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The worldof Nestlé

Table of contents2122Nutrition, health and wellnessNestlé. Good Food, Good LifeResearch & DevelopmentNutrition: the core of the Nestlé businessPriority on nutrition, health and wellnessNestlé Nutrition – a specialist nutrition businessThe Nestlé Nutrition Council and theNestlé Nutrition InstituteLooking to the futureNestlé: almost 150 years pioneering nutrition and health26272830323233People, products, brandsPutting the consumer firstFood is localNestlé – a company built on brandsContributing to nutrition, health and wellnessEnsuring quality and food safetyWherever, whenever, howeverThe changing consumer161618182021454647484850How Nestlé runs its businessPrinciples, not rulesA multi-cultural businessLooking after the environmentSourcing raw materialsA network of local companiesBenefi ting local economiesNestlé in the community: reaching out beyondour businessConsistent, sustainable growthPeople are Nestlé’s greatest assetWide variety of career opportunitiesHow our business is organisedOther Nestlé Group companiesThe world of Nestlé52Nestlé website and Nestlé publicationsWebsite and publications363738404142431

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Welcometo NestléThe aim of this booklet is to introduce ourselves to you,and to share with you some special insights into themany facets of our Company.Nestlé is the largest food and beverage company inthe world. It is also well on its way to becoming worldleader in nutrition, health and wellness.In the first part of this booklet, the emphasis is onthe way Nestlé brings more nutritious products to moreconsumers all over the world. In the second part,the focus is on our brands and products; and in the thirdpart, we cover the way we run our business.We hope you enjoy finding out more about us.3

Did you know Nestlé is aSwiss company,founded in 1866by Henri Nestlé

Did you know Nestlé investsaroundCHF 1.5 billionin Research andDevelopmentevery year

Did you know Nestlé marketsits productsin 130 countriesacross the world

Did you know Nestlémanufacturesaround 10,000different productsand employs some250,000 people

Did you know Nestlé sells overa billion productsevery day

Nutrition, healthand wellnessNestlé is more than just the largest food andbeverage company in the world. Increasingly,Nestlé is becoming the world’s leader in nutrition,health and wellness.From the start, nutrition has been at the core ofour business. However, today we place far greateremphasis on it – and on health and wellness.Our Corporate Wellness Unit and the individualbusiness units are driving forces in bringingGood Food, Good Life to all our consumers.14

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Nestlé. Good Food, Good LifeWe use four simple words to describe what we believe inand what we offer consumers around the world: “GoodFood, Good Life“.Food and beverages play an increasingly important rolein people’s lives – not only because of the enjoyment andsocial pleasure of eating together, but more and more interms of personal health and nutrition.Although it’s important, nutrition is only one aspect of“Good Food, Good Life“. Consistent quality and safety, aswell as value-for-money and convenience, all play a part.Above all, great taste is fundamental to our products andour consumers‘ appreciation of good food.Research & DevelopmentIt’s the task of our Research & Development (R&D) toapply nutritional science and expertise to create productsthat combine great taste with nutritional benefits. Wefirmly believe that our research can make better food sothat more and more people live a better life.Through continuous innovation of new products andrenovation of existing products, Nestlé is creating andenhancing hundreds of Nestlé products, especially interms of their nutritional benefits.The Nestlé Group invests around CHF 1.5 billion* in R&Devery year. It’s more than any other food company – bothas ßßa percentage of sales and in absolute terms.* Equivalent to more than USD 1.2 billion. USD CHF 1.2516Nestlé Nido with Prebio1promotes a healthydigestive system.

Around 3,500 people fromover 50 countries work inNestlé’s worldwide networkof 17 research, developmentand product testing centres.The Nestlé Research Centerin Switzerland is our majorthink-tank. It’s a constantsource of new ideas andscientific knowledge thatfeeds the pipeline for allNestlé products.It covers over 100 differentprofessional areas –including nutritionalscience, the life sciences,raw materials, ingredientsand production processes.17

