Nestlé products. The history of the creation of the Nestle brand

Operating profit

Net profit

Asset value

Equity

Number of employees

Trading Operating profit

Profit for the Year

Interbrand, $ billion

Millward Brown Optimor, $ billion

Brand Finance, $ billion

According to the Vedomosti newspaper, sales of the Nestle concern for the three quarters of 2013 increased by 4.4% compared to January-September 2012 and amounted to 68.35 billion Swiss francs ($74.83 billion). The company's report said sales rose 1.1% in developed markets and 8.8% in emerging markets. “Sales are increasing in Europe and gaining momentum in Asia and Africa,” company CEO Paul Bühlke told Vedomosti. According to him, we can talk about restoring the company's growth.

The total share value (market capitalization) of Nestlé at the beginning of 2016 was 230 billion Swiss francs (about the same in US dollars). The largest shareholder is Food Products (Holdings) S.A., a subsidiary of Nestlé S.A., registered in Panama. The parent company Nestlé S.A. also has significant stakes. and Norges Bank (Norwegian Central Bank).

In the Forbes Global 2000 list of the world's largest public companies in 2015, Nestlé took 30th place, including 20th in terms of turnover and 14th in market capitalization. It took 43rd place in the list of the most expensive global brands.

Nestle's sales volume in the Russia-Eurasia region in 2016 amounted to 114.4 billion rubles, which is 12% higher than in 2015, the company said in a statement.

Source: RBC

history of the company

One day, Swiss pharmacist Henry Nestlé decided to conduct research to create a breast milk substitute for breastfeeding. infants. These studies formed the basis for the creation of the company's products, which later grew into the large Nestle corporation.

From the present ingredients of sugar, milk and wheat flour, Henry Nestle developed a product that was later called Farine Lactee Henry Nestle, which translated into “Henry Nestle's milk flour”. And already in 1867, Henry Nestlé created a company to produce and sell formula for feeding infants.

Henry Nestlé's main goal was to create a quality product for infants that would replace mother's milk. One of the first to use New Product, there was a baby who was premature in his mother's womb.

The baby's body could not accept either mother's milk or the substitutes that existed at that time. And the doctors were unable to help this child. Thanks to this revolutionary product, this baby's life was actually saved. A few years later, Nestlé Dairy Flour was recognized larger territory Europe, and the mixture began to be sold successfully.

Henry Nestlé is the founder of the famous corporation of the same name.

Meanwhile, in 1886, the Anglo-Swiss Company for the Production and Sale of Condensed Milk, created by two Americans - Charles and George Page, expanded its range and by the mid-70s of the 19th century began to produce a breast milk substitute.

When the Nestle company, owned by Jules Monner, found out about this since 1874. The company took a retaliatory step by launching its own brand of condensed milk. And until the merger of these two companies took place, in 1905, they were the main competitors in the dairy products market.

In 1905, when two companies vying for leadership in the production of dairy products merged, one was formed, and it was named Nestle and Anglo-Swiss Milk Company. And by the beginning of the 20th century, the company owned factories in the United States, Spain, Britain and Germany. And in 1907, the company began to conquer the Australian market, which allowed it to double its production volume.

To meet the demand for products in the fast-growing Asian market, the company opened warehouses in Bombay, Singapore and Hong Kong. When the First World War began, which dealt a serious blow to the company’s activities, the main production facilities were still located on the territory of the “old world”. And the accomplished fact of the First World War did not have the best impact on the receipt of raw materials and the distribution of finished products.

To meet the population's needs, factories had to sell almost all of their fresh milk reserves. But there was also positive point For the company, the fact that the war began was that an unprecedented demand for condensed and powdered milk appeared, mainly due to the fact that the government ordered more and more of it.

To cope with government orders, Nestle had to acquire several factories in the United States. By the end of the war, compared to 1914, production volume had almost doubled; the Company at that time already owned 40 factories.

As it happens, the post-war crisis also affected Nestle. The government no longer made such huge orders as in earlier times. And people who got used to dry and condensed milk during the war, with the advent of fresh milk, preferred to use dry milk.

