Nestl

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"Nestle" redirects here. For other uses, see Nestle (disambiguation).

Nestl S.A.

Type

Socit Anonyme

Traded as

SIX: NESN Euronext: NESTS OTC Pink: NSRGY

Industry

Food processing

Founded

Anglo-Swiss Condensed Milk Company (1866) Farine Lacte Henri Nestl (1867) Nestl and Anglo-Swiss Condensed Milk Company (1905)

Founder(s)

Henri Nestl, Charles Page, George Page

Headquarters

Vevey, Switzerland

Area served

Worldwide

Key people

Peter Brabeck-Letmathe (Chairman) Paul Bulcke (CEO)

Products

Baby food, coffee, dairy products,breakfast cereals, confectionery,bottled water, ice cream, pet

foods(list...)

Revenue

CHF 83.64 billion (2011)[1]

Operating income

CHF 12.53 billion (2011)[1]

Profit

CHF 9.487 billion (2011)[1]

Total assets

CHF 114.09 billion (2011)[1]

Total equity

CHF 58.27 billion (2011)[1]

Employees

328,000 (2012)[1][2]

Website

www.nestle.com

Nestl S.A. (French pronunciation: [nsle]; English /nsle/, /nsli/) is a Swiss multinational nutritional, snack food, and health-related consumer goodscompany headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues.[3][4] Nestl's products include baby food, bottled water, breakfast cereals, coffee, confectionery, dairy products, ice cream, pet foods and snacks. 29 of Nestl's brands have annual sales of over 1 billion Swiss francs (about $ 1.1 billion),[3][5] including Nespresso, Nescaf, KitKat, Smarties, Nesquik,Stouffer's, Vittel, and Maggi. Nestl has around 450 factories, operates in 86 countries, and employs around 328,000 people. It is one of the main shareholders of L'Oral, the world's largest cosmetics company.[6] Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George Page and Charles Page, and Farine Lacte Henri Nestl, founded in 1866 by Henri Nestl. The company grew significantly during the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infant formula products. The company has made a number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988 and Gerber in 2007. Nestl has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market Index. It has a secondary listing on Euronext. In 2011, Nestl was listed No. 1 in the Fortune Global 500 as the world's most profitable corporation.[7] With a market capitalization of $ 200 billion, Nestl ranked No. 13 in the FT Global 2011.[8]
Contents
[hide]

1 History 2 Products 3 Joint ventures 4 Corporate affairs

o o

4.1 Senior management 4.2 Financial data

5 Major competitors 6 Controversy and criticism

o o o o o o o o o o

6.1 Marketing of formula 6.2 Ethiopian debt 6.3 Melamine in Chinese milk 6.4 Greenwashing 6.5 Zimbabwe farms 6.6 Palm oil use 6.7 E. coli 6.8 Child labour 6.9 Bottled Life 6.10 Horsemeat scandal

7 Corporate social responsibility

o o o o o o

7.1 World Cocoa Foundation 7.2 Sustainable Agriculture Initiative 7.3 Creating Shared Value 7.4 Ecolaboration 7.5 Expanding Business in Health Care Nutrition 7.6 Member of Fair Labour Association

8 Sponsorships

o o o o

8.1 Good Food, Good Life 8.2 Animation 8.3 Music Festivals 8.4 Sports

9 Selected awards, certifications and rankings 10 See also 11 Footnotes 12 External links

[edit]History

Henri Nestl

Nestl's origins date back to 1866, when two separate Swiss enterprises were founded that would later form the core of Nestl. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. In August 1867 Charles (US consul in Switzerland) and George Page, two brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Their first British operation was opened at Chippenham, Wiltshire, in 1873.[9] In September 1866 in Vevey, Henri Nestl developed a milk-based baby food, and soon began marketing it. The following year saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process. Nestl's was the crucial cooperation that Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew. Henri Nestl retired in 1875 but the company under new ownership retained his name as Socit Farine Lacte Henri Nestl. In 1877 Anglo-Swiss added milk-based baby foods to their products and in the following year the Nestl Company added condensed milk so that the firms became direct and fierce rivals. In 1905 the companies merged to become the Nestl and Anglo-Swiss Condensed Milk Company, retaining that name until 1947 when the name Nestl Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The companys current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, United Kingdom, Germany, and Spain. The First World War created demand for dairy products in the form of government contracts, and, by the end of the war, Nestl's production had more than doubled. After the war, government contracts dried up, and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate-manufacture becoming the company's second

most important activity. Louis Dapples was CEO till 1937, when succeeded bydouard Muller till his death in 1948.

