MARKET SEGMENTATION OF MAGGI

A PROJECT REPORT ON

MARKET SEGMENTATION OF MAGGI

BACHELOR OF MANAGEMENT STUDIES

SEMESTER V

(ACADEMIC YEAR – 2010-11)

SUBMITTED TO THE UNIVERSITY 0F MUMBAI IN PARTIAL

REQUIREMENT LEADING TO A DEGREE IN BACHELOR OF

MANAGEMENT STUDIES

UNDER THE GUIDANCE OF

PROF. Mr. VIVEK . .SINGH.

SUBMITTED BY

EKTA . N. MANJREKAR

ROLL NO. / SEAT NO. 1234

TYBMS SEM - V

BHAVNA TRUST’S JUNIOR &

DEGREE COLLEGE OF COMMERCE & SCIENCE

DEONAR MUMBAI – 400088

2010-2011

DEPARTMENT OF MANAGEMENT STUDIES

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 MARKET SEGMENTATION OF MAGGI

Certificate
I hereby certify that ---------------------

Of Bhavna trust’s Degree College of Science & Commerce of TYBMS(Sem-

V) has successfully completed project on -------------------------------------------
----------------------- in the academic year 2010-2011. The information
submitted is true and original to the best of my knowledge.

Signature of Principal Signature of project

Co-ordinator

Name& sign. of BMS Course

Co-ordinator Name & sign.of External Examiner

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 MARKET SEGMENTATION OF MAGGI
DECLARATION CERTIFICATE

I of Bhavna trust’s Junior & Degree

College of

Science & Commerce of TYBMS(Sem-V) hereby declare

that I

have completed this project on -------------------------------

-------------

------------------- in the academic year 2010-2011. The

information

submitted by me is true and original to the best of my

knowledge.

Signature of student

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 MARKET SEGMENTATION OF MAGGI

MARKET

SEGMENTATION

OF

MAGGI

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 MARKET SEGMENTATION OF MAGGI
TABLE OF CONTENT

CHAP PARTICULARS PAGE

TER NO.
NO.
ACKNOWLEGEMENT
EXECUTIVE SUMMARY
OBJECTIVE
1. OVERVIEW OF INDUSTRY
2. 2.1 INTRODUTION TO NESTLE
2.2 INTRODUCTION TO MAGGI
3. THEORTICAL PERSPECTIVE
3.1 WHAT IS MARKET SEGMENTATION
3.2 DEFINITION
3.3 IMPORTANCE
4. RESEARCH METHODOLOGY
5. MARKETING STRATEGY OF MAGGI
6. PRESENT MARKET CONDITION OF MAGGI
7. SWOT AND STPD ANALYSIS
8. DEVELOPMENT OF NESTLE
9. DATA PRESENTATION & ANALYSIS
10. RECOMMENDATION
11. CONCLUSION
12. BIBLIOGRAPHY

ACKNOWLEDGEMENT

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On the successful completion of this project I would like to express gratitude to all the
people who have helped me in completion of this project. I wish to extend my deep and
sincere gratitude to,………....to take out time from their busy schedules to provide me
with their able guidance at the time of need and who also helped me whole heartedly to
achieve the ultimate goal of the study. I would also like thank………..for providing me
guidance for understanding the importance of market segmentation.

Finally would like to express my gratitude to ………….. Management Studies and its
faculty for providing me with this learning opportunity.

EXECUTIVE SUMMARY

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OBJECTIVES

• To know marketing strategy adopted by maggi.

• To know present market condition in indian market and overseas market.
• To make SWOT and STPD analysis of maggi.
• To study the development of nestle.

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CHAPTER :- 1

OVERVIEW OF NESTLE

Nestlé’s relationship with India dates back to 1912, when it began trading as The
Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and
selling finished products in the Indian market.

