venezuela
In early 2005, Nestlé Purina sold thousands of tons of contaminated fodder in Venezuela. Nestl-Purina in Venezuela The local brands included Dog Chow, Cat Chow, Puppy Chow, Fiel, Friskies, Gatsy, K-Nina, Nutriperro, Perrarina and Pajarina. Over 500 dogs, cats, birds and cattle died. It was reported that it was caused by a supplier that had stored corn used in animal food production incorrectly, which led to a proliferation of a fungus with a high quantity of aflatoxin causing hepatic problems in the animals that ate the food.On March 3 2005, the
National Assembly of Venezuela (Venezuela's federal legislature) stated that the company Nestlé Purina was responsible for the quality standards and that compensation must be paid to the owners of the affected animals.
Nestlé water
In
Mecosta County, Michigan,
United States, a determined citizen coalition has opposed the efforts of a bottled water subsidiary of Nestlé to gain private control of important
groundwater supplies. In 2001, the county licensed the company, then a subsidiary of
Perrier, to open a bottling plant in Stanwood, Michigan, for a fee of less than US$100 a year.{{cite news |url = http://www.thirdworldtraveler.com/Water/Who's_Right_Water.html
|title = Whose Right to Water?
|publisher = Dollars and Sense magazine
|author = Kevin Murray
|date = Dec 2003
|accessdate = 2007-02-22
--> Operating requirements of the factory called for pumping 500,000 gallons (1.9 million litres) of water a day from an [aquifer. After learning about the plan, Michigan Citizens for Water Conservation launched a direct action campaign against Nestlé and sought a temporary injunction to halt pumping while the court heard arguments on the legality of Nestlé's use of the water. However, this injunction has not been granted. Nestlé purchased the [Calistoga Water Company in 1980.
Nestlé Canada is applying for an extension and increase with respect to water bottling activities in the Guelph, Ontario area (2007-05-07)
Genetically modified organisms
In August 2004 a Greenpeace test found genetically modified organisms in
China Nesquik. A Chinese woman sued Nestlé since the use of GMOs in that kind of product was prohibited by local law. In December a second test was negative.{{cite news |url = http://www.10thnpc.org.cn/english/China/84272.htm
|title = Nestle Urged to 'Tell Truth' About GMOs
|publisher = China Daily
|date = 8 Jan 2004
|accessdate = 2007-02-22
--> In November 2005 Nestlé opposed a [France ban on GMOs.{{cite web
|url = http://www.planetark.com/dailynewsstory.cfm/newsid/33668/story.htm
|title = Swiss Adopt Five-Year GMO Farming Ban
|publisher = Tom Armitage
|author = Planet Ark
|date = 28 Nov 2005
|accessdate = 2007-02-22
-->
Use of forced labour
In April 2004, a
Forbes article reported on Nestlé's use of forced labour in the production of their chocolate. The International Labor Organisation, part of the UN, estimates that 284,000 child labourers work on cocoa farms in West Africa, mainly in the Ivory Coast. Mars Incorporated and
Hershey's are also being investigated. Global Exchange and the
International Labor Rights Fund are taking Nestlé, commodities trader
Archer Daniels Midland and Cargill to court in the US under the Torture Victim Protection Act of 1992 and
Alien Tort Claims Act.{{cite news| url = http://www.foodanddrinkeurope.com/news/ng.asp?n=62111-nestle-cocoa-child-labour
| title = Nestlé, ADM and Cargill go to court over cocoa child labour
| author = Lindsey Partos
| publisher = Food And Drink Europe
| date = 26 Aug 2005
| accessdate = 2007-02-22
-->{{cite paper| url = http://www.laborrights.org/projects/childlab/SlipOpinionSareiv.RioTinto0806.pdf
| title = John Doe, et al v. Nestlé CV 05-5133 SVW (JTLx)
| publisher = United States District Court, Central Court of California
| format = .PDF
| date = 7 Aug 2006
| accessdate = 2007-02-22
