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The world of Nestlé

The world of Nestlé 44
The world of NestléTable of contents Nutrition, health and wellness 16 Nestlé. Good Food, Good Life 16 Research Development 18 Nutrition: the core of the Nestlé business 18 Priority on nutrition, health and wellness 20 Nestlé Nutrition – a specialist nutrition business 21 The Nestlé Nutrition Council and the Nestlé Nutrition Institute 21 Looking to the future 22 Nestlé: almost 150 years pioneering nutrition and health People, products, brands 26 Putting the consumer first 27 Food is local 28 Nestlé – a company built on brands 30 Contributing to nutrition, health and wellness 32 Ensuring quality and food safety 32 Wherever, whenever, however 33 The changing consumer How Nestlé runs its business 36 Principles, not rules 37 A multicultural business 38 Looking after the environment 40 Sourcing raw materials 41 A network of local companies 42 Benefi ting local economies 43 Nestlé in the community: reaching out beyond our business 45 Consistent, sustainable growth 46 People are Nestlé’s greatest asset 47 Wide variety of career opportunities 48 How our business is organised 48 Other Nestlé Group companies 50 The world of Nestlé Nestlé website and Nestlé publications 52 Website and publications 12Welcome to Nestlé The aim of this booklet is to introduce ourselves to you, and to share with you some special insights into the many facets of our Company. Nestlé is the largest food and beverage company in the world. It is also well on its way to becoming world leader in nutrition, health and wellness. In the first part of this booklet, the emphasis is on the way Nestlé brings more nutritious products to more consumers all over the world. In the second part, the focus is on our brands and products; and in the third part, we cover the way we run our business. We hope you enjoy finding out more about us. 3 3Did you know … Nestlé is a Swiss company, founded in 1866 by Henri Nestlé Did you know … Nestlé invests around CHF 1.5 billion in Research and Development every yearDid you know … Nestlé markets its products in 130 countries across the world Did you know … Nestlé manufactures around 10,000 different products and employs some 250,000 people Did you know … Nestlé sells over a billion products every dayNutrition, health and wellness Nestlé is more than just the largest food and beverage 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 of our business. However, today we place far greater emphasis on it – and on health and wellness. Our Corporate Wellness Unit and the individual business units are driving forces in bringing Good Food, Good Life to all our consumers. 1415Nestlé. Good Food, Good Life We use four simple words to describe what we believe in and what we offer consumers around the world: “Good Food, Good Life“. Food and beverages play an increasingly important role in people’s lives – not only because of the enjoyment and social pleasure of eating together, but more and more in terms of personal health and nutrition. Although it’s important, nutrition is only one aspect of “Good Food, Good Life“. Consistent quality and safety, as well as valueformoney and convenience, all play a part. Above all, great taste is fundamental to our products and our consumers‘ appreciation of good food. Research Development It’s the task of our Research Development (RD) to apply nutritional science and expertise to create products that combine great taste with nutritional benefits. We firmly believe that our research can make better food so that more and more people live a better life. Through continuous innovation of new products and renovation of existing products, Nestlé is creating and enhancing hundreds of Nestlé products, especially in terms of their nutritional benefits. The Nestlé Group invests around CHF 1.5 billion in RD every year. It’s more than any other food company – both as ßßa percentage of sales and in absolute terms. 1 Nestlé Nido with Prebio promotes a healthy Equivalent to more than USD 1.2 billion. USD CHF 1.25 digestive system. 16Around 3,500 people from over 50 countries work in Nestlé’s worldwide network of 17 research, development and product testing centres. The Nestlé Research Center in Switzerland is our major thinktank. It’s a constant source of new ideas and scientific knowledge that feeds the pipeline for all Nestlé products. It covers over 100 different professional areas – including nutritional science, the life sciences, raw materials, ingredients and production processes. 17Nutrition: the core of the Nestlé business Nutrition has always been at the core of our business. Indeed, the Company was founded, back in 1866, on the launch of an innovative, nutritious baby food. Now, almost 150 years later, we live in a very different world. 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 a considerable influence on Nestlé – both in terms of the products we make and the way we run our business. Nestlé today is at the forefront of providing consumers with food and beverage solutions that generate a long, healthy life. Priority on nutrition, health and wellness More than ever before, we are putting our priority on foods and beverages that contribute to nutrition, health and wellness – for everyone, and that includes babies, growing children, senior citizens and other people with special dietary needs. The Corporate Wellness Unit is responsible for driving the nutrition, health and wellness orientation across the whole of Nestlé – covering the entire portfolio of our products, all over the world. The Corporate Wellness Unit’s “Wellness in Action” strategy aims consistently to deliver better tasting, betterforyou nutritional products and solutions. We have a global network of Wellness Champions in all our business units and in every country. Their job is to facilitate, inspire, motivate and drive wellness initiatives. 