Nutrition: the core of the Nestlé businessNutrition has always been at the core of our business.Indeed, the Company was founded, back in 1866, on thelaunch of an innovative, nutritious baby food.Now, almost 150 years later, we live in a very differentworld. The global population has grown to over six billion.People are living longer. Living standards have improved.Life styles have changed.These, and other demographic factors, have had aconsiderable influence on Nestlé – both in terms of theproducts we make and the way we run our business.Nestlé today is at the forefront of providing consumerswith food and beverage solutions that generate a long,healthy life.Priority on nutrition, health and wellnessMore than ever before, we are putting our priority onfoods and beverages that contribute to nutrition, healthand wellness – for everyone, and that includes babies,growing children, senior citizens and other people withspecial dietary needs.The Corporate Wellness Unit is responsible for drivingthe nutrition, health and wellness orientation across thewhole of Nestlé – covering the entire portfolio of ourproducts, all over the world. The Corporate WellnessUnit’s “Wellness in Action” strategy aims consistently todeliver better tasting, better-for-you nutritional productsand solutions.We have a global network of Wellness Champions in allour business units and in every country. Their job is tofacilitate, inspire, motivate and drive wellness initiatives.18

Our science-based nutritional research and expertise aredriving nutritional innovations. One example is our“Branded Active Benefits“ (BABs). The objective of a BABis to add a specific health benefit to an existing productin a way that is meaningful and relevant to the consumer.In this way, the nutritional content of the product isenhanced so that consumers can enjoy even more healthbenefits – for example, improving digestive health andcontributing to healthy physical growth.R&D also plays an important role in creating productsthat have a proven taste advantage plus a specificnutritional advantage over competitors’ products.A global system of rigorous product testing includesa scientific nutritional assessment. Each product hasa measurable nutritional value to prove its superiorityin delivering nutritional benefits.Our packs are a highly efficient communication mediumto provide our consumers with nutritional information.The pack is in the consumer’s hands at a precisely relevant moment – just when they are about to buy, prepareor consume the product. But simply giving consumersnutritional information isn’t very helpful. We go further.The Nestlé Nutritional Compass which is being includedon all our packaging is user-friendly, easy to read andputs nutrition into a wider context. It comprises threeelements:Good to know Which gives factual information onnutritional content.Good to remember Which gives tips for healthy lifestyle,cooking and diet.Good to talk Which invites the consumer to call ourConsumer Services teams or log on to our websites.The Nestlé NutritionalCompass on our productpackaging was launchedin 2005 and was the firstworldwide nutritionlabelling initiative fromany food company.19

Nestlé Nutrition – a specialist nutrition businessNestlé is well-known for its wide range of everyday brandssuch as Nescafé and Maggi and its confectionery, icecream and bottled water brands. But there’s another sideto Nestlé that is less well-known. This is its work with themedical community, and the range of specialist productsthat are marketed by Nestlé Nutrition, a stand-aloneorganisation within the Nestlé Group.Nestlé Nutrition develops science-based nutritionproducts and services that enhance the quality of life forpeople with specific nutritional needs. With its focus oncore nutrition, it is closer to pharmaceuticals thanmainstream Nestlé food and beverage products. Whiletaste is important, the key driver for Nestlé Nutrition‘smore specialist products is to provide appropriatenutrition to address specific problems at all stages of life.Nestlé Nutrition covers Infant Nutrition, HealthCareNutrition and Performance Nutrition. The acquisition ofthe Jenny Craig business in the US has added a fourthnutritional area: weight management.Nestlé Nutrition is astand-alone organisationwithin the Nestlé Group.It operates in more than100 countries. Of its10,500 employees, some3,000 are trained medicaldelegates. They workclosely with health careprofessionals such asdoctors, nurses anddietitians to provide themwith relevant informationas well as productsand services to helptheir patients.20Infant NutritionNestlé NAN is the firstnutrient system clinicallyproven to enhance ababy’s immune defences.Nestlé NAN HA is clinicallyproven to reduce allergicsymptoms by 50%.HealthCare NutritionNestlé Nutrition NutrenBalance with BG-3 isscientifically formulated toprovide diabetes suffererswith better control of thelevel of glucose in theirblood after a meal – and todelay hunger and reducecholesterol.