--> Nestlé signed an agreement called the Cocoa Protocol to say that it would find a way by July 2005 to certify that chocolate had not been produced by underage, indentured, trafficked or coerced labour. Nestlé has requested that all the coerced child labourers involved in the International Labor Rights Fund lawsuit reveal their names, which could lead to them being punished.{{cite paper| url = http://www.laborrights.org/projects/childlab/nestle_motion_anonymity_0805.pdf
| title = John Doe, et al v. Nestlé CV 05-5133 (SVW)
| publisher = United States District Court, Central Court of California
| format = .PDF
| date = 29 Aug 2003
| accessdate = 2007-02-22
-->
Partners Blend
In 2006 Nestle Launched its Fairtrade certified Partners Blend in the UK. This released a new round of criticism as the company was accused of
greenwashing. Most critics point out that Nestlé has only one Fairtrade product amongst its range of 8,500 and that the company would do better to alter its business practices in the rest of the coffee market (where it is a dominant player) rather than launch a small Fairtrade certified product with limited volume. Nestle and Fairtrade . The Fairtrade foundation countered that this was a turning point for the Fairtrade movement with a major company listening to consumers.
See also
Footnotes
External links
- Nestlé Official website
- Article on ownership structure of Nestlé and L'Oréal
- Learn more about Nestlé and child labor in the cocoa industry
- Nestlé Baby Milk Issue Facts - Nestlé's point-of-view of the "Baby Milk" controversy
- Pamphlet "The Baby Killer" 1974
- Baby Milk Action, secretariat of the International Nestlé Boycott Committe
- Nestlé S.A. concentrates trading of its shares on SWX Swiss Exchange
- History of Hills Bros. Coffee, est. purchased by Nestlé Beverage Company
- History of the Nestlé logo design
Data
- Yahoo! - Nestlé SA Company Profile
- Nestlé SA - Fact Sheet - Hoover's Online
{{Infobox_Company|name = Nestlé S.A.|company_logo = |type = Public limited company (SWX:
NESN, )], Switzerland (1866)], Switzerland, Founder
[Peter Brabeck-Letmathe, Chairman & CEO]|num_employees = 305,000 (2005)|industry = Food processing, [dairy products, breakfast cereals, confectionery, bottled water, #Main Products|revenue = 98,5 billion
Swiss franc (2006)|net_income = 5,05 billion Swiss franc (2006) 8.8%
profit margin packaged food company founded and headquartered in [Vevey, Switzerland. It results from a merger in 1905 between the Anglo-Swiss Milk Company for milk products established by the Page Brothers in Cham, Switzerland, in 1866 and the Farine Lactée Henri Nestlé Company set up in 1867 by
Henri Nestlé to provide an infant food product. Several of Nestlé's brands are globally renowned, which made the company a global market leader in many product lines, including milk, chocolate, confectionery, bottled water,
coffee, creamer,
food seasoning and pet foods.{{cite web |url = http://www.google.com/analytics/case_study_nestle.html
|title = Nestlé: Following the Customers' Tracks with Google Analytics
|publisher = Google Analytics
|author =
|date =
|accessdate = 2007-02-21
-->
The company stock is listed on the SWX Swiss Exchange. Some of Nestlé's business practices have been considered unethical, especially the manner in which infant formula has been marketed in Developing country, which led to the
Nestlé boycott from 1977.
Pronunciation
Some people in the
English language-speaking countries pronounce
Nestlé's , as in the English verb
nestle. This was the pronunciation used in company merchandising in the UK for much of the 20th century, e.g. Nestlé's
Milkybar. In TV ads in the United States,
Nestlé's is pronounced or . A common pronunciation of
Nestlé in Australia is . However, the brand is derived from the founder's family name from the French-speaking part of Switzerland, where Nestlé is properly pronounced .