After India’s independence in 1947, the economic policies of the Indian Government
emphasized the need for local production. Nestlé responded to India’s aspirations
by forming a company in India and set up its first factory in 1961 at Moga, Punjab,
where the Government wanted Nestlé to develop the milk economy. Progress in
Moga required the introduction of Nestlé’s Agricultural Services to educate, advise
and help the farmer in a variety of aspects. From increasing the milk yield of their
cows through improved dairy farming methods, to irrigation, scientific crop
management practices and helping with the procurement of bank loans. Nestlé set
up milk collection centers that would not only ensure prompt collection and pay fair
prices, but also instill amongst the community, a confidence in the dairy business.
Progress involved the creation of prosperity on an on-going and sustainable basis
that has resulted in not just the transformation of Moga into a prosperous and
vibrant milk district today, but a thriving hub of industrial activity, as well. For
more on Nestlé Agricultural Services, click here.

Nestlé has been a partner in India's growth for over nine decades now and has built
a very special relationship of trust and commitment with the people of India. The
Company's activities in India have facilitated direct and indirect employment and
provides livelihood to about one million people including farmers, suppliers of
packaging materials, services and other goods.

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The Company continuously focuses its efforts to better understand the changing
lifestyles of India and anticipate consumer needs in order to provide Taste,
69Nutrition, Health and Wellness through its product offerings. The culture of
innovation and renovation within the Company and access to the Nestlé Group's
proprietary technology/Brands expertise and the extensive centralized Research and
Development facilities gives it a distinct advantage in these efforts. It helps the
Company to create value that can be sustained over the long term by offering
consumers a wide variety of high quality, safe food products at affordable prices.

Nestlé India manufactures products of truly international quality under

internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR,
MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the
Company has also introduced products of daily consumption and use such as
NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and
NESTLÉ Jeera Raita.

Nestlé India is a responsible organization and facilitates initiatives that help to

improve the quality of life in the communities where it operates. Nestlé S.A. is the
largest consumer packaged gooads company in the world,[2] founded and
headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the
Anglo-Swiss Milk Company, which was established in 1866 by brothers George
Page and Charles Page, and the Farine Lactée Henri Nestlé Company, which was
founded in 1866 by Henri Nestlé. The company grew significantly during the First
World War and following the Second World War, eventually expanding its
offerings beyond its early condensed milk and infant formula products. Today, the
company operates in 86 countries around the world and employs nearly 283,000
people.

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Nestlé S.A.

Type Société Anonyme (SIX: NESN)

Industry Food processing

Founded Vevey, Switzerland (1866)

Founder(s) Henri Nestlé

Headquarters Vevey, Switzerland

Area served Worldwide

Peter Brabeck-Letmathe (Chairman),

Key people
Paul Bulcke (CEO)

Baby food, coffee, dairy products,

breakfast cereals, confectionery,
Products
bottled water, ice cream, pet foods
(list...)

Revenue CHF 107.6 billion (2009)[1]

Operating
CHF 15.70 billion (2009)[1]
income

Profit CHF 10.43 billion (2009)[1]

Total assets CHF 110.9 billion (2009)[1]

Total equity CHF 53.63 billion (2009)[1]

Employees 278,000 (2009)[1]

Website www.nestle.com

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Nestlé headquarters in Vevey.

The company dates to 1867, when two separate Swiss enterprises were founded that
would later form the core of Nestlé. In the succeeding decades the two competing
enterprises aggressively expanded their businesses throughout Europe and the United
States.
In August 1867 Charles A and George Page, two brothers from Lee County, Illinois,
USA established the Anglo-Swiss Condensed Milk Company in Cham. Their first British
operation was opened at Chippenham, Wiltshire in 1873.[3]
In September 1867, in Vevey, Henri Nestlé developed a milk-based baby food and soon
began marketing it. Henri Nestlé retired in 1875, but the company, under new ownership,
retained his name as Farine Lactée Henri Nestlé.

] History

Henri Nestlé.

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In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following
year the Nestlé company added condensed milk, so that the firms became direct and
fierce rivals.
In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947, when the name Nestlé Alimentana SA was
taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and
its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major
manufacturer of soup mixes and related foodstuffs. The company’s current name was
adopted in 1977. By the early 1900s, the company was operating factories in the United
States, United Kingdom, Germany and Spain. World War I created new demand for dairy
products in the form of government contracts; by the end of the war, Nestlé's production
had more than doubled.
After the war, government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the
company's second most important activity.

Nestlé's logo used until 1970s.

Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million
in 1938 to US$6 million in 1939. Factories were established in developing countries,
particularly Latin America. Ironically, the war helped with the introduction of the
company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's
production and sales rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and companies were acquired. In 1947 came the merger with Maggi
seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963),
Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal
in 1974. In 1977, Nestlé made its second venture outside the food industry by acquiring
Alcon Laboratories Inc.

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In 1984, Nestlé's improved bottom line allowed the company to launch a new round of
acquisitions, notably American food giant Carnation and the British confectionery
company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to
Nestlé.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia),
February, 2007.
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and
world markets developed into more or less integrated trading areas. Since 1996 there
have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and
Ralston Purina (2002). There were two major acquisitions in North America, both in
2002: in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a
US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets.
In the same time frame, Nestlé came close to purchasing the iconic American company
Hershey's, though the deal fell through.[4] Another recent purchase includes the Jenny
Craig weight loss program for US$600 million.
In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million.
In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice
cream maker with a 17.5% market share.[5]
In November 2006, Nestlé purchased the Medical Nutrition division of Novartis
Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as
Ovaltine. In April 2007 Nestlé bought baby food manufacturer Gerber for $5.5
billion.[6][7][8]

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In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate
maker Pierre Marcolini.[citation needed] Nestlé agreed to sell its controlling stake in
Alcon to Novartis on 4 January 2010. The sale forms part of a broader US $39.3 billion
offer by Novartis to fully acquire the world’s largest eye-care company.[9]
[edit] Products
Main article: List of Nestlé brands
Nestlé has 6,000 brands,[10] with a wide range of products across a number of markets
including coffee (Nescafé), bottled water, other beverages (including Aero (chocolate) &
Skinny Cow), chocolate, ice cream, infant foods, performance and healthcare nutrition,
seasonings, frozen and refrigerated foods, confectionery and pet food.
[edit] Business

Japan headquarters

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The Nestlé Tower in Croydon. This serves as their headquarters in the United Kingdom.
[edit] Management
The executive board, a distinct entity from the board of directors, includes:
Peter Brabeck, Chairman of the Board of Directors, Nestlé S.A.
Paul Bulcke, Chief Executive Officer, Nestlé S.A.
Werner Bauer, Executive Vice President, Nestlé S.A., Chief Technology Officer, Head of
Innovation, Technology, Research & Development
Friz van Dijk, Executive Vice President, Nestlé S.A. Asia, Oceania, Africa, Middle East
Luis Cantarell, Executive Vice President, Nestlé S.A. United States of America, Canada,
Latin America, Caribbean
José Lopez, Executive Vice President, Nestlé S.A. Operations, GLOBE
John J. Harris, Executive Vice President, Nestlé S.A. Chairman & CEO of Nestlé Waters
Nandu Nandkishore, Executive Vice President, Nestlé S.A. CEO of Nestlé Nutrition
James Singh, Executive Vice President, Nestlé S.A. Finance and Control, Legal, IP, Tax,
Global Nestlé Business Services
Laurent Freixe, Executive Vice President, Nestlé S.A. Europe
Petraea Heynike, Executive Vice President, Nestlé S.A. Strategic Business Units,
Marketing, Sales and Nespresso

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Marc Caira, Deputy Executive Vice President, Nestlé S.A. Head of Nestlé Professional
Strategic Business Division
Jean-Marc Duvoisin, Deputy Executive Vice President Nestlé S.A. Head of Human
Resources and Centre Administration
David P. Frick, Senior Vice President and ex officio Member of the Executive Board
According to a 2006 global survey of online consumers by the Reputation Institute,
Nestlé has a reputation score of 70.4 on a scale of 1–100.[11]
[edit] Earnings
In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion.
Research and development investment was CHF 2.02 billion.[1]
Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18%
from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet
products, 6% from pharmaceutical products and 2% from baby milks.
Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from
US), 16% from Asia, 21% from rest of the world.
[edit] Joint ventures
Nestlé holds 26.4% of the shares of L'Oréal, the world's largest company in cosmetics
and beauty. The Laboratoires Inneov is a joint venture in nutritional cosmetics between
Nestlé and L'Oréal, and Galderma a joint venture in dermatology with L'Oréal. Others
include Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide
with Coca-Cola, and Dairy Partners Americas with Fonterra.
[edit] Ethical and sustainable efforts
In 2000 Nestlé and other chocolate companies formed the World Cocoa Foundation. The
WCF was set up specifically to deal with issues facing cocoa farmers (disease had wiped
out much of the cocoa crop in Brazil) including ineffective farming techniques and poor
environmental management. The WCF focuses on boosting farmer income, encouraging
sustainable farming techniques and environmental and social programmes.[12]
Nestlé is a founding participant in the International Cocoa Initiative (ICI), an independent
foundation set up in 2002 and dedicated to ending child and forced labour in cocoa
growing, and eliminating child trafficking and abusive labour practices.[13]

