Miza Biag Demetria Foster Jeff Jeanty Jamie Sciarrillo

Heinrich Nestle was born Aguest 10,1814 Frankfurt main in Germany He was the eleventh of fourteen children of Johann Ulrich Matthias Nestle and Anna Maria Henri Nestle combined cows milk with wheat flour and sugar to produce a substitute of mothers milk for does children who couldnt accept breast feeding He also began manufacturing and selling carbonated mineral water. The company was involved in the production of nuts oil, rum, and vinegar. Nestle launched the worlds first instant coffee in 1938. By the 1960s Nestle was one of Switzerland's biggest company with over 200 factories around the world.

 To

be the worlds largest and best brand food manufacturer. of the thirty selling products out include nestle logo. only make well selling products but be the best in the food market

Eight

Not

Formally known as Nestles Alimentana S.A. main headquarters is located: Nestl Offices Worldwide HEADQUARTERS: Nestl S.A. Avenue Nestl 55 1800 Vevey Switzerland General Enquiries: (Tel) +41 21 924 2111 (Fax) +41 21 924 4800

At Nestl, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness, Nestl products bring consumers the vital ingredients of taste and pleasure. As consumers continue to make choices regarding foods and beverages they consume, Nestl helps provide selections for all individual taste and lifestyle preferences. Research is a key part of our heritage at Nestl and an essential element of our future. We know there is still much to discover about health, wellness and the role of food in our lives, and we continue to search for answers to bring consumers Good Food for Good Life.

Owns and controls various companies in the food and cosmetics industry
- I973 Nestl benefits from catering services, restaurants, and hotel operations with the Stouffer Corporation -1975 the company bought food processor Libby, McNeil & Libby -1979 Beech-Nut the baby food maker became apart of the list

In 1980 the company expanded it marketing of products to countries like Europe, Africa, North America, Latin America, The Caribbean, Asia, and Oceania
- Diary products, instant drinks, and culinary/sundry were among the top three - Infant foods, Infant formula, and dietetic tallied in at less than 10 percent of the corporations sales

Generated Sales of 12.5 billion in 1983

Development

and marketing of milk food product for infants begin in 1867

- Creation of the product progressed due to the urgent need of a substitute for infants who could not consume any food

Infant formula foods were matured around the 1920s - As an alternative to breast
milk

Sales boost after WWII and reached it climax in 1957 Market took a downturn around 1970s
- Nestles decided to market to
countries like Africa, South South Africa, and Far East because of population growth

Total sales including of infant formula and other milk products was about $1.5 billion. Nestle makes up about 40-50% of the market in developing countries
-U.S. companies American Home Products, Bristol Meyers, and Abbot Labs make up about 20% - Foreign corporations come in at about 20-30% - $600 million of sales came from developing countries

The market in 1981 was expected to grow at about15 to 20% per year

Nestls was one of the many manufactures that was suspected of contributing to the high infant mortality rate in Developing countries in early 1970s British charity organization (WOW) published twenty-eight page pamphlet called the The Baby Killer in 1974 - Targeting Nestl of Switzerland and Unigate of Britain in the ill advised marketing efforts in Africa. - Publication of the pamphlet raised concern of the general Public Another version of the pamphlet created by The Germany- based Third World Working Group focused more on Nestl - The activist alleged Nestl unethical and immoral behavior - And renamed the pamphlet Nestl Kills Babies

 As

a result of the activists slander Nestl

sued for defamation

- Trial lasted two years and Nestl won - Courts advised the company to revisit their current marketing strategies - The case caused a public-relations disasters

 Sizeable amount of purchasers in developing countries

live in poverty, waters are contaminated, lack of healthcare, and uneducated

Mothers in developing countries were misusing the product by:

- Mixing with contaminated waters
- Using unsterilized bottles and nipples - Diluting formula to stretch out feedings

Studies conducted gave three reasons for the trend to more bottle feedings and less breast feedings
1. Sociocultural environment was changing 2. Healthcare professionals took part in the change to bottle feedings 3. Marketing and promotional factors played a key role

 Roughly 80 % of Singapore three-

month-old infants were being breast- feed in 1951.

- By 1971 on 5% of mothers nursed their infants

In Mexico around 1966, fewer than 40% mothers nursed their infants Chile experienced three times as many deaths of infants before they became 3 months old in 1973

The story started in 1976 in Australia when Nestles Tongala Plant noticed an increase in bacteria in the milk that was tested
- Bacteria found to be salmonella which causes gastroenteritis -Nestles tried to sterilized the equipment without stopping production and the dries ran for a full 8 months after the discovery.