International names
China: 雀巢, pinyin - (què cháo)
Thailand: เนสเล่
History
Nestlé was founded in 1860. In the 1860s Henri Nestlé, a
pharmacist, developed a food for babies whose mothers were unable to breastfeed. His first success was a premature infant who could not tolerate his own mother's milk nor any of the usual substitutes. The value of the new product was quickly recognized when his new formula saved the child's life, and soon,
Farine Lactée Henri Nestlé was being sold in much of
Europe.
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the
United States, United Kingdom, Germany and
Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestlé's production more than doubled.
The first Nestlé factory to begin production in the United States was opened in Fulton, Oswego County, New York. The factory however was closed in 2001, after the company decided that the cost of restoring, and updating the factory was not worth the effort. Employees of the factory were furious, and raised the company flag upside down the day the closing was announced.
After the war, government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with
chocolate the company's second most important activity.
Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly
Latin America. Ironically, the war helped with the introduction of the company's newest product,
Nescafé, which was a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.
The end of
World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with
Maggi seasonings and soups.
Crosse & Blackwell followed in 1950, as did Findus (1963),
Libby's (1971) and
Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its second venture outside the food industry by acquiring
Alconian president, Lula da Silva, inaugurates a factory in Feira de Santana (
Bahia), February, 2007.In 1984, Nestlé's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation (trademark) and the British confectionery company Rowntree's in 1988, which brought the
The_Willy_Wonka_Candy_Company Brand to Nestlé.
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including
San Pellegrino (1997),
Spillers Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was announced of
Chef America, Inc. In the same time frame, Nestlé came close to purchasing the iconic American company Hershey's, though the deal fell through.{{cite news |url = http://news.bbc.co.uk/2/hi/business/2050788.stm
|title = Nestlé buys US ice cream firm
|publisher = BBC News
|date = 17 Jun 2002
|accessdate = 2007-02-22
--> Another recent purchase includes the [Jenny Craig fitness firm for US$600 million.
In December 2005 Nestlé bought the
Greece company Delta Ice Cream for
Euro240 million. In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice cream maker with a 17.5% market share.{{cite news |url = http://news.bbc.co.uk/2/hi/business/4627810.stm
|title = Nestlé takes world ice cream lead
|publisher = BBC News
|date = 19 Jan 2006
|accessdate = 2007-02-22
-->
In November 2006, Nestle purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B.In April 2007 Nestlé bought baby food manufacturer Gerber Products Company for $5.5 billion.{{cite news|url = http://money.cnn.com/2007/04/12/news/international/bc.gerber.nestle.reut/index.htm?section=money_latest|title = Nestlé to buy Gerber for $5.5B|publisher = CNN| date = 12 April 2007|accessdate = 2007-04-12-->
Products
Nestlé has a wide range of products across a number of markets including coffee (
Nescafé), water, other
beverages, ice cream, baby food,
performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and
pet food.For a list of some of these brands, see
List of Nestlé brands.
Business
Management
The executive board, a distinct entity from the board of directors, includes:
- Peter Brabeck-Letmathe, Chairman & CEO
- Carlo Donati, vice president, chairman of the board, and CEO of Nestlé Waters
- Frits van Dijk, EVP of Asia, Oceania, Africa, Middle East divisions
- Lars Olofsson, EVP of Strategic Business Units and Marketing
- Francisco Castañer, EVP of Pharmaceutical and Cosmetic Products, Liaison with L'Oréal, Human Resources
- Michael Powell, EVP of United Kingdoms Diivision
- Paul Bulcke, EVP of Americas divisions
- Paul Polman, EVP of Finance, Control, Legal, Tax, Purchasing, Export
- Luis Cantarell, EVP of Europe divisions
- Richard T. Laube, Deputy EVP of Nutrition Strategic Business units
- Werner J. Bauer, EVP of Research and Development, Technical, Production, Environment.
