Swiss Transnational Food and Drink Company Nestle Group
Founding date: 1866 (as Anglo-Swiss Condensed Milk Company) and 1905 (as Nestle and Anglo-Swiss Condensed Milk Company)
Company Name: Nestle
Industry: Food processing
Company Website: www.nestle.com
Nestle is a Swiss transnational food and drink company which has its headquarters in Vevey, Vaud, Switzerland. It has been one of the largest food companies in the world, measured by revenues and other metrics for the years spanning between 2014-16. When “Nestle” is used as a key word on Google, there are a number of results that crop up. Nestle’s official website turns up at the top with the Wikipedia page following a close second. A number of images also turn up, such as promotional images from the numerous Nestle campaigns and adverts.
The conception of Nestle Group
Nestle was put into existence in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George Page and Charles Page and FarineLactee Henri Nestle, founded in 1866 by Heinrich Nestle. During the first World War, the company grew very significantly and again following the second World War, expanding its offerings beyond it’s early condensed milk and infant formula products. Now Nestle’s products include baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionary, pet food, frozen food and other snacks. It is ranked Number 72 on the Fortune Global 500 in 2014 and Number 33 on the 2016 edition of the Forbes Global 2000 list of largest public companies. Twenty nine of Nestle’s brands have annual sales of over $1.1 billion which includes Nespresso, Nescafe, Kit Kat and Maggi among other things. It has 447 factories, operational in 194 countries and employs around 339,000 people. It is one of the main shareholders of L’Oreal, the world’s largest cosmetics company. In April 2007, Nestle brought US baby food manufacturer Gerber for $5.5 billion. In December 2007, Nestle also entered into a very strategic partnership with a Belgian chocolate maker, Pierre Marcolini.
Operations of the Nestle Group
Nestle is one of the biggest and most powerful food and drink companies in the world and that is saying something when the major first half of the 1990s proved to be favourable for Nestle. 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 Ralstone Purina (2002). Nestle also entered a joint bid with Cadbury and came close to purchasing the iconic American company Hershey’s, one of its fiercest confectionary competitors but the deal eventually fell through. Since 2010, Nestle has been working to transform itself into a nutrition, health and wellness company in an effort to combat declining confectionary sales and the threat of expanding government regulation of such foods. Nestle had a net sales worth of $98,062 million which has obviously been a united effort of the various subsidiaries and affiliates of the Nestle group in the form of more than 30 different companies.
A couple of these subsidiary and affiliation companies are Nestle India, Nestle Waters, Nestle Japan, Libby’s, Gerber Products Company, Garoto, Nestle USA, Nestle Canada, SICAL etc.
In this glorious trail of successful ventures, there is obviously a chapter with acquisitions earned and attempted acquisitions by Nestle. There were two major acquisitions in North America, both in 2002- in June, Nestle merged its US ice cream business into Dreyer’s and in August, a $2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In December 2005, Nestle bought the Greek company Delta Ice Cream for $40 million.
Nestle strongly believes that if we nourish our children, we nourish the future of our country. Nestle United for Healthier Kids ( U4HK) is a global partnership rooted in science, powered by creativity and designed to help parents raise a healthier generation of children.
Awards and Recognition
Nestle Purina received in 2010, the Malcolm Baldridge National Quality Award for their excellence in the areas of leadership, customer and market focus. Nestle also occupied the 19th position in the Universum’s global ranking of Best Employers Worldwide.