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Nestlé S.A.
Formerly show
List
Type Public
Traded as SIX: NESN
ISIN CH0038863350
Headquarters Vevey, Vaud, Switzerland
Website nestle.com
Contents
1History
o 1.11866–1900: Founding and early years
1.1.1Timeline
o 1.21901–1989: Mergers
o 1.31990–2011: Growth internationally
o 1.42012–present: Recent developments
2Corporate affairs and governance
o 2.1Financial data
o 2.2Joint ventures
o 2.3Board of Directors
o 2.4Lobbying
3Products
o 3.1Food safety
3.1.1Milk products and baby food
3.1.2Cookie dough
3.1.3Maggi noodles
4Sponsorships
o 4.1Music and Entertainment
o 4.2Sports
5Controversy and criticisms
o 5.1Baby formula marketing
o 5.2Slavery and child labour
o 5.3Anti-union activities in Colombia
o 5.4Water
5.4.1Status of potable water
5.4.2Plastic bottles
5.4.3Water bottling operations in California, Oregon and
Michigan
o 5.5Chocolate price fixing
o 5.6Ethiopian debt repayment
o 5.7Ukraine
o 5.8Forced labour in Thai fishing industry
o 5.9Deforestation
6Corporate social responsibility program involvements
7Recognition and awards
8Bibliography
9See also
10Notes and references
11External links
History
1866–1900: Founding and early years
Henri Nestlé, a German-born Swiss confectioner, was the founder of Nestlé and one of the main creators
of condensed milk
Nestlé's origin dates back to the 1860s, when two separate Swiss enterprises were
founded that would later form Nestlé. In the following decades, the two competing
enterprises expanded their businesses throughout Europe and the United States. [15]
Timeline
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.[21]
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. 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. [citation needed] Factories were established in
developing countries, particularly in South America. [22] 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. Nestlé's production and sales rose
in the wartime economy.[22]
Switzerland (35.28%)
United States (28.53%)
All others (36.19%)
Nestlé is the biggest food company in the world, with a market capitalisation of
roughly 231 billion Swiss francs, which is more than US$247 billion as of May
2015.[71] Nestlé 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 2014, consolidated sales were CHF 91.61 billion and net profit was CHF
14.46 billion. Research and development investment was CHF 1.63 billion.[72]
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenue 83.642 92.186 92.158 91.612 88.785 89.469 89.791 91.439 92.568
Net
9.487 10.611 10.015 14.456 9.066 8.531 7.183 10.135 12.609
income
Employee 328,00 339,00 333,00 339,00 335,00 328,00 323,00 308,00 291,00
s 0 0 0 0 0 0 0 0 0
Joint ventures
Joint ventures include:
Products
Main article: List of Nestlé brands
Nestlé currently has over 2000 brands[84][85] 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.[12] In 2019, the company entered the plant-based food production business
with its Incredible and Awesome Burgers (under the Garden Gourmet and Sweet
Earth brands). In 2020, Nestlé announced additional plant-based products
including soy-based bratwurst and chorizo-like sausages. [86]
Food safety
Milk products and baby food
Main article: 2008 Chinese milk scandal
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.[87][88] The Dairy Farm milk was made by Nestlé's division in
the Chinese coastal city Qingdao.[89] Nestlé 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 Nestlé contained low-level traces of melamine, and were "removed from
the shelves".[90]
As of 2013, Nestlé has implemented initiatives to prevent contamination and
utilizes what it calls a "factory and farmers" model that eliminates the middleman.
Farmers bring milk directly to a network of Nestlé-owned collection centers, where
a computerized system samples, tests, and tags each batch of milk. To reduce
further the risk of contamination at the source, the company provides farmers with
continuous training and assistance in cow selection, feed quality, storage, and
other areas.[91] In 2014, the company opened the Nestlé Food Safety Institute
(NFSI) in Beijing that will help meet China's growing demand for healthy and safe
food, one of the top three concerns among Chinese consumers. The NFSI
announced it would work closely with authorities to help provide a scientific
foundation for food-safety policies and standards, with support to include early
management of food-safety issues and collaboration with local universities,
research institutes and government agencies on food-safety. [92]
In an incident in 2015, weevils and fungus were found in Cerelac baby food. [93][94][95]
Cookie dough
In June 2009, an outbreak of E. coli O157:H7 was linked to Nestlé's
refrigerated cookie dough originating in a plant in Danville, Virginia. In the US, it
caused sickness in more than 50 people in 30 states, half of whom required
hospitalisation. Following the outbreak, Nestlé voluntarily recalled 30,000 cases of
the cookie dough. The cause was determined to be contaminated flour obtained
from a raw material supplier. When operations resumed, the flour used was heat-
treated to kill bacteria.[96]
Maggi noodles
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.[97][98][99] Due to
this, on 3 June 2015, the New Delhi Government banned the sale of Maggi in New
Delhi stores for 15 days.[100] Some of India's biggest retailers, such as Future
Group, Big Bazaar, Easyday, and Nilgiris, had imposed a nationwide ban on Maggi
as of 3 June 2015.[101] On the same day, Nestlé India's shares fell 11% due to the
incident.[102] On 4 June 2015, the Gujarat FD banned the sale of the noodles for 30
days after 27 out of 39 samples were detected with objectionable levels of metallic
lead, among other things.[103] Nestlé's share fell by 3% on that day over concerns
related to its safety standards.[104] On 5 June 2015, Food Safety and Standards
Authority of India (FSSAI) orders banned all nine approved variants
of Maggi instant noodles from India, deeming them "unsafe and hazardous" for
human consumption,[105] and Nepal indefinitely banned Maggi over concerns about
lead levels in the product.[106] Also on 5 June, the Food Standards Agency of
the United Kingdom launched an investigation to test levels of lead in Maggi.
