The basis for the emergence of the enterprise, which subsequently grew into well-known company began the research of the Swiss pharmacist Henry Nestlé, who was trying to create a breast milk substitute for feeding infants. Using milk, wheat flour and sugar, Henry Nestle developed a product called Farine Lactee Henry Nestle - “Henry Nestle's Milk Flour”.
The company producing and selling this product was established in 1867. His goal was to create nutrition for infants who, for one reason or another, could not be fed with mother's milk, thereby partially solving the problem of infant mortality from insufficient or improper nutrition.
The first consumer of the new product was a premature baby, whose body did not accept either mother's milk or existing substitutes, and doctors were powerless to help the baby. After a child’s life was actually saved thanks to the new product, Nestlé Milk Flour received wide recognition and within a few years was successfully sold in most European countries.
Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1886 by Americans Charles and George Page, expanded its product range and began producing breast milk substitutes in the mid-1970s. Nestle company, owned by Jules Monner since 1874, took a retaliatory step and launched its own brand of condensed milk on the market. The companies remained major competitors in this area until they merged in 1905.
The history of the logo.
Henry Nestlé decided to use his family coat of arms - a nest with birds - as a trademark. In Swiss dialect German language Nestle means "little nest". One of sales agents proposed replacing the nest with the white cross of the Swiss flag, but Nestlé refused this idea: “ I'm sorry, but I can't afford to replace the socket with a Swiss cross, I can't have different trade marks for each country - anyone can use the cross, but no one can use my family coat of arms».
Entering the world market.
In 1905, a merger took place to form a company called the Nestle and Anglo-Swiss Milk Company. Already at the beginning of the 20th century, the company owned factories in the United States, Britain, Germany and Spain.
In 1907, the company began to conquer the Australian market, which allowed it to double its production volume. At the same time, warehouses were opened in Singapore, Hong Kong and Bombay to meet the needs of the rapidly growing Asian market.
However, the main production facilities were still located in Europe, and the outbreak of the First World War dealt a serious blow to the company's activities. It became increasingly difficult to obtain raw materials and distribute finished products. A shortage of fresh milk across Europe has forced factories to sell off virtually all supplies to meet the population's needs.
But despite the difficulties, the war created unprecedented demand for powdered and condensed milk, mainly due to government orders. To cope with them, Nestlé acquired several factories in the United States. By the end of the war, the company owned 40 factories, and production volume had almost doubled compared to 1914.
The emergence of Nescafe.
The post-war period brought with it a crisis for Nestle. Government orders stopped coming in, and people, accustomed to powdered and condensed milk during the war, preferred to return to fresh milk as soon as it became available again. In 1921, the company suffered losses for the first time. Rising prices for raw materials, the post-war lull in the global economy and falling exchange rates exacerbated the situation.
Nestle management quickly responded to the current situation and invited Swiss banking expert Louis Duples to reorganize the company. By aligning the level of production and sales, as well as reducing outstanding debts, he adjusted the company's operations.
In the twenties, Nestlé for the first time expanded beyond its traditional range. Chocolate production has become the company's second most important activity. New products appeared: malted milk, Milo instant drink, powdered buttermilk for children and, in 1938, Nescafe. This soluble powder produced world revolution in coffee consumption and quickly gained popularity.
Global turmoil.
The outbreak of World War II had a negative impact on Nestle's activities. The company's profits fell from US$20 million in 1938 to US$6 million in 1939. Neutral Switzerland became increasingly isolated from war-torn Europe, and the company moved a significant portion of its employees to Stamford, Connecticut.
Ironically, the second World War helped accelerate the promotion of the company's newest product, Nescafe. After the United States entered the war, Nescafe became the staple drink of American soldiers and officers serving in Europe and Asia. By 1943, annual production reached a million boxes.
As during the First World War, the level of production and sales in the war economy increased significantly: total sales jumped from $100 million in 1938 to $225 million in 1945. By the end of the war, Nestle executives suddenly found themselves heading a concern leading in the global coffee business, as well as in other traditional Nestle production areas.
Growth in production and expansion of assortment.
