Product Code Database
Nestlé S.A. ( ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Switzerland. It has been the largest publicly held food company in the world, measured by revenue and other metrics, since 2014. "Nestlé's Brabeck: We have a 'huge advantage' over big pharma in creating medical foods" , CNN Money, 1 April 2011 "Nestlé: The unrepentant chocolatier" , The Economist, 29 October 2009. Retrieved 17 May 2012 It ranked No. 64 on the Fortune Global 500 in 2017. In 2023, the company was ranked 50th in the Forbes Global 2000.
Nestlé's products include coffee and tea, candy and confectionery, bottled water, infant formula and baby food, Dairy product and ice cream, frozen foods, breakfast cereals, dry packaged foods and snacks, Pet food, and medical food. Twenty-nine of Nestlé's brands have annual sales of over 1 billion Swiss franc (about ), "Nestlé: Tailoring products to local niches" CNN, 2 July 2010. including Nespresso, Nescafé, Nestea, Kit Kat, Smarties, Nesquik, Stouffer Corporation, Vittel, and Maggi. Nestlé has 447 factories, operates in 197 countries, and employs around 339,000 people. It is one of the main shareholders of L'Oreal, the world's largest cosmetics company. "Nestlé to Decide on L’Oreal in 2014, Chairman Brabeck Says" . Bloomberg, 14 April 2011
Nestlé was formed in 1905 by the merger of the "Anglo-Swiss Milk Company", which was established in 1866 by brothers George and Charles Page, and "Farine Lactée Henri Nestlé" founded in 1867 by Henri Nestlé. The company grew significantly during World War I and again following World War II, expanding its offerings beyond its early condensed milk and infant formula products. The company has made a number of corporate acquisitions including Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, Klim in 1998, and Gerber in 2007.
In 1905, Nestlé and Anglo-Swiss merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947 when the name 'Nestlé 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. The company's current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, the United Kingdom, Germany, and Spain. The First World War created a demand for dairy products in the form of government contracts, and by the end of the war, Nestlé's production had more than doubled.
In January 1919, Nestlé bought two condensed milk plants in Oregon from the company Geibisch and Joplin for $250,000. One was in Bandon, while the other was in Milwaukie. They expanded them considerably, processing 250,000 pounds of condensed milk daily in the Bandon plant.
After the World War I, government contracts dried up, and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate-manufacture becoming the company's second most important activity; Milkybar was created in the following decade. Louis Dapples was CEO till 1937 when succeeded by Édouard Muller till his death in 1948.
Nestlé 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 South America. Ironically, the war helped with the introduction of the company's newest product, Nescafé ("Nestlé's Coffee"), which became a staple drink of the US military. Despite that, Nestlé actually supplied both sides in the war: the company had a contract to feed the German army. Nestlé's production and sales rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and numerous companies were acquired. In 1947 Nestlé merged with Maggi, a manufacturer of seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971), and Stouffer's (1973). Diversification came under chairman & CEO Pierre Liotard-Vogt with a shareholding in L'Oreal in 1974 and the acquisition of Alcon in 1977 for $280 million.
In the 1980s, Nestlé's improved bottom line allowed the company to launch further acquisitions. Carnation was acquired for US$3 billion in 1984 and brought the evaporated milk brand, as well as Coffee-Mate and Friskies, to Nestlé. In 1986, the company founded Nespresso The British confectionery company Rowntree Mackintosh was acquired in 1988 for $4.5 billion, which brought brands such as Kit Kat, Rolo, Smarties, and Aero.
In 1999, Nestlé sold the Findus brand to the Swedish firm EQT AB.
In December 2005, Nestlé 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. In June 2006, Nestlé purchased weight-loss company Jenny Craig for . In July 2007, completing a deal announced the year before, Nestlé acquired the Medical Nutrition division of Novartis Pharmaceutical for and also acquiring the milk-flavoring product known as Ovaltine, the "Boost" and "Resource" lines of nutritional supplements, and Optifast dieting products.
In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer Gerber for . In December 2007, Nestlé entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini.(Press release) Nestlé enters into strategic partnership with Belgian luxury chocolate maker Pierre Marcolini . Nestlé retrieved from it 23 March 2011.
In late September 2008, the Hong Kong government found melamine in a Chinese-made Nestlé milk product. Six infants died from kidney damage, and a further 860 babies were hospitalised. The following June, an outbreak of was linked to Nestlé's refrigerated cookie dough originating in a plant in Danville, Virginia.
Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part of a broader offer by Novartis for full acquisition of the world's largest eye-care company. On March 2, 2010, Nestlé completed the purchase of Kraft Foods's North American frozen pizza business for , which included brands such as DiGiorno, Tombstone, and California Pizza Kitchen.
