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Nestle Philippines, Inc.

NEWS Company Address: Nestle Center, Industry: Manufacturing / Production

31

Plaza

Drive,

Rockwell

Center,

Makati

City

1200

COMPANY BACKGROUND

History: Nestl Philippines, Inc., A Short History A Major Player Nestl Philippines, Inc. (NPI) today is a robust, stable organization. It is proud of its role in bringing the best food throughout the stages of the Filipino consumers' lives. The Company employs about 3,000 men and women all over the country. It is now among the top companies in the entire Nestl world, ranking No. 14 in the group and No. 3 in the region comprising of Asia, Oceania and Africa. It is No.1 among the ASEAN countries. In the Philippines, Nestl is among the Philippines' Top 10 Corporations. Product and Services: Nestl may be best known for chocolate, but in fact it's actually the World's Largest Food Company, meeting the daily nutrition needs of people of all ages, all around the world. Here are some of the Nestl brands that are manufactured and distributed in the Philippines. To appreciate our brand, please visit this following sites: www.nestea.ph www.milo.com.ph www.nesvita.com.ph www.icecream.ph www.nestle-waters.com.ph www.chuckie.ph www.calciumplus.com.ph www.nescafe.com.ph www.yogurt.com.ph www.chamyto.com.ph www.nestlecereals.com.ph

Nestl
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Nestl S.A.

Type

Socit Anonyme

Traded as

SIX: NESN

Industry

Food processing

Founded

Vevey, Switzerland (1866)

Founder(s)

Henri Nestl

Headquarters

Vevey, Switzerland

Area served

Worldwide

Key people

Peter Brabeck-Letmathe (Chairman), Paul Bulcke (CEO)

Baby food, coffee, dairy products, Products breakfast cereals, confectionery, bottled water, ice cream, pet foods (list...) CHF 109.72 billion (2010)[1]

Revenue

Operating income

CHF 16.19 billion (2010)[1]

Profit

CHF 34.23 billion (2010)[1] CHF 111.64 billion (end 2010)[1] CHF 62.60 billion (end 2010)[1] 281,000 (2010)[1]

Total assets

Total equity

Employees

Website

www.nestle.com

Nestl S.A. (French pronunciation: [nsle]) is the largest food and nutrition company in the world. Founded and headquartered in Vevey, Switzerland, Nestl originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page,

and Farine Lacte Henri Nestl, founded in 1866 by Henri Nestl. The company grew significantly during the First World War and again 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 over 280,000 people.

[edit] History

The company dates to 1867 when two separate Swiss enterprises were founded that would later form the core of Nestl. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. In August 1867 Charles 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.[2] In September 1867 in Vevey Henri Nestl developed a milk-based baby food, and soon began marketing it. The following year saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process. Nestl's was the crucial cooperation that Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew. Henri Nestl retired in 1875 but the company under new ownership retained his name as Farine Lacte Henri Nestl.

Henri Nestl.

In 1877 Anglo-Swiss added milk-based baby foods to their products and in the following year the Nestl Company added condensed milk so that the firms became direct and fierce rivals. In 1905 the companies merged to become the Nestl and Anglo-Swiss Condensed Milk Company, retaining that name until 1947 when the name Nestl 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 companys current name was adopted in 1977. By the early 1900s, the company were operating factories in the United States, United Kingdom, Germany, and Spain. The First World War created demand for dairy products in the form of government contracts, and, by the end of the war, Nestl's production had more than doubled. After the war, government contracts dried up, and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate-manufacture becoming the company's second most important activity.

The logo that Nestl used until the 1970s.

Nestl felt the effects of the Second World War immediately. Profits dropped from US$20 million in 1938, to US$6 million in 1939. Factories were established in developing countries, particularly in Latin America. Ironically, the war helped with the introduction of the company's newest product, Nescaf ("Nestl's Coffee"), which became a staple drink of the US military. Nestl's production and sales rose in the wartime economy. The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi, a well-known manufacturer of 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'Oral in 1974. In 1977, Nestl made its second venture outside the food industry, by acquiring Alcon Laboratories Inc. In 1984, Nestl'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 Nestl.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in February of 2007.

