By: ROHIT ANAND BBA/4548/10 SOMIKA MALHOTRA BBA/4549/10

Nestl

is a Swiss company, founded in 1866 by Henri Nestl

Nestl

invests around CHF 1.5 billion in Research and Development every year
Nestl

markets its products in 130 countries across the world

Nestl manufactures around 10,000 different products and employs some 250,000 people
Nestl sells over a billion products every day

Nestl is more than just the largest food and beverage company in the world. Increasingly, Nestl is becoming the worlds leader in nutrition, health and wellness. From the start, nutrition has been at the core of their business. However, today they place far greater emphasis on it and on health and wellness. There Corporate Wellness Unit and the individual business units are driving forces in bringing Good Food, Good Life to all their consumers.

Henri Nestl, the founder of Nestl, was a lifesaving chemist but also an innovative marketer. 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.

Nestl: almost 150 years pioneering nutrition and health

Nestls roots date back to 1849 when an assistant pharmacist called Henri Nestl 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 world-famous. To help nurture and indeed save the lives of young babies, he created Farine Lacte, the worlds first infant food. Henri Nestls prime concern was a healthy life for local newborn babies. But he realized that he could help even more mothers and their babies by exporting his successful new product to other countries

Henri Nestl set a good example, both as a pioneer 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 Nestl decided to use a birds nest as his trademark. Today its one of the best known logos around the world, communicating Nestls emphasis on nutrition for a healthy life.

Nutrition has always been at the core of their business. Indeed, the Company was founded, back in 1866, on the launch of an innovative, nutritious baby food. Now, almost 150 years later, they 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 Nestl both in terms of the products they make and the way they run their business. Nestl today is at the forefront of providing consumers with food and beverage solutions that generate a long, healthy life.

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 in a way that is meaningful and relevant to the consumer.
R&D also plays an important role in creating products that have a proven taste advantage plus a specific nutritional advantage over competitors products

 Our packs are a highly efficient communication medium to provide our consumers with nutritional information. The pack is in the consumers hands at a precisely relevant moment just when they are about to buy, prepare or consume the product. But simply giving consumers nutritional information isnt very helpful. We go further.

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.

Looking to the future

The Nestl Corporate Wellness Unit, together with our business units, is helping the Company to be the leader in nutrition, health and wellness. R&D plays a pivotal role, and looking ahead, will play an even greater role. In preventive nutrition, for example, we are pioneering the use of probiotics in our products to reduce gastrointestinal diseases. We are also working on scientific innovations to address obesity and diabetes.
Other personalized nutrition initiatives address the special nutritional needs of patients with Alzheimers disease and illness related to ageing. In specialized 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 Nestl 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.

What makes Nestl the worlds 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.

Nestls reputation over many years for consistent quality and safety, and its ability to meet changing consumer needs has earned consumers trust around the world.
How does Nestl go about it?

Putting the consumer first The whole company is dependent on consumer choosing Nestl products in preference to our competitors products. Thats why we are wholeheartedly dedicated to the consumer and focused on meeting his or her needs. Every day Nestl 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. * Equivalent to more than USD 70 billion. US

Maggi soups in Germany, China and Indonesia. Its the same Maggi brand, but the product is different. Each has its own flavours and textures to meet local tastes.

Food is local

Nestls success is based firmly on the concept that "food is a local matter. Although their products are available in virtually every corner of the world, they don't believe in a standard worldwide taste.

To meet local needs, there are more than 10,000 Nestle products. Almost 500 factories in over 80 countries produce them.

Nestl a company built on brands

The Nestl 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, pet care, bottled water.

Affordable Products
For lower-income consumers in many countries, Nestl 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.

Contributing to nutrition, health and wellness

Many Nestl 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 mainly-for-pleasure food scan also be part of Good Food, Good Life.

That said, we are applying our nutritional expertise to these products as well. For example, Dreyers Slow Churned and HaagenDazs 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, Nestle introduced many sugarfree products, including Polo, as well as lower sugar content in products such as Kit Kat Light.

Ensuring quality and food safety

With every bite or sip of a Nestl product, we have to ensure the highest levels of quality and safety.

Nestle 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 Nestl factory has a laboratory that systematically analyses raw materials and ingredients. Nestl products are checked on the production line and in their finished state to ensure that they meet their own strict standards, as well as national and international regulations.

The quality assurance laboratories at our Nestl Research Center in Lausanne, Switzerland are constantly broadening their knowledge and know-how in microbiology, food safety, nutrients, additives, contaminants and packaging. They share this information with our factories around the world

Wherever, whenever, however

Nestle products are sold 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 family-run neighbourhood shops, stalls in markets, vending machines, mobile vendors and even door-to-door sales of chilled products in special cooler bags. People can buy Nestl products in schools, offices, hotels and airports. In ice-cream 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 Nestl product.

Principles, not rules

Two fundamental documents (The Nestl Corporate Business Principles and the Nestl Management and Leadership Principles) lay down principles that permeate the whole Nestl Group. They govern our policies and strategies. They set the tone and style for our approach. They affect everyone who works at Nestl. They also impact everyone with whom we do business. The Nestl Corporate Business Principles outline the Nestle way of doing business. They include sections on Infant Health and Nutrition, Human Rights, Child Labored the Protection of the Environment, as well as a setoff Consumer Communication Principles

They include all ten principles of the United Nations Global Compact, as well as the International WHO Code of Marketing of Breast-milk substitutes. The Nestl Corporate Business Principles have been translated into more than 40 languages and distributed to their management around the world. They are built on key beliefs that include: Nestls 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 Nestl operates.

. Nestl does not favor short-term profit at the expense of successful long-term business development. Nestle recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind the brands in which they place their trust.

A multi-cultural business

The Nestl Management and Leadership Principles are based on the many experiences that have led to the companys success throughout its long history. They relate mainly to the human aspects of our management and our employees, and stress the multi-cultural nature of the Company. Nestl embraces cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age. Nor does Nestl have any political involvement.

Nestl operates in many countries and in many cultures throughout the world. This rich diversity is an in valuable 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. Its an approach that has been recognized by top Harvard academics as having generated real benefits both for Nestl and for society over many decades .

Harvard Business School Professors Michael Porter and Mark Kramer have stated that this puts Nestl in the front rank of companies who create real shared value for themselves and society at every step of their business process or value chain. Porter and Kramer argue that our approach has already stood the test of time; and will continue to do so precisely because there are winners on all sides.

Looking after the environment

Nestl pioneered the Clean Development Mechanism which is part of the Kyoto Protocol an agreement to control CO2 emissions to combat global warming. While industrialized countries have legally binding targets to reduce emissions, the developing countries are encouraged to invest in clean technologies. Nestl was the first company in Europe to introduce anew biodegradable alternative to plastic for manufactured food products. Made from renewable resources, it dissolves when it comes into contact with water, and disintegrates within three months.

A network of local companies

Its a genuine paradox. Although Nestl 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 than100 years. Local Nestl units work within a global framework based on the Nestl principle: centralize what you must, but decentralize what you can.. 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.

The world of Nestl By now youll have realised that Nestl is a world of its own. It spans the globe. But more importantly, Nestl employees come from all walks of life. Once they join Nestl, they continue to expand their horizons. In keeping with the world in which we all live, Nestl, 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. Nestl. Good Food, Good Life.