1.

Introduction to Nestlé in Switzerland:

1.1. Establishment history:

Early Beginnings (1866–1904):

 1866: The Anglo-Swiss Condensed Milk Company was founded by American brothers
Charles and George Page in Cham, Switzerland. They aimed to create a shelf-stable milk
product.
1867: In Vevey, Switzerland, Henri Nestlé, a German-born pharmacist, develops a
groundbreaking infant food called "Farine Lactée" (flour with milk). This formula addressed
high infant mortality rates by providing a substitute for breast milk.
The Merger and Expansion (1905–1913):

 1905: A significant event in the history of Nestlé was the merger of The Anglo-Swiss
Condensed Milk Company with Henri Nestlé's company, Farine Lactée. Henri Nestlé, leading
to the formation of Nestlé Group, has headquarters in both Vevey and Cham, showcasing its
Swiss roots in both.
 Following years: The company expands its product range beyond condensed milk,
introducing unsweetened condensed milk and sterilized milk and penetrating impossible
markets around the world. This period laid the foundation for Nestle's global success. The
merger of the two Swiss companies in 1905 is considered the official birth of Nestle as we
know it today.

Vision and Mision:

 Mission:

Nestlé is the leading nutrition, health, and wellness company in the world. The motto of their
organization is "Good Food, Good Life." They strive to offer consumers the best, healthiest
options possible in various food and beverage categories and dining settings, from dawn to
twilight. Nestlé places a high premium on customer satisfaction and works tirelessly to
improve people's lives via their goods
 Vision:

The mission of Nestlé is to harness the power of food to improve everyone's quality of life,
both now and in future generations. They want to provide sustainable, market-leading
financial success and contribute to a healthier future. Sincerely, they want to earn people's
trust by continuously improving the standard of living through their food service offers.

1.2. Competitor:
In each specific market Nestle operates, it has also to face the presence of very specialized
companies which are more focused and therefore experienced on that market. If we take the
Coffee market as an example, we can see that Starbucks, Keurig and Maxwell House appear
as the main competitors. However, we have focus our analysis oN the big competitors on a
general level.
Unilever: Unilever is a consumer goods producer company and their products include food
and beverage. It has an extensive distribution channel. Unilever competes with Nestlé in
various segments of the food and beverage industry.
Pepsico: A major competitor across various beverage categories (carbonated drinks, bottled
water), and snack foods (chips, crackers). PepsiCo competes with Nestlé in segments of the
food and beverage. It offers a diverse range of food and beverage products, directly
competing with Nestlé in segments like snacks, carbonated beverages, and sports drinks,
targeting consumers seeking a mix of snack and beverage options. Some of their recognizable
products like Pepsi, Aquafina, Lays,…

Danone: The production of Danone focuses on the production of healthy and delicious food
such as dairy, plant-based, and water products that are custom-made for the requirements of
people of all ages. Danone competes with Nestlé in segments of the dairy and nutrition
industry. Danone offers a range of dairy and plant-based products, directly competing with
Nestlé in segments like yogurt, infant nutrition, and bottled water, targeting health-conscious
consumers. Danone’s focus on its commitment to health and sustainability

Mondelez: Mondelez produces various products like chocolate and cookies. Mondelez
competes with Nestlé in the snack and confectionery industry. Mondelez offers a variety of
snack and confectionery products, directly competing with Nestlé in segments like chocolate,
biscuits, and snack bars, targeting consumers seeking indulgent treats. Their iconic brands like
Oreo and Cadbury.

Mars: A multinational food conglomerate known for its confectionery, pet care, and other
food products. Mars competes with Nestlé in segments of the confectionery and pet food
industries. Mars offers a range of confectionery and pet care products, directly competing
with Nestlé in segments like chocolates, pet food, and pet snacks, targeting consumers
seeking indulgent treats and pet nutrition.

General Mills: A multinational food company known for its cereal, baking products, and
snacks. General Mills competes with Nestlé in the cereal and snack industry. Both compete in
the cereal and snack industry, providing breakfast cereals and snacks, granola bars, and
baking mixes.
 Nestlé faces a tight competition from a range of global companies in the food and beverage
industry. Nestlé has placed itself as a prominent food, nutrition, health and wellness company.
Its competitive strategies are mainly focused on foreign direct investment in dairy, ready meal
and other food businesses. Though there is growing competition, Nestlé has managed to stay
on top and it plans on maintaining its dominance through balance of sales between the high
risk countries which have a potential of growth and low growth risk but with low growth
countries of the economically advanced world.

1.3. Business situation:

Similar to Nestle, numerous foreign companies choose to expand into Switzerland, attracted
by its stable and competitive economy, reliable legal system, extensive infrastructure, and
well-structured capital market.

Switzerland presents abundant opportunities for entrepreneurs and investors seeking to invest
in a highly developed country. Its strategic location, close to economically robust countries
like Germany, Italy, and France, makes it an ideal gateway to the European market, free from
regulatory barriers imposed by the European Space Agency, an intergovernmental
organization that ensures investment across all 22 member states. As per the Hit Horizons
database, Switzerland is home to 553,662 registered companies, representing only 1.21% of
all companies in the database. The service industry has the highest number of registered
companies, followed by finance, insurance, real estate, and retail trade.

These companies collectively generate about 3 billion Swiss francs in annual sales. The
companies with the highest sales are Glencore International AG, Nestle SA, and Procter &
Gamble International Operations SA. Nestle, known for its chocolate and ice cream
production, is one of the top revenue-generating companies in the nation and is renowned in
Switzerland. It is also one of the best employers for students and professionals in business and
economics, being the largest single employer in Switzerland.

Nestle, a Swiss multinational, was established in 1867 and merged with Anglo-Swiss Milk
Co. in 1905 to form the Nestle Group. The successful company, headquartered in Vevey,
Switzerland, creates thousands of jobs for Swiss and foreign individuals, purchases millions
of francs worth of raw materials from Swiss farmers, and invests millions in operations,
research, and development, positively impacting Switzerland and its people.

Sales: Nestlé in Switzerland had a turnover of CHF 1.262 billion.

 Employees: Nestlé in Switzerland employs over 10,133 people.
 Investments: In 2017, Nestlé allocated CHF 289 million towards the development of
production and distribution facilities in Switzerland.
 Research & Development (R&D): Nestlé allocated CHF 990 million for R&D in Switzerland,
accounting for 57% of its worldwide research budget.
 Raw Materials and Services: In 2017, Nestlé expended CHF 1.093 billion on agricultural
commodities and packaging materials for Swiss production. It also allocated CHF 923 million
for services in Switzerland.
 Taxpayer: Nestlé is among the top taxpayers in Switzerland, contributing both directly via
corporate tax and indirectly through its employees' income tax and social insurance payments.
 Jobs: Over a span of fifteen years, Nestlé's workforce in Switzerland has grown by 34% to
10,133, encompassing over 115 different nationalities.
 Sustainability: Nestlé is committed to sustainability and transparency in its supply chain and
advocates for environmentally respectful farming practices.

Nestlé is a significant player in Switzerland's economy. Here are some key details about
Nestlé's business situation in Switzerland:
 Sales: In 2021, Nestlé reported CHF 1.137 billion in sales.
 Employees: Nestlé employs 8,494 people across all its entities in Switzerland.
 Investments: The company invested CHF 445 million in 2021.
 R&D: Nestlé spent CHF 1.047 billion on research and development (R&D) in 2021.
 Footprint: Nestlé has a strong footprint in Switzerland with 9 production sites, 7
headquarters/head offices, 5 research institutes, 5 product technology centers, and 4
distribution centers.
 Nutritional Value Reporting: For the first time, Nestlé disclosed the nutritional value of all its
products worldwide. The data revealed that nearly 60% of the company's sales come from
products that have a Health Star Rating (HSR) of 3.5 or higher, as well as from its specialized
nutrition products.
 Sustainability: Nestlé is committed to sustainability and has made significant strides in
reducing greenhouse gas emissions. The company is on track to achieve 100% renewable
electricity by 2025.
 In 2020, Nestle Switzerland reported a revenue of CHF 3.8 billion, which was a decrease of
2.5% compared to the year ago. The company's net profit was CHF 438 million, which was a
decrease of 6.4% compared to the previous year.
  The confectionery segment of Nestle Switzerland includes brands such as Cailler, KitKat, and
Smarties. The coffee segment includes brands such as Nescafe and Nespresso. The dairy
segment includes brands such as Nestle Milk, Nesquik, and La Laitiere. The nutrition segment
includes brands such as Gerber and Nestle Health Science.
 Nestle Switzerland is deeply committed to sustainability and has set bold goals to lessen its
environmental footprint. The company is striving to reach net-zero greenhouse gas emissions
by the year 2050 and has pledged to power its operations entirely with renewable electricity
by 2025.
 In terms of employment, Nestle Switzerland has around 10,000 employees, making it one of
the largest employers in the country. The company has a strong commitment to diversity and
inclusion and has implemented various initiatives to promote these values.
 In 2021, Nestle Switzerland continued to focus on sustainability and launched several
initiatives to reduce its environmental impact. The company also invested in new product
development and innovation to meet changing consumer preferences and trends.
 In terms of financial performance, Nestle Switzerland reported a revenue of CHF 3.7 billion
in the first half of 2021, which was a decrease of 1.3% compared to the same period in one
year back. The company's net profit was CHF 422 million, which was a decrease of 5.4%
compared to the same period in the last year.
 Looking ahead, Nestle Switzerland aims to continue its focus on sustainability and has set
ambitious targets to reduce its environmental impact. The company also plans to invest in
digitalization and innovation to drive growth and improve efficiency. However, the company's
future financial performance will depend on various factors, including market conditions,
consumer trends, and competition.