April of 1977, Colombian General Hospital death rate in the premature ward increased
- Twenty-five deaths occurred before the bacteria was traced to Nestles

Later that year the Australian Dept. of Health reported an additional 134 infants fell ill due to contaminated infant milk produced y Nestles
- An estimated 20 million pounds of the contaminated milk was exported to Southeast Asia

Nestles marketing strategies seem to be somewhat forceful

- Marketing of the infant formula came in many forms which include radio, newspaper, magazines, billboards, and loudspeakers - Free samples of bottles, nipples, and measuring spoons were given out to mothers - Milk Mothers were used as well to influence mothers decision bottle feed infants

About 200 women were employed by Nestle

- Registered nurses, nutritionists, or midwives which were called milk nurses - The nurses was criticized for being too persuasive - Promoting of the infant formula physicians and other medical personnel raised

The Interfaith Center on Corporate Responsibility and Infant Formula Action Coalition(INFACT) lead a boycott of Nestle products and services Other agencies such as Protein Advisory Group(1970 and 1973), the World Health Assembly(1974) and the World Health Organization (1978) have been trying to lessen promotion and advertising practices

Nestle agree to make changes to their promotional strategies

- The International Council of Infant Food Industries (ICIFI) which was formed in 1975 by 9 infant food manufactures including Nestle

The changes included to note that breast milk is the best choice, infant formula was to be advertised as a supplementary, and professional advice is recommended, and uniforms should be worn by registered nurses
- End result the self regulation was not effective -Violations of the code "continue to occur

In July of1977 a boycott was established in the U.S. and Canada lasted until January 26, 1982 INFACT and boycotters had four demands
1. 2.

Stop use of milk nurses Stop free samples promotion to health industry Stop consumer promotion and advertising of infant formula

3.Stop 4.

*Nestle was singled out because of their 50%

market share worldwide

The corporation decided to deal with the boycott as a public relations problem World largest PR firm Hill & Knowlton and Daniel J. Edelman PR specialist were hired.
- After the unsuccessful attempts to improve Nestle image the company decided to fire the PR firm

Nestle changed their plan to regain creditability again by:

-Endorsing the WHO Code of Marketing fir Breast Milk Substitutes -Methodist Task Force on Infant Formula validated Nestles conformity with the code -The most effective effort was the Nestle Infant Formula Audit Commission (NIFAC) gained creditability with Edmund S. Muski

Muskie Commission collaborated with WHO, International Nestle Boycott Committee(INBC), and UNICEF to solve the controversy of the WHO code
-Nestle agreed to address that breast milk vs. bottle feeding - Labels would state the dangers of using contaminated water -Personal gifts to health officials were banned -Free samples were only provided to Mothers who were not able to breast-feed

Nestle acknowledged their mistake President of Nestle Coordination Center for Nutrition Rafael D. Pagan Jr. said this We have all learned a lesson

Boycotters and protesters agreed to suspend their boycotting in early 1984

Strengths
   Own largest worldwide baby food company (Gerber) Worlds #1 food company in terms of sales ($104+ million net in 2008) World leader in coffee (Nescafe)  

Weaknesses History of poor accusations and lawsuits Violations of world health organization codes

Opportunities  Joint ventures with general mills, cocacola, L'Oreal, Jenny Craig and ColgatePalmolive
Nestle sells its share with Alcon they will be able to focus on the food and beverage aspects of the business

Threats   Biggest competitors are Kraft, Conagra Foods and Danone Repeating past unethical behavior

 Once

Nestl expands across many different markets including beverages, ice cream, baby foods/formulas, soups, frozen foods, snacks, pet care and of course candy. Some of Nestls main brands include:

Kit Kat, Butterfinger, Smarties, Crunch, Quality Street, Milkybar/Galak, Tollhouse Nestea, Nescaf, Tasters Choice, Nesquick, Carnation, Libbys Stouffers, Lean Cuisine, Hot Pockets, Buitoni, Powerbar Purina, Friskies, Fancy Feast, Dog & Cat Chow, Tidy Cats Deer Park, Ice Mountain, Pure Life, Arrowhead Good Start, Nan, Lactogen, Beba

Nestle, the world's largest food company, brushed off fears of commodity price inflation and global slowdown to post the forecast 15.8 percent rise in 2007 net profits sending its shares higher. Like 2007 the year 2008 is also the year of global growth. In 2008, consolidated sales were CHF 109.9 billion and net profit was CHF 18.04 billion. Research and development investment was CHF 1.977 billion. 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.