18Our sciencebased 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 in a way that is meaningful and relevant to the consumer. In this way, the nutritional content of the product is enhanced so that consumers can enjoy even more health benefits – for example, improving digestive health and contributing to healthy physical growth. RD also plays an important role in creating products that have a proven taste advantage plus a specific nutritional advantage over competitors’ products. A global system of rigorous product testing includes a scientific nutritional assessment. Each product has a measurable nutritional value to prove its superiority in delivering nutritional benefits. Our packs are a highly efficient communication medium to provide our consumers with nutritional information. The pack is in the consumer’s hands at a precisely rel evant moment – just when they are about to buy, prepare or consume the product. But simply giving consumers nutritional information isn’t very helpful. We go further. The Nestlé Nutritional Compass which is being included on all our packaging is userfriendly, easy to read and puts nutrition into a wider context. It comprises three elements: Good to know Which gives factual information on nutritional content. Good to remember Which gives tips for healthy lifestyle, cooking and diet. Good to talk Which invites the consumer to call our Consumer Services teams or log on to our websites. The Nestlé Nutritional Compass on our product packaging was launched in 2005 and was the first worldwide nutrition labelling initiative from any food company. 19Nestlé Nutrition – a specialist nutrition business Nestlé is wellknown for its wide range of everyday brands such as Nescafé and Maggi and its confectionery, ice cream and bottled water brands. But there’s another side to Nestlé that is less wellknown. This is its work with the medical community, and the range of specialist products that are marketed by Nestlé Nutrition, a standalone organisation within the Nestlé Group. Nestlé Nutrition develops sciencebased nutrition products and services that enhance the quality of life for people with specific nutritional needs. With its focus on core nutrition, it is closer to pharmaceuticals than mainstream Nestlé food and beverage products. While taste is important, the key driver for Nestlé Nutrition‘s more specialist products is to provide appropriate nutrition to address specific problems at all stages of life. Nestlé Nutrition covers Infant Nutrition, HealthCare Nutrition and Performance Nutrition. The acquisition of the Jenny Craig business in the US has added a fourth nutritional area: weight management. Nestlé Nutrition is a Infant Nutrition HealthCare Nutrition standalone organisation Nestlé NAN is the first Nestlé Nutrition Nutren within the Nestlé Group. nutrient system clinically Balance with BG3 is It operates in more than proven to enhance a scientifically formulated to 100 countries. Of its baby’s immune defences. provide diabetes sufferers 10,500 employees, some Nestlé NAN HA is clinically with better control of the 3,000 are trained medical proven to reduce allergic level of glucose in their delegates. They work symptoms by 50. blood after a meal – and to closely with health care delay hunger and reduce professionals such as cholesterol. doctors, nurses and dietitians to provide them with relevant information as well as products and services to help their patients. 20The Nestlé Nutrition Council and the Nestlé Nutrition Institute The Nestlé Nutrition Council was founded in 1978. The council is composed of ten internationally renowned nutritional scientists with a spread of nationalities and specialities. Its purpose is to review current and developing nutritional issues, and provide the Company with relevant information and continuous advice related to its business, policies and strategy. The Nestlé Nutrition Institute operates as a medical and scientific network to provide health professionals with the most current and appropriate nutritional education, information and tools. It works in partnership with many leading health and nutrition institutes around the world, and fosters sound nutrition research and education in the fields of paediatric, clinical and performance nutrition. It’s the world’s largest corporate publisher of nutrition science research and information. Its workshops have been running since 1982, bringing together leading scientists and clinicians from around the world. Looking to the future The Nestlé Corporate Wellness Unit, together with our Performance Nutrition business units, is helping the Company to be the leader in PowerBar Triple Threat is nutrition, health and wellness. RD plays a pivotal role, a nutrientdense energy and looking ahead, will play an even greater role. In snack for mainstream preventive nutrition, for example, we are pioneering sports enthusiasts. the use of probiotics in our products to reduce Fortified with 16 vitamins gastrointestinal diseases. We are also working on and minerals, it scientific innovations to address obesity and diabetes. helps them perform at their best. Other personalised nutrition initiatives address the special nutritional needs of patients with Alzheimer’s disease and illness related to ageing. In specialised areas such as genomics, proteomics and metabolomics, we are investigating the unknown territories of genes and proteins with the aim of adapting foods to meet very individual needs. There is still much to explore. At Nestlé we are determined to be at the forefront of these developments, ensuring that millions of people all over the world benefit from diets that contribute to their health and wellness. 