[107]
Maggi noodles have been withdrawn in five African nations – Kenya, Uganda,
Tanzania, Rwanda, and South Sudan – by a supermarket chain after a complaint
by the Consumer Federation of Kenya, as a reaction to the ban in India. [108]
As of August 2015, India's government made public that it was seeking damages
of nearly $100 million from Nestlé India for "unfair trade practices" following the
June ban on Maggi noodles.[109] The 6.4 billion rupee (approximately US$93 million)
suit was filed with the National Consumer Disputes Redressal
Commission (NCDRC), regarded as the country's top consumer court, but was
settled on 13 August 2015.[110] The court ruled that the government ban on the
Nestlé product was both "arbitrary" and had violated the "principles of natural
justice."[111] Although Nestlé was not ordered to pay the fine sought in the
government's suit, the court ruled that the Maggi noodle producers must "send five
samples from each batch of Maggi [noodles] for testing to three labs and only if the
lead is found to be lower than permitted will they start manufacturing and sale
again." Although the tests have yet to take place, Nestlé has already destroyed
400 million packets of Maggi products.[112][needs update]
In India, Maggi products were returned to the shelves in November 2015, [113]
[114]
accompanied by a Nestlé advertising campaign to win back consumer trust,
featuring items such as[115] the Maggi anthem by Vir Das and Alien Chutney.
[116]
Nestlé resumed production of Maggi at all five plants in India on 30 November
2015.[117][118]
In the Philippines, localised versions of Maggi instant noodles were sold until 2011
when the product group was recalled for suspected salmonella contamination. [119]
[120]
The product did not return to market, while Nestle continues to sell seasoning
products including the popular Maggi Magic Sarap. [citation needed]
Sponsorships
Music and Entertainment
In 1993, plans were made to update and modernise the overall tone of Walt
Disney's EPCOT Center, including a major refurbishment of The
Land pavilion. Kraft Foods withdrew its sponsorship on 26 September 1993, with
Nestlé taking its place. Co-financed by Nestlé and the Walt Disney World Resort, a
gradual refurbishment of the pavilion began on 27 September 1993. [121] In 2003,
Nestlé renewed its sponsorship of The Land; however, it was under agreement that
Nestlé 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. Nestlé stopped sponsoring The Land in 2009. [122]
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. [123]
Nestlé has partnered the Salzburg Festival in Austria for 20 years. In 2011, Nestlé
renewed its sponsorship of the Salzburg Festival until 2015.[124]
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.[125]
Sports
Nestlé's sponsorship of the Tour de France began in 2001 and the agreement was
extended in 2004, a move which demonstrated the company's interest in the Tour.
In July 2009, Nestlé Waters and 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 Nestlé's product portfolio: Vittel,
Powerbar, Nesquik, or Ricore.[126]
In 2014, Nestlé Waters sponsored the UK leg of the Tour de France through its
Buxton Natural Mineral Water brand.[127] 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.[128]
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.[129] 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.[130]
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. [131]
Bibliography
La stratégie Nestlé (Nestlé Strategy), Helmut
Maucher, French translation by Monique Thiollet,
Maxima Ed., Paris, 1995,[237] ISBN 2840010720
See also
Business portal
Cerelac
Nestlé Smarties Book Prize
Big Chocolate
Farfel the Dog
Nestlé Tower
Competitors
PepsiCo
Kraft Heinz
Mondelez International
Unilever
Mars, Incorporated
Sara Lee
Cadbury
Danone
Ferrero SpA
External links
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