Current members of the board of directors of Nestlé are: Günter Blobel,
Peter Böckli, Daniel Borel, Peter Brabeck-Letmathe, Edward George,
Rolf Hänggi, Nobuyuki Idei,
Andreas Koopmann,
André Kudelski,
Jean Pierre Meyers, Carolina Müller-Möhl, Kaspar Villiger.Secretary to the Board Bernard Daniel.
Nestlé has a good
business reputation among Switzerland's largest companies.{{cite paper |url = http://www.reputationinstitute.com/press/06-04-06_Swiss_Reptrak_pr.pdf
|title = The Reputations of Switzerland Largest Companies:
|publisher = Reputation Institute
|format = .PDF
|date = 5 April 2006
|accessdate = 2007-02-22
--> {{cite web
|url = http://intranet.csreurope.org/news/csr/one-entry?entry_id=114272
|title = World's Most Respected Companies: Diverse Qualities Vie for Attention
|publisher = CSR Europe
|author = Malte Sussdorff
|date = 15 Dec 2000
|accessdate = 2007-02-22
-->{{cite news
|url = http://www.thetimes100.co.uk/case_study.php?cID=7&csID=231&pID=1
|title = Nestlé's Case Study
|publisher = thetimes100.co.uk
|author =
|date =
|accessdate = 2007-02-22
--> Students and Teacher business studies resource centre
Earnings
In 2003, consolidated sales were Swiss franc87.979 billion and net profit was CHF6.213 billion.
Research and development investment was CHF1.205 billion.
- Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical products.
- Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world.
Joint ventures
Nestlé holds 26.4% of the shares of L'Oréal, the world's leading company in
make-up and
beauty. The
Laboratoires Inneov is a
joint venture in nutritional cosmetics between Nestlé and L'Oréal, and
Galderma a joint venture in dermatology with L'Oréal. Others include Cereal Partners Worldwide with
General Mills,
Beverage Partners Worldwide with The Coca-Cola Company, and Dairy Partners Americas with Fonterra.
Controversy and criticism
Some of Nestlé's business practices have been controversial, especially the manner in which baby formula has been marketed in Developing country. The controversy ultimately led to the widespread
Nestlé boycott, starting in 1977. Nestlé has since launched several Fairtrade products across the world, including Partners Blend in the UK and several grind-at-home Fairtrade coffees in Sweden, which led to a new round of criticism.
Baby milk marketing
Since the late 1970s, Nestlé has attracted much criticism for its baby milk marketing policies in Developing country. This has centered on its apparent recommendations for
breastfeeding mothers to switch to its
infant formula milk products, leading to the alleged deaths of 15 babies each year as a result of formula being mixed with contaminated water. Nestlé has allegedly violated the widely agreed-upon
International Code of Marketing of Breast-milk Substitutes ("International Code").{{cite news |url = http://news.bbc.co.uk/2/hi/africa/2667401.stm
|title = Baby milk marketing 'breaks rules'
|publisher = BBC News
|date = 17 January, 2003
|accessdate = 2007-02-22
--> This led to a boycott coordinated by the [International Nestlé Boycott Committee, informed by monitoring conducted by the [International Baby Food Action Network. In 1982, Nestlé implemented the International Code in developing countries. The instructions were reviewed and refined in 1984 in consultation with the WHO, [UNICEF and the International Nestlé Boycott Committee.
Nestlé itself still advertised breast milk replacements and used pictures of babies in its advertising in 2004.{{cite web |url = http://www.ibfan.org/english/codewatch/btr04/btr04contents.html
|title = Breaking the Rules, Stretching the Rules 2004
|publisher =
|author =
|date =
|accessdate = 2007-02-22
--> Nestlé has issued instructions to all its offices to ensure strict compliance with the International Code.