21Nestlé: almost 150 years pioneering nutrition and health Nestlé’s roots date back to 1849 when an assistant pharmacist called Henri Nestlé set up his laboratory in the small Swiss town of Vevey on the shores of Lake Geneva. It was here, in 1867, that he developed the invention that was to make him worldfamous. To help nurture and indeed save the lives of young babies, he created Farine Lactée, the world’s first infant food. Henri Nestlé’s prime concern was a healthy life for local newborn babies. But he realised that he could help even more mothers and their babies by exporting his successful new product to other countries. So he This German version built a network of agents and importers to distribute of Farine Lactée, dating it, first in Europe but also in Australia and South from 1867, is an early America. By the 1870s it was selling in places as far example of a sciencebased afield as Egypt, Russia, Mexico, and Indonesia. nutritious product that is well branded and Henri Nestlé set a good example, both as a pioneer distinctively packaged. of nutritional food products, and as an entrepreneur. His principles are still followed to this day, almost 150 years later. Since his name is German for “little nest”, Henri Nestlé decided to use a bird’s nest as his trademark. Today it’s one of the best known logos around the world, communicating Nestlé’s emphasis on nutrition for a healthy life. 22Henri Nestlé, the founder of Nestlé, was a lifesaving chemist but also an innovative marketeer. He used scientific knowledge to develop products that met consumer needs. He used his name to brand his products in a distinctive way. And he set up systems to distribute his products quickly and effectively. 23People, products, brands What makes Nestlé the world’s largest food company are the millions of consumers across the globe who put their trust in its products, bite after bite, sip after sip, day after day. Nestlé’s reputation over many years for consistent quality and safety, and its ability to meet changing consumer needs has earned consumer’s trust around the world. How does Nestlé go about it 2425Putting the consumer first The whole company is dependent on consumer choosing Nestlé products in preference to our competitors’ products. That’s why we are whole heartedly dedicated to the consumer and focused on meeting his or her needs. Every day Nestlé sells over a billion products. These individual consumer transactions give the Company total annual sales of more than CHF 90 billion. For success and growth, we have to build the greatest possible consumer trust in both the Company and its products. One way is to get as close to the consumer as possible. This is quite a challenge. It means understanding people of all ages… babies, toddlers, growing children, and adults from teenager to old people; and being aware and appreciative of all their needs and motivations. Our aim is to achieve better consumer understanding than our competitors. “The consumer at the heart of all we do“ is therefore a maxim that is followed with great determination throughout Nestlé. Our employees work hard to put themselves in the shoes of the consumer at every step – from product concept to the writing on the pack. Our executives spend days observing consumers in their homes and in the shops. Often this type of handson research is more rewarding than huge quantitative studies. Maggi soups in Germany, China and Indonesia. It’s the same Maggi brand, but the product is different. Each has its own flavours and textures to meet Equivalent to more than USD 70 billion. USD CHF 1.25 local tastes. 26Food is local Nestlé’s success is based firmly on the concept that “food is a local matter“. Although our products are available in virtually every corner of the world, we don’t believe in a standard worldwide taste. On the contrary, we go to considerable lengths to adapt our products to local consumers’ tastes. These can vary widely, not only from country to country, but even inside a country. To meet local needs, there are more than 10,000 Nestlé products. Almost 500 factories in over 80 countries produce them. Different cultures, different geographies, different needs, tastes, flavours and habits all influence what our consumers eat and drink. So it’s vital that we have local knowledge and local experience. Getting close to our consumers Nestlé employees spent three days living with people in the suburbs of Lima in Peru to understand their motivations, routines, purchasing habits, decision making and everyday aspects of their life. Based on what they learnt, Nestlé created the NutriMóvil advisory service, a mobile exhibition van that goes into the busy back streets. Here our Nestlé nutritionists can talk oneonone with mothers. Relevant Nestlé products are sold in local markets and stalls. 