The Nestlé Nutrition Council and the NestléNutrition InstituteThe Nestlé Nutrition Council was founded in 1978. Thecouncil is composed of ten internationally renownednutritional scientists with a spread of nationalities andspecialities. Its purpose is to review current anddeveloping nutritional issues, and provide the Companywith relevant information and continuous advice relatedto its business, policies and strategy.The Nestlé Nutrition Institute operates as a medical andscientific network to provide health professionals withthe most current and appropriate nutritional education,information and tools. It works in partnership with manyleading health and nutrition institutes around the world,and fosters sound nutrition research and education in thefields of paediatric, clinical and performance nutrition.It’s the world’s largest corporate publisher of nutritionscience research and information. Its workshops havebeen running since 1982, bringing together leadingscientists and clinicians from around the world.Performance NutritionPowerBar Triple Threat isa nutrient-dense energysnack for mainstreamsports enthusiasts.Fortified with 16 vitaminsand minerals, ithelps them perform attheir best.Looking to the futureThe Nestlé Corporate Wellness Unit, together with ourbusiness units, is helping the Company to be the leader innutrition, health and wellness. R&D plays a pivotal role,and looking ahead, will play an even greater role. Inpreventive nutrition, for example, we are pioneeringthe use of probiotics in our products to reducegastrointestinal diseases. We are also working onscientific innovations to address obesity and diabetes.Other personalised nutrition initiatives address thespecial nutritional needs of patients with Alzheimer’sdisease and illness related to ageing. In specialised areassuch as genomics, proteomics and metabolomics, we areinvestigating the unknown territories of genes andproteins with the aim of adapting foods to meet veryindividual needs. There is still much to explore.At Nestlé we are determined to be at the forefront ofthese developments, ensuring that millions of people allover the world benefit from diets that contribute to theirhealth and wellness.21

Nestlé: almost 150 years pioneering nutritionand healthNestlé’s roots date back to 1849 when an assistantpharmacist called Henri Nestlé set up his laboratoryin the small Swiss town of Vevey on the shores ofLake Geneva.It was here, in 1867, that he developed the inventionthat was to make him world-famous. To help nurtureand indeed save the lives of young babies, he createdFarine Lactée, the world’s first infant food.Henri Nestlé’s prime concern was a healthy life forlocal newborn babies. But he realised that he couldhelp even more mothers and their babies by exportinghis successful new product to other countries. So hebuilt a network of agents and importers to distributeit, first in Europe but also in Australia and SouthAmerica. By the 1870s it was selling in places as farafield as Egypt, Russia, Mexico, and Indonesia.Henri Nestlé set a good example, both as a pioneerof nutritional food products, and as an entrepreneur.His principles are still followed to this day, almost150 years later.Since his name is German for “little nest”,Henri Nestlé decided to use a bird’s nest as histrademark. Today it’s one of the best knownlogos around the world, communicating Nestlé’semphasis on nutrition for a healthy life.22This German versionof Farine Lactée, datingfrom 1867, is an earlyexample of a science-basednutritious product that iswell branded anddistinctively packaged.

Henri Nestlé, the founderof Nestlé, was a life-savingchemist but also aninnovative marketeer.He used scientificknowledge to developproducts that met consumerneeds. He used his nameto brand his products ina distinctive way. And heset up systems to distributehis products quicklyand effectively.23

People, products,brandsWhat makes Nestlé the world’s largest food companyare the millions of consumers across the globe whoput their trust in its products, bite after bite, sip aftersip, day after day.Nestlé’s reputation over many years for consistentquality and safety, and its ability to meet changingconsumer needs has earned consumer’s trust aroundthe world.How does Nestlé go about it?24

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Putting the consumer firstThe whole company is dependent on consumerchoosing Nestlé products in preference to ourcompetitors’ products. That’s why we are wholeheartedly dedicated to the consumer and focused onmeeting his or her needs.Every day Nestlé sells over a billion products. Theseindividual consumer transactions give the Company totalannual sales of more than CHF 90 billion*.For success and growth, we have to build the greatestpossible consumer trust in both the Company and itsproducts. One way is to get as close to the consumeras possible. This is quite a challenge. It meansunderstanding people of all ages babies, toddlers,growing children, and adults from teenager to old people;and being aware and appreciative of all their needs andmotivations. Our aim is to achieve better consumerunderstanding than our competitors.“The consumer at the heart of all we do“ is thereforea maxim that is followed with great determinationthroughout Nestlé. Our employees work hard to putthemselves in the shoes of the consumer at everystep – from product concept to the writing on thepack. Our executives spend days observing consumersin their homes and in the shops. Often this type ofhands-on research is more rewarding than hugequantitative studies.* Equivalent to more than USD 70 billion. USD CHF 1.2526Maggi soups in Germany,China and Indonesia. It’sthe same Maggi brand, butthe product is different.Each has its own flavoursand textures to meetlocal tastes.