1921 was the year in which the company suffered losses for the first time in its existence. The post-war lull in the global economy, the sharp decline in exchange rates and rising prices for raw materials further aggravated the situation. The management of Nestle had to immediately respond to the current situation - Swiss banking expert Louis Duples was invited to reorganize the company. By bringing the level of production and sales into line, as well as reducing debt, he managed to take the current situation into his own hands and improve normal work companies.

In the twenties, Nestle decided to go beyond its traditional range and began producing chocolate, which became the company's second most important activity. The company's assortment included such products as instant drink "Milo", milk with malt, powdered pasta for children, and in 1938 a new product appeared - Nescafe. This instant powder created a worldwide sensation, rapidly gaining unprecedented popularity among coffee lovers.

When the Second World War began, this could not but have a negative impact on the activities of the Nestle company. In 1938, Nestle's profits fell sharply from twenty million dollars to six million dollars in 1939. Switzerland, which was a neutral country, became increasingly isolated from Europe, and Nestle had to transfer a significant part of its employees to the state of Connecticut, to the city of Stamford.

When the soldiers and officers of the United States Army, who fought in Asia and Europe, entered the war, Nescafe became their main drink. And by 1943, sales volume had reached more than a million packages.

Under wartime conditions, as in the First World War, sales jumped significantly, and in 1938 the company's revenues were one hundred million, and by the end of 1945, Nestle's profits had risen to two hundred twenty-five million dollars. By the end of the Second World War, the company's management discovered that they were heading a concern that was a leader in the production of instant coffee, as well as a leader in other areas of production for the company.

In the history of the development of Nestle, the most dynamic phase was the post-war years. It was during this period that Nestlé's growth was based on the production and expansion of the products it produced. When Nestlé announced its merger with Alimentana S.A. and the manufacturer of seasonings and soups, the Maggi company, a new holding was formed with the new name Nestle Alimentana Company.

Then, in 1950, Nestlé announced the purchase of the British canned food company Crosse & Blackwell. Next, in 1963, it announced the acquisition of frozen food retailer Findus.

Eight years later, in 1971, the fruit juice company Libby was acquired. Two years later, in 1973, a controlling interest in the frozen food manufacturing and distribution company Stouffer was purchased.

Meanwhile, the popularity of Nescafe instant coffee continued to grow at a rate never seen before. In 1966, when Nestle developed low-temperature drying technology, a new brand of instant coffee appeared - Taster's Choice.

By 1974, Nestle's sales volumes had quadrupled (!). In the same year, 1974, the company announced that it was expanding beyond the food industry and bought a large stake in the world leader in cosmetics production, L’Oreal.

In 1974, Nestle's position began to change. Since 1920, due to the slowdown in the growth rates of the economies of industrialized countries and the increase in prices for " black gold", the fall in exchange rates against Swiss money (francs), the economic situation of Nestle began to deteriorate. As a result, from 75 to 77 of the twentieth century, prices for cocoa beans tripled, and prices for coffee quadrupled.

Just as before, when there was a crisis and in 1921, Nestle had to quickly respond to a radically changing market situation. Partially mitigating the impact of the decline in markets where Nestlé had a monopoly was sales in developing countries, but this was fraught with risk, since these countries were in an unstable political and economic situation.

The company also has its own branded cafe chain.

To maintain balance, Nestle had to buy a controlling stake in a company 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.

In the first half of the nineties, when integration processes continued in the world market and trade barriers were eliminated, it was at this moment that a favorable period began for Nestle. With the opening of new markets in Central and Eastern Europe and China, the company has new opportunities to sell its products in these markets.

To expand and increase the range of its products, Nestle, at the beginning of the twentieth century, merged with the Anglo-Swiss Condensed Milk Company. And already in the new millennium, Nestle entered the new millennium as a world leader in the food industry, with more than five hundred factories located in seventy countries and an annual profit of more than seventy-one billion Swiss francs.

In 1997, at a meeting of the board of directors of Nestle, it was decided to purchase a company that produced mineral water - San Pellegrino (Italy). A year later, in 1998, it was also decided to purchase the English company Spiller Petfoods, but in 1999 the company decided to get rid of and sell the Findus brand in order to concentrate on the production of more profitable frozen foods.