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In October 2009 Nestlé announced its Cocoa Plan. The company will invest CHF 110
million in the Plan over ten years to achieve a sustainable cocoa supply. On the 23rd
October 2009 Nestlé and CNRA, the Ivorian National Centre for Plant Science Research,
signed a frame agreement for cooperation in plant science and propagation, with a target
of producing 1 million high-quality, disease-resistant cocoa plantlets a year by 2012. The
aim is to replace old, less productive trees with healthier new ones.[14][15]
Nestlé is launching a Fair Trade branded Kit Kat in the UK and Ireland from January
2010.[16]
[edit] Controversy and criticism
[edit] Marketing of formula
Main articles: infant formula and Nestlé boycott
One of the most prominent controversies involving Nestlé concerns the promotion of the
use of infant formula to mothers across the world including developing countries, an
issue that attracted significant attention in 1977 as a result of the Nestlé boycott which is
still ongoing.[17] Nestle continues to draw criticism that it is in violation of a 1981 World
Health Organization code [18] that regulates the advertising of breast milk formulas.
Nestlé's policy,[19] however, states that breastmilk is the best food for infants; however,
women who cannot or choose not to breast feed for whatever reason do need an
alternative to ensure that their babies are getting the nutrition they need.
[edit] Melamine in Chinese milk
Main article: 2008 Chinese milk scandal
In late September 2008, the Hong Kong government claimed to have found melamine in
a Chinese-made Nestlé milk product. The Dairy Farm milk was made by Nestlé's division
in the Chinese coastal city Qingdao.[20] Nestlé affirmed that all its products were safe
and were not made from milk adulterated with melamine. On October 2, 2008 the Taiwan
Health ministry announced that six types of milk powders produced in China by Nestlé
contained traces of melamine. Nestlé has announced that it will begin a recall of milk
products produced in China.[21][22]
[edit] Greenwashing

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A coalition of environmental groups filed a complaint against Nestlé to the Canadian
Code of Advertising Standards after Nestlé took out full page advertisements in October
2008 claiming that "Most water bottles avoid landfill sites and are recycled", "Nestlé Pure
Life is a healthy, eco-friendly choice" and that "Bottled water is the most
environmentally responsible consumer product in the world".[23][24][25] A
spokesperson from one of the environmental groups stated: "For Nestlé to claim that its
bottled water product is environmentally superior to any other consumer product in the
world is not supportable".[23] In their 2008 Corporate Citizenship Report, Nestlé
themselves stated that many of their bottles end up in the solid waste-stream and that
most of their bottles are not recycled.[24][26] The advertising campaign has been called
greenwashing.[24][26][25]
[edit] Zimbabwe farms
In late September 2009, it was brought to light that Nestlé was buying milk from
illegally-seized farms currently operated by Robert Mugabe's wife, Grace Mugabe.
Mugabe and his regime are currently subject to European Union sanctions.[27] Nestlé
later stopped buying milk from the dairy farms in question.[28]
[edit] Palm oil use
Rapid deforestation in Borneo and other regions to harvest hardwood and make way for
oil palm plantations sends massive amounts of carbon dioxide into the atmosphere.[29] In
particular, where peat swamp forests are cleared, destroying the habitat for many
threatened species of animals such as the orangutan, much public attention[30] has been
given to the environmental impact of palm oil and the role of multi-nationals such as
Nestlé in this.[31] There is ongoing concern by various NGOs including Greenpeace.[32]
Nestlé were met with "a deluge of criticism from consumers, after a large number of
Facebook users posted negative comments about the company's business practises."[33]
Nestlé's attempt to engage with the issue were met with criticism, including headlines
stating: "Nestlé fails at social media",[34] and "Nestlé Loses Face On Facebook".[33]
Nestlé Chairman, Peter Brabeck-Letmathe, in answer to a question from Greenpeace, told
the Company’s Annual General Meeting in Lausanne on April 15, 2010 that in 2009