27Nestlé – a company built on brands The Nestlé brand portfolio covers practically all food and beverage 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, sauces etc.), chocolate and confectionery, petcare, bottled water. Many brands have category leadership, both globally and in 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. Kit Kat is the single largest chocolate brand in Japan. The bestknown global brands include Nescafé, Nestea, In the UK, its country of Maggi, Buitoni, Purina and of course Nestlé itself. Other origin, it sells around three brands also sell in many countries – for example, Milo, million units each day. Nesquik, Nespresso, Kit Kat, Smarties, Polo, Friskies, Perrier and Vittel. The total number of brands – including local brands – reaches into several thousands. Affordable products For lowerincome consumers in many countries, Nestlé is marketing a range of products at affordable prices. Although low in cost, they provide a balanced diet by compensating for local dietary deficiencies,and combine good taste with convenience and relevant nutrition. 28The Nestlé Company is built on the foundation of very strong brands. Some are global, others are regional, and many are local to a specific country. TM 29Contributing to nutrition, health and wellness Many Nestlé products are naturally beneficial from a nutritional point of view. They include breakfast cereals, milk and dairy products and bottled waters, all of which are also excellent carriers of Branded Active Benefits. But what about ice cream What about chocolate and confectionery In a balanced diet, these enjoyable and sometimes indulgent products definitely have a role to play. We should all make sure we have plenty of healthy exercise, but then a modest amount of “mainlyforpleasure“ foods can also be part of Good Food, Good Life. That said, we are applying our nutritional expertise to these products as well. For example, Dreyer’s Slow Churned and HäagenDazs Light ice creams use proprietary technology to deliver the same, or even better taste than regular ice cream, but with half the fat and a third fewer calories. In confectionery, we have introduced many sugarfree products, including Polo, as well as lower sugar content in products such as Kit Kat Light. The overriding factor is not to sacrifice taste. But whenever there is an opportunity, we find solutions that also contribute to nutrition, health and wellness. Maggi Sveltesse 0 is a nourishing, healthy instant soup, full of vitamins and fibre, with zero fat and low salt content. Single serve stick packs make it quick and easy to prepare, wherever, whenever. 30In the ice cream category, we have applied our research and technological expertise to make products that have significantly fewer calories and less fat, yet still with the same great taste. 31Ensuring quality and food safety With every bite or sip of a Nestlé product, we have to ensure the highest levels of quality and safety. This happens millions of times a day. It’s a heavy responsibility. We have to assure the highest possible standards all along the supply chain – from raw materials via manufacturing, packaging and distribution, to the point of consumption. Every Nestlé factory has a laboratory that systematically analyses raw materials and ingredients. Nestlé products are checked on the production line and in their finished state to ensure that they meet our own strict standards, as well as national and international regulations. Nestlé’s reputation over The quality assurance laboratories at our Nestlé Research many years for consistent Center in Lausanne, Switzerland are constantly broadening quality and safety has their knowledge and knowhow in microbiology, food earned the respect safety, nutrients, additives, contaminants and packaging. of consumers all over They share this information with our factories around the world. the world. Wherever, whenever, however We sell our products in all four corners of the world at millions of different points of sale. These include big retail superstores, supermarkets and chain stores. But they also include small familyrun neighbourhood shops, stalls in markets, vending machines, mobile vendors and even doortodoor sales of chilled products in special cooler bags. People can buy Nestlé products in schools, offices, hotels and airports. In icecream parlours and fast food outlets. On planes, trains and boats. In veterinary practices, service stations and fitness centres. Different formats, in all shapes and sizes, meet the needs of consumers whenever and however they want to consume a Nestlé product. Consumers eat and drink more and more out of home. Nestlé offers products for any occasion and any place. 32The changing consumer World demographics will carry on changing. Other geographic, economic and social factors will all affect our diets and eating habits. In this changing world, Nestlé will continue to put priority on nutrition, health and wellness, and apply its sciencebased research to develop food and beverage products that improve the quality of living at every stage of life. It’s not enough to meet existing consumer needs. To stay in tune with developments, we have to be ahead of the game, fully aware of trends, and ready to meet consumer needs that haven’t yet fully emerged. Vittel Vitalitos is part of a range of pure and flavoured waters specially designed for children to get them to drink healthier beverages. Nestlé products are sold at more than two million outlets across India. 