Tag Archive | "Nestle"

Nestlé supports waste initiative


6183_removing-sell-by-dates-could-reduce-food-waste_content_Waste-Food-1The global Food Loss and Waste Accounting and Reporting Standard has been launched in Copenhagen, Denmark at the 3GF (Global Green Growth Forum) summit. For the last three years, Nestlé says it has, in the framework of World Resource Institute (WRI), played a significant part in developing the standard as a tool that can be adapted worldwide by all parts in the food chain from farm to fork.

“We clearly see this standard as a massive, global step in fighting food loss and waste,” said Nestlé Nordic Market Head, Michiel Kernkamp. “The standard is outstanding in its setting of clear targets and in its full transparency. But maybe most of all it is outstanding as a tool where you can measure your steady progress within food loss and waste. What gets measured, can be managed. At Nestlé, we will definitely also benefit significantly by using the standard to help us address food loss and waste across the value chain.”

Nestlé says it is committed to further playing its part in helping to reduce food loss and waste. Not only will reducing food loss and waste in the world help Nestlé to secure supplies of the agricultural raw materials needed at Nestlé, but it will also have a positive impact on society by supporting rural development, water conservation and food security. This, notes the company, is in line with Nestlé’s Creating Shared Value approach to doing business.

One of Nestlé’s efforts in improving nutrition, health and wellness, while at the same time fighting food waste, is the Nestlé Portion Guidance initiative. It is a voluntary initiative designed to bridge international dietary recommendations (e.g. in the form of food guides) and nutrition labelling regulations. This guidance is presented through a variety of consumer-engaging ways: product form, pack design, clear illustrations and, occasionally, a serving device or dispensing machine.

“In recent years, there has not been full clarity to the consumer of how much is right to eat. We need to change that,” said Kernkamp. “Nestlé is committed to improve communications on for instance the packs to enable the consumers to eat the portion sizes that is right for every individual. By preparing and eating the right portion, of course there is a significant benefit of avoiding food waste and improving health.”

At production level, there are also significant gains in Nestlé: since 2005, the company says it has reduced total waste for disposal from the 436 Nestlé factories by 62%. At the end of 2015, 105 Nestlé factories (22%) achieved zero waste for disposal. Nestlé has committed to achieve zero waste for disposal in all its sites by 2020.

“We will now – with the use of the FLW Accounting and Reporting Standard – further optimize our efforts to reduce food loss and waste,” said Kernkamp. “Under the leadership of our CEO who launched the Champions 12.3 coalition earlier this year together with WRI, we will advocate for this standard worldwide wherever and whenever this is possible – for instance in Consumer Goods Forum representing more than 400 of the world’s largest retailers and manufacturers and service providers from 70 countries.”

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Cepac wins coveted Nestle supplier award


Cepac-Nestle-620x330Cepac has provided Nestle UK with over one hundred million corrugated packs in the past three years without any non-conformance issue.

The award recognises Cepac’s contribution out of more than 300 of Nestle UK direct suppliers who supply into the 12 UK Nestle manufacturing sites.

Cepac was founded over 16 years ago by the $10bn Dubai-based and family-owned HSA Group. It has five plants in UK, at Doncaster, Darlington, Rotherham, Rawcliffe and Alfreton.

Rod Ainslie, Cepac managing director, said the award was a “testament to the firm’s tireless quest for innovation and improvement”.

“We’re absolutely delighted to be named Nestle’s top supplier ahead of such a large field of suppliers. The key to this relationship is our understanding of Nestle’s desire to create the very best packaging for their products and to set the benchmark for performance throughout the supply chain.”

He added working closely with a multinational such as Nestle has allowed Cepac to pioneer numerous developments together, including making full use of technology.

“You’re only ever as good as the people who use the technology and we invest a lot in ensuring we have great people in every area of the business,” he said. “We have technologists working on the development of the most advanced materials, talented printers, operators and dedicated drivers involved in the whole process, making multiple deliveries, seven days a week, without ever dropping the ball – this award is down to the whole team.”

Cepac has been working with Nestle on the Dolce Gusto packs since 2007 and delivered in excess of 32 million Dolce Gusto wraparounds in 2015, with no quality issues and 100% On time in full (OTIF), correct quantity, perfect service level.

Emma Canavan, head of direct procurement, Nestle UK & Ireland, said: “Our winner was Cepac who delivered 32 million packs in 2015, achieving a fantastic 100% VES, with Zero quality complaints. They have successfully implemented innovation, giving our brands a point of difference versus competition and strengthening the Nestle brands. Working with the Nestle teams, understanding our challenges and finding technical solutions they have fuelled the Virtuous Circle, whilst driving improvements in sustainability.”

Ainslie told Packaging News when Cepac was first established 16 years ago there were a dozen major competitors – whereas now there is a very small number, which he described as an ‘unprecedented’ rate of consolidation within the corrugated industry.

Cepac has been part of this acquisition trend – having doubled in size and undertaken four acquisitions over the course of two years.

“The market for high quality graphics combined with flexible and responsive service is expanding fast. We believe that there will always be opportunities for those capable of pioneering new standards in packaging and print.”

He did not appear overly concerned by the threat of bigger companies snapping up market share.

“We consider that we are one of the top corrugated companies in terms of setting high standards and are proud of our role as the leading independent with our successful record of pioneering innovation. There are outstanding opportunities for an independent player with a differentiated offering. Our customers are extremely supportive and acknowledge that we have introduced another dimension to their business and to the UK market. Having pioneered performance packaging we consider that there is scope to introduce new standards of print with respect to both quality and service.”

He added that the Nestle award underlined the company’s position, and insisted that Cepac was able to set new standards by means of focussed development.

“New technology will transform the corrugated industry,” he added, and said the company would shortly announce an investment to maintain expansion.

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Nestlé: can cinnamon help prevent weight gain?


cinnamonAccording to Nestlé, scientific evidence suggests that chilli peppers may help prevent weight gain, but you run the risk of setting your mouth on fire. Now, Nestlé scientists believe that cinnamon could offer a cooler alternative.

Working with colleagues from the University of Tokyo, they looked at how effectively cinnameldehyde (a cinnamon extract) and capsaicin (a chili pepper extract) raised energy expenditure and fat oxidation levels in 15 healthy men.

Obesity results in an imbalance between energy intake and energy expenditure, so greater energy expenditure (through exercise or diet) helps prevent weight gain. Through fat oxidation, the body converts fat into energy.

The scientists found that the cinnamon extract significantly increased the men’s energy expenditure. Both this extract and the chilli pepper extract significantly raised fat oxidation levels.

To be effective, capsaicin needs to be consumed in amounts that the men found too spicy. However, the scientists believe that the cinnamon extract could potentially be used in foods to help prevent weight gain.

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Nestle Strengthens Capacity in Europe With New Investment in Hungary


Nestle is strengthening its production capacity in Europe, investing more than SFr54 million (Eu45 million) to extend its Purina pet food factory in Hungary. The extension to the factory in the town of Buk will create about 150 new jobs by the end of 2012.

Nestle’s latest investment in the factory is part of its long-term commitment to developing its European operations. Earlier this year the company invested over SFr265 million in a new Nescafe Dolce Gusto factory in Germany, while in Switzerland it invested SFr300 million in a new Nespresso factory, creating 400 direct jobs.

The new factory extension will be equipped with four new production lines to double its manufacturing capacity of Nestle Purina pouch pet food brands such as Felix and Friskies. It also produces dry and canned Purina pet food such as Darling, Felix, Friskies and Dog Chow to meet the growing demand for the company’s pet care brands in Central and Eastern Europe.

The new factory extension aims to be operational by March 2013. It follows a SFr45 million in a factory extension in 2011 to open four new production lines and increase the number of employees to 600 people.

Nestle began manufacturing products such as Maggi in Hungary in 1974. Today it operates four factories and employs over 1,750 people. The company bought the Buk pet food factory in 1998 to produce Purina pet food products.

In Hungary, Nestle uses chocolate from the UK to make its After Eight and Kit Kat hollow chocolate products at its site in Diosgyor. Nestle coffee and powdered beverages including Nescafe and Nesquik are produced in Szerencs for export to other European markets. Nestle Aquarel and Theodora bottled mineral and spring water brands are manufactured in the village of Kekkut.

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Consuming Wolfberry in Milk May Strengthen Elderly People’s Immune System


Elderly people who consume the wolfberry fruit in a milk-based formula may strengthen their ability to fight certain infections, according to a new study by Nestle. The company’s scientists in Switzerland and China investigated whether giving healthy Chinese people aged 65 to 70 a daily supplement of ‘lacto-wolfberry’ would enhance their immune response to a seasonal influenza vaccine.

The study, published in the scientific journal ‘Rejuvenation Research’, is believed to be the largest randomised controlled clinical trial to examine the effect of wolfberry supplements on the immune response of this population group. It follows earlier published research conducted by Nestle scientists into lacto-wolfberry, the company’s proprietary blend of milk protein and wolfberry.

That study, undertaken in collaboration with the Hong Kong Polytechnic University, found lacto-wolfberry enabled the fruit’s natural antioxidants to be more easily available to the body after ingestion.

Half of the 150 people who took part in the latest study were given lacto-wolfberry in a hot soup every day for three months. The other half – the control group – were given a placebo. On day 30 of the study, all participants received a seasonal influenza vaccine. Scientists measured the level of influenza-specific antibodies in each participant before and after vaccination.

The results showed that while all the participants had increased levels of influenza-specific antibodies after being vaccinated, those who had consumed lacto-wolfberry had a higher increase in antibodies than those in the control group, who had not.

“People’s natural ability to fight infection often declines as they age, as does their capacity to develop effective vaccine response,” says Dr Karine Vidal, the scientist from the Nestle Research Center in Switzerland who led the study. “Measuring someone’s ability to produce antibodies in response to vaccination is an effective way of assessing their ‘immune status.’ The outcomes of this study, as well as data from previous research, suggest dietary supplementation with lacto-wolfberry can strengthen the immune system.”

She adds: “We believe this could translate into a clinical benefit, for example a reduced rate of respiratory infections. This is especially significant for immune compromised populations, such as the elderly.”

Wolfberry, also known as ‘goji berry’, has a long tradition of use in food and in herbal medicines in many Asian countries including China. The fruit has gained attention in Europe and North Americain recent years for its reported potential health benefits and anti-ageing properties. However, there is little scientific evidence to support its effects.

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Nestle Maintains Momentum During First Half


Reflecting growth across all its global regions, Nestle has reported a 7.5% increase in group sales to SFr44.1 billion (Eur36.7 billion) with net profit up 8.9% to SFr4.7 billion for the first half of 2012. Organic sales growth was 6.6%, composed of real internal growth of 2.9% and pricing of 3.7%. Acquisitions, net of divestitures, contributed 2.7%.