Post 2004 allegations of breaches of the International Code continue to be made by campaign organisations, such as IBFAN and the Save the Children Fund (May 2007) and
The Guardian newspaper.{{cite web |url = http://www.ibfan.org/site2005/Pages/article.php?iui=1&art_id=420&goto_news=1
|title = IFBAN
|publisher = International Baby Food Action Network
|author =
|date =
|accessdate= 2007-03-03-->
and{{cite web |url = http://www.savethechildren.org.uk/scuk/jsp/resources/details.jsp?id=5011
|title = SAVE THE CHILDREN
|publisher = Save the Children (UK)
|author = Save the Children (UK)
|date = 2007-05-15
|accessdate= 2007-05-15
--> and
Save the Children media briefing (acrobat format), accessed 15 May 2007 and
Guardian article "Milking it" ,Tuesday May 15, 2007, accessed 15 May 2007.
Ethiopian government
In December 2002, international aid agency Oxfam revealed that Nestlé was demanding millions of dollars in compensation from Ethiopia. The United States dollar6 million demand was issued for shares in an Ethiopian agricultural firm, which was nationalization by the
Marxist Mengistu Haile Mariam regime in 1975. Nestlé acquired ELIDCO’s parent company, the
Schweisfurth Group, ten years later. Nestlé initially refused the Ethiopian government’s offer of a settlement worth around US$1.5 million (a figure based on the 2002 exchange rate between the dollar and the Ethiopian birr) but insisted on $6m (based on the exchange rate at the time of the nationalization). {{cite web , stating that that they would accept the US$1.5 million and that this money would be made available for famine relief projects in the region in consultation with the [International Red Cross and Red Crescent Federation.
{{cite press release | title = Nestlé and Ethiopia. A Statement by Nestlé CEO Peter Brabeck| publisher = Nestlé | date = 23 December 2002 | url =http://www.nestle.com/MediaCenter/PressReleases/AllPressReleases/EthiopiaStatementBrabeckCEO-23Dec02.htm?Tab=2002 | accessdate = 2007-06-11 -->
Nestlé Purina in Venezuela
In early 2005, Nestlé Purina sold thousands of tons of contaminated fodder in Venezuela. Nestl-Purina in Venezuela The local brands included Dog Chow, Cat Chow, Puppy Chow, Fiel, Friskies, Gatsy, K-Nina, Nutriperro, Perrarina and Pajarina. Over 500 dogs, cats, birds and cattle died. It was reported that it was caused by a supplier that had stored corn used in animal food production incorrectly, which led to a proliferation of a fungus with a high quantity of
aflatoxin causing hepatic problems in the animals that ate the food.On
March 3 2005, the
National Assembly of Venezuela (Venezuela's federal legislature) stated that the company Nestlé Purina was responsible for the quality standards and that compensation must be paid to the owners of the affected animals.
Nestlé water
In
Mecosta County, Michigan,
United States, a determined citizen coalition has opposed the efforts of a bottled water subsidiary of Nestlé to gain private control of important
groundwater supplies. In 2001, the county licensed the company, then a subsidiary of Perrier, to open a bottling plant in
Stanwood, Michigan, for a fee of less than US$100 a year.{{cite news |url = http://www.thirdworldtraveler.com/Water/Who's_Right_Water.html
|title = Whose Right to Water?
|publisher = Dollars and Sense magazine
|author = Kevin Murray
|date = Dec 2003
|accessdate = 2007-02-22
--> Operating requirements of the factory called for pumping 500,000 gallons (1.9 million litres) of water a day from an [aquifer. After learning about the plan, Michigan Citizens for Water Conservation launched a direct action campaign against Nestlé and sought a temporary injunction to halt pumping while the court heard arguments on the legality of Nestlé's use of the water. However, this injunction has not been granted. Nestlé purchased the [Calistoga Water Company in 1980.