33How Nestlé runs its business Although less than 2 of our sales are generated in Switzerland, Nestlé is a Swiss company. Several Swiss characteristics are noticeable in the way we run our business. Our organisation is effective, reliable, hard working and pragmatic. But Nestlé is also a very human company. Above all, we care about our people. We are committed to creating value – over the long term – not only for our shareholders, but also for all those communities around the world where we market our products. 3435Principles, not rules Two fundamental documents (The Nestlé Corporate Business Principles and the Nestlé Management and Leadership Principles) lay down principles that permeate the whole Nestlé Group. They govern our policies and strategies. They set the tone and style for our approach. They affect everyone who works at Nestlé. They also impact everyone with whom we do business. In effect, they form ‘a code of conduct’ which is lived out by each one of us at Nestlé. The Nestlé Corporate Business Principles outline the Nestlé way of doing business. They include sections on Infant Health and Nutrition, Human Rights, Child Labour and the Protection of the Environment, as well as a set of Consumer Communication Principles. They include all ten principles of the United Nations Global Compact, as well as the International WHO Code of Marketing of Breastmilk substitutes. The Nestlé Corporate Business Principles have been translated into more than 40 languages and distributed to our management around the world. They are built on key beliefs that include: Nestlé’s business objective is to manufacture and market its products in a way that creates value that can be sustained over the long term for shareholders, employees, consumers, business partners and the national economies in which Nestlé operates. Nestlé does not favour shortterm profit at the expense of successful longterm business development. Nestlé recognizes that its consumers have a sincere and legitimate interest in the behaviour, beliefs and actions of the Company behind the brands in which they place their trust. 36A multicultural business The Nestlé Management and Leadership Principles are based on the many experiences that have led to the company’s success throughout its long history. They relate mainly to the human aspects of our management and our employees, and stress the multicultural nature of the Company. Nestlé embraces cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age. Nor does Nestlé have any political involvement. Nestlé operates in many countries and in many cultures throughout the world. This rich diversity is an invaluable source for our leadership, and also for broadening our employees’ experiences. A key theme of the Management and Leadership Principles is that we put our priority on people rather than systems. This results in a structure that is as flat as possible, rather than hierarchical, and gives individuals plenty of opportunities to advance their careers. Together with our Corporate Business Principles, the Management and Leadership Principles form the foundation of our approach to doing business. It’s an approach that has been recognised by top Harvard academics as having generated real benefits both for Nestlé and for society – over many decades. Harvard Business School Professors Michael Porter and Mark Kramer have stated that this puts Nestlé in the front rank of companies who create real shared value for themselves and society at every step of their business Ingenuity, variety and process or “value chain”. Porter and Kramer argue that teamwork give plenty of our approach has already stood the test of time; and will opportunity for our people continue to do so precisely because there are winners on all over the world. all sides. 37Looking after the environment We invest an average of CHF 100 million each year for the protection of the environment in our factories. Our aim is to maximise the production of goods while minimising consumption of resources… and at the same time reduce waste and emissions. Over many years, these investments – and also our employees’ efforts – have led to continuous improvements. A rigorous system of surveys and audits monitors our progress. High level investment and the application of best practices contribute significantly. But at the heart of our successful environmental strategy is our persistence in ensuring that environmental factors are built in to all Environmental education our activities. encourages the full commitment of our This starts with the purchase of raw materials, their employees to bring about transportation, their transformation during the the best environmental manufacturing process and their packaging; and ends results. with their distribution to retail outlets. Even then, the process continues: recycling of waste materials and packaging also plays its role in protecting the environment. Nestlé pioneered the Clean Development Mechanism which is part of the Kyoto Protocol – an agreement to control CO emissions to combat global warming. While 2 industrialised countries have legally binding targets to reduce emissions, the developing countries are encouraged to invest in clean technologies. The Clean Development Mechanism helps them to do this. For example, one of our factories in Chile converted its air heaters and boilers from oil and coal to natural gas, resulting in annual greenhouse gas savings of 19,000 tonnes CO . 