The Swiss food and beverage group managed to offset rising input costs through savings from its Nestle Continuous Excellence programme as well as timely pricing increases. Group trading operating profit rose by 6.3% to SFr6.6 billion. The margin was 15.0%, in line with expectation that the margin performance would be second-half weighted. Nestle is continuing to invest in R&D to drive innovation, maintaining the level at 1.6% of sales.

Growth was achieved in all regions of the world. The Americas exhibited organic growth of 6.4%, Europe 2.6% and Asia, Oceania and Africa 12.6%. Nestle’s business grew 12.9% in emerging markets and 2.6% in developed markets.

Paul Bulcke (pictured), chief executive of Nestle, comments: “We continue to drive innovation globally, ranging from popularly positioned products to super premium offerings. We are continually opening new routes-to-market to reach emerging consumers, and using new media to increase both our direct engagement with consumers and our return on brand investment. This approach has delivered profitable growth in both emerging and developed markets. Our first-half top line growth and our trading operating profit margin, together with our focus on capital efficiency, allow us to reconfirm our full-year outlook.”

Nestle’s full-year outlook is for organic growth of 5% to 6%, improved margin and underlying earnings per share in constant currencies.

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Nestle Accelerates Growth in South Africa


Nestle has inaugurated two new production sites in South Africa as part of its continued commitment to accelerating the growth of its business in the region. They will enable the company to manufacture Milo and Cheerios breakfast cereals and Maggi noodles for the first time in South Africa, sourcing the majority of ingredients and packaging materials from local farmers and suppliers.

The investment has created more than 130 permanent jobs. It also created 300 indirect jobs during the sites’ construction phase. Nestle announced in February 2011 it would invest about 400 million South African Rand (Eur40 million) in the production sites to meet the growing demand for its products.

The sites are located next to the company’s existing coffee creamer factory in the town of Babelegi in Gauteng province. Nestle is investing a further 47 million South African Rand to expand the coffee creamer factory, as well as 37 million Rand to build a new distribution centre nearby.

“We see major potential for our business in South Africa,” says Paul Bulcke, chief executive of Nestle. “It has a population of almost 50 million and a growing middle-class with increasing purchasing power. This is why we continue to invest heavily to accelerate our growth here. It is a clear illustration of our commitment to this region.”

Nestle said it was investing in Babelegi last year at the same time as announcing it would acquire soya processing company ‘Specialised Protein Products’ in Potchefstroom for 106 million South African Rand. The acquisition will help Nestle increase production of non-dairy creamers in the country, as well as developing other high quality, affordable soya-based products.

Nestle built its first factory on the African continent in South Africa in 1927. Today Nestle operates 12 production sites and four distribution centres across the country and employs 3,700 full-time, permanent staff.

In March this year the company announced a new research partnership with the government of South Africa. The partnership will offer South African scientists exposure to Nestle’s expertise in nutrition, food science and food safety, while allowing the company to better understand the nutrition needs of consumers across the African continent.

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Nestle Boosts Production Capacity in India


A new Nestle investment in India will increase the company’s production capacity in one of the fastest growing emerging markets worldwide. The factory extension at Nestle’s existing site in Ponda, Goa – part of the company’s 7 billion Indian Rupee (Eur100 million) investment in the state over the past three years – will produce brand favourites such as Kit Kat and Munch. It will create employment for nearly 250 people.

“We have been in India for 100 years and have factories in eight locations across the country,” says Jean-Marc Duvoisin, global head of human resources at Nestle. “Our decision to invest in a new manufacturing facility in Ponda is a clear indication that we have confidence in the region and its environment.”

In recent years Nestle has invested heavily to increase capacity, set up new factories and modernise and expand existing ones in India. This includes a new manufacturing site in Nanjangud in Karnataka producing Maggi sauces, noodles, bouillons and seasoning, and a new factory in Tahliwal, Himachal Pradesh, which will manufacture Maggi noodles as well as chocolate and confectionery products.

Nestle India’s first manufacturing facility was set up in 1961 in Moga, Punjab, to help develop milk production in the region. The company has since developed the area around the Moga factory, setting up milk collection points and training farmers to improve productivity and quality.

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Nestle Reaffirms Commitment to Coffee Farmers in Vietnam


Nestle has reaffirmed its commitment to support more than 20,000 coffee farmer households in Vietnam. The company will continue to develop sustainable coffee farming in the country in partnership with the Vietnamese Ministry of Agriculture and Rural Development. Measures include improving coffee productivity through better farming practices and distributing high-yield, disease-resistant plantlets over the next five years.

The initiative is backed by Nestle’s global Nescafe Plan which it extended toVietnamlast year. As part of the plan Nestle looks to source 30,000 tonnes of coffee from around 16,000 Vietnamese farmers annually, helping them obtain better prices and a steady income. This is part of an approach to business Nestlé calls ‘Creating Shared Value’, which aims to create value for the company’s shareholders at the same time as for those communities where it operates.

Last year Nestle announced an investment of $270 million in a new coffee factory in Dong Nai province. It will produce products under the Nescafe brand for both local consumption and export. The first phase will begin in November 2012 and looks set to create 170 new jobs once fully operational next year.

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New Study Reveals Benefits of Multi-micronutrient-fortified Milk and Cereals


Milk and cereal products fortified with iron and a combination of other micronutrients are more likely to help reduce iron-deficiency anaemia in children than foods fortified with iron alone, according to a new study commissioned by Nestle. Researchers from the Winterthur Institute of Health Economics in Switzerland analysed the combined results of 18 published trials involving a total of more than 5,400 children.

They found consumption of milk and cereal products fortified with iron and other micronutrients – such as zinc and vitamin A – were associated with a significant increase in the level of haemoglobin in young children’s blood. Anaemia – the state of having too few red blood cells and therefore too little haemoglobin – is commonly caused by a lack of iron in the diet.

The researchers found single iron-fortified products increased haemoglobin levels significantly more than similar non-fortified products. However, multi-micronutrient-fortified milk and cereals produced even more significant increases in haemoglobin than their single iron-fortified counterparts.

The study, published in the Bio Med Central Public Health journal, is believed to be the first analysis of the combined results of published studies examining the effect of micronutrient-fortified milk and cereals on the blood haemoglobin of children from the age of six months up to three years. The researchers identified about 1,000 potentially relevant trials from the last 45 years to pinpoint those suitable to include in the study.

Young children and pregnant women are particularly vulnerable to iron deficiency because they need higher levels of the mineral for growth. The consequences of long-term lack of iron in the diet can include impaired mental development in children, decreased physical work capacity and impaired immune function.

The researchers’ findings help to explain in biological terms why multiple, rather than single, micronutrient deficiencies are responsible for a variety of health problems.

The study was commissioned by Nestle and the Nestle Nutrition Institute. Nestle has more than 140 years’ experience in improving the micronutrient profile of food products through fortification. The company’s first fortified product was an iron-enriched version of its founder Henri Nestle’s original infant cereal ‘Farine Lactee’, launched in 1867.

Today, Nestle offers a range of products around the world fortified with micronutrients including iron and vitamin A. The company’s dairy business makes fortified, affordable milks available in more than 80 countries around the world, where they are largely consumed by pre-school children.

A non-profit organisation based in Switzerland, the Nestle Nutrition Institute is committed to fostering ‘science for better nutrition’, by sharing scientific information and educational materials with health professionals, scientists and nutrition communities in an interactive way.

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Nestle Conducts Experiments in Zero Gravity With the European Space Agency


Nestle is using zero gravity research to develop its understanding of the foam technology used in its products. The study could help Nestle scientists create better air bubbles in chocolate, coffee, dairy and pet food.

Scientists at the Nestle Research Center in Switzerland are working with the European Space Agency (ESA) on foam experiments designed to produce the ‘perfect’ bubble. Bubbles are added to products, like chocolate mousse and coffee froth, to make the right texture or consistency. The company recently conducted zero gravity research on ‘parabolic’ flights with the European Space Agency and a team of international foam research scientists.

Before the flights, Nestle scientists placed six 5ml samples of water and milk protein in a special machine that analyses the structure of foam, carried on board the European Space Agency sponsored A300 airbus plane. Flying at a maximum height of 28,000 ft (8,500m), the plane made about 30 ‘parabolas’, or up-and-down dips, creating weightlessness inside the fuselage in short bursts.

The stability of the bubbles determines the shelf-life of a number of products and is key to the consumer’s taste experience.

“We want to make a near to ‘perfect’ bubble in order to achieve the right balance for different products in our range – not too big, not too small,” says Dr Cecile Gehin-Delval, a scientist at the Nestle Research Center. “Stable foam in chocolate mousse gives the feeling of creaminess in the mouth. To make fine coffee froth, we want to create stable little bubbles to make it light and creamy.”

Foam is easier to study under zero gravity conditions because weightlessness causes bubbles to be evenly dispersed rather than floating to the top. Nestle has been following ESA’s activities in this field for over a decade. This is now the first time Nestle is conducting foam experiments in zero gravity conditions.

“Gaining a better understanding of foam may help improve the texture of our products,” she adds.

ESA conducts experiments in physical and life sciences, human physiology including nutrition and biology, environmental sciences and research on the International Space Station (ISS). Nestle will now be able to use a foaming device on the ISS which was developed by the European Space Agency to study foam in zero gravity for a longer period of time.

Nestle was the first food and beverage company to use space research starting in the late 1980s. Nestle scientists studied the mechanism of the effect of muscle loss in astronauts on a multinational flight with a German space lab in 1993 to help improve Nestle healthcare products.

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Nestle to Address Child Labour in Cocoa Supply Chain


Nestle and its partners will involve communities in Cote d’Ivoire in a new effort to prevent the use of child labour in cocoa-growing areas by raising awareness and training people to identify children at risk, and to intervene where there is a problem. The initiative is part of an action plan drawn up by Nestle in response to a report on the company’s cocoa supply chain in the West African country by the Fair Labor Association (FLA). It builds upon existing efforts to develop a more sustainable cocoa supply through the Nestle Cocoa Plan.

“The use of child labour in our cocoa supply chain goes against everything we stand for. As the FLA report makes clear, no company sourcing cocoa from Cote d’Ivoire can guarantee that it doesn’t happen, but what we can say is that tackling child labour is a top priority for our company,” says Jose Lopez, Nestle’s executive vice president for operations.

The FLA concluded that, with some adjustments and improvements, the Nestle Cocoa Plan can become a well-rounded developmental programme. The plan, along with the other initiatives Nestle participates in, provides the building blocks for a more robust and deep reaching effort, the FLA experts say in their report.