The logo that Nestl used until 1966.

Nestl felt the effects of the Second World War immediately. Profits dropped from US$20 million in 1938, to US$6 million in 1939. Factories were established in developing countries, particularly in Latin America. Ironically, the war helped with the introduction of the company's newest product, Nescaf ("Nestl's Coffee"), which became a staple drink of the US military. Nestl's production and sales rose in the wartime economy. The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and numerous companies were acquired. In 1947 Nestl merged withMaggi, a manufacturer of 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'Oral in 1974. In 1977, Nestl made its second venture outside the food industry, by acquiring Alcon Laboratories Inc. In 1984, Nestl's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which brought the Willy Wonka brand among others to Nestl.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana(Bahia), in February 2007.

The first half of the 1990s proved to be favourable for Nestl. Trade barriers crumbled, and world markets developed into more or less integrated trading areas. Since 1996, there have been various 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, Nestl merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time-frame, Nestl came close to purchasing the iconic American

company Hershey's, one of its fiercest confectionery competitors, although the deal eventually fell through.[10] Another recent purchase included the Jenny Craig weight-loss program, for US$600 million. In December 2005, Nestl bought the Greek company Delta Ice Cream for 240 million. In January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream maker, with a 17.5% market share.[11] In November 2006, Nestl purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B, also acquiring, in 2007, the milk-flavouring product known as Ovaltine. In April 2007, returning to its roots, Nestl bought US baby-food manufacturer Gerber for $5.5 billion.[12][13][14] In December 2007, Nestl entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini.[15] Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the worlds largest eye-care company.[16] On 1 March 2010, Nestl concluded the purchase of Kraft Foods's North American frozen pizza business for $3.7 billion. In July 2011, Nestl SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about $1.7 billion.[17] On 23 April 2012, Nestl agreed to acquire Pfizer Inc.'s infant-nutrition unit for $11.9 billion.[18] Before the acquisition, there was a 'bidding war' between the three shareholders Nestl, Mead Johnson Nutrition and Danone. Each of the companies held a share, with Nestl holding the biggest share (17%) (Johnson held 15%, Danone 13%).[19]

[edit]Products
Main article: List of Nestl brands Nestl has some 8,000 brands,[20] with a wide range of products across a number of markets, including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods,performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food.[21] Nestl's brands include:

Coffee and tea Coffee mate Dolce Gusto Nescaf Nespresso Nestea and En viga (controlle

d by the joint venture with The Coca-Cola Company, called Beverag e Partners Worldwide) Ricor Special.T Sweet Leaf Tea Dreyer's Drumstick Extrme Hagen-Dazs Kimy (Philippines only) Maxibon Mega Mvenpick Ice Cream Parlour (acquired from Ault Foods and rebranded from Sealtest) B o t t l e d

w a t e r

( N e s t l

W a t

e r s ) Aquarel Arrowhead Water Contrex Deer Park Spring Water Nestl Pure Life Ozarka Perrier Poland Spring San Pellegrino Vittel M i l k s h a k e s

a n d

o t h e r

b e v e r a g e s Carnation (no w part of Alaska Milk Corporation in the Philippines, but under a long-term license agreement with Nestle) Caro Juicy Juice La Laitire (contr olled by the joint venture with Lactalis)[
22]

Milo Nesquik Ovaltine C h o c o

l a t Cheerios Chocapic Golden Nuggets Nesquik Nestle Fitness Shreddies Trix c o n f e c t i o n e Cerelac Gerber Aero After Eight Baby Ruth Butterfinger Caramac Galak/Milky Bar KitKat (licens ed to The Hershey Company in U.S.) Lion Bar Nestl Crunch PowerBar Nido S-26 Gold, SMA and Promil (acquired from Pfizer Inc.) r y a n d e

Quality Street Rolo (licensed to The Hershey Company in U.S.) Rowntree prod ucts Smarties Toffee Crisp Wonka produc ts

Buitoni CHEF Davigel Maggi Minor's (soup base)