2 Nestlé was the first company in Europe to introduce a new biodegradable alternative to plastic for manufactured food products. Made from renewable resources, it Without compromising dissolves when it comes into contact with water, and product quality, packaging disintegrates within three months. material savings amounted to 284,000 tonnes on a worldwide basis over Equivalent to more than USD 80 million. USD CHF 1.25 four years. 38Variation 20012005 To give an idea of the scale of Nestlé’s environmental improvements, during a recent four year period we reduced water consumption in our factories by 42, energy consumption by 30, and emissions of greenhouse gases by 34. Variation 20012005 3 Water consumption m – 42.7 Energy consumption gigajoules (GJ) – 29.7 Greenhouse gases kg CO – 33.5 2 Consolidated environmental performance indicators (EPI’s) per tonne of product 39Sourcing raw materials We source our agricultural raw materials – principally milk, coffee, cocoa, cereals, vegetables, fruit, herbs, sugar and spices – either through trade channels or directly from farmers. Although we don’t have control over the farms, we support sustainability in the supply of agricultural raw materials and agricultural best practices. To put these words into action, we have over 800 of our own agronomists, technical advisers and field technicians. Their job is to provide technical assistance to more than 400,000 farmers throughout the world to improve their production quality, as well as their output and efficiency. They do this on a daily basis in as many as 40 countries including Inner Mongolia, China, Pakistan, Ethiopia and Colombia. This specialist team has pioneered the development of sustainable local fresh milk and coffee production. For example, coffee farmers in the Yunan Province of China are improving yields and quality as a direct result of our advisors’ expertise, as are farmers in Indonesia, Mexico, the Philippines and Thailand. Similarly, hundreds of thousands of milk farmers are benefiting from Nestlé animal husbandry assistance and milk collection initiatives in countries as far afield as Chile, India, Mexico and Pakistan. The work that Nestlé is doing with farmers, especially in remote rural areas and in developing countries, not only results in better quality raw materials, and therefore better products, but also helps farmers. By providing them with regular and reliable income, Nestlé is able to contribute to improving their standard of living. 40A network of local companies It’s a genuine paradox. Although Nestlé is one of today’s global giants, our priority is to be a local company in each of the 130 countries where we market our products. In many of them, we have been present for more than 100 years. So we’ve had time to learn and understand their cultures and habits, and to benefit their economies and communities. Local Nestlé units work within a global framework based on the Nestlé principle: “centralise what you must, but decentralise what you can“. In this way we combine the advantages of a worldwide company with the advantages of smaller, local businesses. Although Nestlé is very global, essentially it’s a company made up of smaller local units. So wherever Nestlé is, it is not an anonymous giant. Our global sales are simply the result of adding together the sales of each local company. To give you a better idea of our presence around the world, the average number of employees in our factories is 270, and the average number of employees in any single country is around 3,000. 41Benefiting local economies “Investments have to be good for the country as well as good for the company.“ This has been a fundamental Nestlé belief since the start of the company. We have always found that creating longterm value for the countries where we operate also creates longterm value for our shareholders. By taking a farsighted view of business development – especially in developing countries – and managing responsibly, it is possible to make acceptable profits and at the same time stimulate significant local social, environmental and economic development. Longterm investment, transfer of technology, and training in agriculture are just three ways in which Nestlé is a force for good around the world. A recent example is Nestlé in China. In 1987, the first jointventure company, Nestlé Shuangcheng Ltd, was established in Heilongjiang Province. Applying our expertise in nutrition and food processing, the first local production in mainland China started in 1990. Nestlé’s knowhow has helped China to replace imports in foreign currency with locally manufactured products of equally high quality. Since 2000, 99 of Nestlé products sold in mainland China are manufactured locally, and Nestlé has become a very significant buyer of local raw and packing materials. We now have more than 20 factories in the Greater China Region. Our Research Development Centre in In China, Nestlé buys milk Shanghai was set up in 2001. Today, we offer attractive from some 22,000 farmers employment to some 12,000 local staff, and hundreds and contributes directly or indirectly to the welfare of of additional jobs are created every year. about 100,000 people in the country. 