They found that child labour is a reality on cocoa farms in Cote d’Ivoire and has its roots in a combination of factors including poverty and the socio-economic situation of the farmers and their families. The report says an effective strategy to eliminate the problem must start by tackling the attitudes and perceptions of those in the cocoa supply chain and the communities in which they live.

Nestle does not own or operate farms in Côte d’Ivoire, but is well positioned to make a positive impact on the livelihoods of workers in the cocoa supply chain, the FLA says, due to its leverage with its suppliers and the volume of cocoa beans it procures. The FLA made 11 recommendations to Nestle, all of which the company fully supports and is acting upon, in some cases in collaboration with its partners.

Nestle welcomes the FLA’s finding that its ‘Cocoa Plan’ lays the foundations for strengthening and mounting further efforts to achieve its ambition of cocoa supply chains free from child labour. The Nestle Cocoa Plan aims to enable farmers to run profitable farms, to eliminate the use of child labour on those farms and to ensure a sustainable supply of cocoa.

It is designed to create value throughout the supply chain, particularly for the farmers and their families, but also for the company’s shareholders, an approach Nestle calls Creating Shared Value.

The company believes that improving and scaling up the ‘Nestle Cocoa Plan’ will help ensure there is a sustainable flow of cocoa to Nestle from Côte d’Ivoire. Nestle has pledged to source 10% of its global cocoa supply this year from farmers covered by the Nestle Cocoa Plan. It plans to scale this up to 15% in 2013.

More than 6,000 cocoa farmers in Cote d’Ivoire have received training in 2012 as part of the plan. Over 800,000 better quality cocoa plants have been distributed to them. By 2015 Nestle aims to train a further 24,000 farmers in the country, and deliver a further three million plantlets.

In March the company opened the first school it has built for a Nestle Cocoa Plan co-operative. Over the next four years, Nestle, with its partner the World Cocoa Foundation, plans to build or refurbish 40 schools for other communities that have been identified as in need.

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Nestle Calls for More Community-based Programmes to Prevent Childhood Obesity


Nestle has joined scientific and public health experts in calling for the creation of more community-based programmes to prevent childhood obesity. The company is taking part in the Global Obesity Forum in New York to discuss evidence suggesting multi-stakeholder collaborations promoting healthy nutrition and physical activity are among the most successful ways to address the issue.

The event aims to provide international stakeholders committed to the prevention of childhood obesity with an important opportunity to share knowledge and best practices. It is the first major forum organised by the EPODE International Network (EIN), the world’s largest obesity prevention network.

All members of the EIN – which connects community-based obesity prevention programmes in 25 countries including Australia, Brazil, Chile and Poland – will be represented at the forum. The network’s goal is to support 40 large-scale community-based programmes on five continents by 2015.

“Childhood obesity is a complex problem driven by multiple social, economic and environmental factors,” says Janet Voute, Nestle’s global head of public affairs. “If we are to tackle this major public health issue effectively we need a multi-sector response and Nestle firmly believes industry has a vital role to play in this.”

She continues: “We are convinced the best way to leverage our capabilities and expertise is by working in partnership with other organisations to help promote healthy nutrition and physical activity through community-based programmes.”

Government officials from a number of countries will attend the forum, along with representatives from leading institutions including the United States’ Center for Disease Control and Prevention and the Trust forAmerica’s Health. Experts from a variety of fields including genetics, behavioural science, economics, and politics will also participate.

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Nestle Expands European Production With Investment in Spain


Nestle has completed a Eur6 million investment in new manufacturing lines at its condensed milk products factory in Pontecesures, Spain, increasing production by 50%. The exansion follows two major financial commitments Nestle has made to develop its manufacturing operations inEurope this year.

Nestle recently announced it would invest SFr300 million (Eur250 million) in a new Nespresso factory in Switzerland. In February it revealed plans to invest SFr265 million in a new Nescafe Dolce Gusto factory in Germany.

The company’s investment in Pontecesures is the third it has made in Spain in the last 18 months, reflecting its belief in its Spanish operations despite the country’s challenging economic situation. Almost half of the Pontecesures factory’s production is exported to countries in Europe, Asia and Africa. The investment has boosted exports by 12%.

The factory now has eight production lines, allowing it to manufacture condensed milk products in a variety of different formats. In November Nestle invested Eur10 million to produce different varieties of chocolate at its factory in La Penilla de Cayon. This followed a SFr64 million investment to boost production at its Nescafe Dolce Gusto factory in Girona in March 2011.

Nestle Spainemploys almost 6,000 people. It had a turnover of more than Eur2 billion in 2011. Nestle’s factory in Pontecesures uses fresh milk supplied by more than 260 farms in the local province of Galicia. Today, Nestle has 12 manufacturing sites in Spain. About 40% of its total production is exported, mainly to other countries in Europe.

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Activity Levels High in Global Functional Foods Market Despite Lower Growth Rates


Although the global functional foods market continues to expand in size, growth rates in parts of the world have dipped over the last couple of years, especially compared with the last decade, according to Leatherhead Food Research. Much of this has largely been for economic reasons caused by the global downturn, with premium-priced functional products carrying less appeal for price-conscious shoppers. Certain parts of the market also appear to be approaching maturity, whilst the industry also faces ongoing competition from food and drinks positioned on a more general wellness platform.

In spite of this, levels of corporate and new product activity remain high within the global functional foods industry. Many of the world’s leading food groups have been keen to expand their presence in market sectors such as functional dairy products, soya-based and lactose-free foods and sports and energy drinks. Indeed, health remains a major driver of corporate strategy in most parts of the world, with manufacturers also reformulating their food and drinks to improve their nutritional qualities.

From a supply perspective, the industry is still largely dominated by many of the world’s leading food groups. For many of these companies, functional foods form a small but significant part of their overall product range, having made some of the greatest contributions to recent growth in sales and profits during the last decade, on the back of the global trend towards healthier diets. Partly as a result of this, large-scale mergers and acquisitions continue to take place within the industry, one recent example of which was Nestlé’s $11.85 billion purchase of Pfizer Nutrition.

‘Key Players in the Global Functional Foods Industry’ is a new publication from Leatherhead Food Research, which updates a report last published in 2005. The report provides in-depth profiles of more than 30 of the world’s leading suppliers of functional foods, as well as providing an overview of the world market for functional foods, detailing market size and growth rates, as well as NPD figures and recent corporate activity. Companies profiled in the report include leading food groups such as PepsiCo, Unilever, The Coca-Cola Company, Groupe Danone, Kellogg and General Mills.

For further information, contact Leatherhead Food Research on telephone +44 (0)1372 822376 or by e-mail: publications@leatherheadfood.com.

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Nestle Expands Pet Food Production Capacity


Nestle Purina Petcare is continuing to invest in expanding its manufacturing sites globally. Having spent SFr45 million (Eur37.5 million) last July to exptend its factory in Hungary followed by SFr38 million in its factory in Russia, the global pet food business is now investing more than SFr29 million to expand its factory in New South Wales, Australia.

The investment programme will make the Australian factory one of the most technologically advanced of its kind in the world when work is completed at the end of this year. It includes the installation of new technology and the construction of a 5,400 sq m warehouse on the site.

The factory currently produces around 100,000 tonnes of products a year for domestic consumption and export. These include well-known dog and cat food brands such as Beneful, Pro Plan and Friskies.

Nestle Purina is one of the world’s largest pet food companies, with global sales of more than SFr13 billion in 2010.

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Nestle Supports Global Dairy Industry With New Partnership in Morocco


Nestle is building on its commitment to help support the development of the global dairy industry with a new partnership in Morocco. The collaboration with the local authorities in the Moroccan region of Doukkala-Abda aims to increase milk production, improve the quality of fresh milk and encourage the development of the dairy industry throughout the private sector.

The Doukkala-Abda region currently produces 22% of the milk in Morocco, sourcing over 340 million litres a year. Nestle’s partnership with the Agency for Agricultural Development and the Regional Office of Agriculture seeks to increase the company’s own milk collection in the region by 10% by 2014.

Nestle will invest more than SFr5.3 million (50 million Moroccan Dirham) over the next three years. It will help more than 10,000 farmers by providing training and expertise in milk supply, technical equipment, management and finance. Nestle began its operations in the Moroccan dairy sector in 1992. Today Nestle sources about 73 million litres of fresh milk from over 16,000 dairy farmers in the country.

Nestle’s work with farmers inMorocco is part of its approach to business which it calls Creating Shared Value. The company aims to create value for its shareholders while at the same time creating value for the communities it serves and in which it operates. Rural development is one of Nestle’s three key CSV focus areas, as well as nutrition and water.

Nestle’s new partnership in Morocco is the latest in a long-line of investments it has made to support the development of the global dairy industry. The company invested SFr127 million in a new milk products factory in Chile and opened a UHT milk factory in Sri Lanka in April. It also announced the construction of a dairy farming institute in China in January, and joined a dairy partnership in Brazil at the end of last year.

 

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Nestle Strengthens Nespresso With €250 Million Investment in Switzerland


Nestle is strengthening its premium portioned coffee brand Nespresso by investing SFr300 million (Eur250 million) to meet growing consumer demand worldwide. The company is to build a new factory in Romont in the Swiss canton of Fribourg to increase coffee capsule production.

Nespresso’s third production site will boost employment in the region, creating 400 new direct jobs in the long term. It is the latest multi-million Swiss Franc investment that Nestle has made in Nespresso in the last three years. SFr300 million was invested to build Nespresso’s second production and distribution centre in Avenches,Switzerland, in 2009.

“Some 25 years after creating the portioned coffee segment, the third Nespresso production centre will provide the capacity needed to sustain growth in Europe and develop our brand globally,” says Patrice Bula, executive vice president for Nestle, responsible for the Strategic Business Units, Marketing, Sales and Nespresso.

Construction of the factory is due to begin before the end of the year. It will be operational by 2015. The factory will be one of three Nespresso production sites in Switzerland. In addition to Avenches, Nestle opened its first Nespresso production centre in Orbe.

Nespresso has continued to grow since it was launched by Nestle over a quarter of a century ago. Last year, Nespresso achieved sales of more than SFr3 billion and growth of about 20%. Strengthening its capabilities in emerging and developed markets, it has recently opened boutiques in Dohain the state of Qatar, Seoul in South Korea and Innsbruck in Austria. There will be over 300 Nespresso boutiques worldwide by the end of 2012.

As part of Nestle’s continued effort to construct more environmentally friendly buildings worldwide, the new factory in Romont will use renewable energy produced by its coffee roasting technology to heat the building.