Nestlé Canada is applying for an extension and increase with respect to water bottling activities in the Guelph, Ontario area (2007-05-07)
Genetically modified organisms
In August 2004 a Greenpeace test found genetically modified organisms in China Nesquik. A Chinese woman sued Nestlé since the use of GMOs in that kind of product was prohibited by local law. In December a second test was negative.{{cite news |url = http://www.10thnpc.org.cn/english/China/84272.htm
|title = Nestle Urged to 'Tell Truth' About GMOs
|publisher = China Daily
|date = 8 Jan 2004
|accessdate = 2007-02-22
--> In November 2005 Nestlé opposed a [France ban on GMOs.{{cite web
|url = http://www.planetark.com/dailynewsstory.cfm/newsid/33668/story.htm
|title = Swiss Adopt Five-Year GMO Farming Ban
|publisher = Tom Armitage
|author = Planet Ark
|date = 28 Nov 2005
|accessdate = 2007-02-22
-->
Use of forced labour
In April 2004, a
Forbes article reported on Nestlé's use of forced labour in the production of their chocolate. The International Labor Organisation, part of the UN, estimates that 284,000 child labourers work on cocoa farms in West Africa, mainly in the Ivory Coast. Mars Incorporated and Hershey's are also being investigated. Global Exchange and the International Labor Rights Fund are taking Nestlé, commodities trader
Archer Daniels Midland and
Cargill to court in the US under the Torture Victim Protection Act of 1992 and
Alien Tort Claims Act.{{cite news| url = http://www.foodanddrinkeurope.com/news/ng.asp?n=62111-nestle-cocoa-child-labour
| title = Nestlé, ADM and Cargill go to court over cocoa child labour
| author = Lindsey Partos
| publisher = Food And Drink Europe
| date = 26 Aug 2005
| accessdate = 2007-02-22
-->{{cite paper| url = http://www.laborrights.org/projects/childlab/SlipOpinionSareiv.RioTinto0806.pdf
| title = John Doe, et al v. Nestlé CV 05-5133 SVW (JTLx)
| publisher = United States District Court, Central Court of California
| format = .PDF
| date = 7 Aug 2006
| accessdate = 2007-02-22
--> Nestlé signed an agreement called the Cocoa Protocol to say that it would find a way by July 2005 to certify that chocolate had not been produced by underage, indentured, trafficked or coerced labour. Nestlé has requested that all the coerced child labourers involved in the
International Labor Rights Fund lawsuit reveal their names, which could lead to them being punished.{{cite paper| url = http://www.laborrights.org/projects/childlab/nestle_motion_anonymity_0805.pdf
| title = John Doe, et al v. Nestlé CV 05-5133 (SVW)
| publisher = United States District Court, Central Court of California
| format = .PDF
| date = 29 Aug 2003
| accessdate = 2007-02-22
-->
Partners Blend
In 2006 Nestle Launched its
Fairtrade certified Partners Blend in the UK. This released a new round of criticism as the company was accused of
greenwashing. Most critics point out that Nestlé has only one Fairtrade product amongst its range of 8,500 and that the company would do better to alter its business practices in the rest of the coffee market (where it is a dominant player) rather than launch a small Fairtrade certified product with limited volume. Nestle and Fairtrade . The Fairtrade foundation countered that this was a turning point for the Fairtrade movement with a major company listening to consumers.
See also
Footnotes
External links
- Nestlé Official website
- Article on ownership structure of Nestlé and L'Oréal
- Learn more about Nestlé and child labor in the cocoa industry
- Nestlé Baby Milk Issue Facts - Nestlé's point-of-view of the "Baby Milk" controversy
- Pamphlet "The Baby Killer" 1974
- Baby Milk Action, secretariat of the International Nestlé Boycott Committe
- Nestlé S.A. concentrates trading of its shares on SWX Swiss Exchange
- History of Hills Bros. Coffee, est. purchased by Nestlé Beverage Company
- History of the Nestlé logo design
Data
- Yahoo! - Nestlé SA Company Profile
- Nestlé SA - Fact Sheet - Hoover's Online
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