2. Brief History of the Company
NESTLE is the first company which is founded in1867 by HENRY NESTLE. In the mid-1860s
Nestle, a trained pharmacist began experimenting with various combinations of cow's milk,
wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for
mothers who were unable to breast feed. His ultimate goal was to help combat the problem of
infant mortality due to malnutrition. He called the new product Farine Lactee Henri Nestle.
The Company formed by the 1905 merger was called the Nestle and Anglo- Swiss Milk
Company. By the early 1900s, the Company was operating factories in the United States,
Britain, Germany and Spain. In 1904, Nestle added chocolate to its range of food products after
reaching an agreement with the Swiss General Chocolate Company.
The end of World War I brought with it a crisis for Nestle. Government contracts dried up
following the cessation of hostilities, and civilian consumers who had grown accustomed to
condensed and powdered milk during the war switched back to fresh milk when it became
available again. In 1921, the Company recorded its first loss. Rising prices for raw materials, the
worldwide post-war economic slowdown, and deteriorating exchange rates deepened the
gloom.
3. The close of World War II marked the beginning of the most dynamic phase of Nestle's history.
Throughout this period, Nestle's growth was based on its policy of diversifying within the food
sector to meet the needs of consumers. Dozens of new products were added as growth within
the Company accelerated and outside companies were acquired. In 1947, Nestle merged with
Alimentana S.A., the manufacturer of Maggi seasonings and soups, becoming Nestle
Alimentana Company.
After the agreement with L'Oreal in 1974, Nestle's overall position changed rapidly. For the first
time since the 1920s, the Company's economic situation deteriorated as the price of oil rose
and growth in the industrialized countries slowed. In addition, foreign exchange rates
deteriorated with the French franc, dollar, pound sterling, and mark all losing value relative to
the Swiss franc. Finally, between 1975 and 1977, the price of coffee beans quadrupled, and the
price of cocoa tripled. As in 1921, the Company was forced to respond quickly to a radically
changed marketplace.
The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers crumbled and
world economic markets developed into a series of more or less integrated trading areas. The
opening of Central and Eastern Europe, as well as China, and a general trend towards
liberalization of direct foreign investment was good news for a company with interests as far-
flung and diverse as Nestlé. While progress since then has not been as encouraging, the overall
trends remain positive.
NESTLETODAY
Nestle is now the world's largest food company. It is present on all five continents, has
annual turnover of 74.7 billion Swiss francs, runs 509 factories in 83 countries and
employs about231,000 people the world over. The Company owes its current status to
the pioneering spirit inherited from its founders which continues to inspire it, to its
concern with quality and to its constant search for new ways of satisfying man's nutritional
needs. Wherever possible, itsets up factories locally, employs personnel from the country concerned
and relies on indigenous raw materials. Its agricultural services provide assistance to
improve the quality and yield of the raw materials it uses. Much attention is devoted to
professional training and to the integration ofthe Company initseconomic and social
environment.
4. HENRI NESTLE
He was the Swiss confectioner and the founder of Nestle, the world's largest food and
Beverage Company, as well as one of the main creators of condensed milk
Nestle’s Vision: Nestle’s global vision is to be the recognized leading Nutrition, Health and
Wellness Company. .Nestle Pakistan subscribes fully to this vision of being the number one
Nutrition, Health, and Wellness Company in Pakistan.
Nestle’s Mission: To positively enhance the quality of life of the people of world by all that we
do through our people, our brands and products. Situational Analysis the Nestle Cerelac
consumers are spread all over the world one of the reasons behind is the lower prices offered
by Nestle and its easy availability everywhere. Market Demographics Nestle Cerelac segments
its market on following bases: Behavioral Segmentation, Psychographic Segmentation,
Demographic Segmentation, and Geographic Segmentation.