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Nestle Professional Skills Up Future Chefs in UK and Ireland


Nestle Professional, the Nestle business that supplies the food and beverage service out-of-home industry, is helping to educate future chefs about nutrition through a new online course in the United Kingdom and Ireland. As part of its global commitment to nutrition, health and wellness, the company has created the interactive programme ‘Toque d’Or NHW’. It aims to help catering college students learn about healthy eating and drinking, energy and nutrients, nutrition needs, and diets and lifestyle.

Launched in partnership with the British Nutrition Foundation, the course also aims to help students to understand food labelling and health in catering. “Providing catering students with the necessary skills and information related to food and nutrition will ensure that they are better engaged with public health initiatives – from calorie labelling to sourcing of ingredients,” says Roy Ballam, education programme manager at the British Nutrition Foundation.

The course is available online until July 2012. A British Nutrition Foundation endorsed certificate will be awarded to those who pass. This recognises the completion of a basic qualification in nutrition, health and wellness. The course will be reviewed in July with an aim to launch it to the wider food service industry.

 “There’s no escaping the fundamental need for everyone working in the industry to have at the very least a basic understanding of nutrition, health and wellness,” says Neil Stephens, country business manager of Nestle Professional in the UK and Ireland. “The healthy eating trend has been gaining momentum over recent years. Nestle Professional is committed to encouraging the development of students’ skills in this area.”

Globally, Nestle Professional is present in more than 90 countries – with over 10,000 employees, including a large number of skilled chefs. Nestle Professional sources from 171 Nestle factories worldwide and operates 15 dedicated food service factories, a number of specialist culinary centres, and a beverage centre located in Orbe, Switzerland.

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Nestle Joins Research Effort to Further Improve Products’ Environmental Performance


Nestle is joining a new research partnership between industry and academia that aims to improve the environmental performance of consumer products and services. The company is the only global food and beverage manufacturer to join the ‘International Chair in Life Cycle Assessment’ unit at the Interuniversity Research Centre for the Life Cycle of Products, Processes and Services (CIRAIG) in Montreal, Canada.

Life cycle assessment is the most widely used scientific methodology for assessing products’ overall environmental impact. CIRAIG is one of the largest research centres of its kind in the world. It generates new life cycle assessment knowledge, methods and tools, and shares these with its industry partners. Nestle is supporting its work with an investment of C$500,000 (Eur382,000).

Life cycle assessments measure a product’s environmental impacts across the entire value chain: from ingredient sourcing to processing and manufacturing, its use by consumers and how its packaging is disposed of or reused. Nestle’s approach to using life cycle assessments in all its product categories has enabled it to systematically improve the environmental performance of many of its popular products and systems.

“This partnership will help us expand our knowledge of life cycle assessments,” said Nestle scientist Urs Schenker. “We use them when developing products to measure areas of environmental impacts, for example water use in agriculture, CO2 emissions in manufacture, and the amount of energy used in distribution.”

He adds: “The partnership will also help us to provide consumers with improved information about our products’ environmental performance, helping them make more informed decisions about what they buy. Online graphics such as the ones created by our Nescafe brand can help people understand the life cycle concept in an interesting and accessible way.”

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Nestle to Acquire Pfizer Nutrition For $11.85 Billion


In a strategic move to enhance its position in global infant nutrition, Nestle has agreed to acquire Pfizer Nutrition for $11.85 billion (Eur9.01 billion). Nestle estimates Pfizer Nutrition’s 2012 sales at $2.4 billion, with 85% generated in emerging markets, many of them with large, fast-growing populations. The acquisition is subject to regulatory approval.

Infant nutrition is a high-value, science-led category. Pfizer Nutrition complements Nestle’s existing portfolio with strong brands in key segments and geographies. It will enhance Nestle’s infant nutrition business allowing it to combine well-known brands like S-26 Gold, SMA and Promil with the existing portfolio of trusted and successful brands such as Nan, Gerber, Lactogen, Nestogen and Cerelac infant cereal.

Paul Bulcke, chief executive of Nestle comments: “Infant nutrition has been at the heart of our company since it was founded in 1866. Pfizer Nutrition is an excellent strategic fit and this acquisition underlines our commitment to be the world’s leading nutrition, health and wellness company. Its strong brands and product portfolio, its talented people dedicated to the success of its business, together with its geographic presence – 85% of its sales are in emerging markets – will complement our existing infant nutrition business perfectly. The combined entities will enable us to deepen our engagement with consumers, offering them a wider choice of nutritious food to ensure their children make a healthy start to a healthy life.”

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Nestle to Acquire Pfizer Infant Nutrition Business


Pharmaceutical giant Pfizer is reported to be close to selling its $1.9 billion annual turnover infant nutrition business to Nestle for between $9 billion and $10 billion. With roughly 80% of its sales generated in high growth emerging markets and 60% in Asia, Pfizer’s infant nutrition business is an attractive acquisition target for the other major players within the infant formula industry. Asia accounts for about 45% of the world milk formula market and the region also accounts for over half of the births in the world.

Nestle is believed to have beaten rivals Danone and Mead Johnson to the prize.

 

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New Nescafe Coffee Uses Micro-granules Adapted to Local Tastes


Consumers worldwide can enjoy a new premium Nescafe that uses a blend of soluble and finely ground micro-granulated coffee designed to meet specific tastes in individual countries. This month it has been launched in Brazil as Nescafe Duo Grao.

It was first launched to Japanese consumers as a luxury coffee called Nescafe Koumibaisen last year. In the United Kingdom, it was launched as Nescafe Azera, and as Nescafe Molienda in Mexico. The product aims to reach more consumers in more countries this year.

Nescafe asked researchers at the Nestle Product Technology Centre in Orbe, Switzerland, to help them understand how to match its coffee to consumers’ taste preferences and habits. The researchers found out that consumers in Mexico do not like bitter coffee, but prefer a smoother taste. The Japanese like their coffee stronger and rich in aroma, while the British like a well-balanced coffee taste. Brazilians prefer their coffee with a smooth but aromatic taste.

“From Brazil to J apan, we discovered that consumers have really diverse tastes,” explains Michael Briner of the beverage strategic business unit at Nestle. “Lifestyle, consumption and daily patterns all made a difference so we used our coffee expertise and know-how to tailor the product to each country.”

Nescafe selected a blend of Arabica and Robusta coffee beans to achieve specific tastes, choosing beans that provided a smoother or more bitter taste. The beans are either lightly or deeply roasted to determine the different aromas. The roasted beans are then ground down to micro-granules and blended together with soluble coffee to provide a unique and specifically crafted cup of coffee.

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Raising Awareness About Osteoporosis


Nestle is partnering with the International Osteoporosis Foundation (IOF) to help make consumers more aware of what can be done to prevent Osteoporosis. It is a disease in which bones become fragile, weak and prone to fractures, and is a growing problem in both emerging and developed countries.

Recent statistics released by the IOF showed that osteoporosis affects about one in three women over the age of 50, with over 200 million women affected worldwide. It also affects men, as one in five over the age of 50 is at risk of an osteoporotic fracture.

“The new partnership aims to help increase awareness about the ‘silent epidemic’ of osteoporosis,” says Emma Jacquier, Nutrition and Science Manager for the Dairy Strategic Business Unit at Nestle. “Staying in good health at a low cost is becoming vitally important for the public, governments and businesses as the world’s population ages.”

Nestle’s partnership with the IOF will highlight ways in which consumers can protect themselves from the disease. “Eating the right foods and staying physically active are important in order to age healthily,” explains Patrice McKenney, chief executive of the IOF. “People of all ages can help promote good bone and muscle health by ensuring that they have a healthy diet rich in calcium and protein, enough vitamin D and taking regular weight-bearing exercise.”

Activities have begun in Argentina, Brazil, China, Indonesia and the Philippines. Nestle is offering people bone-health checks and access to expert advice on health and nutrition in supermarkets and stores. Other activities and initiatives will be organised to highlight World Osteoporosis Day in October.

The partnership is Nestle’s latest commitment to raise awareness about osteoporosis. Last year the company led a study on vitamin D deficiency in office workers in Australia. Vitamin D is produced naturally by the body through exposure to the sun’s ultraviolet rays. Deficiency in this vitamin puts them at greater risk of osteoporosis, muscle weakness and can be implicated in some other chronic diseases. Research revealed that one in three workers had a deficiency in this essential micronutrient during the summer.

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Nestle Continues to Develop its Operations in Chile


Nestle has invested more than SFr127 million ($140 million) in a new factory in Chile as part of its continued commitment to developing its operations in the country. The factory will produce a range of milk products and ingredients with added nutritional value for domestic consumption and for export to the United States, Central America, the Middle East and Asia.

When fully operational, the factory will have a production capacity of 30,000 tonnes of milk powder, enabling Nestle to meet increased demand for dairy products that offer a nutritional ‘plus’. One of the most technologically advanced dairy factories of its kind in the world, it will provide 300 direct jobs and 1,500 indirect jobs.

As with Nestle’s other dairy factories around the world, the new manufacturing site is situated in a rural area close to the dairy farms that supply it with fresh milk. This not only enables Nestle to trade directly with farmers, but also to provide them with technical assistance and training to improve milk production and quality.

In Chile, Nestle sells a range of local brands including Savory ice cream, Sahne-Nuss chocolate and McKay biscuits, alongside internationally recognised brands such as Nescafe and Maggi. In 2010 the company opened its first Research and Development Centre in South America in the Chilean capital Santiago. The centre leads Nestle’s global research and development efforts for biscuits and cereal-based snacks.

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Dark Chocolate May Help to Reduce Stress Levels


Eating a moderate amount of dark chocolate every day can help reduce the hormones in your body that make you feel stressed, according to a Nestle study. Scientists from the Nestle Research Center (NRC) in Switzerland examined the biochemical basis for chocolate’s reputation as a comfort food. Their research revealed that the chemical compounds contained in dark chocolate may improve the disposition of people who experience higher levels of stress.

The Nestle study into dark chocolate’s effect on stress monitored 30 healthy adults for two weeks. Every day each participant was given 40g of dark chocolate – about four squares of a large bar. They consumed half the chocolate in the morning and the other half in the afternoon.

Those participants who recorded higher levels of stress at the beginning of the study experienced a reduction in the chemical reactions in their bodies associated with stress. The results showed the level of stress-related hormones reduced in all participants, including those who were not assessed as stressed at the start.

“When you are stressed your body’s chemistry becomes unbalanced,” explains Nestle scientist Dr Sunil Kochhar, who led the study. “In the long term this can be harmful to your health. We have found that eating a moderate amount of dark chocolate on a daily basis can help to balance the body chemistry of people who are stressed. It is possible to speculate that making dark chocolate part of a healthy balanced diet might lead to a chemical composition in the body that is better able to handle stress.”