The first half of the 1990s proved to be favourable for Nestl. Trade barriers crumbled, and world markets developed into more or less integrated trading areas. Since 1996, there have been various acquisitions, including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002 in June, Nestl 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, Nestl came close to purchasing the iconic American company Hershey's, one of its fiercest confectionery competitors, although the deal eventually fell through.[3] Another recent purchase included the Jenny Craig weight-loss program, for US$600 million. In December 2005, Nestl bought the Greek company Delta Ice Cream for 240 million. In January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream maker, with a 17.5% market share.[4] In November 2006, Nestl purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B, also acquiring, in 2007, the milk-flavouring product known as Ovaltine. In April 2007, returning to its roots, Nestl bought US baby-food manufacturer Gerber for $5.5 billion.[5][6][7] In December 2007, Nestl entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini.[8] Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the worlds largest eye-care company.[9] On March 1, 2010, Nestl concluded the purchase of Kraft's North American frozen pizza business for $3.7 billion. In July 2011, Nestl SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about $1.7 billion.[10]

[edit] Products
Main article: List of Nestl brands

Nestl has some 6,000 brands,[11] with a wide range of products across a number of markets, including coffee (Nescaf, Nespresso, etc.), bottled water (Buxton, Perrier, etc.), milkshakes and other beverages (Nesquik, Milo, Carnation, etc.), chocolate (Milky Bar, After Eight, and many others), ice cream (Hagen-Dazs, Skinny Cow, etc.), breakfast cereals (Cheerios, Golden Nuggets, Shreddies, etc.), infant foods (now including Gerber products), performance and healthcare nutrition (Nesvita, PowerBar, etc.), seasonings, soups and sauces (Maggi, Buitoni,

etc.), frozen and refrigerated foods (Findus, Lean Cuisine, etc.), confectionery (Rowntree products, Caramac, Wonka products, etc.), and pet food (Winalot, Felix, etc.).

[edit] Business

Japan headquarters

The Nestl 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-Letmathe, Chairman of the Board of Directors, Nestl S.A. Paul Bulcke, Chief Executive Officer, Nestl S.A. Werner Bauer, Executive Vice President, Nestl S.A., Chief Technology Officer, Head of Innovation, Technology, Research & Development Friz van Dijk, Executive Vice President, Nestl S.A. Asia, Oceania, Africa, Middle East Chris Johnson, Executive Vice President, Nestl S.A. United States of America, Canada, Latin America, Caribbean Jos Lopez, Executive Vice President, Nestl S.A. Operations, GLOBE John J. Harris, Executive Vice President, Nestl S.A. Chairman & CEO of Nestl Waters Nandu Nandkishore, Executive Vice President, Nestl S.A. CEO of Nestl Nutrition James Singh, Executive Vice President, Nestl S.A. Finance and Control, Legal, IP, Tax, Global Nestl Business Services Laurent Freixe, Executive Vice President, Nestl S.A. Europe Petraea Heynike, Executive Vice President, Nestl S.A. Strategic Business Units, Marketing, Sales and Nespresso Marc Caira, Deputy Executive Vice President, Nestl S.A. Head of Nestl Professional Strategic Business Division Jean-Marc Duvoisin, Deputy Executive Vice President Nestl 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, Nestl has a reputation score of 70.4 on a scale of 1100.[12]

[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.[13]

Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from readyprepared 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


Nestl holds 26.4% of the shares of L'Oral, the world's largest company in cosmetics and beauty. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestl and L'Oral, while Galderma is a joint venture in dermatology with L'Oral. Others joint ventures 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, Nestl and other chocolate companies formed the World Cocoa Foundation. The WCF was set up specifically to deal with issues facing cocoa farmers, including ineffective farming techniques and poor environmental management (disease had wiped out much of the cocoa crop in Brazil). The WCF focuses on boosting farmer income, encouraging sustainable farming techniques, and setting up environmental and social programmes.[14] Nestl 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.[15] However, there is little evidence that Nestl has reduced any of its child labour practices in countries such as the Ivory Coast. In October 2009, Nestl announced its Cocoa Plan. The company will invest CHF 110 million over ten years to achieve a sustainable cocoa supply. On 23 October 2009, Nestl 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.[16][17] Nestl is launching a Fair Trade-branded Kit Kat in the UK and Ireland from January 2010.[18]
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HISTORY PH

History
Nearly a hundred years after it first started operations in the country, Nestl Philippines, Inc. (NPI) today is a robust and stable organization, proud of its role in bringing the best food and beverage throughout the stages of the Filipino consumers lives. The Company employs more than 3,200 men and women all over the country. It is now among the top companies in the entire Nestl world, and is among the countrys Top 10 Corporations. Its products are No. 1 or strong No. 2 brands in their respective categories.

Nestl Philippines, Inc., A Short History

The Early Years. Although Nestl products were already available in the Philippines as far back as 1895, it was not until 1911 when The Nestl and Anglo Swiss Condensed Milk Company was established in the country, with its first sales office in Calle Renta, Binondo. The Company was forced to suspend its operations during World War II, but soon made a comeback after Liberation, under a new name: Filipro, Inc. It continued to import products such as MILO, NIDO powder milk, MILKMAID and NESCAF from other countries. In the early 1950s, Filipro encountered difficulties when the Philippine government imposed import control. Due to lack of imported products to sell, it was forced to become a distributor of peanut butter, napkins, fruit preserves, and patis (fish sauce) just to keep its operations going. Local Production. In 1960, Nestl S.A.and San Miguel Corporation entered into a partnership resulting in the formation of Nutritional Products, Inc. (Nutripro). In 1962, Nutripros first factory started operations in Alabang, Muntinlupa to manufacture NESCAF. In 1977, Filipro, Inc. and Nutripro Inc. merged under the name Filipro, Inc. In 1986, Filipro, Inc. changed to its present name as Nestl Philippines, Inc. Nestle now has manufacturing facilities in Cabuyao (Laguna), Cagayan de Oro, Lipa (Batangas), and Pulilan (Bulacan) to meet the growing demand for Nestl products in the country. Soon to rise is another factory in Tanauan, Batangas.