Since 2010, Nestlé has been working to transform itself into a nutrition, health and wellness company in an effort to combat declining confectionery sales and the threat of expanding government regulation of such foods. This effort is being led through the Nestlé Institute of Health Sciences under the direction of Ed Baetge. The institute aims to develop "a new industry between food and pharmaceuticals" by creating foodstuffs with preventive and corrective health properties that would replace pharmaceutical drugs from pill bottles. The Health Science branch has already produced several products, such as drinks and protein shakes meant to combat malnutrition, diabetes, digestive health, obesity, and other diseases.
It acquired British pharmaceutical company Vitaflo, which makes clinical nutritional products for people with , in August 2010. In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about . On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s Baby food, formerly Wyeth Nutrition, unit for , topping a joint bid from Danone and Mead Johnson. "Nestlé to Acquire Pfizer Baby Food Unit for $11.9 Billion" . Bloomberg, 23 April 2012
Nestlé sold its Jenny Craig business unit to North Castle Partners in 2013. In February 2013, Nestlé Health Science bought Pamlab, which makes medical foods based on L-methylfolate targeting depression, diabetes, and memory loss. In February 2014, Nestlé sold its PowerBar sports nutrition business to Post Holdings, Inc. Later, in November 2014, Nestlé announced that it was exploring strategic options for its frozen food subsidiary, Davigel.
In December 2014, Nestlé announced that it was opening 10 skin care research centres worldwide, deepening its investment in a faster-growing market for healthcare products. That year, Nestlé spent about $350 million on dermatology research and development. The first of the research hubs, Nestlé Skin Health Investigation, Education and Longevity Development (SHIELD) centres, will open mid 2015 in New York, followed by Hong Kong and São Paulo, and later others in North America, Asia, and Europe. The initiative is being launched in partnership with the Global Coalition on Aging (GCOA), a consortium that includes companies such as Intel and Bank of America.
In May 2015, food safety regulators from the state of Uttar Pradesh, India, found that samples of Nestlé India's Maggi noodles had up to 17 times more than the permissible safe amount of lead, in addition to monosodium glutamate.
In January 2017, Nestlé announced that it was relocating its US headquarters from Glendale, California, to Rosslyn, Virginia, outside of Washington, DC.
In March 2017, Nestlé announced that they will lower the sugar content in Kit Kat, Yorkie and Aero chocolate bars by 10% by 2018. In July, a similar announcement followed concerning the reduction of sugar content in its breakfast cereals in the UK.
The company announced a $20.8 billion share buyback in June 2017, following the publication of a letter written by Third Point Management founder Daniel S. Loeb, Nestlé's fourth-largest stakeholder with a $3.5 billion stake, explaining how the firm should change its business structure. Consequently, the firm will reportedly focus investment on sectors such as coffee and pet care and will seek acquisitions in the consumer health-care industry.
In 2016, Nestlé and PAI Partners establish a joint venture, Froneri, to combine the two companies' ice cream activities throughout Europe and other international countries.
In March 2017, Nestlé and Coca-Cola agreed to dissolve the Beverage Partners Worldwide venture effective on January 1, 2018, in part because Nestlé wanted to expand Nestea on its own.
In July 2017, Nestlé introduced a new type of infant formula in Spain, containing two human milk oligosaccharides. Oligosaccharides are the third most abundant components of breast milk with various health benefits, but previously were not part of infant formula.
In September 2017, Nestlé S.A. acquired a majority stake of Blue Bottle Coffee. While the deal's financial details were not disclosed, the Financial Times reported "Nestlé is understood to be paying up to $500m for the 68 per cent stake in Blue Bottle".
In September 2017, Nestlé USA agreed to acquire Sweet Earth, a California-based producer of plant-based foods, for an undisclosed sum.
Nestlé set a new profit target in September 2017 and agreed to offload over 20 of its US candy brands in January 2018. However, sales grew only 2.4% in 2017, and as of July 2018, the share price declined more than 8%. While some suggestions were adopted, Loeb said in a July 2018 letter that the shifts are too small and too slow. In a statement, Nestlé wrote that it was "delivering results" and listed actions it had taken, including investing in key brands and its global coffee partnership with Starbucks. However, activist investors disagreed, leading Third Point Management to launch NestleNOW, a website to push its case with recommendations calling for change, accusing Nestlé of not being as fast, aggressive, or strategic as it needs to be. Activist investors called for Nestlé to divide into three units with distinct CEOs, regional structures, and marketing heads - beverage, nutrition, and grocery; spin off more businesses that do not fit its model such as ice cream, frozen foods, and confectionery; and add an outsider with expertise in the food and beverage industry to the board.