The dark chocolate used in the study was made of up to 75% cocoa solids. These are rich in chemical compounds that affect your metabolism, the chemical reactions that happen in your cells.

“Anxiety and stress can have considerable effects on people’s wellbeing, causing a variety of physical and emotional conditions, and sometimes leading to more serious health concerns,” Dr Kochhar continues. “These results strongly support our ongoing research efforts to establish the impact of certain food ingredients on human metabolism, and how they affect our health.”

The study, published in the Journal of Proteome Research, is one of several conducted by the Nestle Research Center into the emerging health benefits of dark chocolate. Nestle scientists collaborated with experts from BASF, the world’s leading chemical company, and Berlin-based scientific organisation Metanomics on an earlier study. This examined the effects on microorganisms in the human gut associated with eating dark chocolate regularly.

The NRC has also collaborated with Loughborough University, a leading sports science institute in the UK, to investigate the use of dark chocolate as an effective snack alternative for active people.

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Nestle Boosts Dairy Interests in Asia


Nestle is strengthening its dairy industry interests in Asia with the opening of a new UHT milk factory in Sri Lanka. The factory builds on the company’s recent investments in dairy development in China and India. It will produce ready-to-drink brands such as Milo and Nespray at Nestle’s existing manufacturing site in the Sri Lankan province of Kurunegala.

“Our latest investment will have a ripple effect across the local community by helping our company make a positive impact on thousands of suppliers and farmers in the country,” says Alois Hofbauer, managing director of Nestle Lanka. “The new manufacturing capabilities also mean we can produce new products for our Sri Lankan consumers.”

The SFr5.8 million factory is part of a SFr77 million (Eur64 million) total investment in Sri Lanka over the next few years. Two other factories producing Maggi noodles and Nestle brand malt beverages were opened on the site in the last 12 months.

Nestle has supported the Sri Lankan dairy sector since the 1980s. Today Nestle Lanka’s has three UHT milk factories. Nestle isSri Lanka’s single largest private sector collector of fresh milk, procuring fresh milk from over 15,000 local dairy farmers every day.

The new UHT milk factory is part of Nestle’s dairy investment programme in Asia. The company constructed a new dairy farming institute in Shuangcheng in Heilongjiang province, China, in January.

Nestle India has developed milk production in the region since it built its first factory in Moga in 1961. The company now has eight factories in the country. Over the years, Nestle has invested to develop the area around that first factory, setting up milk collection points and training farmers to improve productivity and quality.

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Nestle Uses Avalanche Research to Create Better Ice Cream


Nestle is using the same specialised technology avalanche experts use to study snow to improve the quality of its ice cream. The company’s scientists are working with the Institute for Snow and Avalanche Research in Switzerland (SLF) to examine the microscopic ice crystals found in both snow and ice cream.

Their research relies on the only x-ray tomography machine in the world that allows long-term observation of tiny particles in a substance at temperatures of zero to minus 20 degrees Celsius. Experts at the SLF monitor the evolution of ice crystals in snow and how this affects its properties: key factors for understanding avalanche formation.

Ice crystals affect the properties of ice cream in a similar way, altering its texture and structure as they grow and change shape. The collaboration aims to help Nestle to solve a universal problem for all ice cream manufacturers: how to maintain the product’s original texture and structure for longer.

“Ice cream is an inherently unstable substance,” says Dr Hans Jorg Limbach, a scientist at the Nestle Research Center in Switzerland. “As part of its natural ageing process, the ice will separate from the original ingredients such as cream and sugar. When you store ice cream in the freezer at home for a prolonged period, you will eventually see ice crystals begin to form in the product. This is water from the ice cream itself.”

Across the ice cream industry, consumer feedback about boxed ice cream that is stored in the freezer often relates to its texture and appearance.

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Nestle Strengthens E-commerce Leadership in Europe


Nestle is strengthening its e-commerce offering in Europe, giving consumers a new way to buy customised chocolates in Spain. Díselo con Chocolate, or ‘Say it with Chocolate’, builds on experience from other Nestle e-commerce innovations Maison Cailler, BabyNes and Nespresso.

Consumers can use the new Spanish website to choose their own personalised selection of Nestle Caja Roja praline chocolates. They can further customise their purchase by picking their preferred packaging, choosing designs for inside and outside the box, and deciding on gift wrapping. The praline chocolates are delivered to the consumer within 72 hours.

“Innovation is a priority for Nestle,” says Bernard Meunier, chief executive of Nestle Spain. “The Díselo con Chocolate initiative illustrates the potential of a growing consumer trend towards customisation and buying products and services online. It is something that is unique and exclusive for Spanish customers.”

Díselo con Chocolate is the latest boost to Nestle’s e-commerce business in Europe. The company’s luxury chocolate brand Maison Cailler launched in Switzerland and Liechenstein in January. This is a unique profiling system that consumers can use to discover their ‘chocolate personality’ and share the result with their friends online.

Last year Nestle launched BabyNes in Switzerland, the world’s first comprehensive nutrition system for infants and toddlers. Customers can use its website to track their baby’s growth and changing nutritional needs, choose the right product type, order capsules or source information professional nutritionists. BabyNes offers 24-hour customer service via the website or its customer service hotline.

Nespresso, the company’s premium portioned coffee brand, has operated a highly successful online business model since 1998. Consumers can buy capsules, machines and accessories at www.nespresso.com. Over a decade later Nespresso launched an app for its Club Members. They can read up on Nespresso news, search for their nearest boutique or stockist, and in certain European countries, locate recycling points for used capsules.

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Nestle Strengthens R&D For Fast-growing Markets in Asia


Nestle is strengthening its global research programme by expanding its research and development centre in Singapore. The centre, which serves fast-growing markets in the Asia-Pacific region, leads Nestle’s expertise in micronutrient fortification and Popularly Positioned Products (PPPs). PPPs are food and beverages that provide nutritional value at an affordable cost, in an appropriate size, for lower income consumers.

Those developed by the company’s experts in Singapore include Maggi Masala-ae-Magic, a spice mix for consumers in India fortified with iron, iodine, and vitamin A, and iron-fortified Maggi Sajian Leluarga noodles for families in Malaysia.

Nestle’s investment of almost SFr4 million (Eur3.3 million)) in the centre will support product development in a number of categories including culinary, malt beverages and coffee mixes.

Nestle’s research and development centre in Singapore is part of the company’s global network of 32 R&D centres. Its success led the company to establish two other R&D centres in Asia: in Shanghai in 2001 and in Beijing in 2008. Products developed in Singapore are sold in 16 countries including India, Indonesia, Malaysia and Japan.

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Nestle Forms New Research Partnership in South Africa


Nestle is entering into a new research partnership with the government of South Africa which it is hoped will contribute to the scientific development of the country and the continent as a whole. The arrangement will offer South African scientists exposure to Nestle’s extensive research capabilities, in particular the company’s expertise in nutrition, food science and food safety.

It will also allow Nestle to better understand the nutrition needs of consumers in South Africa, and accelerate the development of products with an improved nutrition profile at the right price for consumers in emerging markets. The partnership with South African scientists is being coordinated by the Council for Scientific and Industrial Research (CSIR), part of the government’s Department for Science and Technology (DST).

“We are delighted to have this opportunity to fund future research projects at the CSIR and to share expertise with the South African scientific community,” says Nandu Nandkishore, Nestle’s executive vice president and head of Zone Africa, Oceania, Asia and the Middle East. “We expect the collaboration will help to provide the scientific basis for sound nutrition and food safety policies, as well as identify research needs for science-based regulations on food, nutrition and health.”

Some of the researchers taking part in the partnership will study how locally sourced ingredients can be used to create foods that provide health benefits. Part of Nestle’s global research and development effort is directed towards discovering new bioactive ingredients. Researchers also test how well these ingredients target different tissues in the body once ingested, as well as their effectiveness in helping to promote health.

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Nescafe Dolce Gusto Expands in Europe


Nestle is strengthening one of its fastest growing businesses in Europe with a Eur220 million (over SFr265 million) investment in building a new Nescafe Dolce Gusto factory in Germany, the largest market for the brand worldwide. Nescafe Dolce Gusto is Nestle’s machine and capsule ‘coffee shop experience-at-home’ system for both hot and cold drinks. It offers nearly 30 coffee, Nesquik and Nestea varieties.

The factory, located in Schwerin, will create 450 jobs. With 12 new production lines, it will become operational by the end of 2013. Located about 100 km from Hamburg, the biggest European port for coffee imports, the factory aims to produce about two billion coffee capsules a year for export to the rest of Germany, Eastern Europe and Scandinavia.

“This is one of our biggest investments in Europe and highlights our continuous investment in our capacity for innovation,” says Laurent Freixe, Nestle’s zone director for Europe. “Nescafe Dolce Gusto is the leader in the portioned coffee market in 20 countries. With a growth rate of over 50%, it is one of the fastest growing businesses for Nestle inEurope.”

The Schwerin site is the company’s third Nescafe Dolce Gusto factory. Last year, Nestle invested SFr64 million in the Nescafe Dolce Gusto site at its Nescafe factory in Girona, near Barcelona, Spain.

The company’s first Nescafe Dolce Gusto factory, which opened in 2006 in Tutbury in the United Kingdom, is already running at full capacity. Last year Nestle invested £110 million in the site to triple production.

The Schwerin factory is Nestle’s latest investment in Germany– the company’s fourth largest market globally.

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Nestle Drives Nutrition With ‘Cooking Caravans’ in Africa


Nestle has gone on the road in Central and West Africa to provide nutrition expertise and healthy eating tips to consumers. Maggi brand ‘Cooking Caravans’ are travelling through Cameroon, Cote d’Ivoire and Nigeria to educate people about balanced diets, micronutrient deficiency and the importance of culinary hygiene. The programme also aims to encourage cooking at home.

There are five caravans on the road staffed by a team of up to ten Maggi employees and contractors. They travel to towns and cities week-by-week promoting activities tailored to each country. These include interactive cooking demonstrations, women’s forums, group discussions, and presentations on micronutrient fortification.

“The Cooking Caravan is our channel to connect with our consumers face-to-face,” says Maarten Geraets, business executive manager for Maggi in the Central and West Africa region. “We hope it will reinforce the idea that Maggi is a brand they can trust.”

Maggi makes a wide range of products including bouillons and seasonings in West Africa. Nestle fortifies most of the range to help address the four most prominent micronutrient deficiencies worldwide: iron, vitamin A, iodine and zinc. Over a third of people living in developing countries are affected by such deficiencies, according to recent statistics by the United Nation’s Food and Agriculture Organization.