42Nestlé in the community: reaching out beyond our business Nestlé has around 400 community projects running in 90 countries. Many of these support the UN Millennium Development Goals aimed at addressing the most pressing needs of people, particularly in developing countries. They focus on poverty reduction, education, health for women and children, and the reduction of pandemics like HIV/AIDS and malaria. Donations are also directed at humanitarian relief, especially following natural disasters. Nestlé’s community projects are very varied. They range from funding schools in rural areas in Morocco to designing and maintaining a water supply system for refugees in Ethiopia. To achieve the best results, whenever we can, we work in partnership with local organizations and communities. To help address obesity in children, a schools A good example is India where Nestlé finances and programme is running helps to organise deep bore wells and sourcing of in France to improve clean water. We construct storage tanks and install the dietary behaviour submersible water pumps at village schools near our of children. factories. The company bears 90 of the cost of each facility, the remaining 10 is funded by the village and voluntary contributions. The projects are complemented with school programmes about water conservation, hygiene, and health. So far, some 20,000 children have benefited from 60 wells. Education for better nutrition In Brazil, the Nutrir food education programme focuses on malnutrition, a problem affecting about 8 million families. The programme trains hundreds of volunteers, including many from Nestlé, to go to local communities. Through games and play, Nestlé communicates health and hygiene concepts, so that the families develop healthy eating habits and attain better nutrition from locally available resources. 43Much of our support is dedicated to Red Cross activities in Africa to improve water and sanitation. Even more specifically, given the importance of nutrition for increasing chances of survival for people with HIV/AIDS, Nestlé and the International Federation of Red Cross and Red Crescent Societies are working in partnership on largescale education programmes in several African countries. For example, more than 800,000 Nigerians have received HIV/AIDS education with 2,600 peer educators reaching youth in twelve states with high HIV/ AIDS prevalence. We have recently extended our partnership with the Red Cross and Red Crescent in the form of a commitment Education provides to improved water and sanitation. The major part of our knowledge to help people financial support over the next few years will be understand HIV/AIDS dedicated to various activities in Africa addressing the and the role of relevant immense life threatening problems resulting from the nutrition. chronic lack of water and sanitation. Following the devastating Tsunami of late December 2004, Nestlé provided funding of more than CHF 1 million to build 15 fully equipped and ready to operate preschools and 11 fishing anchorages. 44Consistent, sustainable growth Nestlé has had almost 150 years of continuous, steady, sustainable growth. This is attributable to our longterm approach and focused business strategy, and to our record of well principled governance and management. Building on strong foundations Nestlé has the largest range of foods and beverages of any food company. Our products are consumed by all ages, from babies to old people. And by people from many cultures. Many of our brands are market leaders or a close second, and have built a powerful consumer loyalty. These brands are extremely well established and have become part of people‘s everyday life. Over the years, Nestlé has therefore built a solid foundation for future growth. Growth is based on the Nestlé Model of strong organic growth – between 5 and 6 – combined with consistent improvement in EBIT margin. (EBIT = Earnings Before Interest and Taxes.) Nestlé’s policy of decentralisation has been fundamental to our growth strategy. Wherever possible we use local raw materials and produce our products locally. In this way, we contribute to local economies, not only as a tax payer, but also as a purchaser and employer. Nestlé does not own farms or retail outlets. Rather, we focus on our core competence of transforming raw materials into high quality, safe food and beverage products. We firmly believe in creating longterm, mutually beneficial partnerships with our suppliers and retail trade customers. We recognize that our growth is built on excellent relationships – from farm to shop. In so doing, we also ensure the best results for our shareholders and, most important of all, our consumers. 45People are Nestlé’s greatest asset Perhaps it’s because food is such a fundamental human need. Perhaps it’s because we have to be extraordinarily close to our consumers and understand their physical and emotional desires. Whatever the reason, Nestlé is a very human company. We care about our people. We encourage and bring out the best in them. We work hard to ensure that they benefit as much as they can from their work at Nestlé. The result is a very closeknit company – even though more than 250,000 people are spread around the globe. What binds them together is a common culture and a high degree of loyalty – to the Company and to each other. The Nestlé culture or Nestlé spirit is difficult to describe. It’s partly to do with an openness to ideas and thoughts and a willingness to learn from one another. It’s also to do with giving individuals the opportunity to add value in whatever way they can. While Nestlé expects a lot from its people, it gives a lot back. There’s a sense of fairness and consistency that is reflected in a straight and honest, pragmatic hard working ethos. Above all, Nestlé is genuinely international. One simple example is that around 80 different nationalities are represented among the 1,600 people in our Head Office. Each year a thousand people from all over the world come to our Training Centre in Switzerland. Our people are a huge asset. More than anything else, they make the Company what it is. It’s very easy to become part of a network of like minded people. 