Boost PowerBar

Delissio DiGiorno (pizza) Herta

Hot Pockets Lean Cuisine Stouffer's

Dog Chow

Felix Friskies Purina ONE Winalot

Biotherm Galderma Innov

Gerber Life Insurance Company

As of year end 2010, Nestl held 29.7% of the shares of L'Oral, the world's largest company in cosmetics and beauty. Its brands including Garnier, Maybelline, and Lancme as well as The Body Shop stores. LOral holds 10.41% of the shares of Sanofi-Aventis, the world's number 3 and Europe's number 1 pharmaceutical company.[1]

[edit]Joint

ventures

The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestl and L'Oral, while Galderma is a joint venture in dermatology with L'Oral. Other joint ventures include:

Cereal Partners Worldwide with General Mills Beverage Partners Worldwide with The Coca-Cola Company Lactalis Nestl Produits Frais with Lactalis (40%/60%)[23] Nestl Colgate-Palmolive with Colgate-Palmolive (50%/50%)[24] Nestl Indofood Citarasa Indonesia with Indofood (50%/50%)[25] Dairy Partners Americas (DPA) with Fonterra (50%/50%)[26] Nestl Snow with Snow Brand Milk Products (50%/50%)[27] Nestl Modelo with Grupo Modelo

[edit]Corporate

affairs

Nestl headquarters in Vevey.

Japan headquarters

[edit]Senior

management

The executive board, a distinct entity from the board of directors, includes:

Peter Brabeck-Letmathe, Chairman of the board of directors, Nestl S.A. Paul Bulcke, chief executive officer, Nestl S.A. Werner Bauer, Executive Vice President, Nestl S.A., Chief Technology Officer, Head of Innovation, Technology, Research & Development

Friz van Dijk, Executive Vice President, Nestl S.A. Asia, Oceania, Africa, Middle East Chris Johnson, Executive Vice President, Nestl S.A. United States of America, Canada, Latin America, Caribbean

Jose Lopez, Executive Vice President, Nestl S.A. Operations, GLOBE John J. Harris, Executive Vice President, Nestl S.A. Chairman & CEO of Nestl Waters Nandu Nandkishore, Executive Vice President, Nestl S.A. CEO of Nestl Nutrition James Singh, Executive Vice President, Nestl S.A. Finance and Control, Legal, IP, Tax, Global Nestl Business Services

Laurent Freixe, Executive Vice President, Nestl S.A. Europe Petraea Heynike, Executive Vice President, Nestl S.A. Strategic Business Units, Marketing, Sales and Nespresso

Marc Caira, Deputy Executive Vice President, Nestl S.A. Head of Nestl Professional Strategic Business Division

Jean-Marc Duvoisin, Deputy Executive Vice President Nestl S.A. Head of Human Resources and Centre Administration

David P. Frick, Senior Vice President and ex officio Member of the Executive Board

Brazil headquarters in Brooklin Novo, So Paulo

According to a 2006 global survey of online consumers by the Reputation Institute, Nestl has a reputation score of 70.4 on a scale of 1100.[28]

[edit]Financial

data

Nestl is the biggest food company in the world, with a market capitalisation of roughly 191 billion Swiss francs, which is more than 200 billion U.S. dollars.[3] In 2011, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion. Research and development investment was CHF 2.02 billion.[29]

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 2% from baby milks

32% from Europe

Sales by geographic area breakdown

31% from Americas (26% from US) 16% from Asia 21% from rest of the world

[edit]Major

competitors

Nestl's largest international competitors are Kraft Foods, Unilever and Mars Incorporated. It also faces competition in local markets or specific product ranges

from numerous companies, including Sara Lee and Danone.[30]

[edit]Controversy [edit]Marketing

and criticism

of formula

Main articles: Infant formula and Nestl boycott One of the most prominent controversies involving Nestl concerns the promotion of the use of infant formula to mothers across the world, including developing countries an issue that attracted significant attention in 1977 as a result of the Nestl boycott, which is still ongoing.[31] Nestl continues to draw criticism that it is in violation of a 1981 World Health Organization code that regulates the advertising of breast milk substitutes.[32] Groups such as the International Baby Food Action Network (IBFAN) and Save the Children claim that the promotion of infant formula over breastfeeding has led to health problems and deaths among infants in less economically developed countries.[33][34] Nestl's policy states that breast-milk is the best food for infants, and that women who cannot or choose not to breast feed need an alternative to ensure that their babies are getting the nutrition they need.[35]