The post-war years became the most dynamic phase in the history of Nestlé. During this period, the company's growth was based on expanding the range of food products produced by the company. Alimentana S.A. has joined Nestle. - manufacturer of Maggi soups and seasonings. The name was changed to Nestle Alimentana Company. This was followed by the acquisition of Crosse & Blackwell, a British canned food manufacturer, in 1950, as well as Findus in 1963 (frozen foods), Libby in 1971 (fruit juices) and Stouffer in 1973 (frozen foods).
Meanwhile, Nescafe's popularity continued to rise. From 1950 to 1959, sales of instant coffee nearly tripled, and from 1960 to 1974 they quadrupled. The company's sales have quadrupled in the 15 years since the end of World War II. The development of new low-temperature drying technology led to the appearance in 1966 of a new brand of instant coffee - Taster's Choice.
Finally, Nestlé management decided to go beyond Food Industry. In 1974, the company became the largest shareholder of the world leader in the production of cosmetics - L’Oreal.
Changing positions.
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In 1974, Nestlé's position began to change. For the first time since 1920, the company's economic situation worsened due to rising oil prices and slowing economic growth in industrialized countries. In addition, world currencies fell against the Swiss franc. As a result, between 1975 and 1977, coffee prices quadrupled and cocoa prices tripled. As in 1921, the company had to quickly respond to a radically changed market situation.
Increased sales in developing countries partially mitigated the impact of the decline in Nestlé's traditional markets, but at the same time carried risks associated with the unstable political and economic situation in these countries. To maintain balance, Nestlé acquired Alcon Laboratories, Inc., a non-food industry American manufacturer of pharmaceutical and ophthalmic products.
Nestlé today and tomorrow.
The first half of the nineties was a favorable period for Nestlé: trade barriers were eliminated, and integration processes continued in the world market. Opening of the Central and of Eastern Europe, as well as China, provided Nestlé with new ways to market its products.
Nestlé began the 20th century by merging with the Anglo-Swiss Condensed Milk Company to increase its product range and expand its geographic reach. The company enters the new millennium as a strong leader in the food industry, with more than 500 factories in 70 countries and annual sales of more than CHF 71 billion.
Since 1996, consolidation processes have been reflected in the acquisition of an Italian manufacturing concern mineral water San Pellegrino (in 1997), the purchase of the English company Spiller Petfoods (in 1998), and the decision to sell the Findus brand (in 1999) in order to concentrate efforts on the production of more profitable frozen foods. The acquisition of Spiller Petfoods strengthens Nestlé's position in Europe in the pet food market, which the company entered back in 1985 with the acquisition of Carnation and its Friskies brand. Carnation was acquired at auction for US$3 billion. At that time, it had a lot of weight among American food manufacturing companies. The merger was one of the largest in the history of the food industry.
Nestlé's recent decision to close production facilities ground coffee in the USA (Hill Bros, MJB, Chase & Sanborn) will allow the company to focus on the new luxury Nescafé line, which began production in September 1999.
Maintaining a leading position in a changing market requires sufficient mobility from the company. The existing range of products is being supplemented, the geography of activity is expanding.
Brand: Nestle
Tagline: Product quality. Quality of life (eng. Good food, good life)
Industry: food production
Products: Food
Owning company: Nestlé S.A.
Year of foundation: 1866
Headquarters: Switzerland
In the mid-1960s, experienced pharmacist Henry Nestlé began experimenting with various combinations of milk, wheat flour and sugar, trying to create alternative source food for babies who could not be fed with mother's milk. Its main goal was to help solve the problem of child mortality caused by insufficient and unhealthy nutrition. The new product was called Farine Lacte Henry Nestle (Nestlé Milk Flour).
After the new breast milk replacer formula Nestle saved the life of a premature baby, whose body did not accept either mother’s milk or its substitutes that existed at that time, this product received well-deserved recognition, and within a few years, Nestle’s Farine Lactee was actively sold in most European countries.