When Nestle acquired Carnation and its Friskies brand at auction in 1985 for three billion US dollars, Nestle was already firmly established in the pet food market. In the entire history of the food industry, the merger of these companies was one of the largest.

Nestle recently decided to close enterprises that were involved in the production of ground coffee in the US (MJB, Chase & Sanborn and Hill Bros) to focus on the new luxury line of Nescafe, which began production back in September 1999. By this time, Nestle had become a multinational corporation.

And today it is difficult to imagine a product in the production of which Nestle would not participate - these are baby food, culinary products, coffee, chocolate and many other consumer products. More than 60 countries around the world are consumers of Nestle products.

The world's first infant formula was created by Henry Nestlé in 1967, and since then, based on fundamental and applied research in Nestlé's own research centers, a huge range of infant formula has been developed.

All products that will subsequently be presented on the market are made only from natural raw materials, without any additives such as dyes, stabilizers, flavors and without the use of preservatives. Milk replacers for infants are produced in factories in Germany, Holland and, of course, Switzerland; porridge - in Spain and Belgium; and juices and purees - in Finland and Germany.

Nestlé's relations with Russia have a long history. The company supplied its products to Russia already at the end of the 19th century, when St. Petersburg merchant Alexander Wenzel signed an exclusive contract with Henry Nestlé for the supply of dairy products in the territory of the Russian Empire.

A new stage began in the early 90s of the 20th century, when Nestlé created a network of importers and distributors who began to actively develop sales of the main Nestlé brands, including NESCAFE® and NESQUIK®.

In April 1995, Societe pour l’Exportation des Produits Nestle S.A. opened its representative office in Moscow. A year later, Nestlé Food LLC became a full-fledged Russian company, organizing a network of its own warehouses and establishing a sales and marketing system to promote products on the Russian market. In 2006, regional offices located in the Eurasia region began to report to the Russian head office of Nestlé, thus the company expanded the geography of its activities and began to conduct business in the Russia-Eurasia region. In 2007, the company received a new name - Nestlé Russia. On January 1, 2007, a plan to merge numerous legal entities Nestlé group of companies into a single company under the new name Nestlé Russia.

Today, Nestlé is a leader in the coffee, baby food, culinary, packaged chocolate and breakfast cereal markets, and is also expanding its presence in the ice cream, pet food and bottled water markets. Nestlé's long-term success in the Russian market was achieved due to a number of factors. First of all, Nestlé has strengthened its position and expanded its presence in the country through investments in local production and industrial infrastructure, active promotion of brands, as well as the constant expansion and development of the national sales network.

Nestlé's main competitors are Unilever, PepsiCo, Mars, Kraft Foods and Groupe Danone. Nestlé is ahead of them by a wide margin: the income of the next company in the Global 500 list, Unilever, is more than one and a half times less than Nestlé's income.

In June 2017, it became known that Nestlé Purina Petker (a division of the Swiss Nestlé) would invest 10 billion rubles. to expand the factory in the Kaluga region (in Vorsino). The agreement on these investments was signed by the Deputy Governor of the Kaluga Region, Vladimir Popov, and the head of Nestlé in the Russia and Eurasia regions, Marcial Rolland.

Regional Director of Nestlé Purina Petker in Russia, CIS, Turkey and Israel Alessandro Zanelli said that the factory will have two new lines and additional warehouse capacity. For 2017-2019 The enterprise's capacity will double. Nestlé does not disclose the capacity of its operating lines. Since its opening in 2007, the company has invested 12 billion rubles in this factory. According to Alessandro Zanelli, the company's share in the Russian animal feed market is about 30%.

In March 2017, Nestle and the world's leading soft drink manufacturer, American Coca-Cola, decided to terminate the joint venture Beverage Partners Worldwide (BPW) in 2018.

BPW was created by Nestle and Coca-Cola in 2001 on a parity basis. Products under the Nestea brand compete mainly with Lipton Iced Tea and Brisk teas, which are produced by the joint venture Pepsi Lipton Tea Partnership, created in 1991 by two other food giants - Unilever and PepsiCo.