In January 2018, Nestlé USA announced it was selling its US confectionary business, including the 100 Grand, Baby Ruth, Butterfinger, OhHenry!, Raisinets and Sno-Caps to Ferrara Candy Company, an American-based chocolate and candy maker and Ferrero SpA-related company. The company was sold for a total of an estimated $2.8 billion.
In May 2018, it was announced that Nestlé and Starbucks struck a $7.15 billion distribution deal, which allows Nestlé to market, sell and distribute Starbucks coffee globally and to incorporate the brand's coffee varieties into Nestlé's proprietary single-serve system, expanding the overseas markets for both companies. "Nestlé And Starbucks Agree To A $7B Distribution Deal, But Will It Work In The Long Term? " Forbes Big Business. Retrieved 7 May 2018.
In September 2018, Nestlé announced that it would sell Gerber Life Insurance for $1.55 billion.
In October 2018, Nestlé announced the launch of the Nestlé Alumni Network, through a strategic partnership with SAP SE & EnterpriseAlumni, to engage with their over 1 million Corporate Alumni globally.
In 2019, the company announced that it would publish Nutri-Score on all of its products sold in the European countries that supported the nutritional label.
In 2020, Nestlé USA's and Nestlé Canada's ice cream divisions were acquired by Froneri. Also during that year, Nestlé announced that the company wants to invest in plant-based food, starting with a "tuna salad" and meat-free products to engage and reach younger and vegan consumers.
On 16 February 2021, Nestlé announced that it had agreed to sell its water brands in the US and Canada to One Rock Capital Partners and Metropoulos & Co. The sale would include the spring water and mountain brands, the purified water brand and the delivery service. The plan did not include the Perrier, S.Pellegrino and Acqua Panna brands. In early April 2021, the sale was concluded.
The COVID-19 pandemic did not affect Nestlé negatively. Due to lockdowns, people bought more packaged foods, not only coffee and dairy products, but also pet products, which increased the company's sales. Nestlé recorded its strongest quarterly sales growth in 10 years.
In April 2021, Nestlé agreed to purchase the vitamin manufacturing NBTY, formerly known as The Nature's Bounty Co., for $5.75 billion, noting as well that much of the company's growth that quarter came from "vitamins, minerals, and supplements that support health and the immune system". Bountiful's brands included Nature's Bounty, Solgar, Osteo Bi-Flex, and Puritan's Pride.
In July 2021, Vitaflo (subsidiary to Nestlé Health Science since 2010) acquired the Dr. Schär brands, Mevalia and ComidaMed, which are used for the dietary management of IEM and cow's milk protein allergy to complement Vitaflo's existing IEM product portfolio.
In January 2022, Nestlé announced that it would pay African cocoa farmers cash if they send their children to school.
In May 2022, it was announced Nestlé's Health Science unit had acquired the organic, natural, plant-based food maker Puravida.
In May 2022, Nestlé was sending baby formula supplies to the U.S. from European air bases to ease the 2022 United States infant formula shortage. These relief shipments included products from the Gerber baby food formula brand from the Netherlands and Alfamino baby formula from Switzerland. "Nestle Flying in Baby Formula to Ease U.S. Shortage" . webmd.com. Retrieved 4 June 2022.
In September 2023, it was announced Nestlé had acquired a majority stake in the Extrema, Minas Gerais-headquartered premium chocolate manufacturer, Grupo CRM for an undisclosed amount.
Following the 2022 Russian invasion of Ukraine, the company continued doing business in Russia; therefore in November 2023, Ukraine's National Agency on Corruption Prevention listed Nestlé as an International Sponsor of War. Nestle stated that it had already "halted all non-essential imports and exports to and from Russia".
In February 2024, it was announced Nestle is expanding manufacturing capacity in India and increasing investments — the company will invest between Indian rupee60-65 billion ($723–783 million) from 2020 to 2025.
Nestlé announced Schneider would leave his position as CEO and be replaced by Laurent Freixe on September 1, 2024.
On May 2025, Nestle acquired an minority stake in Drools Pet Food in India.
In 2014, consolidated sales were Swiss franc 91.61 billion and net profit was CHF 14.46billion. Research and development investment was CHF 1.63billion. MarketWatch page on Nestlé S.A. ADS Retrieved 20 May 2015.