5. Product Profile of the Company
The strength of Nestle’s brands has given the company an unparalleled position on a global
basis across a wide range of product categories. Six worldwide corporate brands, Nestle,
Nescafe, Nestea, Maggi, Buitoni and Friskies contribute about 70% of the group's total sales,
with the Nestle brand itself contributing 40%. These brands are the first choice of consumers
around the world, whether as standalone brands or in combination with product brands such as
KitKat and LC1. Nestle also owns regional and national brands with which consumers have a
close and often longstanding familiarity. These brands enable consumers to express their
individuality and to respect their traditions whilst still enjoying the quality of a Nestle product
and, as such, are key elements of the Nestle portfolio. Nestle’s brands and products are the
focus of continual innovation and renovation so that they will be relevant and appealing to
today’s and tomorrow’s consumers. As important as ensuring that our brands meet and beat our
consumers’ expectations is ensuring that they are available whenever, wherever and however
our consumers want them. As of year end 2010, Nestle held 29.7% of the shares of L’Oreal, the
world's largest company in cosmetics and beauty. Its brands including Garnier, Maybelline,
and Lancôme as well as The Body Shop stores. L’Oreal holds 10.41% of the shares of Sanofi-
Aventis, the world's number 3 and Europe's number 1 pharmaceutical company.
Some products details
Product Name Year Month
Sales
Quantity
Sales
Value(Rs.Million)
% of STO
Milk Products and
Nutrition
2013 12 138772.00 40712.20 0.00
Prepared Dishes and
Cooking Aids
2013 12 245443.00 26982.10 0.00
Beverages 2013 12 27717.00 13240.60 0.00
Chocolate and
Confectionery
2013 12 46718.00 12863.80 0.00
Other Operating
Revenues - Scrap Sales
2013 12 0.00 196.90 0.00
Other Operating 2013 12 0.00 194.60 0.00
7. Market Profile of the Company
THE Subsidiaries Of Nestle Has Eclipsed All Over the World With Its Eminent Branches Situated Across
The Globe Such As CHINA, CANADA, BANGLADESH, ARGENTINA & BRAZIL.
At Nestle Canada, the vision is to help Canadians live healthier and happier lives in order to help them
make healthy choices in the food and beverages they (Canadians) buy which is accomplish by doing
what the nestle does at its best at by making the products more nutritious and better for the consumers,
by providing products in different sizes to suit their needs and by offering nutritional information to them.
Nestle also believes that good food sometimes means treating yourself .This is why they offer a wide
ranging portfolio of products that not only taste better, but are also nutritious. Nestle products allows their
costumers to take pleasure in eating quality food and beverages as part of a well balanced lifestyle.
Lastly, Nestle believes balanced lifestyle forms the foundation of a happier life.
Likewise, in BRAZIL Nestle says it is partnering other dairy companies in BRAZIL to help more than 2200
farms improve milk quality, safety,& sustainability. The agreement has been signed via dairy partners
America, Nestle’s joint venture with New Zealand’s giant Fonterra.
It involves a partnership with leading producers BRAZIL foods & itambe to share best practices & raise
supplier standards .The aim is to lift milk production, while improving dairy farming practices across the
country by encouraging other organization to adopt the same standard
8. NESTLE’S FUTURE PLANS
Nestle India Ltd, a subsidiary of Nestle SA, the Swiss major in food and beverages, plans to
invest nearly Rs. 500 crore on a mainly Maggi noodles and confectionery-manufacturing plant in
Gujarat next year.
This would be the eighth plant of Nestle India in the country.
It also has Bihar on its radar for the ninth plant as part of its aggressive business expansion
policy in the western and eastern States by doubling capacities. So far, Nestle India has
focused on the southern and northern States for dairy and beverages divisions, Mr. Antonio
Helio Waszyk, Chairman and Managing Director, told Business Line here.
As the Chairman of FICCI Food Processing Committee, Mr. Waszyk also briefly met the Chief
Minister, Mr. Narendra Modi, during the business body’s National Executive Committee meeting
in Gandhinagar last week. He said Nestle is scouting for 50-100 acres, preferably around
Ahmadabad, for its proposed plant.
“We are in an advanced stage of preparation and would finalize the plans by mid-2012. If things
go according to our plans, we would start manufacturing in 2014-15,” he said. For its Maggie
noodles, Nestle India would also procure wheat locally in Gujarat. About the company’s
business plans in the eastern region, he said the company is actively looking at options. “Bihar
is also on our radar.” However, he clarified that Nestle has no plans, for now, to enter the dairy
sector in Gujarat where Amul is in a commanding position. Nestle procures 13 lakh litres of milk
from one lakh farmers in Punjab, Haryana, Maharashtra and Rajasthan.