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Nestlé used 320,000 tonnes of palm oil worldwide, comparing this with the 500,000
tonnes of palm oil used for biodiesel in Germany and Italy alone.[35]
In May 2010 Nestlé said it was inviting The Forest Trust, a not-for-profit group, to audit
its supply chain and promised to cancel contracts with any firm found to be chopping
down rainforests to produce the palm oil which it uses in KitKat, Aero and Quality Street.
Greenpeace welcomed the agreement promising to monitor it closely .[36][37][38]
[edit] E. Coli
In June 2009, an outbreak of E. Coli O157:H7 was linked to Nestlé's refrigerated cookie
dough originating in a plant in Danville, Virginia. In the USA, the caused sickness in at
least 69 people in 29 states, half of whom required hospitalization. Following the
outbreak, Nestlé voluntarily recalled 30,000 cases of the cookie dough. How the dough
became contaminated is unclear, because E. Coli is not known to live in any of its
constituent ingredients.[39]
[edit] External links
Official website
Article on ownership structure of Nestlé and L'Oréal
Nestlé S.A. concentrates trading of its shares on SWX Swiss Exchange

[show]
v•d•e
Nestlé

Günter Blobel · Peter Brabeck-Letmathe · Nobuyuki Idei ·

Corporate directors
Henri Nestlé · Kaspar Villiger

Brands

Aquapod · Aquarel · Arrowhead · Contrex · Deer Park · Ice

Bottled water
Mountain · Ozarka · Panna · Perrier · Poland Spring ·

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Powwow · Pure Life · San Pellegrino · Vittel · Zephyrhills

Baby foods Cerelac · Gerber (Gerber Life) · Nido

Baking Libby's Pumpkin · Toll House

100 Grand Bar · Abuelita · Aero · After Eight · Baby Ruth ·

Bertie Beetle · Big Turk · Bit-O-Honey · Breakaway ·
Butterfinger · Cailler · Caramac · Chico babies · Chokito ·
Chunky · Coffee Crisp · Crisp · Crunch · Goobers · Jelly
Tots · Kit Kat2 (not USA) · Lion Bar · Mackintosh's
Toffee · Matchmakers · Menier Chocolate · Milkybar ·
Candies and sweets Mirage · Munchies · Nestle Fav*rites · Oh Henry!2 (not
Canada) · Orion · Peppermint Crisp · Perugina · Quality
Street · Raisinets · Rolo2 (not USA) · Rowntree's ·
Rowntree's Fruit Gums · Rowntree's Fruit Pastilles ·
Smarties · Sin Parar · Sno-Caps · Spree · Svitoch · Toffee
Crisp · Violet Crumble · Walnut Whip · The Willy Wonka
Candy Company · Yorkie

Carnation · Caro · Coffee-Mate · Juicy Juice · KLIM · La

Dairy, coffee and drinks Lechera · Milo · Nescafé · Nespresso · Nesquik · Nestea ·
Ovaltine3 (malt only in USA) · Sjora

Dreyer's/Edy's · Drumstick · Eskimo Pie · Häagen-Dazs1

Ice cream
(only USA/Canada) · Hjem-IS · Ice Screamers · La

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Cremeria · Maxibon · Mövenpick · Parlour

Buitoni · California Pizza Kitchen · DiGiorno · Herta · Hot

Prepared meals Pockets · Lean Cuisine · Maggi (noodles) · Stouffer's ·
Thomy · Tombstone · Uncle Tobys

Nutrition and health Boost · Jenny Craig · Nutrament · PowerBar

Alpo · Beggin' Strips · Beneful · Dog Chow · Fancy Feast ·

Petcare
Felix · Friskies · ONE · Tender Vittles

1 Brand owned by General Mills. 2 Local production rights owned by The Hershey
Company. 3 Local rights and specific trade dress owned by Nestlé, but not worldwide.