"Anglo-Swiss Condensed Milk Company", founded in 1866 by Americans Charles and George Page and becoming the company's main competitor Nestle, expanded its range to include cheese and breast milk substitutes in the mid-1970s. Company Nestle, which Henry Nestlé sold to Jules Monner in 1874, responded by launching its own brand of condensed milk.
In 1875, a resident of Vevey (Switzerland), Daniel Peter, came up with a way to produce milk chocolate by combining milk and cocoa powder. Peter, a friend and neighbor of Henry Nestlé, founded the company, which quickly became a world leader in chocolate production and later became part of the corporation Nestle.
Nestle is the world's largest company that produces food, animal feed, and cosmetics. The company's motto is “Quality of products, quality of life.” Nestlé invites consumers to healthy image life, purchasing only high-quality and proven products. Where did the history of the most famous brand today begin?
A pharmacist from Switzerland named Henri Nestlé at the end of the 19th century was puzzled by the creation of a formula for baby food that would exactly replicate mother's milk. He is driven to research by his wife Clementine, the daughter of a doctor. She often helped her father and saw many child deaths. Clementine knew that eating problems were one of the common reasons deaths of babies. She asks her husband to help. And he succeeds! Henri produces Farine Lactee Henry Nestle, consisting of milk, flour and sugar.
Inspired by the success, the pharmacist decides to open his own small company, which would be engaged in milk production. He manages to do this already in 1867. Henri Nestlé transfers the family coat of arms (a nest with three chicks) to the company logo.
One sales agent suggested that the pharmacist change the sign to the cross found on the Swiss flag, but he firmly refused. In 1988, the coat of arms underwent a change - instead of three chicks, there were two on it. This is a simple association with families of that time. Europeans and Americans of the late 20th century most often had two children.
First client. The company's first client was a child who was allergic to breast milk. The poor baby couldn't stand cow's milk either. The doctors shrugged their shoulders. Henri Nestlé offered the child dry formula own production, and it did not cause allergies! The child was saved thanks to Nestle. The case caused a stir in the country and the pharmacist’s mixtures began to quickly sell out not only in Switzerland, but throughout Europe. Henri's pocket gradually became fuller.
Competitors Charles and George Pagedie were also not sitting idle. Since the 70s of the 19th century, their condensed milk plant has been producing formula for baby food. The Nestle plant could not stand it and started producing condensed milk in response. Before 1905, the two companies were fierce competitors in the dairy market. At this time, Nestlé had already opened factories in Spain, Germany, the USA and the UK. In 1905, the two companies merged to form the Nestle and Anglo-Swiss Milk Company. From this time on, the owners began active work to expand the sales market, beginning to capture Australia.
Useful video: corporate film about history.
What did the World Wars bring with them?
The First World War brought with it serious problems. The entire production power of the company was located in the territory of the “Old World”, but the path there was practically closed. Almost all supplies of fresh milk have come to an end. But the population needed a large amount of powdered and condensed milk - this saved the company in difficult times. Thanks to the government order for the army, Nestle confidently stays afloat during the remaining wartime. The company even buys several factories in the USA. When the war ends, Nestlé has almost 40 factories - double what it was in 1914.
Interesting fact. Many people associate the company with chocolate, but it makes up only three percent of total sales.
The post-war period hits production quite hard. Raw materials are becoming more expensive, exchange rates are falling... The economy has calmed down. At this difficult time, Louis Duples appears, a banking expert who saved the company from collapse. Having reformed production, he established trade again. At the same time, Nestle is expanding its product range. Chocolate, malted milk, baby powdered pasta and the well-known Nescafe coffee, which created a real sensation, are on sale!
During World War II, Nestle again expanded its sales. Coffee, condensed milk and chocolate are literally flying off the shelves. If in 1943 the income was equal to 100 million dollars, then by 1945 it was 245 million, and precisely Nescafe brings this success to the company.
New mergers
In the post-war years, Nestle actively replenishes its production and expands its range. Merger with Alimentana S.A and Maggi provides opportunity to sell soups instant cooking and seasonings. In 1950, Crosse & Blackwell joined Nestlé, and in 1963, Findus. The company now sells canned soups and frozen foods. In 1971, after merging with the Libby brand, Nestlé established the production and sale of fruit juices. By 1974, the company's sales soared by 50%.