2. P.E.S.T.E.L:
2.1. Political:
2.1.1. Government Structure:

In contrast to common Western societies like the U.K. or U.S, France is viewed as a society
that values individualism, with absolutist institutions and centralist (Hofstede, 1980).
Interpersonal harmony is a fundamental cultural value that serves as a foundation for
businesses to grow and prosper. A significant portion of the French population places high
importance on family. While individualism and cultural liberalism are on the rise, there seems
to be a collective movement against these liberal ideals, calling for enhanced public order and
a higher regard for community norms (Meunier, 2000).

France, a centralized nation, is organized into various administrative divisions including

regions, departments, and communes, each with their own specific legal responsibilities. The
 national government is prohibited from meddling in their routine functions. France was one of
the initial members of the European Coal and Steel Community, which eventually evolved
into the European Union. As a result, France has transferred a portion of its sovereignty to
European institutions, as outlined in its constitution. France's political system is composed of
an executive branch, a legislative branch, and a judicial branch. The president of the republic
and the Government, which includes the prime minister and ministers, exercise executive
power. The president appoints the prime minister, who is accountable to Parliament.
Government structure in France:
 President of France: The current Presidnt of France is Emmanuel Macron. He was re-elected
as President of the Republic on April 24, 2022.
 Prime Minister of France: The current Prime Minister of France is Gabriel Attal. He was
appointed by President Emmanuel Macron on January 9, 2024.
 The current President of the Senate is Gérard Larcher, who has been in office since October 1,
2014.
 Parliament of France: The Parliament of France is composed of two chambers: the Senate and
the National Assembly. The current President of the National Assembly is Yaël Braun-Pivet.
 Judiciary of France: The judiciary of France is independent and its members are appointed for
life. The current Minister of Justice is Éric Dupond-Moretti.

2.1.2. Political Parties:

France is a semi-presidential republic with a multi-party system. The main political parties
are:

 La République En Marche! (LREM) – centrist:

"Republic On The Move", often shortened to En Marche!, is a party that rapidly rose to
prominence in French politics, becoming the most successful party in the country's elections
in less than two years from its inception. It was established in 2016 by Emmanuel Macron,
who is the current President of France, as a centrist liberal party. The party's principles, which
are akin to those of the UK's Liberal Democrats, encompass economic and social liberalism,
as well as a pro-European stance. However, since 2017, the party has been leaning more
towards the right.

Emmanuel Macron emerged victorious in the French presidential elections of 2017 and 2022.
Furthermore, in the 2017 parliamentary elections, En Marche! was the party with the most
representation, securing 280 seats. The party also has 23 seats in the Senate.

 The National Rally (RN) - far-right:

 The National Rally, originally known as the National Front (Front National), was established
in 1972 by Jean-Marie Le Pen. The party is currently under the leadership of his daughter,
Marine Le Pen, who rebranded it in 2018. It is the most notable far-right party in France and
is recognized as one of the most enduring and well-known across Europe. The party’s
platform is rooted in French nationalism and it advocates for anti-immigration policies
(especially from Islamic nations) and a strict approach to law enforcement.

While the National Rally is known for its Eurosceptic views, it has softened its position over
time. The party now advocates for EU reform instead of withdrawal, and supports retaining
the Euro and remaining in the Schengen Area. Despite Marine Le Pen’s second-place finish in
the 2022 presidential election, the party has had less success in parliamentary elections. It
currently has 6 seats in the Assembly and one in the Senate.

 The Republicans (LR) - centre-right:

This mainstream conservative party was established in 2015 by Nicolas Sarkozy, a former
French President. It is part of the Gaullist political tradition and emerged from the remnants of
the Popular Union Movement (Union pour un Mouvement Populaire – UMP), which was
founded by Jacques Chirac, another former president, in 2002. The Republicans/UMP has
been a significant player in French politics in the 21st century.

The party encompasses a wide spectrum of conservative ideologies, from liberal conservatism
to neoconservatism. In the 2017 parliamentary elections, it formed a right-wing coalition with
four other parties, but did not succeed in winning. Nevertheless, it maintains a majority in the
Senate. The party currently holds 104 seats in the Assembly and 148 seats in the Senate. In
the 2022 French presidential election, its candidate, Valérie Pécresse, finished fourth in the
first round of voting with 5%. The party is currently led by Christian Jacob.

 The Socialist Party (PS) - centre-left:

The Socialist Party, once the leading left-wing party in France, has seen its support wane in
recent years. Established in 1969 through a coalition of non-communist left-wing parties and
organizations, it has given France two presidents - François Mitterrand (1981-86 and 1988-
93) and François Hollande (2012-17).

Like other mainstream left-wing parties in Europe, the Socialist Party's core principles have
been social democracy, Keynesian economics, and a robust welfare state. However, over time,
it has drifted from traditional socialist policies, allowing for some degree of economic
privatization.
 The party's electoral performance has been lackluster since 2017. In the 2022 presidential
election, its candidate, Anne Hidalgo, finished in 10th place. Currently, it holds 25 seats in the
Assembly and 73 in the Senate, with Oliver Faure serving as the current leader.

The Union of Democrats and Independents (Union des démocrates et indépendants – UDI),
established in 2012, is a liberal party. However, it leans more towards classical liberalism than
En Marche! or MoDem, positioning it closer to the right-wing of the political spectrum and
nearer to conservative French parties. The party backed the Republican Party's presidential
candidate in the 2017 and 2022 elections and formed alliances with right-wing parties in
parliamentary elections. It currently holds 18 seats in the Assembly and 42 in the Senate. The
party is presently led by Jean-Christophe Lagarde.

 France Unbowed (LFI) - left-wing populist:

La France Insoumise, translating to “Rebellious France”, is a relatively new party in French

politics, established in 2016. It advocates for a radical democratic socialist platform that
merges left-wing populism with eco-socialism and is part of the Eurosceptic left.

The party, founded by Jean-Luc Mélenchon, a former co-president of the Left Party, proposes
policies such as transitioning to a new Sixth Republic, withdrawing from EU and NATO
treaties, decommissioning nuclear plants, and enhancing workers’ rights and wages.
Mélenchon secured third place in the 2022 French presidential election with 22% of the vote.
The party won 17 seats in the 2017 parliamentary elections.

The current President of France is Emmanuel Macron (LREM), who was elected in 2017. The
Prime Minister is Élisabeth Borne (LREM), who was appointed in 2022.

The French Parliament is bicameral, consisting of the National Assembly and the Senate. The
National Assembly is the lower house and has 577 members, who are directly elected by
proportional representation. The Senate is the upper house and has 348 members, who are
indirectly elected by a system of electoral college.

2.1.3. Political Stability:

In 2002, political instability in France stood at around 63 percent. However, one year later,
this index plummeted dramatically to 37 percent due to various reasons. In 2003, several
significant events occurred in France that could have potentially influenced the country's
political stability index.
Firstly, it was about the speech of Dominique de Villepin, UN against war in Iraq: On March
3, 2003, Dominique de Villepin, who was the French Foreign Minister at the time, delivered a
speech at the United Nations opposing the war in Iraq. This stance was further reinforced by
President Jacques Chirac on March 10, 2003, when he promised to veto any UN resolution
authorizing war in Iraq. This position could have caused some international tension and
internal debate, potentially affecting the political stability index. Secondly, the 29th G8
summit in Évian-les-Bains: The 29th G8 summit took place in Évian-les-Bains on June 1,
2003. The event was met with tight security and tens of thousands of protesters, which could
have contributed to a decrease in the political stability index. Moreover, in August 2003, a
severe heatwave hit Paris, causing temperatures to rise up to 44 °C (112 °F). The heatwave
resulted in a health crisis in the country, which could have led to public dissatisfaction with
the government's response, thereby affecting the political stability index.
Furthermore, from 2004 to 2006 the political stability and absence of violence/ terrorism in
France has improved from 41 percent to 52 percent respectively, because of numerous factors
such as: France experienced a period of economic growth during this time, which can
contribute to political stability, european Integration: France played a leading role in
European integration efforts during this period, which may have fostered a sense of stability
and cooperation. From 2007 to 2011, there was a fluctuation in the political stability index in
France. Unfortunately, there isn't a single source that definitively tracks political stability
indexes, so it's difficult to pinpoint the exact cause of fluctuations in France from 2007 to
2011. Hence, The global financial crisis that began in 2008 undoubtedly impacted France's
economy, leading to increased unemployment and social unrest. This could have caused a
decline in the stability index. The 2007 presidential election saw a shift in power from center-
right to center-left with Nicolas Sarkozy's victory. This change in leadership could have
caused temporary instability as new policies were implemented. The economic downturn led
to a series of labor protests and strikes in 2008, which could have contributed to a perception
of instability. Sarkozy's presidency was marked by a more assertive leadership style. While
some might see this as decisive, others may have viewed it as divisive, potentially impacting
stability. While occurring before 2007, the 2005 riots in French suburbs due to social and
economic frustrations might have had lingering effects on the perception of stability.
Additionally, events like the Arab Spring uprisings in 2011 might have indirectly influenced
French public opinion and contributed to a sense of potential unrest. And in 2011, François
Hollande, the Socialist Party candidate, won the election, becoming the first left-wing
President of the Fifth Republic. Sarkozy faced criticism for his perceived favoritism towards
businesses and the wealthy, and his personal life was considered too ostentatious for a head of
state. Despite facing criticism, he was able to foster a more equitable society, decrease
unemployment, and create jobs. As a result, this success is reflected in the increase in France's
political stability index to 55 percent.
However, from 2012 to 2016, there was a downward trend in the political stability index in
france went down dramatically from 53 to 30, because of the plethora of factors such as
Several events likely contributed to a decrease in France's political stability index from 2012
to 2016: Eurozone Crisis:The European sovereign debt crisis, which began in 2010, continued
to cast a shadow over the French economy during this period. Slow growth and high
unemployment likely contributed to public frustration and a perception of instability, 2015
Charlie Hebdo Shooting. The November 2015 terror attacks in Paris further exacerbated fears
and led to questions about the government's ability to ensure safety. These events likely
contributed to a decline in the stability index. Socialist President François Hollande, elected in
2012, faced criticism for his handling of the economy and the terror attacks. His approval
ratings fell significantly throughout his presidency, which could have contributed to a
perception of instability. Moreover, Marine Le Pen's Gains The far-right National Front party,
led by Marine Le Pen, gained significant ground in the 2014 elections. This rise in populism
and anti-establishment sentiment likely contributed to a sense of political uncertainty.
From 2017 to 2022, political stability in France had been through numerous fluctuations
because of the plethora of political situations such as From 2017 to 2022, several significant
political events in France influenced the country's political stability index. Rise of Right-Wing
Politics**: In the presidential elections of 2002, 2017, and 2022, the far-right Rassemblement
Nationale (formerly Front National) made it to the second round and nearly doubled their
votes during this period. 2022 Presidential Election: According to polls, President Emmanuel
Macron easily won re-election in the presidential run-off, providing stability for France and
the European Union.The 2022 presidential election recreated the 2017 face-off between
Emmanuel Macron and Marine Le Pen. However, after the election, Macron's party lost its
majority in the parliamentary elections. Regarding the political stability index. In 2022,
political stability in France stood at 56 percent, this suggests that despite political fluctuations,
France maintained a relatively stable environment.

