Nestlé

Nestlé - Company Overview

● Nestle is the world’s largest, most diversified food and beverages company in the world, in terms of
revenue
● It is a Swiss Company established in 1866 by its founder Henri Nestle
● Nestle has a unique global footprint and sells its products in 186 countries worldwide
● Nestle has 273,000 employees worldwide
● It has over 376 factories in 81 countries
● Headquarters - Vevey, Switzerland
● Industry - Consumer Packaged Goods
 Nestlé - Company Overview
● Nestle is a nutrition, health and
wellness company, which
manufactures, supplies and produces
prepared dishes and cooking aids,
milk-based products,
pharmaceuticals and ophthalmic
goods, baby foods and cereals
● Its major brands include Aero,
Alpo, Milkybar, Nestle Ice Cream,
Cerelac, Nescafe, Nespresso, Nestea,
Milo, Maggi, Buitoni, Cailler,
Movenpick, Freshly, Purina, Boost,
Gerber, and Kit Kat
Geographic and Brand Split
 Geographic Split
● Nestle's operations are divided based on Geographic Zones, which are as follows:
○ Zone North America (NA) is comprised of the United States, the Group's largest market, and
Canada. Together they represent CHF 24.7 billion in annual sales
○ Zone Latin America (LATAM) includes Brazil and Mexico, Zone LATAM also includes the
Caribbean region and represents CHF 9.2 billion in annual sales
○ Zone Europe (EUR) this zone represents CHF 17.7 billion in annual sales, it continues to show
strong momentum and innovation capabilities
○ Zone Asia, Oceania and Africa (AOA) includes the Middle East and North Africa (MENA)
Region, Zone AOA represents CHF 17.5 billion in annual sales
○ Zone Greater China (GC) is one of the fastest-moving food and beverage markets in the world
and offers significant growth potential for Nestlé, Zone GC represents CHF 5.7 billion in annual
sales

Source
 Nestle Brand Split
● Nestles has more than 2,000 brands, from global icons to local favorites
● The major categories include:
Categories Product Names

Baby food Gerber, NaturNes, Cerelac, Nido, Lactogrow

Bottled water Pure Life, Perrier, S Pellegrino

Cereals Fitness, Nesquik, Nesquik, Lion Cereals, Kokos: Choco Krunch

Chocolate & confectionery KitKat, Nestlé Les Recettes de l'Atelier, Nestlé Toll House, Milkybar, Smarties,
Quality Street, Aero, Orion, Cailler, Barone, Munch

Coffee Nescafe, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, blue
bottle coffee

Culinary, chilled & frozen Maggi, Hot Pockets, Stouffer's, Thomy, Jack's, Tombstone, Herta, Buitoni,
food DiGiorno, Lean Cuisine Source
 Nestle Brand Split
● The major categories include:

Categories Product Names

Drinks Nesquik, Nestea, Milo, Nescafé Shakissimo

Food service Chef, Stouffer's, Nescafé, Milo, Maggi, Chef-mate, Sjora, Lean Cuisine, Minor's

Healthcare nutrition Boost, Peptamen, Resource, Nutren Junior, Optifast

Ice cream Dreyer's, Mövenpick, Häagen-Dazs, Nestlé Ice Cream, Extrême

Petcare Purina, Purina One, Alpo, Felix, Purina ProPlan, Cat Chow, Fancy Feast, Chef
Michael's, Bakers, Friskies, Dog Chow, Beneful, Gourmet

Dairy Carnation, Nido, Coffee-Mate, La Laitiére

Source
Business & Spending
Trends
 Business Facts
● Nestle was formed by the amalgamation of two major companies: Farine Lactée Henri Nestlé and
Anglo-Swiss Condensed Milk Company, which were both founded in 1866
● Nestle was initially called as “Farine Lactic Nestle” as Cerelac its infant food product was created to fight
malnourishment in Switzerland
● Today Nestle is world’s largest food company in terms of revenue
● In the year 2020 Nestle’s revenue was around 5.7 lakh crore rupees, almost twice that Of Coca-Cola
● Nestle being the FMCG giant owns around 2000 brands across various categories
● 29 brands of the company like Nespresso, Kit Kat, and Nesquik account for more than $1 billion sales
annually and are the highest selling products from the house of Nestle
● Nestle owns about 23.29 percent stake in L’oreal, one of the biggest cosmetics company in the world,
having brands such as Garnier, Maybelline, Lancome and Urban Decay
● Nestle sells KitKat all over the world, but in U.S Hershey owns the KitKat brand, so in U.S hershey
manufactures and sells KitKat
● Nestlé produces over 10,000 different products, and over one billion of them are sold every day
Source
 Spending Trends
● In 2019 Nestlé spent 7.4 billion U.S.D on global advertising efforts
● Nestlé’s administration and marketing expenses were approximately 4.5 billion U.S.D
● Nestlé’s investment in digital marketing in 2020 was 47% of its total spending
● Nestlé Health Science has made a strategic investment in Axcella
● Nestle will invest ₹2,600 crore in India over the next three-to-four years to expand existing manufacturing
capacities
● Nestle’ buys out Freshly- the healthy meal start-up for $1.5 billion

Source
Products & Services
 Products
● Nestlé owns over 2000 brands
constituting of various products
● The main categories of products and
their revenue:
○ Powdered and Liquid Beverages -
22.2 CHF
○ PetCare - 14.0 CHF
○ Nutrition and Health Science - 12.2
CHF
○ Prepared dishes and cooking aids -
11.5 CHF
○ Milk products and Ice cream - 11.0
CHF
○ Confectionery - 7.0 CHF
○ Water - 6.4 CHF
Source
 Highest Earning Product Categories
● Powdered and liquid beverages were Nestle’s top selling products in 2020
● Sales for this category reached 22.57 billion Swiss Francs i.e 22.2% of Nestlé's sales
● This includes brands like:
○ Nescafé
○ Nespresso
○ Starbucks
○ Milo
● Purina Petcare was the second most selling category
● It’s sales totaled 14 billion Swiss Francs 16.6% of Nestlé's sales
● This includes brands like:
○ Purina ONE
○ Pro Plan
○ Friskies
○ Tidy Cats
 Highest Earning Product Categories
● Nutrition and Health Science was the third most selling category
● It’s sales totaled 12.16 billion Swiss Francs 14.4% of Nestlé's sales
● This includes brands like:
○ NAN
○ Illuma
○ Cerelac
○ Gerber
Competitor Analysis
 Competitors Analysis

Key Nestle SA PepsiCo Inc Tyson Foods The Coca-Cola Danone SA

Parameters Inc Co

Headquarters Switzerland United States of United States of United States of France

America America America

City Vevey Purchase Springdale Atlanta Paris

No. of 273,000 291,000 137,000 80,300 101,911

Employees

Entity Type Public Public Public Public Public

Revenue $91.68B $70.37B $47.0B $33.01B $26.9B

Thank You