[edit]Ethiopian

debt

In 2002, Nestl demanded that the nation of Ethiopia repay $6 million of debt to the company. Ethiopia was suffering a severe famine at the time. Nestl backed down from its demand after more than 8,500 people complained via e-mail to the company about its treatment of the Ethiopian government. The company agreed to re-invest any money it received from Ethiopia back into the country.[36]

[edit]Melamine

in Chinese milk

Main article: 2008 Chinese milk scandal

In late September 2008, the Hong Kong government found melamine in a Chinese-made Nestl milk product. Six infants died from kidney damage, and a further 860 babies were hospitalised.[37][38] The Dairy Farm milk was made by Nestl's division in the Chinese coastal city Qingdao.[39] Nestl affirmed that all its products were safe and were not made from milk adulterated with melamine. On 2 October 2008, the Taiwan Health ministry announced that six types of milk powders produced in China by Nestl contained low-level traces of melamine, and were "removed from the shelves". [40]

[edit]Greenwashing
A coalition of environmental groups filed a complaint against Nestl to the Canadian Code of Advertising Standards after Nestl took out full-page advertisements in October 2008 claiming that "Most water bottles avoid landfill sites and are recycled", "Nestl Pure Life is a healthy, eco-friendly choice" and that "Bottled water is the most environmentally responsible consumer product in the world".[41][42][43] A spokesperson from one of the environmental groups stated: "For Nestl to claim that its bottled water product is environmentally superior to any other consumer product in the world is not supportable".[41] In their 2008 Corporate Citizenship Report, Nestl themselves stated that many of their bottles end up in the solid-waste stream, and that most of their bottles are not recycled.[42][44] The advertising campaign has been called greenwashing.[42][43][44]

[edit]Zimbabwe

farms

In late September 2009, it was brought to light that Nestl was buying milk from illegally seized farms currently operated by Robert Mugabe's wife, Grace Mugabe. Mugabe and his regime are currently subject to European Union sanctions.[45] Nestl later stopped buying milk from the dairy farms in question.[46]

[edit]Palm

oil use

Rapid deforestation in Borneo and other regions, in order to harvest hardwood and make way for palm oil plantations, releases large amounts of carbon dioxide into the atmosphere.[47] In particular, where peat swamp forests are cleared, destroying the habitat for many threatened species of animals such as the orangutan, much public attention[48] has been given to the social and environmental impact of palm oil and the role of multinationals such as Nestl in this.[49] There is ongoing concern by various NGOs including Greenpeace.[50] On its official Facebook page, the company met with "a deluge of criticism from consumers, after a large number of Facebook users posted negative comments about the company's business practises."[51] Nestl's attempt to engage with the issue met with criticism, including headlines stating: "Nestl fails at social media",[52] and "Nestl Loses Face on Facebook".[51] Nestl Chairman, Peter Brabeck-Letmathe, in answer to a question from Greenpeace, told the Companys Annual General Meeting in Lausanne on 15 April 2010 that in 2009 Nestl used 320,000 tonnes of palm oil worldwide, comparing this with the 500,000 tonnes of palm oil used for biodiesel in Germany and Italy alone.[53] In May 2010, Nestl said it was inviting The Forest Trust, a not-for-profit group, to audit its supply chain, and promised to cancel contracts with any firm found to be chopping down rainforests to produce the palm oil which it uses in KitKat, Aero and Quality Street. Greenpeace welcomed the agreement promising to monitor it closely.[54][55][56]

[edit]E.

coli

In June 2009, an outbreak of E. coli O157:H7 was linked to Nestl's refrigerated cookie dough originating in a plant in Danville, Virginia. In the USA, it caused sickness in at least 69 people in 29 states, half of whom required hospitalization. Following the outbreak, Nestl voluntarily recalled 30,000 cases of the cookie dough. How the

dough became contaminated is unclear, because E. coli is not known to live in any of its constituent ingredients.[57]