From analyzing the chart, we can conclude that the political situation in France is subject to
considerable fluctuations, influenced by various objective and subjective factors.
Consequently, it significantly affects the business operations of Nestle in France. However,
Nestle in France is still growing. And, hence France is becoming the 2nd biggest market in
the Nestlé Group.
Comprehensive political situation in France (2023-2024):
The political landscape in France from 2023 to 2024 has been marked by several significant
events and trends:
European Parliament Elections (2024): The main election in France in 2024 is May’s
European Parliament elections, with 81 seats up for grabs. The European elections have
previously been fertile ground for Marine Le Pen’s party, the far-right Rassemblement
Nationale (RN). However, this year her party will have to contest the rural vote with a new
party, the Alliance Rurale, or Rural alliance.
US Elections (2024): Elections will be held on November 5, 2024, to elect the US president.
All seats in the House of Representatives are also up for election, as well as part of the Senate.
Political Landscape: There will be some changes in the political landscape in 2024 as the UK
prepares for a general election, the EU for European Parliament elections, and the US for the
presidential elections.
Government Crisis (2023-2024): The French government faced a crisis from December 2023
to January 2024. This crisis was primarily caused by the difficult passage of the 2023
immigration and asylum bill, one of Emmanuel Macron’s flagship manifesto commitments
made during the 2022 presidential election. The bill was unexpectedly defeated in the
National Assembly, leading to the resignation of Interior Minister Gérald Darmanin 1. After
the bill was passed on 19 December, Health Minister Aurélien Rousseau immediately
resigned to protest against it.
Appointment of New Prime Minister: In the wake of the crisis, Gabriel Attal was appointed as
the new Prime Minister.
Protests and Strikes: The year 2023 was marked by demonstrations and strikes . Excessive use
of force by law enforcement against protesters and detainees persisted.
Policy Progress: Despite the crisis, policy progress was made with support from other parties,
and by passing bills by decree. However, this was a controversial option, with protests
erupting against a pension reform passed without a vote.
Assessment:
Stable Political Environment: France's political stability provides a conducive environment
for Nestlé's operations. However, Nestlé should remain vigilant about potential disruptions
from protests or civil unrest.
Strong Market Presence: Nestlé has a strong presence in France, with its products present in
99% of French households. This indicates a high level of consumer acceptance and trust in the
brand.
Local Production: With 31 factories across France, Nestlé has a robust local production
network. This allows the company to quickly respond to market changes and reduces
dependence on imports.
Innovation and Research: Nestlé's growth in France is driven by innovation, research, and
nutritional progress. The company should continue investing in these areas to maintain its
competitive edge.
Political Deadlock: France is experiencing a political deadlock. President Emmanuel
Macron’s party lost its absolute majority in the National Assembly. This could lead to
difficulties in passing key domestic reforms. For Nestlé, this could mean potential delays or
changes in policies that affect their operations.
Regulatory Changes: Changes in EU and French regulations could impact Nestlé's operations.
For instance, the French government extended the electricity price cap until 2025, which
could affect Nestlé's operational costs.
Sustainability Initiatives: Nestlé's commitment to sustainability aligns with France's eco-
friendly policies. The company should continue to prioritize sustainability in its operations to
enhance its reputation and meet regulatory requirements.
Public Unrest: There are threats of strikes by French unions, particularly during high-profile
events like the Paris Olympics. This could disrupt logistics and supply chains, potentially
affecting Nestlé’s operations
 In brief, while Nestlé has a strong presence in France, the current political situation and past
controversies could present challenges. Nestlé would need to monitor the situation closely and
adapt its strategies accordingly. It’s also crucial for Nestlé to maintain its reputation and trust
among French consumers. This could involve addressing past issues transparently and
ensuring high standards of safety and quality in its products.

2.2. Economic:
2.2.1. GDP:

The graph illustrates France's GDP per person from 2019 to 2025+. France's GDP per head
was approximately 42,349.89 US dollars in 2022. From 2020, there was a major decline, most
likely because of the COVID-19 pandemic's effects on the economy. But in 2021, there is a
significant rebound, and growth is expected to continue steadily until 2025 and later.
Forecasts indicate that GDP per capita will increase from approximately $42,500 in 2019 to
possibly over $55,000 by 2025+, pointing to promising economic growth for France. So show
us the upcoming evolved economy in France and also open several opportunities for Nestle to
develop including nestle.

France now is the seventh-largest economy in the world by nominal GDP. In 2022, its GDP
was approximately $2.78 trillion. The country experienced a GDP growth rate of 6.5% in
2021 and 2.5% in 2022. Hence, this shows us the upcoming evolved economy in France and
also open several opportunities for Nestle to develop including nestle.

2.2.2. Inflation rates:

The rate of France’s inflation began in 2020 at a comparatively low level.It started to climb
steadily by 2021 and a year later there was a notable increase in inflation, with the rate
peaking at 6.2%. The rate was still high in 2023, but it dropped to 5.63%. Forecasts for 2024
demonstrate a further drop to about 2.46%. Eventually, the inflation rate will remain low at
around 1.59% in 2025 and further. Noticing the Recent Surge: France's inflation rate hit 6.2%
in 2022, the highest level since the 1980s, following a notable spike in the country's costs.
Inflation rates play a crucial role in shaping economic policies and affecting purchasing
power. it is necessary to keep an eye on these fluctuations as they impact the financial well-
being of households and businesses. It is evident from this that the French economy is
healthily managing inflation. These figures, however, are merely projections and could
change based on a range of national and international economic variables.

2.2.3. International agreement:

France is a party to several trade agreements as an EU member. The EU Trade Agreements

provide a detailed description of the trade agreements that the EU and its Member States
have.
  Investment Agreements:

France has forged a number of Bilateral Investment Treaties (BITs) with nations all over the
world. These agreements seek to safeguard and encourage foreign investors' interests within
their respective nations' borders. Colombia, Iraq, Mauritius, Djibouti, Kenya, China, Senegal,
Guinea, Seychelles, Turkey, Libya, Bahrain, Bosnia and Herzegovina, Madagascar, Ethiopia,
Iran, Uganda, Tajikistan, Mozambique, and others are among the nations with which France
has agreements on bilateral investments (BITs).

 The Paris Agreement:

This is an international climate change treaty that is legally binding. On December 12, 2015,
during the UN Climate Change Conference (COP21) in Paris, France, it was adopted by 196
Parties. The pact aims to keep global average temperature increases to far below 2°C above
pre-industrial levels and to work toward keeping increases to 1.5°C over pre-industrial levels.

 WTO Agreements:

France joined the World Trade Organization (WTO) on January 1, 1995, and the General
Agreement on Tariffs and Trade (GATT) on January 1, 19481. France has a significant
influence on WTO policy. For example, France made a one million euro donation to the WTO
Fisheries Funding Mechanism in June 20231. France is a participant in an EU-wide attempt to
begin explaining future trade-related issues of e-commerce negotiations.

 Ljubljana-Hague Convention:

France signed the Ljubljana-Hague Convention on International Cooperation in the

Investigation and Prosecution of Genocide, Crimes against Humanity, War Crimes, and other
International Crimes on February 14, 2023, as a demonstration of their support for
international justice and as part of their foreign policy in human rights.

These agreements reflect France’s active engagement in international trade and investment,
fostering economic relations with various countries

2.2.4. Tax – Tariff:

 Tax:

The graph represents France's tax revenue from 2014 to 2021 as a percentage of GDP. From
2014 to 2016, tax income was consistently stable, ranging from 23% to 23.2% of GDP. In the
period from 2016 to 2019, this figure increased significantly, reaching a peak of about 25% of
GDP in that year. This can be the result of modifications to tax laws or expansion of the
economy during this time. After 2019, there was a strong decline, with a dip to about 24% by
2020. This may be a result of the COVID-19 pandemic's effects on the economy.There was a
 minor stabilization or recovery of about 24% into 2021. These numbers suggest a possible
reversal of the decrease that had occurred the year before, this is a signal for the reborn of the
economy after the pandemic crisis and the upcoming economic growth in France. While tax
reflects the profits of French people, the tax goes up equals to the citizen’s life conditions
going up and also the money flows.

 Tariff:

Exports:

In 2019, France's total export value (Free on Board, or FoB) was €556,364 million.
At the HS6 digit level, France exported a wide variety of goods across 4,354 different
categories. Globally, these exports were received by 226 nations. An important factor in
France's economy is the export industry, which promotes employment and growth.

France exports goods such as machinery, aircraft, chemicals, and pharmaceutical products.
Major partners include Germany, Spain, and Italy.