46Wide variety of career opportunities Among university and MBA students and graduates from many backgrounds – for example in the sciences, economics or marketing – Nestlé is often cited as one of the top favourite companies to work for. One reason is that wherever you start work at Nestlé, the whole world is opened up for you. It’s not uncommon to work in as many as four or five different countries during the course of a career at Nestlé. In some ways there’s no such thing as a single career. The diversity of disciplines gives people the chance to pursue many different careers. To name a few among dozens: research chemist, cook in the testing kitchens, consumer services manager, brand manager, manager in investor relations or human resources, auditor, productivity consultant, and many more. People not only move from country to country, often with a spell in Head Office as well, but also between disciplines. That’s one reason why so many people make a career for life at Nestlé. Another is that we make a point of “homegrowing” our own management, thereby providing more opportunities for advancement. Employees from countries around the world meet at our international Training Centre in Switzerland. 47How our business is organised Nestlé has its own local companies in most countries. The Head Office in Switzerland works very closely with them, and sets overall strategy which is directed via Zone Management and the Strategic Business Units (SBUs). Geographically, Nestlé’s three Zones (Europe; the Americas; Asia, Oceania, Africa and the Middle East) work closely with the local markets and the SBUs. Their primary role is that of enablers, acting as the voice of the centre to the markets, and the voice of the markets to the centre. They share Nestlé’s vision so that everyone around the world understands the direction to take – and how to get there with common tools, common strategies and common values. This ensures that our people around the world know how to act, and have a very strong framework of values and a clear reference point for fast decisionmaking. The SBUs specialise in a particular category, for example Coffee and Beverages, or PetCare, or Chocolate and Confectionery. They work with Research and Development (RD) to ensure that everything the company produces is led by consumer insights and relevant innovation; and they help the markets to achieve their business and brand objectives. To make it all happen, there are just under 500 factories in 80 countries, and 17 Research Centres. Other Nestlé Group companies There are a number of separate companies within the Group such as Nestlé Waters and Nestlé Nutrition. Nestlé also owns Alcon, a pharmaceutical company that is the world leader in eye care, preventing vision loss from glaucoma, treating eye infections and restoring vision through cataract surgery. For 60 years Alcon, a Nestlé Group company, Nestlé also has a significant share of L’Oréal, the world has made products that leader in cosmetics. help people see better. 48The Swiss flag flies on our Headquarters building. But, inside, around 80 nationalities are represented by our 1,600 people working there. 49The world of Nestlé By now you’ll have realised that Nestlé is a world of its own. It spans the globe. But more importantly, Nestlé employees come from all walks of life. Once they join Nestlé, they continue to expand their horizons. In keeping with the world in which we all live, Nestlé, too, is constantly changing. But its values remain the same. The Company will go on providing high quality, safe and trusted food and beverages for millions of people, providing them with nutrition, health and wellness, day after day. Nestlé. Good Food, Good Life. 5051Would you like to know more about us Check our website If you would like more information about Nestlé, then check our website: The portal will direct you to other specific sites including Nestlé Nutrition and the Nestlé Research Center, as well as local company, brand, consumer interests (eg: child care and cooking) and careers sites. Request our publications There are many Nestlé publications that you may be interested in. Check our website: For further information, please contact: Nestlé S.A. Corporate Communications Avenue Nestlé 55 CH1800 Vevey Switzerland Concept Nestlé S.A., Corporate Communications Design and production Nestec Ltd., SGDU, Corporate Identity and Design, with messi schmidt, Lausanne (Switzerland) Printing Entreprise d’arts graphiques Jean Genoud S.A., Le MontsurLausanne (Switzerland) Pictures apg image Ltd., Jodi Biber, Markus BühlerRasom, Andrea Diglas, Sam Faulkner, Marcel Grubenmann, Harmen Hoogland, Marc Latzel, Marion Nitsch, Maurice Schobinger, Véronique Vial, Christian Vogt, Cédric Widmer, Luca Zanetti © 2006, Nestlé S.A., 1800 Vevey (Switzerland) 52
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