[edit]Child

labour

Main articles: Child labour, Children in cocoa production, and Harkin-Engel Protocol The 2010 documentary The Dark Side of Chocolate[58] alleges that Nestl purchases cocoa beans from Ivorian plantations that use child slave labour. The children are usually 12 to 15 years old, and some are trafficked from nearby countries.[59] The first allegations that child slavery is used in cocoa production appeared in 1998.[60] In late 2000 a BBC documentary reported the use of enslaved children in the production of cocoa in West Africa.[60][61][62] Other media followed by reporting widespread child slavery and child trafficking in the production of cocoa.[63][64] In September 2001, Bradley Alford, Chairman and CEO of Nestl USA, signed the Harkin-Engel Protocol (commonly called the Cocoa Protocol), an international agreement aimed at ending child labour in the production of cocoa.[65] In 2005, after the cocoa industry had not met the HarkinEngel Protocol deadline for certifying the worst forms of child labor (according to the International Labor Organization's Convention 182) had been eliminated from cocoa production, the International Labor Rights Fund filed a lawsuit in 2005 under the Alien Tort Claims Act against Nestle and others on behalf of three Malian children. The suit alleged the children were trafficked to Cte d'Ivoire, forced into slavery, and experienced frequent beatings on a cocoa plantation.[66][67] In September 2010, the US District Court for the Central District of California determined corporations cannot be held liable for violations of international law and dismissed the suit. The case was appealed to the US Court of Appeals.[68][69]

A 2009 joint police operation conducted by INTERPOL and Ivorian law enforcement officers resulted in the rescue of 54 children and the arrest of eight people involved in the illegal recruitment of children.[70]

[edit]Bottled

Life

A 2012 documentary with the title "Bottled Life" criticizes Nestls practices concerning its water business. According to the documentary, buying a truckload of water in the United States costs Nestl 10 USD, which is then sold for USD 50,000.[71][72][73] Nestl were in contact with the producers of the documentary, but finally declined to be interviewed, as they were under the strong impression that the film would be one-sided and not represent the company and its employees in a fair manner. Nestl denies that bottled water companies pay next to nothing for the water they use and make a huge profit for selling it. According to Nestl, the price of a bottle of water is similar to that of other packaged beverages, as it incurs similar costs linked to production, quality assurance, bottling, storage and distribution. One-third of the costs can be attributed to water and raw materials, one-third to production and one-third to distribution.[74]

[edit]Horsemeat

scandal

Nestle, the world's biggest food company, has removed beef pasta meals from shelves in Italy and Spain after tests revealed traces of horse DNA. The Swiss-based firm has halted deliveries of products containing meat from a German supplier.[75]

[edit]Corporate [edit]World

social responsibility

Cocoa Foundation

In 2000, Nestl and other chocolate companies formed the World Cocoa Foundation. The WCF was set up specifically to deal with issues facing cocoa farmers, including ineffective farming techniques and poor

environmental management (disease had wiped out much of the cocoa crop in Brazil). The WCF focuses on boosting farmer income, encouraging sustainable farming techniques, and setting up environmental and social programmes.[76]

[edit]Sustainable

Agriculture Initiative

Together with Danone and Unilever, Nestl founded in 2002 the Sustainable Agriculture Initiative (SAI) to promote sustainable agriculture in a comprehensive way. Within the framework of SAI, Nestl has worked with farmers to elaborate best practices in the areas of milk production and coffee and cocoa growing. The main objectives for SAI are to manage: i) Quality and safety problems in the food supply chain that may affect consumer confidence in everyday food products; ii) The growing demand for quality food that will arise from population growth, increases in expendable income and expected changes in diet; iii) Possible adverse effects and pressure of agriculture on natural resources and environment that may affect agricultural productivity. SAI act on a worldwide scale as a platform for industry collaboration in the development and implementation of sustainability in agriculture. It offers a platform for development in areas of public concern such as the quality and safety of produce, the well being of rural communities, animal welfare, and soil, water, air, energy and biodiversity aspects.[77]

[edit]Creating

Shared Value

Creating Shared Value (CSV) encourages businesses to create economic and social value simultaneously by focusing on the social issues that they are uniquely capable of addressing. In 2006, Nestl became (one of) the first organisations to adopt the CSV approach, but their history of working together with society stems back to their roots. For maximum impact, the company has focused its Creating Shared Value efforts and investments on three areas nutrition, water and rural

development as these are core to their business activities and vital for our value chain.[78] In October 2009, Nestl announced its 'The Cocoa Plan'. The company will invest CHF 110 million over ten years to achieve a sustainable cocoa supply. On 23 October 2009, Nestl and CNRA (the Ivorian National Centre for Plant Science Research), signed a frame agreement for cooperation in plant science and propagation, with a target of producing 1 million high-quality, diseaseresistant cocoa plantlets a year by 2012. The aim is to replace old, less productive trees with healthier new ones.[79][80]