Imports:

In 2019, €643,208 million was the total value of French imports (cost, insurance, and freight,
or CIF). At the HS6 digit level, France imported 4,545 different products from different
suppliers. 233 nations sent imports to the nation, demonstrating its linkages to the world
market. Energy resources, consumer items, machinery, and raw materials are important
imports. Key import partners are Germany, Belgium, and the Netherlands. Imports include
machinery, crude oil, and vehicles

France's trade balance reflects a deficit because imports were higher than exports. The variety
of goods that France imports and exports demonstrates its involvement in international supply
chains. Policymakers keep a close eye on trade trends to maintain competitiveness and
economic stability.

2.2.5. Labor forces and unemployment rate:

 Labor forces:

The rate reached its highest point in 2015, at 56.01%. After that, it steadily dropped until
2020, when reaching its lowest point at 54.53%. The percentage of people in the workforce
increased significantly in 2022, topping all prior years at 56.26%. Between 2003 and 2023,
the labor force participation rate averaged 71.69%; in the fourth quarter of 2023, it reached an
all-time high of 74.10%. Recently, France has a labor force of around 30.4 million people.

 Unemployment rate:
 France's unemployment rate remained stable at 7.5% in the fourth quarter of 2023, matching
an upwardly revised reading of 7.5% in the previous quarter and falling short of market
expectations of 7.4%. This figure grew by 0.2 percentage points to 7%, while the overall
number of unemployed persons climbed by 29 thousand to 2.3 million.

In the meantime, the unemployment rate fell by 0.1 percentage points to 5% for those over 50
and by 0.2 percentage points to 17.5% for those between the ages of 15 and 24. While the
activity rate climbed from 73.8% over the preceding three months to 74.1% during the final
quarter of 2023. This calculates the Average Gross Salary: Approximately €3,462 per month
(as of 2022).

France has a huge labor force, yet problems still exist. It takes consistent work to address
unemployment, particularly for certain age groups. The long-term stability depends on
policies that support economic diversification, job development, and vocational training. The
Policymakers still have a difficult time striking a balance between social welfare and
economic revival.

2.2.6. Trade deficit:

France's trade deficit increased to €7.4 billion in January 2024, while exports fell 3.1%
monthly to €48.8 billion, the lowest level in 1.5 years. Less sharply, imports dropped by 1.1%
to €56.2 billion. From €4.2 billion to €4.6 billion in the previous period, there was an energy
shortfall. When energy is excluded, the trade deficit decreased from December's €4.2 billion
to €4.1 billion. In the manufacturing sector, the consumer products trade balance increased by
€0.2 billion to reach €0.7 billion. Investment goods saw a €0.1 billion decline in the trade
balance, totaling €-2.8 billion. Reaching €-1.9 billion1, the trade balance for intermediate
goods increased marginally by €0.01 billion. A complex interaction of economic factors, such
as currency changes, domestic production capacity, and global demand, is reflected in the
trade imbalance. Policymakers in France are still debating how to deal with this ongoing trade
imbalance.

In brief, resolving the trade deficit is still critical to France's economic stability even though
the country faces difficulties in sustaining a balanced trade position.

2.2.7. Im-ex conditions:

 The CFA France and French Control:

France created the CFA Franc as a means of preserving its power even after official
colonialism ended. France used the money it received from former slave owners as
compensation to create colonial banks in Africa. These banks enforced "the colonial pact,"
 which guaranteed French control. The agreement included a French monopoly on shipping,
exports, and imports, as well as the purposeful underdevelopment of the colonies' economy
and reliance on raw material exports. The CFA franc was used by France as an instrument of
control, limiting African countries' sovereignty and fostering economic dependence.

 Independence via Strings Enclosed:

In 1958, France conducted a referendum on the sub-Saharan African nations under French
rule. Guinea voted for full independence under the leadership of a disloyal French ally.
While gaining independence, some nations were constrained by "cooperation agreements."
Paris continued to have sovereign commands. France manipulated Guinea's currency when it
debuted in 1960 by using covert activities to undermine the fledgling country.

 The African Quasi-Empire of France:

Imperialist monetary practices have caused economic difficulties for France's former colonies
in Africa. This domination is maintained by the CFA franc, which hurts home economies and
threatens democracy. Africa's economic sovereignty needs to be addressed immediately, as
evidenced by recent events like the large-scale youth protests in Senegal.

Assessment:

France’s economy exhibits strengths and challenges. While it has a diverse economy,
addressing trade imbalances, inflation, and labor market dynamics is vital for sustained
growth and prosperity. France has complicated historical ties to its former colonies.
Reassessing economic systems is essential, even though some cooperation is still required.
Fairtrade, equitable partnerships, and true economic sovereignty should take the place of
outmoded paradigms that sustain reliance. France must acknowledge the necessity of true
collaboration to respect African nations' autonomy and aspirations. Then and only then will
colonialism's legacy start to vanish.

To summarise, Nestlé aims to improve lives through sustainable practices, and its mission is
to provide wholesome food. Their dedication to Switzerland highlights the substantial
influence they have on the economic and social climate of the nation. Meanwhile, these are
some advice for Nestle to develop itself in France :

 Make Use of Research and Development (R&D): Nestlé has a sizable R&D team
consisting of over 4,100 researchers spread across 23 locations worldwide. Four locations
in France are devoted to product quality and innovation1. To develop innovative food
solutions that appeal to French customers, Nestlé should keep funding research and
development.
This factor plays an important role in better catering to French tastes, enhancing cooperation
with regional research centers, such as the plant science research center in Tours, France.

 Nutritional Optimization: In terms of cutting back on salt, sugar, and saturated fats in its
products, Nestlé has accomplished remarkable strides. Follow suit by adopting the food
habits and level of health consciousness of the French.

This emphasis on the processes to create more goods with higher Nutri-Score ratings, putting
a focus on healthier selections.

 Sustainability and Local Sourcing: Sustainable and locally sourced items are highly
valued in France. Nestlé ought to highlight its dedication to sustainable packaging,
regenerative food systems, and ethical sourcing.

Nestle should utilize collaborations with nearby farmers and open-sourcing procedures.

 Cultural Adaptation: Recognize the customs and tastes of French cuisine. Modify product
names, labels, and advertising to appeal to regional cultures.

Indeed, Working with French chefs or influencers to develop dishes that are unique to the
area and make use of Nestlé goods is a good way for Nestle.

 Digital Engagement: Make use of digital channels to interact with brands. French
customers are engaged on the internet, particularly on social media.

It is necessary for Nestle to engage French viewers, allocate resources towards influencer
collaborations, interactive content, and social media campaigns.

 Keep up with trends in Health and Mental health: French consumers highly value health
and well-being. Nestlé ought to investigate plant-based substitutes, organic options, and
functional foods.

Introducing novel items that are in line with the newest health trends, including fortified foods
or plant-based dairy substitutes. This will help the company's status always keep up with
modern society and healthy trends, and meet customers' requirements.

 Trust and Transparency: Transparency is important to French customers. Regarding

ingredients, sourcing, and production procedures, Nestlé ought to be transparent.

Last but not least, it is necessary for Nestle to create trust for customers by intensifying the
dissemination of information regarding Nestlé's dedication to safety, quality, and moral
behavior.
2.3. Social:

Social factors play an important role in shaping French society and can impact various
businesses operating within the country, including demographics, education, family structure,
religion, living standards, and consumer behavior, and son on. Understanding these social
aspects is crucial for any company seeking to understand the French market and its people.

2.3.1. Demography:
 Age:

The bar chart provided illustrates the distribution of the population in France by age group in
the year 2023. The largest age group in France in 2023 is the 20 to 59-year-old category, with
a population of approximately 32.3 million. This group has remained relatively stable over the
years, with only minor fluctuations. The second largest group is the 0–19 year-old category,
with a population of around 10.14 million. This group has seen a slight decline compared to
previous years, but overall, the population has remained fairly stable. The smallest age group
is the 60 to 64-year-old category, with a population of about 4.07 million. Despite being the
smallest group, it has gradually increased over the past decade. The 65 and older age group
has seen a significant increase over the years, reaching a population of approximately 14.14
million in 2023. Moreover, according to a report published on March 11, 2024, by the Statista
Research Department, the median age of the French population has increased by an average of
three years per decade between 2010 and 2023, reaching over 41 in 2023. This aging
population trend is due to several factors:
The first reason is the decline in fertility, which can be witnessed in 2022, the birth rate in
France reached its lowest level since 1982, at 10.6 births per 1,000 inhabitants. Furthermore,
there was a decline in the average number of children born per woman from 2.03 in 2010 to
1.83 in 2020.

Another reason contributing to the aging population trend in France is that as of 2024, the life
expectancy in France is 83.26 years, which is a slight increase from 83.00 years in 2022,
based on data researched by United Nations projections.
This phenomenon is sometimes referred to as “aging well” or “healthy aging,” and it’s a
significant factor in the changing demographics of many developed countries, including
France.
 Gender:

France reflects a demographic pattern common in Europe: a slightly larger female population
compared to males. According to the source published by Statista Research Department in
2023, the female population in France has been increasing since 2004. In 2023, the female
population in France amounted to more than 35 million. While the male population grew from
around 28 million in 1990 to 32.9 million in 2023. Notably, the 2014 increase can be partially
 attributed to including Mayotte, a French department in the Indian Ocean (source: Statista
Research Department, 2023).
However, Gender inequality in France is also a worrying issue. According to data released by
the Statista Research Department in March 2019, a significant majority of both genders in
France perceive a lack of gender equality. Only a minority—20% of women and 35% of men
—believe that equality has been achieved. In contrast, nearly three-quarters of women
believed that there was no gender parity in France at present, as opposed to 57 percent of men
who shared the same opinion.