Food is localNestlé’s success is based firmly on the concept that“food is a local matter“. Although our products areavailable in virtually every corner of the world, we don’tbelieve in a standard worldwide taste. On the contrary,we go to considerable lengths to adapt our productsto local consumers’ tastes. These can vary widely, notonly from country to country, but even inside a country.To meet local needs, there are more than 10,000 Nestléproducts. Almost 500 factories in over 80 countriesproduce them.Different cultures, different geographies, different needs,tastes, flavours and habits all influence what ourconsumers eat and drink. So it’s vital that we have localknowledge and local experience.Getting close to our consumersNestlé employees spent three days living with peoplein the suburbs of Lima in Peru to understand theirmotivations, routines, purchasing habits, decisionmaking and everyday aspects of their life.Based on what they learnt, Nestlé created theNutriMóvil advisory service, a mobile exhibition vanthat goes into the busy back streets. Here our Nestlénutritionists can talk one-on-one with mothers.Relevant Nestlé products are sold in local marketsand stalls.27

Nestlé – a company built on brandsThe Nestlé brand portfolio covers practically all food andbeverage categories: milk and dairy products, nutrition(infant, healthcare, performance and weight management),ice cream, breakfast cereals, coffee and beverages,culinary products (prepared dishes, cooking aids, saucesetc.), chocolate and confectionery, petcare, bottled water.Many brands have category leadership, both globally andin local markets. Many have existed for several decades.Some, like S.Pellegrino – the mineral water from Italy –and Nestlé Moça in Brazil, are well over 100 years old.The best-known global brands include Nescafé, Nestea,Maggi, Buitoni, Purina and of course Nestlé itself. Otherbrands also sell in many countries – for example, Milo,Nesquik, Nespresso, Kit Kat, Smarties, Polo, Friskies,Perrier and Vittel. The total number of brands – includinglocal brands – reaches into several thousands.Affordable productsFor lower-income consumers in many countries, Nestléis marketing a range of products at affordable prices.Although low in cost, they provide a balanced diet bycompensating for local dietary deficiencies,and combinegood taste with convenience and relevant nutrition.28Kit Kat is the single largestchocolate brand in Japan.In the UK, its country oforigin, it sells around threemillion units each day.

The Nestlé Company is built on the foundation of verystrong brands. Some are global, others are regional,and many are local to a specific country.TM29

Contributing to nutrition, health and wellnessMany Nestlé products are naturally beneficial from anutritional point of view. They include breakfast cereals,milk and dairy products and bottled waters, all of whichare also excellent carriers of Branded Active Benefits.But what about ice cream? What about chocolate andconfectionery?In a balanced diet, these enjoyable and sometimesindulgent products definitely have a role to play. Weshould all make sure we have plenty of healthy exercise,but then a modest amount of “mainly-for-pleasure“ foodscan also be part of Good Food, Good Life.That said, we are applying our nutritional expertise tothese products as well. For example, Dreyer’s SlowChurned and Häagen-Dazs Light ice creams useproprietary technology to deliver the same, or even bettertaste than regular ice cream, but with half the fat and athird fewer calories.In confectionery, we have introduced many sugar-freeproducts, including Polo, as well as lower sugar contentin products such as Kit Kat Light.The over-riding factor is not to sacrifice taste. Butwhenever there is an opportunity, we find solutions thatalso contribute to nutrition, health and wellness.Maggi Sveltesse 0%is a nourishing, healthyinstant soup, full ofvitamins and fibre,with zero fat and lowsalt content. Singleserve stick packs makeit quick and easy toprepare, wherever,whenever.30

In the ice cream category,we have applied our researchand technological expertiseto make products that havesignificantly fewer caloriesand less fat, yet still with thesame great taste.31

Ensuring quality and food safetyWith every bite or sip of a Nestlé product, we haveto ensure the highest levels of quality and safety.This happens millions of times a day. It’s a heavyresponsibility. We have to assure the highest possiblestandards all along the supply chain – from raw materialsvia manufacturing, packaging and distribution, to thepoint of consumption.Every Nestlé factory has a laboratory that systematicallyanalyses raw materials and ingredient

packaging was launched in 2005 and was the first worldwide nutrition labelling initiative from any food company. Our science-based nutritional research and expertise are driving nutritional innovations. One example is our “Branded Active Benefits“ (BABs). The objective of a BAB is to add a specific health benefit to an existing product