In September 2011, Nestl introduced The Cocoa Plan in the Netherlands. The initiative is an extensive approach in which Nestl focuses on improving the livelihoods of cocoa farmers. The five main focus points within the program are: better quality cocoa plants, train farmers, chain management, improved social circumstances and cooperation with partners. KitKat is the first product in the Netherlands which carries the logo of The Cocoa Plan on pack. This means that Nestl will source the cocoa volume needed to produce all KitKats in the Netherlands from cocoa farmers and cooperatives that participate in The Cocoa Plan. Part of these farmers and cooperatives are already certified by UTZ Certified, a certification program for agricultural products launched in 2002 which claims to be the largest coffee certifier in the world.[81][82] Nestl made the commitment with UTZ Certified to source only sustainable cocoa by 2014.[83]

[edit]Ecolaboration
On 22 June 2009, Nestl Nespresso and Rainforest Alliance signed a pact called "Ecolaboration". One of the

shared goals is to reduce the environmental impacts and increase the social benefits of coffee cultivation in enough tropical regions so that 80 percent of Nespresso's coffee comes from Rainforest Alliance Certified farms by the year 2013. Certified farms comply with comprehensive standards covering all aspects of sustainable farming, including soil and water conservation, protection of wildlife and forests, and ensuring that farm workers, women and children have all the proper rights and benefits, such as good wages, clean drinking water, access to schools and health care and security.[84]

[edit]Expanding

Business in Health

Care Nutrition
In September 2010, Nestl announced to invest more than $500 million between 2011 and 2020 to develop health and wellness products to help prevent and treat major ailments like diabetes,obesity, cardiovascular disease and Alzheimers, which are placing an increasing burden on governments at a time when budgets are being squeezed. Nestl created a wholly owned subsidiary, Nestl Health Science, as well as a research body, the Nestl Institute of Health Sciences.[85]

[edit]Member

of Fair Labour Association

In 2011, Nestl started to work with the Fair Labor Association (FLA), a non-profit, multi-stakeholder association that works with major companies to improve working conditions in their supply chains. On 29 February 2012, Nestl became the first food company to join the FLA. Building on Nestl's efforts under the Cocoa Plan, the FLA will send independent experts to Cte dIvoire in 2012 and where evidence of child labour is found, the FLA will identify root causes and advise Nestl how to address them in sustainable and lasting ways.[86]

[edit]Sponsorships

[edit]Good

Food, Good Life

Nestl launched in several countries such as France, United Kingdom and Russia "Good Nutrition Programs" to help children adopt healthy nutrition habits as a component of a healthy lifestyle. In Russia, the programme has been introduced in 27 regions. Over 300,000 children in 5,000 schools are annually involved in the programme, and in total nearly 1,5 million Russian children have learned about good nutrition as a result of it.[87]

Nesquik in the Tour de France

[edit]Animation
In 1993, plans were made to update and modernize the overall tone of Walt Disney's EPCOT Center, including a major refurbishment of The Landpavilion. Kraft Foods withdrew its sponsorship on 26 September 1993, with Nestl taking its place. Co-financed by Nestl and the Walt Disney World Resort, a gradual refurbishment of the pavilion began on 27 September 1993.[88] In 2003, Nestle renewed its sponsorship of The Land; however, it was under agreement that Nestle would oversee its own refurbishment to both the interior and exterior of the pavilion. Between 2004 and 2005, the pavilion underwent its second major refurbishment. Nestls withdrawal from the Land dates back from 2009.[89]

[edit]Music

Festivals

On 5 August 2010, Nestl and the Beijing Music Festival signed an agreement to extend by three years

Nestle's sponsorship of this international music festival. Nestle has been an extended sponsor of the Beijing Music Festival for 11 years since 2000. The new agreement will continue the partnership through 2013. [90] Nestl partners the prestigious Salzburg Festival in Austria already for 20 years. In 2011, Nestl renewed its sponsorship of the Salzburg Festival until 2015.[91]