TOTAL EARNING PER SHARE

CHF

4.87

UNDERLYING

CHF

2.82

EQUITY ATTRIBUTABLE TO CHF SHAREHOLDERS OF THE PARENT

13.71

DIVIDEND

1.40

STOCK EXCHANGE PRICES (HIGH/LOW)

CHF

52.95/38.02

YIELD

2.6/3.7

IN MILLIONS OF CHS ZONE EUROPE ZONE AMERICAS ZONE ASIA, OCEANIA & AFRICA NESTLE WATERS NESTLE NUTRITION OTHER FOOD & BEVERAGES UNALLOCATED ITEM TOTAL FOOD & BEVERAGES PHARMA TOTAL GROUP

SALES 28153 33134 17130 9589 10375 3983 _ 102364 7544 109908

EBIT 3446 5469 2826 573 1797 696 (1704) 13103 2573 15676

OG (%) 5.6 10.3 12.2 -1.6 7.7 23.5

8.8

The world's largest food and beverages company (CH:NESN 42.20, +0.80, +1.93%) acknowledged the slowing global economy, saying it expects to post organic growth of "at least approaching 5%" in 2009, a slight change from its long-standing annual organic growth rate target of 5% to 6%.

The following is a summary of analysts' forecasts for Nestle SA's (NSRGY) first-quarter sales results, based on a poll of 12 analysts (in million CHF, target price and dividend in CHF, organic growth in percent, according to IFRS.
1st Quarter AVERAGE Previous year +/- in % Sales 26010 25717 +1.1 Organic Growth (a) 3.8 9.8 -61.1 Dividend/ Share 2009 1.45 1.40 +3.3 Target Price 42.94 n.a n.a Rating

MEDIAN MAXIMUM MINIMUM AMOUNT

25959 27225 24809 9

4.3 4.7 1.5 12

1.45 1.48 1.40 5

42.00 50.00 38.00 0

ING JP MORGAN KEPLER LBBW NOMURA ODDO SAL. OPPENHEIM SNS SECURITIES SOCGEN UBS VONTOBEL ZKB

--

4.2

---1.48 ---1.45 1.45 -1.45 1.40

41.50 38.50 -50.00 40.50 42.00 -42.00 44.00 38.00 50.00 --

HOLD UNDERW -BUY BUY REDUCE -HOLD BUY NEUTRAL BUY --

25959 1.5 -4.0

25674 3.5 -4.4

27225 4.5 26210 3.4 24809 4.7 25942 4.4 26300 4.7 26200 1.9 25770 4.5

Year-earlier figures are as reported by the company. (a) Volume growth plus price increases.
DJG/MGO

Jan.-June 2009 Sales in CHF millions

Jan.-June 2009 Organic Growth (%)

EBIT Margins
Jan.-June 2009 Change vs. Jan.-June 2008 0 bps +20 bps

Food & Beverages

- Zone Europe - Zone Americas

10 791 15 197

+ 0.2 + 6.6

11.8% 15.2%

- Zone Asia, Oceania and Africa

7 733

+ 5.9

16.7%

+60 bps

Nestl Waters Nestl Nutrition

4 723 4 995

- 2.9 + 1.5

8.3% 17.4%

+110 bps -110 bps

Other Food & Beverages

4 874

+ 6.1

16.1%

+20 bps

Total Food & Beverages Pharma Group Total

48 313

+ 3.4

12.4%

+10 bps

3 954 52 267

+ 5.0 + 3.5

34.6% 14.1%

+80 bps +30 bps

Location: Hong Kong Time: September 22, 2009 More than 12,000 infants have become sick and four babies have died in the mainland after being fed baby formula laced with the banned industrial chemical melamine. The Centre For Food safely said it will test samples of Mr. Brown Coffee for Melamine, as eight products using coffee creamer from Shandong province were found to be tainted Kidney specialist Gabriel Chokin urged the Government to give Free kidney checks to all children in Hong Kong, similar to those from more then 7,000 schools in Macau.

http://www.youtube.com/watch?v=prLr1PNCeSg

http://www.research.nestle.com/tools/mission_statement.html http://www.nestle.com/AllAbout/History/AllHistories/1866-1905.htm http://www.weblo.com/property/Groceries_Food_/Nestle/486032/ http://www.flickr.com/photos/28056346@N06/3761642955/ http://www.research.nestle.com/tools/mission_statement.html http://www.nestle.com/MediaCenter/PressReleases/AllPressReleases/HYres ults2009.htm