Level education:
In France, education is mandatory and free from 3 to 16 years old. Access to higher education
is dependent on achieving the baccalaureate national diploma. This foundation contributes to
the country's impressive literacy rate of 99%, placing it among the top 40 globally. The annual
Best Countries Report, conducted by US News and World Report, BAV Group, and the
Wharton School of the University of Pennsylvania, reveals that, as of 2023, France is ranked
5th in the world for education.
Looking deeper, higher education flourishes in France. During the 2022–2023 academic year,
nearly 3 million students were enrolled, with university students over half the population.
38% of 15-19-year-olds pursuing general upper secondary education, while 22% opt for
vocational tracks. Additionally, 4% continue lower secondary programs, and a significant
23% transition directly to tertiary programs.
France's commitment to education extends beyond traditional universities. A substantial
portion (42%) of young adults (25-34) hold vocational education and training (VET)
qualifications, with 30% at the upper secondary level and 12% at the short-cycle tertiary level.
This focus on VET highlights France's emphasis on providing a well-rounded educational
system that equips individuals for success in various career paths.

 Income:

As can be seen from the graph, there has been an increase in the French's average annual
wage from 2000 to 2019, a difference of approximately 14,000 euros. After this growth trend,
the average wages per year slightly decreased between 2019 and 2020, attributed to the global
COVID-19 pandemic. In 2019, most French citizens earned between 1,000 and 2,999 euros a
month. While the average annual wages were 39,663 euros in 2021, they reached 41,706
euros in 2022.
Additionally, the median household income (PPP) in France was $61,020 in 2021. Between
2010 and 2021, France’s median household income (PPP) increased by 6.6%.
 In France, gender-based wage discrepancies occurred and were raised into a complex
phenomenon. Historically, French women have always made less money than French men,
but over time, this difference has decreased considerably.In detail, in 2000, men earned
around 26 percent more than women; 20 years later, the gap decreased to 17 percent; the
difference in salaries dropped to 9 percent. ( Statista, January 2023). Several factors
contribute to this disparity:
Work-Life Balance: Women often bear a disproportionate share of domestic and care work,
which can limit their ability to work full-time or pursue career advancement.
Occupational Segregation: Women and men tend to work in different sectors. Sectors
dominated by women often have lower average wages.
Discrimination: Despite equal work and equal skill levels, women are often paid less than
men.
2.3.2. Family structure:

As of 2020, the most common type of family in France was composed of a couple without
children, accounting for more than 7.8 million families. However, family models in France
have undergone a variety of transformations in the past year, like in other Western countries.
According to the source, the number of children raised by a couple was approximately 4
million more than the total number of children living with a single mother and father.
Furthermore, another French government study shows approximately 25% of families are
single-parent, while 9% are blended families.
Especially, there have been changing trends in the French family structure:
Modern French couples tend to wait until they are older to get married and have children. The
average age at first marriage has increased, and couples often delay having children until they
are more established in their careers and personal lives. Smaller family sizes are becoming
more common, reflecting global trends.

Same-sex marriage became legal on May 17, 2013, in France, which makes France the ninth
European country and 14th country around the world to permit gay marriage. More than
10,000 homosexual couples were married in 2014, setting a notable record. A mere year after
the legalization of same-sex unions, the enthusiasm of couples who had previously been
prohibited from getting married remained strong. The number of same-sex marriages
increased by almost 2,500 couples between 2000 (4,598 unions) and 2023 (7,000 unions).

2.3.3. Religion:

This bar chart illustrates the feelings of the French about religion in 2020, showing that nearly
half of the people declared themselves to be Catholic. Islam was practiced by about 4% of the
 population, while a significant portion of the population did not identify with any religion.
Finally, a minority of the French believed that they were bound to Protestantism, Buddhism,
Judaism, and Orthodox Christianity, about 1–2%, respectively.
In 2023, Immigration is reshaping the religious landscape of France. Immigrants are twice as
likely to be affiliated with a religion compared to those with no migration background. The
distance from religion varies significantly based on how it relates to migration: just 19% of
immigrants who arrived after the age of 16 and 26% of descendants of two immigrant parents
declare having no religion, compared to 58% of those without a migration background across
two generations.
2.3.4. Living standard:

Property Price to Income Ratio (PPIR): The house price to income ratio in France decreased
by 8.3 index points in the second quarter of 2023, compared to the same period the previous
year, reflecting a slowdown in the housing market. In 2023, the house price-to-income ratio
amounted to 104.5 index points, which shows that house prices have grown 10 percent faster
than income since 2015. With this ratio, it can be said that buying a house in France may not
be easy for some people, especially for those with lower-than-average incomes. (Statista,
November 2023)
Safety: France outperforms the average in safety according to the OECD Better Life Index,
ranked 22nd around the world.
Health Care: France has a universal healthcare system managed by the government and
supplemented by private insurers. Healthcare is provided for all residents, regardless of age,
income, or status. The World Health Organization found that France provided the “best
overall health care” in the world. Thanks to the healthcare system, life expectancy at birth in
France is around 83 years, two years higher than the OECD average of 81 years.
An average of 6.7 was rated by French respondents, matching the average grade of the OECD
as the whole level of life satisfaction on a scale of 0 to 10.
However, income inequality, often measured by the Gini index, is a key indicator of the gap
between the rich and the poor. In France, income inequality has seen a sharp rise. The Gini
index for France in 2021 was reported to be 30.72, indicating a level of income inequality.
Moreover, housing prices, particularly in large cities like Paris, have been increasing, which
can exacerbate wealth inequality. These factors contribute to the gap between the rich and the
poor in France.
2.3.5. Customer behavior:

Most French believe that consumption is synonymous with pleasure; therefore travel,
restaurants, sports, culture, and entertainment products and services are quite important to
most French consumers. This focus on pleasure is reflected in their purchasing habits, with
 mass retailers and large companies being popular destinations. However, it's important to note
that confidence in these establishments is lower compared to smaller shops and craftspeople
(40% vs. 80%).
The rise of e-commerce and mobile commerce (m-commerce) is undeniable, impacting even
grocery shopping. Major cities have seen a surge in drive-thru and home delivery services to
cater to this growing online sales trend.
While foreign products are readily available in supermarkets and other channels, particularly
in cities where foreign restaurants and services are commonplace, a strong preference for
"Made in France" goods is emerging. Nearly 80% of French consumers see these products as
a way to support the local economy and a guarantee of quality.
Social media plays a significant role in influencing purchasing decisions, especially in areas
like cooking, beauty products, and fashion. Influencer marketing holds considerable sway,
with one-third of internet users following influencers, and 75% of those followers having
made purchases based on influencer recommendations.
However, French consumer behavior has shifted in recent years, with a growing emphasis on
responsible consumption. Consumers are increasingly interested in factors like product
quality, traceability, composition, authenticity, transparency, and environmental impact. Data
shows that in 2021, 79% of French consumers would opt for a "more responsible" product at
the same price. Additionally, a third of consumers regularly or always purchase second-hand
or refurbished devices.
The "sustainable" product category is attracting significant interest, with organic, local,
natural, paraben-free, and preservative-free items gaining popularity (Greenflex & Ademe
Barometer 2021). The food sector reflects this shift, with a decrease in the quantity of
products purchased despite lower prices. However, the quality of purchases has improved,
evidenced by increased sales of organic, labeled, vegan, local, fresh, and seasonal products,
along with a growing focus on short supply chains.
2.3.6. Culture:

France is regarded as the birthplace of European culture and is home to several stunning sites
that are well-known across the globe. The French people have a strong commitment to
preserving and advancing their rich and varied cultural legacy. The following are some unique
aspects of French culture:

Language: French serves as the official language of France, used widely in education, politics,
and communication channels. However, the nation boasts a variety of dialects and languages
reflecting its global influences.
 Values and Attitudes: The French value personal freedom, equality, and fraternity.
Additionally, a strong emphasis is placed on respecting individual privacy, often leading to a
reluctance to share personal information.
Family Life: The family occupies a central role in French social life. Weekends and holidays
are frequently dedicated to spending quality time with loved ones.
Culinary Influence: French cuisine serves as a constant source of inspiration within the food
and beverage industry. From intricate chocolate creations to hearty soups, the artistry inherent
in French cooking fuels culinary innovation. Renowned for its emphasis on fresh ingredients,
simple flavors, and formal techniques, pride in presentation, French cuisine has earned a
reputation as the world's most prestigious and respectable culinary tradition. Furthermore, the
rich history and pride in a presentation associated with French cuisine have laid the
foundation for countless culinary styles and specialties across the globe.
Gender and Diversity: France is one of the pioneering countries in promoting rights for
women and the LGBTQ+ community. It is also home to many ethnicities and cultures.
Assessment:
Strengths:
 Based on the aging population in France, Nestle can develop and market nutritional products
specifically designed for the elderly, a rapidly growing demographic in France.
 High literacy rates and education help French consumers be receptive to informative
marketing campaigns about product quality, traceability, and health benefits.
 Nestle can leverage its French production facilities and ingredients to build brand trust and
loyalty to dominate the trend of emphasizing "Made in France" goods
 Growing interest in sustainable consumption: Nestle can emphasize its commitment to
responsible sourcing, organic ingredients, and environmental practices.
 Nestle can leverage French culinary traditions to develop innovative and high-quality food
and beverage products, a strength of Nestle.
Weaknesses:
 A declining birth rate translates to a lower demand for baby food products, requiring Nestle to
adjust its product portfolio.
 Nestlé needs to take significant steps to promote gender equality within their organizations,
such as being recognized by the Bloomberg GendeG Equality Index (GEI) for its transparency
in gender reporting and its efforts to provide gender equality in the workplace, increasing the
proportion of women who feels inequal in France in management positions, and so on
 Rising house prices and income inequality: Some segments of the French population may be
price-sensitive, requiring Nestle to offer affordable product options.
 Lower confidence in mass retailers: Nestle may need to strengthen its brand image and build
trust with French consumers.
Opportunities:
 E-commerce and m-commerce growth: Nestle can invest in online sales channels to reach a
wider audience and cater to changing shopping habits.
 Nestle can develop influencer marketing campaigns, including collaborating with famous
influencers in social media such as KOL, actresses, and singers or create creative advertised
videos in social media to promote its products, particularly in areas like healthy eating and
sustainability.
 Growing demand for responsible consumption: Nestle can differentiate itself by highlighting
its commitment to ethical sourcing, environmental practices, and social responsibility.
 Nestle can develop culturally and religiously relevant products and marketing campaigns to
cater to the diverse French population. Moreover, Nestle also can release products that are
suitable for religious people's habits ( halal-certified products for Muslims,...)and launch
campaigns during religious holidays (Ramadan month for Muslims, Christmast,..)
 In response to these changing family dynamics, Nestle has implemented several marketing
campaigns in France to build family connections as well as support parents and single moms
and dads.
Threats:
 Nestle faces competition from other food and beverage companies, both domestic and
international.
 A downturn economy could lead to reduced consumer spending, impacting Nestle's sales.
 Changes in consumer preferences: Consumer tastes and preferences can evolve quickly,
requiring Nestle to be adaptable and innovative.
 Regulation: Stricter regulations on food labeling, ingredients, and sustainability practices
could impact Nestle's production costs and product offerings.
Overall, Nestle has a strong foundation in France with a loyal customer base. By capitalizing
on opportunities related to the aging population, responsible consumption, and e-commerce,
Nestle can ensure its continued success in the French market. However, the company needs to
address challenges such as declining birth rates, income inequality, and competition to
maintain its market share.