[edit]Sports
Nestl's sponsorship of the Tour de France began in 2001 and the agreement was extended in 2004, a move which demonstrated the companys interest in the Tour. In July 2009, Nestl Watersand the organisers of the Tour de France announced that their partnership will continue until 2013. The main promotional benefits of this partnership will spread on four key brands from Nestl's product portfolio: Vittel, Powerbar, Nesquik or Ricore.[92] On 27 January 2012, the International Association of Athletics Federations announced that Nestl will be the main sponsor for the further development of IAAF's Kids' Athletics Programme, which is one of the biggest grassroots development programmes in the world of sports. The five-year sponsorship started in January 2012.[93] Nestl supports the Australian Institute of Sport (AIS) on a number of nutrition and fitness fronts, funding a fulltime member of the AIS Sports Nutrition team, an athlete career scholarships for young athletes, and customised nutrition literature for athletes and all Australians. In particular, Nestl and the AIS have developed free nutrition educational resources for school teachers. Over 60% of Australian primary schools have downloaded this information since the program's inception.[94] Other sponsorships of sports-related events include FIVB Women's Club World Championship, Tour

de Langkawi, So Paulo Indy 300, Osasco Voleibol Clube, Mentor Nestle Nesquik Cup,Southeast Asian Games, Sukma Games, Sultan Azlan Shah Cup and Association of Southeast Asian Nations.[95]

[edit]Selected

awards, certifications and rankings

In May 2006, Nestls executive board decided to adapt the existing Nestl management systems to full conformity with the international standards ISO 14001 (Environmental Management Systems) and OHSAS 18001 (Occupational Health and Safety Management Systems), and to certify all Nestl factories against these standards by 2010.[96] In the meanwhile a lot of the Nestl factories have obtained these certifications. For instance, Nestls three factories in Japan (Himeji factory: Hygo Prefecture, Shimada factory: Shizuoka Prefecture and Kasumigaurafactory: Ibaraki Prefecture) have each obtained ISO standard certifications: ISO14001, ISO 22000 (Food Safety Management Systems) and OHSAS 18001 as of the end of December 2008.[97]

In 2009, Nestl Waters earned a sixth LEED certification. The certification was given by the U.S. Green Building Council's Leadership in Energy and Environmental Design which the company become its first recipient. It highlights the environmentally conscious elements of the facility which enables them to receive the certification.[98]

Nestl Purina received in 2010 the Malcolm Baldrige National Quality Award for their excellence in the areas of leadership, customer and market focus, strategic planning, process management, measurement, analysis and knowledge management, workforce focus and results.[99]

In September 2011, Nestl occupied 19th position in the Universum's global ranking of Best Employers

Worldwide.[100] According to a survey by Universum Communications Nestl was in 2011 the best employer to work for in Switzerland.[101]

Based on independent research by the Corporate Research Foundation Institute, Nestl (South Africa) has been certified in 2011 as a Best Employer in South Africa.[102][103]

Nestl USA has been recognized by BusinessWeek magazine as one of the "Best Places to Launch a Career." BusinessWeek ranked Nestle USA No. 25 on their annual list of the best companies for new college graduates to launch their careers.[104]

For the twelfth consecutive year, Fortune Magazine included in 2011 Nestl in their list of The 10 Most Admired Companies in the World.[105]

Nestl won in 2011 the Stockholm Industry Water Award for its leadership and performance to improve water management in its internal operations and throughout its supply chain.[106]

The International Union of Food Science and Technology (IUFoST) honoured Nestl in 2010 with the Global Food Industry Award.[107]

In May 2011, Nestl won the 27th World Environment Center (WEC) Gold Medal award for its commitment to environmental sustainability.[108][109]

In 2011, Nestl Malaysia won an award of the Association of Chartered Certified Accountants for their Sustainability Reporting.[110]

On 19 April 2012, The Great Place to Work Institute Canada mentioned Nestl Canada Inc. as one of the '50 Best Large and Multinational Workplaces' in Canada (with more than 1,000 employees working in Canada and/or worldwide).[111]

In April 2012, Nestl obtained an A+ rating from the Global Reporting Initiative (GRI) for their global annual report on Creating Shared Value. To reach

A+ the company provided new data in their annual report on a number of criteria such as human rights, diversity and gender, climate change, biodiversity and corruption. Nestl was the first food and beverage company to achieve an A+ rating from the GRI for a global sustainability report.[112][113]

On 21 May 2012, Gartner published their annual Supply Chain Top 25, a list with global supply chain leaders. Nestl ranks 18th in the list.[114]