Beginning changes
In 1974, Nestlé expanded beyond the food trade and acquired shares of the famous cosmetics brand L’Oreal. This is done to maintain balance. After all, prices for cocoa beans are doubling, and prices for coffee are tripling. For the same purpose, the company is buying shares of the pharmaceutical company Alcon Laboratories Inc. Nestlé remains afloat and, since the 90s of the 20th century, has eliminated trade barriers. New European and Chinese markets are opening up...
Work in the 90s of the last century
In 1997, the board of directors decided to purchase Italian brand drinking water San Pellegrino. In the same year, the company was headed by Peter Brabeck-Letman, who preferred to invest money in the most profitable areas of the market. A little later the stamp was bought Spiller Petfoods. But the company's biggest deal was the merger with the company Carnation. Her brand Friskies, which Nestlé acquired for $3 billion, brings the company unprecedented revenue and firmly positions it in the pet food trade market. Brabeck is considered one of the most active directors of the company, who almost completely rebuilt it.
Nestle today
Today it is difficult to meet a person who has not heard about the Nestle company and has not tried its products. You can find it in any store baby food, coffee, quick breakfasts and other products from Nestle. The company owns a huge number of factories around the world, including in Russia. More than 60 countries around the world love and respect this brand!
This is interesting. Nestlé owns 461 factories around the world, 83 countries and 330 thousand workers are engaged in the production of goods.
Nestle in Russia
Nestlé are starting their business relationship with Russia in the distant 19th century. Alexander Wenzel signs a contract for the supply of dairy products to our lands, thereby opening cooperation with the brand for many years.
A new round of relations occurred only in the 20th century. In the 90s, the distribution network was actively developing, offering the population mainly coffee. Already in 1996, Nestlé became a full-fledged company in Russia, having established a sales and import system. In 2007, the company received a new name in our country, “Nestlé-Russia”.
Competitors. The company's main competitors are PepsiCo, Mars, Unilever.
Today Nestle is the largest food and beverage company. Long-term success is not a simple coincidence. This is the result of hard work and diligence of the board of directors, which did not give up in the most difficult times. Active promotion of brands, constant mergers with smaller companies, endless expansion of the sales market - all this has led Nestle to stunning success!
Useful video: corporate film about activities in Russia.
This time the LifeHacking website introduces our readers to the history of the creation of the Nestle company!
1. Swiss pharmacist Henry
Swiss pharmacist Henry Nestle I was puzzled by the issue of baby food. Henry decided to create a product that was exactly like mother's milk. Soon a pharmacist will create such a product called Farine Lactee Henry Nestle(Henry Nestlé milk flour). Powdered milk consisted of the most natural ingredients of that time: milk, sugar and wheat flour. Artificial milk turned out no worse than natural mother's milk. Then Henry decides to create his own milk production company.
Already in 1867 a pharmacist we know creates a company called Nestle(very selfish). The main goal of the company was to create a quality product for kids. The first major consumer products Nestle became a baby who could not tolerate mother's and regular milk. He started having an allergic reaction. The doctor could not help the baby. Then Henry offered to give him his own milk, and it did not cause an allergy. Thus, dry flour from Nestle saved the baby’s life. Subsequently, this case aroused general interest, and Nestle products quickly gained popularity throughout Europe. Along with its popularity, Henry’s wallet gained thickness, because the product brought good income for the Nestle family.
In 1886 year Anglo-Swiss Milk Company created by two brothers - Charles and George Page started producing milk for babies. Initially, the American company produced condensed milk. Having learned about this, Nestle responded by launching the production of condensed milk. What a twist! The Pages were shocked by Henry's daring answer!
2. Family coat of arms
Nest with birds is the family coat of arms of the Nestle family, translated from German Nestle means “small nest”. When Henry Nestlé was asked to change the logo to a Swiss cross, he said:
“Unfortunately, I cannot accept your idea of replacing the socket with the Swiss cross, since I cannot have different trademarks for each country. Anyone can use the cross, but no one can use my family coat of arms."