2.4. Technology:

France boasts a strong technological environment, a key factor in its PESTEL analysis.
Renowned for its scientific and technological advancements, France has a long history of
innovation, particularly in IT and space exploration. Notably, France launched its own
satellite over 50 years ago, becoming the third nation to achieve this feat and the sixth to have
an orbiting satellite. Today, France is actively investing in research and development to
ensure its place at the forefront of the technological revolution. The government has launched
several initiatives to support innovation, such as La French Fab, a program that aims to
revitalize French industry through digital transformation. Overall, France has a rich
technological heritage and is well-positioned to continue making significant contributions to
the field in the years to come.
This focus on technological development is evident in the French government's significant
 investment in research and development, along with the establishment of numerous
technology hubs across the country. Furthermore, France is home to a thriving tech industry
with several major tech giants headquartered there. The widespread adoption of the internet in
France further underscores its advanced technological landscape.

2.4.1. Automatic in France: A Double-Edged Sword

France, like many developed nations, is embracing automation across various sectors. This
brings both benefits and challenges.
Firstly, it increased Efficiency and Competitiveness: In industries like manufacturing,
distribution, and retail, automation can significantly reduce labor costs and boost production
speed and accuracy. This translates to lower prices for consumers and a competitive
advantage for French companies in the global market. Next is focus on Higher-Skilled Jobs:
As automation takes over repetitive tasks, the French workforce can shift towards more
specialized and knowledge-based roles. This could lead to a more skilled and innovative
workforce overall.
In the other hand, while automation promises increased efficiency and competitiveness for
French businesses, it presents a double-edged sword. A major concern is the potential
displacement of workers, particularly in sectors like data entry and call centers where
automation is already replacing human labor. This could lead to unemployment and economic
hardship for those affected. Additionally, recruitment agencies might struggle as fewer low-
skill jobs become available. To adapt, they'll need to explore new markets or face declining
profitability. The long-term threat extends even to complex jobs. While immediate automation
of professions like legal advisory seems unlikely, advancements in AI could put them at risk
in the future. To prepare for this automated future, France needs to invest in education and
training programs that equip its workforce with the skills needed to thrive alongside evolving
technology.
Beside that, France also has a strong manufacturing sector and a well-developed social safety
net. Here's how these factors could influence the impact of automation:
 Manufacturing Focus: Automation could be particularly impactful in French
manufacturing, potentially leading to job losses in specific sectors. Retraining programs
and social safety nets will be crucial to support displaced workers.
 Social Safety Net: The French social safety net can help mitigate the impact of job
displacement by providing temporary financial assistance and retraining opportunities.
However, a significant rise in unemployment could strain these resources.

2.4.2. Internet connectivity:

France boasts a high level of internet access, with a record-breaking 93.34% of its population
connected as of December 2023, according to EUROSTAT data. This information is current
as of April 2024. This statistic reflects a significant improvement compared to 2010, when the
internet penetration rate stood at a much lower 74%.

The internet revolution has empowered French businesses in remarkable ways. Online
marketing strategies, like search engine optimization, email campaigns, and social media
 engagement, allow them to connect with customers more effectively and swiftly than ever
before. This shatters geographical limitations, opening doors to a vast and diverse clientele.
Additionally, a wealth of online analytical tools provides valuable insights into customer
behavior across platforms. By leveraging this data, French companies can personalize
marketing campaigns, optimize product offerings, and ultimately craft exceptional customer
experiences.
The challenges also go along with it. The burgeoning online world presents a double-edged
sword for French businesses. While exciting opportunities abound, navigating this digital
landscape requires adaptability. Businesses that cling to outdated service models or
communication practices risk falling behind. Traditional phone companies, for example,
might face declining demand as customers embrace internet-based communication like video
calls. Similarly, the rise of digital resources could threaten established industries like paper
printing, with demand potentially shrinking as people shift towards digital copies. To stay
competitive in this rapidly changing environment, French businesses must prioritize
continuous innovation. Embracing new technologies and staying updated with the latest
trends will be critical for French companies to thrive in the digital age and avoid being
outpaced by their more technologically adept competitors.
Assesement:
Technological factor play an important role in balancig. France faces a double-edged sword
with both automation and internet connectivity. While they offer economic benefits and
exciting business opportunities, challenges arise. Automation risks job displacement,
requiring government, businesses, and schools to work together on reskilling and social
programs. Businesses, meanwhile, need to embrace online marketing, data analytics, and a
digital-first approach to stay competitive, all while adapting to potential disruptions and
continuous technological change. Both advancements demand a focus on adaptation to
navigate the future successfully.
2.5. Environment:
2.5.1. Topography:

France is a country in Western Europe bound in the south by the Alps, Pyrenees Mountains
and the Mediterranean Sea. To the west and north is the Atlantic Ocean, and on its eastern
border lies the river Rhine and the low mountains of the Ardennes, Vosges and Jura.
The Beauce region represents France's core. Its navigable rivers, sufficient rainfall and fertile
soils have made France one of the world's leading agricultural powers. At the extreme
northern border of the Beauce region, where the rivers Marne and Seine meet, lies Paris —
France's economic and political center. Paris' strategic location on these rivers gives it
administrative control of trading routes from the Beauce region to the rest of France and
Europe.
France's varied geography has had a profound impact on its history, culture, and economy.
The mountains have provided natural barriers and fostered regional diversity, while the rivers
have served as important transportation routes. The fertile plains have made France a leading
agricultural producer, while the long coastline has facilitated trade and commerce.
2.5.2. Climate/ Weather

France, despite its temperate climate with generally mild temperatures and even rainfall
 throughout the year, boasts a surprising diversity in weather patterns thanks to its size and
location.
Northern France enjoys a classic temperate climate with cool summers and mild winters.
Think Paris, where temperatures hover around 5°C in January and 25°C in July. Expect
frequent rain, with October and November being the wettest months.
Eastern France, bordering Belgium, Luxembourg, and Germany, experiences a continental
climate, especially in Alsace and Lorraine. Here, summers get hot, while winters are
noticeably colder with occasional snowfall even at lower altitudes. Seasonal temperature
variations are more dramatic compared to the oceanic regions.
Travel south to the Mediterranean coast, there will be a distinctly warmer and sunnier climate.
The coast itself basks in true Mediterranean weather – hot, dry summers with temperatures
regularly exceeding 30°C, contrasted by mild, rainy winters. Cities like Nice and Marseille
can even reach scorching highs of 40°C in summer. In Provence, the strong mistral wind adds
a unique touch.
French mountain ranges like the Alps and Pyrenees have their own story. Expect a colder
mountain climate with heavy snowfall and a shorter growing season. At higher altitudes,
temperatures can dip below zero even in summer.
Finally, the western coasts of Brittany and Normandy are influenced by the Atlantic Ocean,
resulting in a mild, maritime-humid climate. These regions experience frequent rainfall
throughout the year and cooler summers compared to southern France.

2.5.3. Transportation structure:

France boasts an extensive road network stretching over 1.1 million kilometers, ranking 7th
globally. However, interpreting this number solely in relation to its population (0.02 meters
per inhabitant) is misleading. Countries with vast areas and sparse populations will naturally
have lower ratios as they connect wider regions with fewer people.
On a different metric, France shines – vehicle ownership. With 0.67 vehicles per inhabitant in
2022, it sits among the world leaders.
Drivers in France keep to the right side of the road, a regulation implemented in 1970. Speed
limits vary by location: 31 mph (50 km/h) in urban areas, 50 mph (80 km/h) outside cities,
and 81 mph (130 km/h) on motorways (unless otherwise indicated).

France has one of the densest road networks in the world, with over 965,000 kilometers
(600,000 miles) of roads in total. This network is built around a central hub-and-spoke system
radiating from Paris, with several categories of roads serving different purposes.
Autoroutes (motorways): High-speed, limited-access highways that connect major cities.
Routes nationales (national roads): Major trunk roads that connect regions and cities.
Departmental roads: Local roads that connect towns and villages.
France has a well-developed railway system with a total length of over 27,860 kilometers
(17,310 miles). The national railway operator, SNCF, operates a network of high-speed TGV
(Train à Grande Vitesse) lines that connect major cities at speeds of up to 320 kilometers per
hour (200 mph). It also has a network of navigable rivers and canals that play a significant
role in transporting goods. The major waterways include the Seine, Loire, Garonne, and
Rhône rivers.
Environment factor play an important role in developing the economy of Nestle .Automation
poses challenges for France, particularly job displacement, collaboration between
 government, businesses, and educational institutions can ease the transition through reskilling
and social program adaptation. Similarly, Nestle in France navigates a complex geographic
landscape. The Beauce region offers potential for agricultural production, but climate
variations, logistics, and regulations require careful consideration. France's diverse climate
presents both challenges and opportunities, while the robust transportation infrastructure
facilitates distribution and trade, but rural complexities need to be addressed.