According to a 2015 global survey of online consumers by the Reputation Institute, Nestlé has a reputation score of 74.5 on a scale of 1 to 100.
| + Financial data in billions of CHF !Year !2011 !2012 !2013 !2014 !2015 !2016 !2017 !2018 !2019 !2020 !2021 | |||||||||||
| Revenue | 83.642 | 92.186 | 92.158 | 91.612 | 88.785 | 89.469 | 89.791 | 91.439 | 92.568 | 84.343 | 87.088 |
| Net income | 9.487 | 10.611 | 10.015 | 14.456 | 9.066 | 8.531 | 7.183 | 10.135 | 12.609 | 12.232 | 17.196 |
| 114.091 | 126.229 | 120.442 | 133.450 | 123.992 | 131.901 | 130.380 | 137.015 | 127.940 | 124.028 | 139.142 | |
| Employees | 328,000 | 339,000 | 333,000 | 339,000 | 335,000 | 328,000 | 323,000 | 308,000 | 291,000 | 273,000 | 276,000 |
On 5 August 2010, Nestlé and the Beijing Music Festival signed an agreement to extend by three years Nestlé's sponsorship of this international music festival. Nestlé has been an extended sponsor of the Beijing Music Festival for 11 years since 2000. The new agreement will continue the partnership through 2013. "Nestlé continues sponsorship of the Beijing Music Festival" , China.org, 6 August 2010
Nestlé has partnered the Salzburg Festival in Austria for 20 years. In 2011, Nestlé renewed its sponsorship of the Salzburg Festival until 2015. "Nestlé extends Salzburg Festival partnership until 2015" , Nestlé, 5 October 2011
Together, they have created the "Nestlé and Salzburg Festival Young Conductors Award", an initiative that aims to discover young conductors globally and to contribute to the development of their careers.
On 27 January 2012, the International Association of Athletics Federations announced that Nestlé 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. "IAAF, Nestlé becomes main sponsor of worldwide IAAF Kids' Athletics" , 27 January 2012 On 11 February 2016, Nestlé decided to withdraw its sponsorship of the IAAF's Kids' Athletics Programmes because of doping and corruption allegations against the IAAF. Nestlé followed suit after other large sponsors, including Adidas, also stopped supporting the IAAF.Reinsch, Michael (10 February 2016). Leichtathletik-Weltverband „toxisch“ (in German). Frankfurter Allgemeine Sport. Retrieved 11 February 2016.
In 2014, Nestlé Waters sponsored the UK leg of the Tour de France through its Buxton Natural Mineral Water brand. In 2002, Nestlé announced it was main sponsor for the Great Britain Lionesses Women's rugby league team for the team's second tour of Australia with its Munchies product.
Nestlé supports the Australian Institute of Sport (AIS) on a number of nutrition and fitness fronts, funding a Fellowship position in AIS Sports Nutrition; nutrition activities in the AIS Dining Hall; research activities; and the development of education resources for use at the AIS and in the public domain.
In 2021, recycling startup, Carbios, released a press release that showed a prototype of a food-grade PET plastic bottle made from enzymatically recycled plastic. The press release said Nestle (along with other companies) could manufacture these bottles using the Carbios technology. As of September 2024, however, it is unclear whether Nestle ever transitioned to these recycled materials beyond the prototype.
Nestlé created the Creating Shared Value Prize, which is awarded every other year with the aim of rewarding the best examples of CSV initiatives worldwide and to encourage other companies to adopt a shared value approach. These initiatives should take a business-oriented approach in addressing challenges in nutrition, water or rural development. The winner can win up to CHF 500,000. Nestlé was an early mover in the shared value space and hosts a global forum, the Creating Shared Value Global Forum.
Rural Development Framework program: In 2012, Nestlé developed the Rural Development Framework, which supports farmers and cocoa growing communities. It is an investment program aimed at improving infrastructure, increasing access to safe water, address financing and market efficiency gaps, and improving labor conditions.
| 2010 | Nestlé Purina | Malcolm Baldrige National Quality Award | |
| 2010 | IUoFST Gold Food Industry Award | ||
| 2011 | World Environment Center Gold Medal Award | ||
| 2014 | Henry Spira Corporate Progress Award |
Nestlé is involved in many significant controversies due to Nestlé's reported use of
A coalition of environmental groups filed a complaint against Nestlé to the Advertising Standards of Canada after Nestlé took out full-page advertisements in October 2008 with messages stating, "Most water bottles avoid landfill sites and are recycled", "Nestlé Pure Life is a healthy, eco-friendly choice", and, "Bottled water is the most environmentally responsible consumer product in the world."
In 2024, Nestle reported that 74.4% of its eggs are sourced from cage-free suppliers, slightly down from 76.3% in 2021.
Competitors
|
|