In 1905, two competing companies merged and then a new one appeared Nestle and Anglo-Swiss Milk Company. At that time, Nestle already owned several factories in the USA, Britain, Spain and Germany. Already in 1907, the company began to capture the Australian market to increase sales.
At the beginning of the First World War, things got worse for the company, because the delivery of raw materials slowed down. Delivery routes were cut off, there were not enough raw materials, and then the company wasted all its reserves of fresh milk. However, there were also positive points: The US Army needed condensed milk and powdered milk. Nestle avoided its end thanks to a government order for the army. Military rations included condensed milk and powdered milk. And at the front, soldiers loved condensed milk. The company did not have enough factories, so they bought several more factories in America. By the end of the war, sales had doubled their best pre-war sales. Nestle at that time had 40 factories.
3. First chocolate and Nescafe
In 1921 year, the company suffered its first losses, the reasons for this were: rising prices for raw materials, falling exchange rates, and a complete lull in the economy. Then a Swiss banking expert, Louis Duples, appeared in the company. Having carried out a number of reforms in the company's work, he managed to normalize production.
also in early 20th century The first chocolate appears, which became as in demand as condensed milk during the war. At the same time, the company began to produce instant chocolate drink, pasta for children and the familiar coffee Nescafe!
During the Second World War Nestle increased sales again. All the company's products were in demand: instant coffee, condensed milk, chocolate, pasta. In 1943 year the company's annual income was 100
million dollars, and to late 1945 almost 245
million dollars. Instant coffee generated more income for the company Nescafe!
After the war years affected the company the best way. It was during these periods that the company expanded itself and expanded its product range. After the Second World War the company merged with companies Alimentana S.A., which produced instant soups, and Maggi, thus a new holding was formed Nestle Alimentana Company.
4. Enter a larger market
Nestle didn't stop at companies Alimentana S.A. And Maggi, The next step in the company’s development was the acquisition of a holding company that produces canned food, Crosse & Blackwell. Then in 1963
year, the company is already releasing new frozen and canned food products under the brand Findus.
Over the next eight years, the company actively acquired other companies, holdings and brands. Thus, in 1971
year Nestle acquires Libby- company producing natural nectars and juices. Further, the brand will be included in the composition Stouffer. Nestle becomes the largest industry of its time.
Further actions of the company bring large profits to the company. Sales Nestle have grown more than 4 times! In 1966 the company created new technology coffee making. The technology was a low-temperature drying process! Thus, Nestle releases a new brand of coffee - Taster's Choice.
In 1974 year the company buys a holding L'Oreal, producing cosmetics. Nestle goes beyond the food industry!
5. Nestle in modern times
IN 1990 The liquidation of companies involved in the food industry began. This situation was beneficial Nestle. It was during this period that the company began even more vigorous activity. Competitors' products were quickly replaced by the company's products. New markets are emerging in China, allowing Nestlé to increase its sales.
Nowadays it is difficult to imagine a product that would not be manufactured by the company Nestle. After all, Nestle is baby food, culinary products, coffee, chocolate, pasta, breakfast cereals, hygiene products and much more. The company owns big amount factories around the world. Products Nestle in demand in more than 60 countries!
The first children's products were made Henry Nestle, the company developed all the rest of the food itself. Children's natural juices are very popular nowadays, as they are best for children. But people don’t even think that the company had to buy out an entire holding company and a bunch of rights to produce it.
Thanks to the site LifeHacking, you can now show off your knowledge about Nestle in front of friends.
One day in Switzerland, a pharmacist named Henry Nestlé decided to conduct some research in order to create a good breast milk substitute for breastfeeding. infants. Such research formed the basis for the creation of such a production, which after some time grew into a fairly large corporation, Nestle.
From the ingredients used: milk, wheat flour and sugar, Henry Nestle was able to develop a product that was later called Farine Lactee Henry Nestle. Translated it meant: “Henry Nestlé milk flour.” In 1867, Henry decided to produce and subsequently sell infant formula.
His main goal was to create the highest quality product (replacing breast milk) for newborns. The very first who began to use New Product, there was a baby born prematurely in the womb.