2.6. Legal:

Civil Law
The French system of law is a Civil Law system.
This is different from the Common Law system of the United States and Britain in that,
among other differences, a French court will apply relevant codes and regulations to the
parties and facts before them with little reference to prior case decisions. Any new decision
of the French court will likewise carry little precedential weight.
The French political system is made up of a Legislative, Executive, and Judicial branch. The
executive branch is concerned with implementing laws, the legislative creating laws, and the
judiciary interpreting and applying laws. In France, as in the UK and other parliamentary
systems, there is less separation between the executive and legislative branches than in
countries like the USA.
Structure of the French Legal System Like the UK, The French political system is made up
of a Legislative, Executive, and Judicial branch. The executive branch is concerned with
implementing laws, the legislative creating laws, and the judiciary interpreting and applying
laws. In France, as in the UK and other parliamentary systems, there is less separation
between the executive and legislative branches than in countries like the USA.
The Legislative Branch
France operates under a civil law system, and its legislative branch plays a crucial role in
shaping the legal landscape.
The French Parliament
The French Parliament consists of two chambers: the National Assembly and the Senate.
Laws are proposed, debated, and voted upon in these chambers, and once approved, they
become part of the legal framework.
Legal Codes and Legislation France's legal system relies heavily on legal codes, such as the
Civil, Penal, and Commercial Codes. These codes codify laws and provide a comprehensive
framework for various legal matters.
The Executive Branch
While the executive branch is primarily responsible for the country's administration, it also
plays a role in legal matters.
The President
As the head of state, the President of France has certain legal powers, including the ability to
grant pardons and commute sentences.
Government Ministers
Government ministers, particularly the Minister of Justice, play a crucial role in shaping legal
policies and overseeing the administration of justice.
The Judiciary
The French judiciary is a hierarchical structure comprising various courts with specific
jurisdictions and functions.
The Judicial Hierarchy
The French judicial hierarchy consists of several levels, starting with the lowest courts and
ascending to the highest appellate courts. These include:
Local Courts: Local courts, handle minor civil and criminal cases at the local level.
Regional Courts: "Cour d'appel" or regional courts serve as appellate courts, reviewing
decisions from the local courts.
Court of Cassation: The Court of Cassation, the highest court in the French judiciary,
primarily focuses on issues of law. It ensures uniform interpretation and application of legal
principles.
The Administrative Judiciary: In addition to the civil and criminal judiciary, France has a
separate administrative judiciary. This body reviews administrative decisions and handles
disputes involving public authorities.
Nestle has to comply with French civil law
 Contract Law: Nestle's contracts with suppliers, distributors, and consumers will be
governed by French contract law. This law dictates how contracts are formed, interpreted,
and enforced. It covers aspects like breach of contract, remedies for non-performance,
and termination clauses. Nestle must ensure all contracts comply with legal formalities
and accurately reflect the parties' intentions.
 Product Liability: French product liability law holds producers (like Nestle) strictly liable
for any damage caused by defective products. This means Nestle must ensure the safety
of their products and compensate consumers if a defect causes harm.
 Consumer Protection Law: French consumer protection laws safeguard consumers' rights.
Nestle must comply with these laws regarding fair advertising practices, clear labeling,
product labels must be clear, complete, and not misleading, ensuring labels accurately
reflect ingredients, potential allergens, and other relevant information.and transparent
pricing.
 Competition Law: French competition law prohibits anti-competitive practices like price
fixing and market dominance abuse. Nestle must ensure their business practices comply
with these regulations.
 Data Privacy Law: The General Data Protection Regulation (GDPR) is a European Union
regulation that applies in France. It governs how companies like Nestle collect, store, and
use personal data of customers and employees.
 Dispute Resolution: French civil law provides a framework for resolving disputes
between private parties, including companies like Nestle. This can involve negotiation,
mediation, or litigation in French courts. The company gives its support to health
development, breastfeeding, actions to stop children exploitations, and environmental
issues.

Food Safety Regulations: As a food and beverage company, Nestlé must comply with
stringent food safety regulations in all its countries. These regulations cover product quality,
ingredients, labeling, and packaging. Non-compliance can lead to fines, recalls, or damage to
the company’s reputation. Palm oil: Nestlé guarantees that these and all its products are totally
safe for health. The use of palm oil is made for sensory reasons such as texture. Compared to
 conventional oils (olive, sunflower), it is more resistant and keeps the product much better.
Human Rights: Support to the breastfeeding: It supports the recommendations of the World
Health Organization to feed babies with breast milk the first six months of life and continue
breastfeeding later with complementary foods. Against children exploitation: The company
has recruited 18 controls and correction agents to raise awareness of child labor and inform in
order to determine if interventions are needed.
Employment Laws: Employment laws vary significantly across countries. These laws cover
wages, working conditions, diversity, and employee rights. Nestlé must adhere to these laws
to avoid legal issues and maintain a positive corporate image.
Environmental Laws: Nestlé must comply with environmental laws related to waste disposal,
emissions, energy use, etc. These laws can influence Nestlé’s production processes, costs, and
sustainability initiatives. Actions in order to stop the climate change. Nestlé wants to position
itself as part of the solution, and strives every day to reduce its emissions and improve the
management of resources and they do not test their products with animals.
Trade Regulations: International trade regulations affect how Nestlé imports and exports
goods across borders. Changes in tariffs, customs regulations, and trade agreements can
impact Nestlé’s supply chain and profitability.
Intellectual Property Laws: Nestlé, like any company, must manage its intellectual property
rights, such as trademarks, patents, and copyrights. It must also ensure it does not infringe on
the intellectual property rights of others.
Assessment : By understanding and complying with French civil law, Nestle can operate their
business smoothly, minimize legal risks, and protect the rights of consumers and other
stakeholders.
3. International Business of Nestlé in France:
3.1. Entry – mode:
3.1.1. Acquisition:

Nestle France is shaking things up. The food giant is in exclusive talks with FnB, a private
equity firm focused on European food companies, for the potential sale of its non-formula
baby food business. This includes popular brands like NaturNes, Babicao, and Babivanille,
along with their international sales and the Arches manufacturing facility.
This move aligns with Nestle's plan to focus on its infant formula business, while FnB seems
particularly interested in the Arches plant's capabilities and the expertise of the baby food
team. Nestle assures everyone that this sale won't affect employees, customers, partners, or
local suppliers. Until the deal is finalized in the first half of 2024, the baby food teams will
continue operating as usual under Nestle.:
The term "partner" in business has various meanings. One such meaning is a joint venture
partner. This refers to a company that joins forces with another company to create a brand
new entity, a joint venture. This new entity combines resources and expertise from both
partners to pursue a specific business goal. Strategic partner: A company that collaborates
with another company on a specific project or initiative.
In the world of business partnerships, there are two distinct types that involve leveraging
established brands and models. A licensing partner gains permission to use the intellectual
property, like patents or trademarks, of another company. This allows them to develop their
 own products or services based on that intellectual property. On the other hand, a franchising
partner, also known as a franchisee, operates a business under the brand name and established
model of another company (the franchisor). This provides the franchisee with a proven system
and brand recognition, while the franchisor benefits from expanding its reach without directly
owning new locations.
In the Nestle news, FnB is a potential partner. Nestle is considering selling its baby food
business (excluding infant formula) to FnB, which would make FnB the owner of those
brands and operations.
The exact timeframe for FnB to take over Nestle's baby food business remains unclear. While
the article states expected finalization in the first half of 2024, it doesn't provide details on the
negotiation duration or potential regulatory approval wait times. This leaves the time to entry
for FnB uncertain
While the public announcement details the potential sale of Nestle's baby food business to
FnB, specific financial figures are absent. This means the exact purchase price for the brands
and operations remains undisclosed.

3.1.2. Exporting:

Partner:
Nestle could have partnered with a French company specializing in importing and distributing
foreign goods.
This partner would handle tasks like:
 Market Research: Understanding French consumer preferences and market demand for
Nestle's products.
 Import/Export Logistics: Arranging customs clearance, transportation, and warehousing for
Nestle's products entering France.
 Distribution Network: Building relationships with French retailers and wholesalers to get
Nestle's products onto shelves.
 Marketing and Sales: Potentially helping with initial marketing and promotion of Nestle's
products in France.
For example:
 Bolloré Logistics is another French logistics and transportation company with expertise in
international shipping and customs brokerage. Nestlé partner with Bolloré for export
services.
 Business France: Business France is a French government agency that assists companies with
international expansion and export development. Nestlé collaborates with Business France for
market research, trade shows, and business matchmaking.
 Société Générale: Société Générale is a major French bank that offers financial services,
including export financing and trade solutions. Nestlé partners with Société Générale for
export financing and risk management.
  DHL Express France: DHL Express is a global logistics company with a strong presence in
France. Nestlé collaborates with DHL for international shipping and express delivery services.
 UPS France: UPS is another multinational logistics company operating in France that offers
export services, including shipping, customs clearance, and supply chain management. Nestlé
partners with UPS for export logistics.

Time entry:
Early Days, Limited Records: Nestle's entry into France likely happened in the late 19th
century. Detailed records from that era might be scarce or not readily accessible.
Timeline:
Late 1800s: Given Nestle's early focus on exporting and France's open market, it's reasonable
to believe they entered France by exporting sometime in the late 1800s, possibly within a
decade or two of their founding (between 1870s-1890s).

Budget:
Nestle has made substantial investments in the French market. However, determining the
precise budget Nestle set aside for exports to France is challenging for the following reasons:
Confidentiality of Historical Data: Financial records from the late 19th century, around the
time Nestle probably entered France, may be private or not accessible to the public.
Initial Stage Priorities: In the early phases of exporting, Nestle may not have required a large
budget compared to subsequent expansion strategies such as establishing subsidiaries.
So Nestle has an enormous profit in the French market.