In January 2018, Nestlé agreed to sell its US confectionery business to Ferrero for a deal valued at $2.8 billion.

In July 2018, Nestlé finally lost its monopoly on the KitKat bar shape.

In March 2018, former head of Nestle Helmut Maucher died in Germany.

Maucher was born in 1927 in southern Germany. At the age of 19, he began working at the Nestle plant in his hometown of Allgäu with his father. While working for the company, he completed corporate training and graduated from university. From 1964 to 1980, he held various management positions at Nestlé's regional division in Frankfurt. In 1975, Maucher became head of the entire company's operations in Germany. In 1980 he moved to Switzerland and joined the board of directors of the entire company. As Nestle said in a statement, this comes amid the peak of a campaign to boycott its infant formula over the use of artificial milk substitutes. From 1990 to 1997, Maucher served as Chairman of the Board of Directors and general director, and after his retirement remained an honorary member of the council. During his leadership, he turned the corporation into the largest food manufacturer in the world

The Nestle company is now a huge corporation that produces a wide variety of products - chocolate, coffee, mineral water, ice cream, baby food, yogurt, animal food, cosmetics and more. The production volumes are so large that, perhaps, every average person has purchased products from Nestle at least several times. This company rightfully deserves to be included in the list of the largest and most successful food manufacturers on the world market.

Birth of Nestlé

Henry Nestle was a pharmacist by profession. In the 1860s, he became concerned about the lack of alternative feeding for infants, and began conducting experiments using milk, sugar and flour. Many babies, for one reason or another, cannot be fed with their mother's breast milk, and Henry Nestlé wanted to help them by creating a different way of feeding. In addition, at that time, many mothers did not know how and did not know how to properly care for themselves so that their breast milk was healthy. As a result, their babies did not receive enough necessary substances and simply died. Henry Nestlé solved this problem by creating the first infant formula called Nestlé Milk Flour.

Interesting fact: Before his epoch-making invention, Henry Nestle was engaged in more trivial things - he sold mustard, vinegar and gas for lanterns.

Nestlé's infant formula gained universal recognition after this product saved the life of one baby. He was born very weak and his body did not accept mother's milk or any other substitutes. He simply could have died if it had not been for Nestlé Milk Flour, which was literally a saving formula for him. This case became known in many European cities, and Nestlé's milk formula became extremely popular.

History of the logo

Henry Nestlé understood that for a brand to succeed, it needed a corporate logo that would distinguish it from others. For this logo, Henry chose the image of his family's family coat of arms - a nest with chicks. This image became the symbol of the family, since “nestle” in the Swiss dialect is translated as “small nest”. And although his consultants insisted that the logo be a different image - a white cross, Henry was adamant on this issue. “The image of the cross is everywhere. And many people use it. But only I can use my family symbol, and no one else.”

Interesting fact: the Nestle logo originally featured a nest with three chicks and a mother bird. In the late 1980s, one chick was removed from the image. The company's managers made this decision based on the fact that in those years in most European countries the average number of children in families became two, not three, as it was before.

Competition

Founded almost 10 years before Henry's company, Charles and George Page's business, the Anglo-Swiss Condensed Milk Company, became a major competitor to Nestlé. In the 1970s, this organization began active efforts to increase its range, adding more and more new dairy products to it. At that time, the Nestle company already belonged to Jules Monera and he was not going to give up to his rival. In response, they launched the production of condensed milk under the Nestle brand, which was a level higher in quality than what Pages offered.

In addition to competitors, Nestle also had friends. For example, milk chocolate, beloved by many sweet tooths, was invented by Henry Nestlé’s friend and neighbor, Daniel Peter. Having implemented a seemingly simple idea - adding milk to cocoa powder - Peter founded a successful company that broke all records for chocolate sales. Subsequently, this company became part of the Nestle corporation.

Conquering the world market

The Nestle company entered the twentieth century already having its production branches in Germany, Spain, Great Britain and America. And after 5 years, Nestle merged with its aforementioned competitor - the Anglo-Swiss Condensed Milk Company. Active construction of Nestle branches began in many of the world's largest cities; product exports grew along with increased consumer loyalty. Already in 1907, the markets of Australia, Singapore, and Hong Kong were developed.