The baby’s body did not accept either mother’s milk or its substitutes that existed in those days. And the doctors could not help him.
Thanks to this product, the baby's life was saved. Within a couple of years, the successful corporation was recognized almost throughout Europe, and infant formula began to be sold with great success.
Competing company for the production of condensed milk
In 1886, the Anglo-Swiss Company for the Production and Sale of Condensed Milk, founded by two Americans - Charles and George Pages, significantly expanded its entire range and already in the 70s of the 19th century produced a breast milk substitute .
After Nestlé found out about this, it responded by producing and marketing its own brand of condensed milk.
These two companies were the main competitors in the dairy products market until they merged in 1905.
After the merger of two companies in 1905, vying for leadership in the production of dairy products, one was formed, which was called the Nestle and Anglo-Swiss Milk Company. By the beginning of the 20th century, several factories in Spain, the United States, Germany and Britain were under its management. And already in 1907, the company gradually began to conquer the entire Australian market, this allowed it to double its entire production volume.
Production logo
The logo was based on the family coat of arms, which depicted a nest with birds. When translated from German, the name of the corporation means “small nest.”
At that time, one of the sales agents suggested that Henry change the nest to a simple white cross found on the flag of the country of Switzerland, Henry refused with the words: “Unfortunately, I will not be able to accept this idea, since I cannot have different trademarks for each country. Anyone can use the cross, but no one can use my family crest.”
After the First World War, in order to satisfy all the needs of the population, factories needed to sell off almost all their supplies of fresh milk.
But there was also positive side for the company, the war began and there was a great demand for dry and condensed milk due to the fact that the government was ordering more and more of it.
To provide for the entire government the right amount products, production was forced to purchase factories in the United States of America. By the end of the war, in comparison with 1914, the total production volume had doubled, there were already 40 factories.
Post-war time
The post-war crisis also affected the corporation. The entire government stopped making large orders as before. And people who had become accustomed to condensed and powdered milk during the war refused fresh milk.
In 1921, Nestlé suffered losses for the first time ever. The lull in the economy after the war, the depreciation of all currencies, as well as rising prices for necessary raw materials worsened the situation. The management had to react to this situation as quickly as possible - Swiss banking expert Louis Duples was invited to reorganize them.
After bringing the general level of production and sales into line,
At the same time, having significantly reduced the resulting debt, he was able to take the situation into his own hands, and then establish excellent production operations.
In the twenties, chocolate production began, which later became the second most important activity. A little later, the assortment included such products as: powdered paste for children, instant drink “Milo”, Nescafe product, milk with malt.
This instant powder was able to create a worldwide sensation, successfully gaining unprecedented popularity among all coffee lovers.
Time of World War II
At the time when the Second World War began, its consequences could not but affect production activities. In 1938, all profits were able to decline sharply from twenty to six million dollars. Switzerland, being a neutral country, became increasingly isolated from Europe, and the production had to move most of its employees to Stanford, Connecticut.
At a time when all the soldiers and officers from the US Army entered the war, the Nescafe product became their main drink. And by the beginning of 1943, its sales volume reached more than a million packages.
Implementation successes
But by 1974, sales volumes of all products almost quadrupled. In the same year, all production positions began to undergo some changes. Since the beginning of 1920, with the slowing growth rates of the economies of industrialized countries and rising prices for " black gold", the fall in exchange rates against Swiss money (francs), the economic situation of the corporation began to deteriorate.
As a result, from 75 to 77 of the twentieth century, prices for cocoa beans increased three times, and for coffee four times.
To maintain balance, I had to buy a controlling stake that had nothing to do with the food industry - Alcon Laboratories Inc., which was engaged in the production and sale of ophthalmic and pharmaceutical products.
Products in the modern world
Today it is difficult to imagine a product in the production of which this production would not participate - this is coffee, baby food, chocolate, culinary products and many other consumer products.
The world's first infant formula was created by Henry back in 1867, and since then, on the basis of fundamental and applied research, a large range of baby food has been developed in its research centers.
Video: The history of the world's largest food company