Nestlé boycott · International Code of Marketing of Breast-

See also
milk Substitutes

Annual revenue 109,9 billion CHF (16% profit) (2008) · Employees 283,000 ·
Stock symbol SIX: NESN OTCBB: NSRGY · Website nestle.com

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CHAPTER:-2
2.1 - INTRODUCTION TO NESTLE

It was in the 1860s that Henri Nestlé, a pharmacist, developed a food specifically for
babies who could not breast feed. He first used this successfully on a premature infant
who couldn't tolerate his mother's breast milk. This product saved the child's life and
people soon began to see the value of it. Soon, Farine Lactée Henri Nestlé was being sold
all over Europe.

In 1905 Nestlé merged with a condensed milk company. By the early 1900s they had
factories in the United States, Britain, Germany and Spain. With the outbreak of World
War I, there was a great demand for these products. By the end of the war Nestlé's
production more than doubled.

Unfortunately, after the war, contracts dried up and the buying public went back to
getting fresh milk. In response to this, Nestlé streamlined their operation and reduced
their debt. By the 1920s the company had expanded its operation with chocolate being its
number two selling product.

Then World War II broke out and Nestlé immediately felt the effects. Their profits
dropped from $20 million a year before 1938 to under $6 million a year by 1939. In spite
of this, Nestlé began setting up factories in developing countries expecting a turn around
by the war's end. Ironically, the war was responsible for Nestlé introducing one of its

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most popular products, Nescafé instant coffee, which was the number one drink of the
United States military.

The end of World War II, just as Nestlé predicted, was the beginning of a great phase of
growth for the company. Nestlé acquired many other companies during this time. In 1947
they merged with Maggi, Crosse & Blackwell in 1960, Libbys in 1971 and Stouffers in
1973.

By the mid 1970s, Nestlé's growth in the developing world offset their slowdown in the
more developed countries like the United States. By the mid 1980s they had acquired
several additional companies, the biggest of which was the American company,
Carnation.

After the mid 1990s, because of the breakdown of trade barriers, Nestlé enjoyed what
was probably their biggest growth in history. Their acquisitions included the giant
company Ralston Purina, which mainly sells pet food.

In spite of Nestlé's diversification, they are and will always be mostly known for their
ever popular chocolate bars and drinks such as Nestlé's Crunch Bar, which is now also
made into an ice cream bar, Nestlé's Quick, which is a chocolate flavored powder to put
in milk, Nestlé's Carnation, another popular chocolate drink, the Kit Kat Bar, Smarties,
Nestlé's Maxibon, Nestlé's Extreme and a host of other products, a list that would take
days to go through.

In closing, it should be pointed out that a lot of Nestlé's success was a stroke of good
luck. It seems that a man named Daniel Peter figured out exactly how to combine milk
and cocoa powder. The result was milk chocolate. Well, Peter just happened to be a good
friend of Henri Nestlé. Peter started the company, but ultimately Nestlé took it over as
was destined to happen.

Long History of Research

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With a research history of over 150 years, Nestlé has always been at the forefront of food
science and nutrition research. Our scientists have continuously driven the R&D effort
with world-changing innovations ranging from the first milk food for babies to instant
coffee and espresso.

1849. Henri Nestlé sets up a laboratory.

Henri Nestlé, a pharmacist's assistant from Frankfurt, Germany, settled in Vevey,
Switzerland, on the shores of Lake Geneva in the 1830s and installed his own personal
laboratory. He was both an inventor and an entrepreneur.

1867. Nestlé's first product.

The product that marked the beginning of Nestlé’s corporate history "Farine Lactée
Nestlé" (Nestlé's Milk Food) was the world's first infant food. It was also the direct result
of research. It met an urgent need at the time, since infant mortality was still very high in
Europe, and enjoyed immediate international success.

1875. Nestlé's first chemist.

When Henri Nestlé withdrew from active business life in 1875, he made sure that the
company which carried his name continued his scientific tradition. A chemist was hired
with the mission to devise analytical methods to check the quality of the Company's two
main raw materials: milk and cereals. As the Company expanded, similar laboratories
were installed in other Nestlé factories around the world. So the nucleus of today's
international R&D network existed long ago.

1929.
Nestlé acquired the traditional Swiss chocolate companies Cailler, Peter and Kohler. The
Company inherited Daniel Peter's milk chocolate, a breakthrough invention dating from
1875.

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