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Nestle Grows in Both Developed and Emerging Markets


Reflecting growth in both emerging markets and developed markets, Nestle increased net profit by 8.1% on a continuing basis to SFr9.5 billion (Eur7.8 billion) for 2011 on sales of SFr83.6 billion exhibiting organic growth of 7.5% and 3.9% real internal growth. Trading operating profit was SFr12.5 billion and the margin advanced 60 basis points (90 basis points in constant currencies) to 15.0%.

Nestle continued to grow in all regions of the world, with 5.0% organic growth in Europe, 6.4% in the Americas and 13.1% in Asia, Oceania and Africa. The business grew 13.3% in emerging markets and 4.3% in developed markets.

Paul Bulcke, chief executive of Nestle, comments: “We delivered good performance, top and bottom line, in both emerging and developed markets in 2011. It was a challenging year, and we do not expect 2012 to be any easier.”

During 2011, Nestle continued to invest in innovation and platforms for growth including new partnerships in China with Yinlu and Hsu Fu Chi, and the formation of Nestle Health Science and the Nestle Institute of Health Sciences, which both had a good start in their first year of operation.

“Our innovation is creating opportunities in all categories, whether bringing new consumers to our brands in emerging markets, or building on our consumers’ engagement with our brands in the developed world,” says Paul Bulcke.

Nestle achieved growth in Western and Central/Eastern Europe with sales up 4% organically to SFr15.2 billion and real internal growth of 1.8%. Trading operating profit margin improved by 230 basis points to 15.6%.

In Western Europe all markets overcame tough economic conditions to deliver real internal growth. Portugal, Italy, Greece and Spain collectively achieved 3.7% organic growth.France, the Benelux countries and Great Britain did well. All Nestle’s key categories grew with soluble coffee, chilled culinary, frozen pizza and petcare among the highlights.

In Central and Eastern Europe there were strong performances in Ukraine and Romania and in the Adriatic region. However, trading conditions remained tough in Russia and Poland. Innovation continued to drive Nestle’s European growth with a major contribution from brands like Nescafe Dolce Gusto, Nescafe Sensazione in soluble coffee and Herta in chilled culinary.

According to Paul Bulcke, the company is “well positioned in 2012 to deliver the Nestle Model of organic growth between 5% and 6% as well as an improved margin and underlying earnings per share in constant currencies.”

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Study Shows Modern Life is Changing Germans’ Eating Habits


The unpredictability of the average German’s daily routine is having a significant impact on their eating habits, according to a Nestlé study. The company’s second ‘So is(s)t Deutschland’ (‘That’s how Germany eats/is’) survey asked more than 10,000 people about their day-to-day life and dietary patterns.

Work was an obvious influence on people’s eating habits. Surprisingly, longer working hours affected women’s eating patterns more than men’s. Overall, the study found a striking disparity between the sexes’ general attitude to food. More than 55% of women said they worry very much or too much about their diet, compared to 32% of men.

More than half of 20 to 29-year-olds, and more than two in five professionals who took part in the study said their daily routines were unpredictable. Of this group, only one in five said they ate at fixed times of the day. 43% ate only when they had time and 31% said they ate whenever they were hungry.

Among those professionals who worked a 40 to 49-hour week, 43% of women had irregular eating habits compared to 36% of men. More than two thirds of women whose working week exceeded 50 hours ate irregularly, compared to just over half of men in the same category.

Somewhat predictably, many people who took part in the survey said they tended to partially substitute main meals with snacks. This trend was especially prevalent among the under 30s. More than two thirds of people under 30 ate “every now and then” instead of having a regular main meal. Roughly one sixth of this group replaced a main meal with a snack every day or almost every day. Young single people and young couples without children were most likely to substitute main meals in this way.

More than 90% of non-professionals who were questioned said they ate breakfast, lunch and dinner at home. In contrast, more than two thirds of professionals had lunch outside the home. 27% usually or at least occasionally ate out for breakfast.

The study also confirmed that options for eating out or ‘on-the-go’ have increased significantly in recent years. Young people were the most likely to take advantage of this array of choice. Around 41% of 14 to 29-year-olds in Germany visited fast-food restaurants at least once a month, compared to only 7% of 45 to 59-year-olds.

About 68% of people, including two-thirds of parents with children under the age of 18, felt that too many children in Germany had an unhealthy and unbalanced diet.

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Tackling the Global Food Crisis


Private sector companies have an important role to play in addressing the global food crisis, according to Nestlé chief executive Paul Bulcke. In a speech at the ‘Feeding the World’ Economist Conference in Geneva, Switzerland, Paul Bulcke said that the increasing world population, food waste, worldwide water shortages and the issue of using food for biofuels among others, all impact on food security.

Despite the challenges, there are ways and solutions to address this, he emphasised. Governments, public and private sectors and civil society all need to work together to address the issue of food security. He continued: “With an estimated 70% of global poverty in rural areas, investment in building agricultural capacity is crucial.”

Nestlé works with nearly 600,000 farmers worldwide by providing technical assistance, forming partnerships and giving financial support. Its ‘farm to factory’ initiative – Sustainable Agriculture Initiative at Nestlé – supports farmers and promotes sustainable development in agriculture globally. It is part of the Sustainable Agriculture Initiative which unites all interested food companies, primary processors and traders.

Nestlé’s partnerships with agencies such as the East African Dairy Development Board help dairy farmers to boost sustainable milk production in Kenya and Uganda. And the company’s investment in the Nestlé Cocoa Plan and the Nescafé Plan shows its commitment to improve the supply chain, provide technical expertise, support farmer training and enhance living conditions for farming communities. This work is part of what Nestlé calls ‘Creating Shared Value’, an approach to business that aims to create value for the company’s shareholders at the same time as for those communities where it operates.

The ‘Feeding the World’ event is hosted by Economist Conferences – headed by The Economist newspaper. The summit brings together over 200 senior executives from around the world representing agribusiness, food manufacturing, policy, international agencies, science and the NGO community. It aims to provide action plans and new solutions to food security challenges.

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Attractive But Unbalanced Outlook For Global Dairy Market


The global dairy market will offer strong growth prospects in the coming five years, but the uneven spread of this market expansion and an era of elevated pricing will create as many challenges as opportunities for key players along the dairy supply chain. This is one of the key conclusions coming from the Rabobank Food & Agribusiness Research and Advisory report, ‘Global Dairy Outlook: Show me the money’.

Rabobank forecasts that the global dairy market will expand at 2.4% pa over the next five years but that growth will be unevenly spread, generating some important market dynamics.

Growth will be highly skewed to emerging markets, with countries like China, India and South East Asia expected to account for more than 80% of market volume growth, while western markets continue to mature. Supplying these growth markets, many of which are already in supply deficit, with safe and affordable milk in coming years will require considerable advancement on many fronts: including the development of safe domestic supply chains in emerging markets and the expansion and marketing of surplus production in export regions. “Tapping into emerging market growth will present a particular challenge for many of the world’s dairy processors, most of which are domiciled in, and still focused on, the EU and US markets,” points out Tim Hunt, global dairy strategist for Rabobank.

Opportunities will also be uneven across product categories. In particular, economic, demographic and dietary trends are likely to see cheese sales underperform the broader dairy market. With sales of higher end whey product set to track a much faster growth path, the strategic value of whey pools is rising rapidly. “The divergence of cheese growth and whey demand represents a major structural shift in the market, and justifies a re-evaluation of ingredient production and sourcing strategies,” he explains.

Rabobank forecasts that solid market growth, supply constraints and a structural shift in the costs of producing milk will sustain high milk and dairy commodity prices over the medium term. But this will not translate to increased profits for all.

The processing sector is confronting enormous challenges from high and volatile input costs, difficult economic conditions and retail power. In general the processing sector has managed to maintain or improve their margins, through a combination of stripping costs, trading to higher value-added products and passing through cost increases to consumers. But experience has varied greatly by sector, with Fast Moving Consumer Goods (FMCG) players like Nestle and Danone faring well, cheese makers also improving their returns, while liquid milk players and major Chinese processors have seen their returns decline.

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Nestle Launches Coffee Machine For Small Businesses in Europe


Nestle has launched a new coffee machine designed to appeal to Europe’s millions of small businesses. The Nescafe Alegria, which is being rolled out by the company’s ‘out-of-home’ food services business Nestle Professional, is aimed at so-called ‘micro-enterprises’ of fewer than ten employees.

Micro-enterprises represent nine out of ten small to medium-sized enterprises in Europe, which in turn account for 99% of all businesses on the continent. Nestle says it has identified a gap in this market for a cost-effective system that allows small organisations to make a range of cafe-style coffees for their customers.

The design of the Nescafe Alegria is based on Nestle’s highly successful Nescafe Barista home coffee machine. Available in Japan only, Nescafe Barista was created by Nestle’s research and development network and launched in 2007. More than 600,000 have been sold since then, making it the most popular coffee machine in the country.

To adapt the system for small businesses inEurope, Nestle Professional increased the size of its water tank and renamed it to complement the existing Nescafe Alegria coffee machine range.

The Nescafe Alegria machine has already been launched in seven countries in Europe including Germany, the Netherlands, Poland, Russia and the United Kingdom. Nestle Professional plans to roll out the machine in other European countries later this year. The company may also launch it in Latin America and other parts of Asia.

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Nestle Supports Worldwide Development of Children’s Athletics


Nestle is to sponsor one of the world’s biggest youth sports development programmes for the next five years. As part of its commitment to nutrition, health and wellness, the company is to become the main sponsor of the International Association of Athletics Federations’ (IAAF) Kids Athletics programme. The global initiative encourages school children to participate in athletics and educates them about sport and a healthy lifestyle. It also aims to support the development of future athletes.

Kids Athletics was created in 2005. It had reached a total of more than 1.5 million children in 100 territories by the end of 2011. With Nestle’s help, the IAAF will either set up new Kids Athletics programmes, or extend existing ones. It will also be able to provide additional training for athletics lecturers and coaches.

Nestle’s support for Kids Athletics complements the company’s Healthy Kids programme. The global initiative promotes nutrition education, a balanced diet, greater physical activity and a healthy lifestyle to children between the ages of six and 12. It reached an estimated six million children in 60 countries in 2011.

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Nestle to Restructure UK Coffee Operations


Nestle UK has unveiled proposals for a further £200 million extension to its Nescafe factory in Tutbury, Derbyshire, but will close its coffee factory at Hayes. The investment at Tutbury is in addition to the £110 million extension to the Nescafe Dolce Gusto facility at the site announced in November 2011. For the first time in the UK all forms of coffee production including freeze dried, spray dried and pod technology, will be brought together on one site.

However, production at Nestle’s coffee factory in Hayes will transfer to Tutbury, leading to the eventual closure of the Hayes site, where 230 people are employed, in 2014. The Hayes factory plays a vital role in Nescafe production. However, it is not feasible to redevelop the Hayes site to create the manufacturing facility Nestle UK needs for the future.