3.1.3. Licensing and Franchising:

Unlike some of its competitors, Nestle does not use a traditional franchising model for its core
businesses. Nestle likely prefers to maintain a high degree of control over its products, brand
image, and customer experience. Franchising can introduce some variability in how products are
presented and sold. Nestle has a wide range of products across various food and beverage
categories. Franchising such a diverse portfolio could be complex to manage and maintain
consistency. However, there is one exception: Nestle Toll House Cafe by Chip: Nestle does have a
limited franchising program for Nestle Toll House Cafe by Chip, a chain of dessert cafes offering
cookies, ice cream, and beverages. This franchise allows Nestle to expand its brand presence in the
dessert cafe segment without managing every location directly.

Nestle Toll House Logo

(Source: Nestleprofessional.us, 2024)
Nestle utilizes licensing agreements to a certain extent, but it's not their primary strategy for
market expansion. Nestle and Starbucks completed a licensing deal that will see Nestle
manufacture and sell Starbucks packaged coffee and tea in international markets. The agreement,
 announced in May, gives Nestle access to the Starbucks, Seattle’s Best Coffee, Teavana,
Starbucks Via and Torrefazione Italia brands. Starbucks will continue to manufacture and supply
coffee while Nestle has rights for all other markets. With the license, Nestle gets a business that
currently generates about $2 billion in annual revenue. The agreement excludes ready-to-drink
products and sales through Starbucks’ own shops. Starbucks products will be sold through
Nestle’s distribution in 189 countries and gain access to the company’s installed base of single-
serve Nespresso and Nescafe Dulce Gusto machines.

3.2. International business strategy:

3.2.1. Internation strategy:

Nestle, when it first entered the market, used an international strategy for products
manufactured in its main factory in Switzerland and then exported to other countries. The first
branch of Nestlé in France was established in 1905 in the town of Commentary, located in the
Allier department in central France. The first product exported into France by Nestlé in 1868,
was called "Farine Lactée Henri Nestlé". This was a type of food for children who could not
breastfeed or use any other type of breast milk substitute. This product saved the life of a
premature baby, and soon after, Farine Lactée Henri Nestlé was widely sold in Europe.
In the first step, these branches are responsible for importing and selling dairy products
produced from the factory in Switzerland. The orientation of the branch during this period was
determined by a single source, Nestle's holding company in Switzerland. The branch only sells
products manufactured by the parent company in Switzerland. The image of the branch is closely
tied to the image of the holding company. During the implementation phase of this strategy,
Nestle mainly produces products from its domestic factory in Switzerland and then exports them
to other countries, where the company currently has no production capacity.
Reason: At this time, Nestle does not have a manufacturing factory abroad, and cannot
transfer production technology across borders.
Business plans, product pricing, marketing strategies, sales strategies, competition tactics, etc.
of brands in foreign markets are all copied like prototypes from the Thuy Si market. In the early
stages, this strategy brought some success: production from less than 1,000 bottles /day increased
to 2,000 bottles/day.

3.2.2. Global strategy:

Nestlé’s global strategy aims to expand markets and trade worldwide, seeking new customers,
and increasing production, and profitability. As of 2020, Nestlé achieved revenues of 92.6 billion
CHF, demonstrating the strong impact of this strategy. Nestlé France has consistently applied a
unified strategy regarding product offerings, branding, and pricing, both in France and globally.
However, they have also customized their approach to align with specific market conditions.
For instance, in 2023, Nestlé increased their product prices in France by over 10%. According
to NielsenIQ data, French shoppers paid more than 20% more for Nestlé’s products each month
since January versus the previous year, and price increases peaked at 36.6% in May. Despite
these challenges, Nestlé reported strong organic sales growth of 7.2%, led by pricing, with
slightly negative real internal growth (RIG) of -0.3%. This price adjustment not only reflects the
prices demanded by the companies from retailers but also factors in the final price that consumers
pay.
Furthermore, Nestlé has also collaborated with Carrefour in France to introduce three new
product categories within their bulk aisle system: coffee, candies, and pet food. Customers can
bring their own packaging or purchase packaging at Carrefour, fill it up, label it, and take it
home. In this way, Nestlé optimizes production costs through consistency while striving to meet
the specific needs and preferences of consumers in France and other markets.
Nestlé also applies a global strategy through the acquisition of local brands, helping address
cost challenges and utilizing local raw materials. For instance, Nestlé acquired Perrier Group in
France, a leading mineral water brand. This transaction positioned Nestlé as a dominant force in
the mineral water market, expanding their influence worldwide. Nestlé purchased Source Perrier
for $2.6 billion. Following the acquisition, Nestlé continued to invest in Perrier. They allocated
€200 million to the Perrier bottling plant near the water source in Vergèze, southern France. This
investment enhanced Perrier’s production capabilities across PET, glass, and cans.
Additionally, Nestlé implemented environmental protection measures in France, gradually
replacing virgin PET (polyethylene terephthalate) with recycled PET (rPET) in Perrier bottles.
Their goal is for 50% of their bottles to be made from recycled PET by 2025.
3.2.3. Multinational Strategy:

In its multinational strategy, Nestlé provides products that have been adapted to the local market.
Some of Nestlé’s standout products in France include: Nestlé in France is the leader in the ambient
dairy segment of baby food. Their main challenge was to compete with non-baby food products in
the dairy market, for example, chilled yogurts and desserts. Understanding the needs of such young
consumers is far from simple and not something that can be easily accessed from a lot of data
sources. The panel in France is run continuously 52 weeks of the year looking at the behavior of
people in 13,000 households annually. This rich source of data was analyzed to understand the
dairy consumption of 12-35 old month children to try and spot new opportunities. Having
identified the opportunity with usage data, the team at Nestlé conducted some additional studies in
order to develop a new product range, the P’tit Flan, especially created for babies. P’tit Flan was
created without preservatives or colourings but containing protein and 87% milk which made it
ideal for babies under 36 months. It was also made with 30% less sugar than the average flavored-
milk dessert. Like the other products in the range, P’tit Flan doesn’t need to be kept in the fridge,
which makes it an ideal choice for mothers who want to take food out with them and offered a
point of difference with the non-baby food competitors.

Nestle La Laitière Riz au Lait, or rice pudding, is a beloved dessert in France for several
reasons such as: Tradition: Riz au lait is a traditional French dessert that has been around for
centuries. It is said that Saint King Louis IX regularly ate riz au lait in the mid-1200s on his
way to the Crusades. Taste: The dessert is made with a slow and controlled cooking process
that achieves the perfect balance between rice and milk, giving it a delicious taste. Comfort:
For many French people, riz au lait is a comforting dessert that reminds them of their
childhood. Versatility: It can be enjoyed as a healthy gluten-free afternoon snack or a
decadent dessert. Ease of Preparation: The recipe is simple and easy to make at home with
pantry staples like rice, milk, sugar, and vanilla. These factors contribute to the popularity of
Nestlé's La Laitière Riz au Lait among French consumers. Besides, Nestlé's La Laitière
Nature is one of popular products in France for several reasons: Tradition: Dairy products
have been promoted as lifelong friends in France, and there has been a push for the
consumption of at least two dairy products per day, dairy products have a long history in
France and are deeply ingrained in the country's culinary culture. They are promoted as
lifelong friends, and there has been a push for the consumption of at least two dairy products
per day. Taste: La Laitière Nature is known for its great taste, which is a result of Nestlé's
commitment to using wholesome, natural ingredients. Health: The product offers a lighter
option for those who are health-conscious. Innovation: Nestlé constantly innovates its
products to meet the changing demands of consumers. For example, between 2008 and 2009,
the La Laitière brand launched a new sorbet range with 15% more fruit and 20% less sugar.
Local Production: French consumers appreciate locally produced goods. Nestlé's La Laitière
Nature is made with premium ingredients like organic milk and fresh fruit.

Moreover, The French enjoy variety in their food, and these Nestlé La Laitière aromatisé and
Nestlé La Laitière aux fruits - flavored yogurts cater to that preference. Firstly, it is about
health Consciousness: French consumers are increasingly health-conscious. Nestlé's La
Laitière brand offers great tasting desserts for everyone who loves the wholesome goodness of
nature and a choice of lighter options. For example, between 2008 and 2009, the La Laitière
brand launched a new sorbet range with 15% more fruit and 20% less sugar. Popularity: In
2020, an estimated 2.2 million people used Nestlé La Laitière Nature. Ranked second and
third were Nestlé La Laitière aromatisé and Nestlé La Laitière aux fruits. This indicates its
wide acceptance among French consumers. Invests in building factories and production
facilities in these countries to optimize the manufacturing and distribution process. This
allows the company to quickly respond to market changes and customer needs. Nestlé has
many products that are popular among the French people. Today, Nestlé has 31 factories on
29 industrial sites across the country with items like Research Center, Quimperle, Fresh and
frozen products for professional catering, Delicatessen and food supplier, Culinary products,
Ice cream, Frozen prepared meals, Milk powder, Soluble coffee, chicory, and chocolate
powders, Infant and clinical nutrition, Pet products, Cereals, Mineral and spring waters.
Apparently, this has demonstrated the strong development of this strategy.With many
products for different consumer purposes, Nestle seems to have spread across the entire area
of France.

Source : Nestle 2023

Multinational corporations function primarily through a parent business at the corporate level
and multiple independent enterprises (sometimes referred to as "greenfield" ventures) in each
nation. The management and administration of Nestlé's activities in France, including the
creation, promotion, and sale of Nestlé goods in the French market, are handled by Nestlé
France. Some Nestle in France French subsidiaries include Nestlé Health Science France,
Nestlé Waters France, Nestlé Purina PetCare France, and so on. The presence in 99% of
French households also shows the success of this strategy.