Growth and Diversification. In 1991, Nestl pioneered the AIJV (ASEAN Industrial Joint Venture), a regional complementation program. The Company participated in this program with the production of breakfast cereals at the Nestl Lipa Factory, for export to ASEAN markets. Today, three of the Nestle factories in the Philippines Lipa, Cabuyao, and Cagayan de Oro -serve as ASEAN Supply Centers to meet the requirements of Nestle markets in the region. In late 1998, Nestl Philippines became a wholly owned subsidiary of Nestl S.A., following the latters purchase of all of San Miguel Corporations equity shareholding in the Company. Driven by its mission to nurture generations of Filipino families, Nestl today produces and markets products under some of the countrys well known brands such as NESCAF, NIDO, MILO, NESTEA, MAGGI, BEAR BRAND, NESTL, and PURINA, among others. Its product range has expanded to include coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream and chilled dairy, breakfast cereals, confectionery, and pet-care.

Brands Dairy Health and Nutrition Solutions


BEAR BRAND
BEAR BRAND continues to strengthen generations of Filipino families with an affordable range of beverage solutions that highlight the resistance building nutrients of Iron, Zinc and Vitamin C.

Coffee
NESCAF 3IN1 BROWN N CREAMY

NESCAF 3IN1 BROWN N CREAMY has the delicious blend of NESCAF, creamer and distinct sweetness of brown sugar that gives it a unique caramel taste.

Beverages
MILO
MILO contains the malt extract PROTOMALT. Its a mixture of different types of carbohydrates that provide energy and nutrients that the body need. MILO also contains ACTIGEN-E, a combination of B vitamins and micronutrients -- a good source of niacin, iron and calcium with enriched levels of vitamins B1, B2, B6, B5, B8, Magnesium and Vitamin C to help optimize the release of energy from protein, carbohydrates, and fat in your food.

Liquid Beverages and Dairy Culinary


BEAR BRAND Fruit Flavored Milk Drink Your trusted BEAR BRAND STERILIZED further enhanced with Ginseng and another with Ginkgo Biloba. NESCAF READY TO DRINK
NESCAF READY TO DRINK is a cold and delicious NESCAF in a can that comes in 2 flavors: Latte and Mocha to suit your taste. The cans are being imported from Malaysia.

CHUCKIE
NESTL CHUCKIE, my chocolatey buddy, is the coolest, most fun to drink beverage brand among Filipino kids today

MILO READY TO DRINK


MILO READY TO DRINK helps energize your body and mind in school. It contains energyreleasing ACTIGEN-E and PROTOMALT, a mixture of different types of carbohydrates that provide energy and nutrients the body needs.

BEAR BRAND STERILIZED

BEAR BRAND STERILIZED The first Nestle brand in the Philippines, BEAR BRAND STERILIZED has been trusted by Filipinos for over a hundred years for strength and resistance. The tin can is imported from Thailand, while the Tetra Pak is UHT processed and fortified with B-Vitamins and Zinc.

Ice Cream
CHUCKIE WACKY DUO NESTL DRUMSTICK, KIMY KRAZY BANANA, HEAVEN COOKIE DOUGH PLEASURE, FUN CHOCOLATE INDULGENCES , NESTL DRUMSTICK LOADED , NESTL SORBETES , NESTL POPS , NESTL ICE CREAM ZERO FAT , NESTL ICE CREAM TEMPTATIONS

Chilled Dairy

NESTL FRUIT SELECTION , NESTL PREMIUM DAIRY , NESTL FRUIT SELECTION YOGURT WITH JELLY Breakfast Cereals NESTL ALMOND CLUSTERS, NESTL COOKIE CRISP NESTL CORN FLAKES , NESTL FITNESSE NESTL HONEY STARS , NESTL KOKO KRUNCH , NESTL MILO Breakfast Cereal , NESTL SNOWFLAKES ,

Food

Maggi Magic Sabaw, Maggi Magic Sarap, Maggi Magic Sinigang

Confectionery
Baby Ruth, Butterfinger, foxs, Kitkat, Polo,\

Infant Nutrition Cerelac, Gerber

petcare
alpo healthcare nutrition isocal, nutren diabetes, nutren fibre,nutren junior, nutren premium,nestle peptamen

nestle professional Buitoni, maggi, milo, nescafe, nestea