125 new jobs will be created in Tutbury through the transfer of production. This is in addition to the 300 new jobs in Tutbury announced in November 2011.

Paul Grimwood, chairman and chief executive of Nestle UK & Ireland, says: “Over the next three years, we are investing £500 million to establish our next generation of world class manufacturing facilities in the UK. The proposed restructuring, which will bring all our coffee manufacturing together at Tutbury, is a key part of this overall investment programme.”

Over the past five years Nestlé has undertaken a multi-million pound investment programme, establishing its next generation of world class competitive manufacturing facilities in the UK. This investment programme includes:

* £200 million spent transforming Nestle’s major confectionery factory in York to create a best in class manufacturing facility;

* creating a £40 million European centre of excellence for Nescafe Cappuccino in Dalston, Cumbria;

* establishing a £20 million seasonal confectionery manufacturing centre in Halifax;

building a new £35 million bottling plant in Buxton that will be one of the most environmentally sustainable operations of its kind in the world when it opens later this year;

* a £7 million expansion for Nestlé’s global Research & Development centre for confectionery in York.

Nestle UK & Ireland has approximately 7,000 employees across 19 sites and comprises: Nestle UK (Food & Beverage, Confectionery and Food Services), Nestle Ireland, Nestle Purina Petcare, Nestle Waters, Nestle Nutrition, Jenny Craig, Nespresso, Cereal Partners UK (a joint venture with General Mills) and Lactalis-Nestle Chilled Dairy (a joint venture with Lactalis).

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Nestle Supports Dairy Development in China With New Training Institute


Nestle is helping China accelerate the development of its milk industry with the construction of a new dairy farming institute in Shuangcheng in Heilongjiang province. The institute, with its series of training farms, aims to be the country’s leading dairy training centre, offering teaching courses from national and international experts.

Dairy farm owners and workers from Shuangcheng and other Chinese regions will be able to improve their farm management skills and learn how to use the latest agricultural technology. They will gain practical experience in expanding their farm businesses, improving productivity and sourcing high quality milk sustainability.

“We have worked with the local authorities and dairy farmers in Shuangcheng for more than 20 years,” says Roland Decorvet, chairman and chief executive of Nestle China. “Over that time we have helped to transform the area into one of the largest milk producing regions in the country. This new training institute is a continuation of our long-term investment in the future of Shuangcheng to ensure it remains one of China’s leading dairy districts.”

In partnership with the authorities, Nestle has distributed 1,000 free milking machines to farmers to ensure no farmers in the region have to continue milking by hand.

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Beverage Partners Worldwide Joint Venture to Focus on Europe and Canada


Nestle and The Coca-Cola Company have agreed to focus the geographic scope of their ready-to-drink tea joint venture, Beverage Partners Worldwide (BPW), on Europe and Canada. In Taiwan and Hong Kong, The Coca-Cola Company will enter into a license agreement with Nestle for the Nestea brand. In all other territories the joint venture will be phased out in a transition to be completed by the end of 2012 subject to any regulatory approval.

In addition, the current Nestea license granted by Nestle to The Coca-Cola Company in the United States will terminate at the end of 2012. Over the past ten years, BPW has delivered consistent growth to its parent companies and has expanded the Nestea brand across Europe, Canada and other markets.

Both partners believe a concentrated focus on Europe and Canada will accelerate the growth and bolster the market presence of BPW where the joint venture is most effective. Both parent companies will be free to independently explore and maximize opportunities for growth in the ready-to-drink tea category in other markets.

Beverage Partners Worldwide was created in 2001, following a period of ten years during which Nestle and The Coca-Cola Company co-operated in a joint venture called Coca-Cola and Nestle Refreshments.

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Cereal Partners Opens Breakfast Cereals Factory in Turkey


Cereal Partners Worldwide, a joint venture between Nestle and General Mills, continues to expand the market for its breakfast cereals with the opening of a new factory in western Turkey. The factory will produce breakfast cereals for the Turkish market as well as for 14 other countries in the Middle East and North Africa.

Located in the Karacabey region, the factory was built with an investment of about 85 million Turkish Lira (almost SFr45 million, Eur37 million). Last year, almost one million new households started eating breakfast cereals in Turkey. With the new factory, Cereal Partners Worldwide aims to develop Turkey into a regional hub for the production of breakfast cereals.

“We expect consumption of breakfast cereals in Turkey to increase in the coming years,” says Hans-Ulrich Mayer, chief executive of Nestle Turkey. “This is an important indication of sustained interest in this category.”

The factory will have an annual production capacity of about 15,000 tonnes of breakfast cereal. The majority of raw materials will be sourced from Turkey. This includes various grains such as wheat, corn and rice.

Cereal Partners Worldwide produces and sells breakfast cereals, the majority of which are Nestle branded, in more than 130 countries outside the United States and Canada. Cereal Partners Worldwide entered the breakfast cereals market inTurkeyin 1998.

The new factory in Turkey is the fifteenth factory now producing Nestle breakfast cereals worldwide. Other factory locations are France, Poland, Portugal, Russia, the UK and countries in Asia, Oceania and Latin America.

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Nestle Joins New Partnership to Improve Dairy Farming in Brazil


Nestle has joined a new partnership with other dairy companies in Brazil to help more than 2,200 farms improve milk quality, safety and sustainability. Nestle has entered the agreement through Dairy Partners Americas, its joint venture in South America with New Zealand-based dairy co-operative Fonterra. Dairy Partners Americas has teamed up with Brazil Foods and Itambe, two leading Brazilian food producers, to share best practices.

 

Together, the three companies have worked with the State Secretariat of Science, Technology and Higher Education for Minas Gerais – a major dairy farming region – to define a set of common standards. The companies will help their suppliers to meet these standards in all the regions in Brazil where they purchase milk.

 

Their aim is to accelerate milk production while improving dairy farming practices across the country by encouraging other organisations to adopt the same standards. Farmers will be helped to improve milk storage as well as the use and cleaning of equipment. They will receive training in basic veterinary skills, as well as training to improve animal welfare and milking parlour conditions.

 

Farmers will also be shown how to reduce the environmental impact of their activities by setting up better wastewater treatment and drainage systems. It is expected that 2,260 farms will start to adopt the recommended practices by the end of 2012.

 

Dairy Partners Americas purchases around three billion litres of milk per year to supply to both parent companies, Nestle and Fonterra. It works directly with 13,000 commercial milk producers and indirectly with another 40,000 through farming co-operatives. In Brazil, Dairy Partners Americas employs more than 3,000 people and operates 12 sites.

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Nestle Becomes First Food Company to Partner with the Fair Labor Association


Nestle has decided to work with the Fair Labor Association (FLA) to investigate whether children are working on cocoa farms supplying its factories. The FLA is a non-profit multi-stakeholder initiative that works with major companies to improve working conditions in their supply chains. In January the FLA will send independent experts to Cote d’Ivoire to examine Nestle’s cocoa supply chain. The Cote d’Ivoire is the world’s largest exporter of cocoa.

 

Where they find evidence of child labour, the FLA will identify the root causes and advise Nestle how to address them in ways that are sustainable and lasting. The FLA’s role will be to provide expertise to help ensure Nestle’s efforts to eliminate child labour are more effective and transparent. Nestle is applying to become a member of the FLA. It is the first food company to do this.

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Nestle Invests £110 Million in UK Coffee Factory


Nestle is investing £110 million in its Nescafe Dolce Gusto factory in the UK, creating 300 new jobs and tripling coffee capsule production. The investment will expand the factory, located in Tutbury in Derbyshire, and its workforce. It is the latest in a series of multi-million pound investments Nestle has made in the UK over the last five years.

 

These include £200 million to transform its confectionery factory inYork, £40 million to create a European centre of excellence for Nescafe Cappuccino in Cumbria, and most recently, £35 million to build a new water bottling factory in Buxton.

 

“We are creating our next generation of world class competitive manufacturing facilities,” says Paul Grimwood, chairman and chief executive of Nestle UK and Ireland. “We need to continue to innovate to remain ahead of the market and are committed to the ongoing modernisation of ourUKmanufacturing capabilities.” Nestle employs about 7,000 staff across 19 sites in theUK.

 

The factory workforce at Tutbury has grown from 160 to 500 employees since 2006 and will increase to 800 by 2013, following the expansion of the site. Some of the 300 new employees at Tutbury will form part of the first intake of the ‘Nestle Academy’. This new initiative will offer young people apprenticeships, graduate programmes and on the job training to help them build a lasting career with Nestle.

 

The factory in Tutbury is one of only two production sites for Nescafe Dolce Gusto coffee capsules in the world. The other is located in Girona, Spain.

 

The investment will equip the Tutbury factory with 12 new high speed production lines to triple its output. It currently produces about four million capsules a day. More than 90% of the capsules will be exported to more than 38 countries around the world. They will also be sold in the UK. Nestle has invested more than £100 million in the factory over the past five years to strengthen its position as a leading Nescafe production site.

 

Nestle manufactures a variety of iconic brands in the UK. These include: Kit Kat, the country’s number one selling biscuit, Quality Street confectionery, Nescafe soluble coffee, and Shredded Wheat cereal. The company had sales of SFr3.7 billion (£2.6 billion) in the UK in 2010. Nestle is one of the UK’s major food exporters, selling products worth more than £260 million each year to 50 countries around the world.

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Nestle to Invest €45 Million in German Frozen Pizza Factory


Nestle is strengthening its frozen pizza business by extending its Wagner factory in Germany. The new Eur45 million extension to the factory, located in the city of Otzenhausen, will boost production of Wagner branded frozen food products such as Big Pizza, Piccolinis and Die Backfrische.

 

Production is set to increase from 70 million products to 350 million products annually once the new extension is fully operational in 2013. Products include pizzas such as reduced fat, wholegrain, lactose-free and organic varieties which are produced without flavourings or additives.

 

The new extension is Nestle’s latest investment to expand its frozen pizza business globally. Nestle added brands DiGiorno, Tombstone, California Pizza Kitchen, Jack’s and Delissio to its portfolio in the US and Canada, after acquiring Kraft Foods’ frozen pizza business last year. The purchase makes Nestle the leader in the North American frozen pizza category, where the company only had a minor presence before.

 

Nestle entered a joint venture with Wagner in 2005 and increased its stake in the company to 74% in 2010. Nestle also bought the Buitoni pizza, pasta and sauce business in 1988.

 

Wagner’s turnover has increased by 51% since it partnered with Nestle “Nestle has proven to be the ideal partner to develop our business worldwide and to develop it in new markets. Today we are one of the largest manufacturers of frozen pizzas inEurope,” says Gottfried Hares, managing director of Wagner.