World War I

The First World War did not have the best impact on Nestle's activities. The company was forced to sell almost all of its milk reserves to the public, as there was a sharp shortage of food products. However, in those years, Nestle made good money from the production of condensed and powdered milk, as the country's government placed large orders of these products, which were then sent to soldiers and other people in need. Because of such a stir around condensed milk, Nestle had to open additional factories to satisfy the need for this product. By the end of the war, Nestle already had about 40 production points.

However, the end of the war was not entirely a happy event for Nestle commercially. Large orders from the government stopped. Although fresh milk was on sale, the population was in no particular hurry to buy it, since during the war years they had already become accustomed to powdered and condensed milk and did not want to return to fresh milk again. In order to somehow stabilize the situation in the company, Nestle management invited an expert from Switzerland, Louis Dulles, to cooperate. Thanks to his talent and management skills, Nestle was able to achieve an optimal ratio of production and sales, and pay off all accumulated debts without any problems.

New products

In the 1920s, Nestle began actively introducing new products into its product range. A big bet was made on chocolate and chocolate products. These products have become Nestlé's second most important products, of course, after dairy products.

Products aimed at children have also appeared. For example, powdered pasta and a drink called “Milo”. The year 1938 became especially legendary - then the world saw the Nescafe product. Nescafe instant coffee began to conquer the world market at cosmic speed, thanks to its low price, pleasant taste and competent marketing campaign.

The Second World War

The war again brings losses to Nestle. In just a year, the company's income decreased from 20 million to 6 million. Due to the fact that Switzerland became increasingly isolated from the rest of the world, the supply of products to other countries was difficult. Part of the production and specialists had to be transferred to the United States of America. American soldiers adopted Nescafe as their daily staple drink, and by mid-war sales were astonishing.

By the year the war ended, Nestle's profits reached $225 million. The company has become the absolute leader in the production of coffee, chocolate and other products.

Formation of the holding

After the war, events in the life of the Nestle company brought it only positive results. There was an active expansion of production, increasing sales and popularity of the brand. Nestle, Alimentana S.A. and Maggi Company announced their merger. This is how a holding company called Nestle Alimentana Company appeared.

But this was not the end of Nestle’s merger with other companies. Exactly in the middle of the century, the Crosse & Blackwell company, which produced canned food, became part of Nestle. Then the Findus company joined, producing and selling frozen vegetables and fruits.

Already in the 1970s, Nestle acquired the production of Libby fruit juices and Stouffer frozen foods.

Going beyond food

Despite the fact that Nestle has always been engaged in the production and sale of food products exclusively, and has done this very successfully, it still decided to expand globally. In the mid-1970s, Nestle became the owner of a large stake in L'Oreal, the undisputed leader in cosmetics products.

In the same 1970s, unfavorable times began again in the history of Nestle. Slowdown economic development many countries, a fall in exchange rates, an increase in oil prices - all this marked a deterioration in Nestle’s financial position. In order to somehow improve the situation, Nestle had to again take a responsible step - to acquire shares of Alcon Laboratories Inc., a company that worked in the field of ophthalmology and pharmaceuticals. Why was this move risky? Because Nestle did not yet have a relationship with these industries, and it was quite difficult to predict how this would affect future activities. However, Nestle coped well with cosmetics, pharmaceuticals, and ophthalmology.

In the early 1990s, Nestle began its most favorable period in its activities. All barriers to export and trade that had been present until this time were removed. The successful development of new markets in Europe and Asia began, which gave Nestle endless opportunities and prospects for development.

What do we have now? When you go to any grocery store, you are sure to find products on the shelves that are somehow related to the Nestle company. Coffee, chocolate, baby food, canned food, drinks, seasonings, and other culinary products - Nestle has produced and continues to produce all of this. Nestle products are supplied to more than 60 countries around the world, and in many of them they are the best sellers among competitors.

Peter Brabeck (Chairman of the Board of Directors), Paul Bühlke (CEO)

food production

▲ € 67.8 billion (2011)

▲ € 7.7 billion (2011)

330 thousand people (2011)