 

Nestle and Wagner will also continue to share technology and expertise. Wagner introduced its Stone Oven pizza over two decades ago and has continued to bring new innovative products to consumers. Nestle’s new Buitoni Piccolini pizzas use the dough technology that Wagner developed in the late 1990s. In the US, Nestle’s DiGiorno pizzas use the same self-rising crust that is used in Wagner’s Backfrische pizzas.

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Nestle Strengthens Food Service Business in Scandinavia and Finland


Nestle Professional, the Nestle business that supplies the food service out-of-home industry, is strengthening its portfolio with a new acquisition in Scandinavia and Finland. The purchase of the stocks and sauces business Oscar from the Paulig Group will boost Nestle Professional’s presence in the ‘culinary flavours’ sector.

 

Oscar’s premium products and chef expertise will complement strong performers in the Nestle Professional food portfolio like Chef and Maggi. Closing of this agreement is expected to take place by the end of 2011.

 

Nestle Professional has achieved solid worldwide growth in 2011 with its innovative products and systems in both the beverages and the food parts of its business. Earlier this year the company invested Eur35 million to extend its Erlenbacher factory in Germany. It also opened a new Davigel Culinary Training and Expertise centre in France.

Nestle Professional’s super premium barista system Viaggi, launched first in France, is now being rolled out to other markets in Europe. And its premium Nescafe Milano beverage system has been introduced in North America and parts of Asia, in addition to recent launches in Europe.

 

Oscar produces its stocks and sauces at factories in Denmark and Finland. The new acquisition of this premium stocks and sauces operation gives Nestle Professional an opportunity to expand its out-of-home food business in Denmark and Finland where the Oscar brand is used widely, and further afield.

 

“This acquisition positions us as a strong leader in this premium category, complementing the presence of our Chef and Maggi brands,” says Marc Caira, chief executive of Nestle Professional. “Culinary flavour solutions is a growth category, with top level chefs increasingly interested in using manufactured ‘from scratch’ solutions.”

 

Globally, Nestle Professional is present in more than 90 countries – with over 10,000 employees, including a large number of skilled chefs. Nestle Professional sources from 171 Nestle factories worldwide and operates 13 dedicated food service factories, a number of specialist culinary centres, and a Beverage Centre located in Switzerland.

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Nestle Continues to Drive Growth in Europe €10 Million Investment in Spain


Nestle is continuing to drive its growth in Europe with a €10 million (more than SFr12 million) investment to produce different varieties of chocolate in Spain. The company has installed a new production line for moulding chocolates at its factory in La Penilla de Cayon in the north of the country. It is one of eight major investments Nestle has made in its manufacturing operations in Europe this year, including SFr45 million to extend a factory in Hungaryand SFr38 million to double pet food production in Russia.

 

The investment in La Penilla is the second Nestle has made in Spain this year, reflecting the company’s continued confidence in the Spanish market. In March, Nestle invested SFr64 million to boost production at its Nescafe Dolce Gusto factory in Girona.

Thanks to sales of Nescafe Dolce Gusto, Nestle Spain increased its exports by more than 40% in the first six months of 2011, despite the country’s tough economic conditions.

 

The new production line at Nestle’s La Penilla factory is equipped with technology for making new types of chocolate with different shapes and textures. “This investment reflects the importance Nestle places on continuous innovation,” says Bernard Meunier, vice president and chief executive of Nestle Spain.

 

The investment in the new production line will expand the factory’s annual production of chocolate to 7,000 tonnes. It confirms Nestle’s commitment to accelerating confectionery development, following the company’s expansion of its Product Technology Centre for confectionery in the city of York in the United Kingdom in September.

 

Nestle’s factory in La Penilla de Cayon produces chocolates and confectionery, cocoa powder, and infant formula. Around 40% of the factory’s annual production is exported to 45 countries worldwide. The new production line takes Nestle’s total investment in the factory to Eur75 million (more than SFr90 million) over the last five years.

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Kraft Foods to Invest $100 Million to Expand in Russia


Kraft Foods plans to invest $100 million to more than double the capacity of its coffee production plant at Gorelovo in the Leningrad region of Russia. Kraft Foods, which owns the Jacobs and Maxwell House brands, is the second biggest player in the expanding Russian coffee market with a share of 19%, behind Nestle with 28%.

 

The investment will increase annual coffee production at Gorelovo to 16,900 tonnes in 2013 and to 23,000 tonnes by 2015, from a current level of 10,500 tonnes. Kraft Foods has already invested in excess of $150 million in developing the factory to date.

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Nestle Expands Russian Coffee Factory


Nestle has completed a SFr240 million (Eur195 million) expansion of its soluble coffee factory in Timashevsk, Russia. Located in the Krasnodar region, the site is Nestle’s largest soluble coffee factory in Europe. It is also the company’s biggest investment project in Russia so far.

 

The factory uses advanced freeze-dry technology to make Nescafe coffee products for consumption in the Russian market and for export to other Commonwealth of Independent States (CIS) countries. Nescafe is the leading soluble coffee brand in Russia; the world’s biggest market for soluble coffee.

 

The expansion of the Timashevsk site, announced in 2008, has equipped the factory to produce Nescafe Gold freeze-dried coffee from raw material processing through to packing. It will also produce other soluble coffee products including Nescafe Gold Mild, Nescafe Gold Strong, and Nescafe Montego.

 

The factory, which employs 1,200 people, was alreadyRussia’s first “full-cycle” production site for soluble coffee. It has produced Nescafe Classic coffee ever since the first phase of its construction was completed in 2005.

 

“This factory is a perfect example of our long-term commitment to Russia and its consumers. It highlights our ongoing investment in the country,” says Paul Bulcke, chief executive of Nestle. “We have invested more than one billion US dollars (around SFr885 million) into manufacturing and distribution facilities in Russia over the past 15 years.”

 

Russia plays an important role in Nestle’s European operations, particularly in central and eastern Europe. The company’s brands in the country include Comilfo, Nescafe, Mega, Maggi, Perrier and Purina.

 

Currently, Nestle Russia employs more than 10,000 people and operates 12 production sites, ten sales offices and ten distribution centres. In August this year, the company announced it will invest more than SFr38 million to double pet food production at its Purina PetCare factory in Russia’s Kaluga region. This followed an investment of SFr60 million in 2010 in a new factory for Maggi products in the Vladimir region. The first phase of construction is expected to be completed by the end of 2011.

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Cereal Partners Worldwide Receives International Recognition For Greener Buildings


An innovation centre built by Cereal Partners Worldwide in Switzerland has been recognised as a leading example of sustainable design. The firm, a joint venture between Nestle and General Mills, has been awarded a platinum certification by the United States Green Building Council for the building in the Swiss city of Orbe.

 

It is the first time a Swiss building has won the highest level of certification the council awards to recognise leadership in energy and environmental design (LEED). The centre uses water from melted alpine snow for its cooling systems, an innovation that helps reduce energy usage by a third.

 

More than 50,000 gallons of rainwater are collected and stored in tanks for irrigation and for use in sanitary facilities at the site. Burned ground coffee waste produces steam to provide a back-up source of heating. And more than half the building was constructed using locally-sourced recycled materials.

 

Nestle and General Mills set up the joint venture CPW to produce and sell ready-to-eat breakfast cereals worldwide beyond the US and Canada. The innovation centre is part of CPW’s global Research and Development network. It focuses on ideas to improve nutritional content, freshness, taste and texture for the firm’s well-known breakfast cereal brands like Fitness, Cheerios and Nesquik.

 

Switzerland is not the only place in the world where Nestle is developing greener buildings. In the United States, Nestle Waters North America recently received the LEED Gold certification for its headquarters in Stamford, Connecticut. It is the company’s tenth LEED-certified building in the country.

 

Elsewhere in the US, Nestle Purina PetCare is converting the sun’s rays into renewable energy at its Flagstaff pet food factory in Arizona. Currently, 21 Nescafe factories worldwide are using spent coffee grounds as renewable energy source.

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New Chief Financial Officer For Nestle


Nestle has appointed Wan Ling Martello (pictured right) to succeed Jim Singh (pictured left), executive vice president and chief financial officer of Nestle, who is retiring on March 31st 2012 after a long and distinguished career of 35 years with the Swiss food and beverage group. Wan Ling Martello is currently executive vice president of global e-commerce, emerging markets Walmart.

 

Ms Martello has vast knowledge of the finance and control area and solid experience in the food and beverage business as well as the retail segment. She formerly worked with Kraft Foods (1985-1995) in finance and business administration as well as with Borden Foods Corporation (1995-1998) as corporate controller. From 1998-2005 she was with NCH Marketing Services, a former subsidiary of Nielsen, as chief financial officer, chief operating officer and then president USA. From 2005-2011, Ms. Martello gained in-depth knowledge of the retail and e-commerce business at Walmart where she was senior vice president, chief finance officer & strategy, Walmart International.

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Nestle Extends Global Product Technology Centre For Confectionery


Nestle is enlarging its global Product Technology Centre for confectionery, based at York in the UK. Nestle Product Technology Centres have two roles. The first is to develop breakthrough technologies – building blocks that are the basis of new product development. New textures and flavours are created as well as improved nutritional profiles. The second is to deploy these technologies to the company’s operations.

 

They can be used in Nestle’s factories around the world to ensure its confectionery products are being produced in the safest and most effective way, while meeting the constantly changing needs of consumers. Young talent is recruited and trained at the centre inYork before being assigned to Nestle’s operations or its research and development centres.

 

At the centre, ideas for new products are developed and tested right through from processing raw ingredients such as cocoa, to manufacturing, to packaging. Teams of technologists, scientists, engineers, food chemists, confectioners, nutritionists and packaging specialists work to develop new chocolate products, as well as fruit and wafer-based confectionery products. They also work on different coatings and chocolate ingredients for ice cream products.

 

At the heart of the centre is a pilot plant, which will be extended as part of the investment programme. This is where Nestle confectionery specialists and engineers develop and test technologies, manufacturing processes and equipment before they are used in the company’s factories worldwide.

 

The company’s cutting-edge sensory testing facility for the tasting of prototypes and finished products, will also be extended.

 

The centre’s extension has been designed to minimise waste of materials such as water, carbon dioxide, and energy while maximising output. This will be done according to the principles of ‘lean construction’, a global standard for designing and constructing more efficient and environmentally sustainable production systems.

 

Following Nestle’s acquisition of York-based Rowntree Macktinosh in 1988, the city has played an important role in the company’s development and manufacture of confectionery products. Nestle’s York factory produces popular confectionery brands including Kit Kat, Aero, and Milky Bar.

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