Nestl

"Nestle" redirects here. For other uses, see Nestle (disambiguation).

Nestl S.A.


Aerial view of Nestl's corporate headquarters building in Vevey,
Vaud
Type
Socit Anonyme
Traded as
SIX: NESN
Euronext: NESTS
OTC Pink: NSRGY
Industry
Food processing
Founded
Anglo-Swiss Condensed Milk Company (1866)
Farine Lacte Henri Nestl (1867)
Nestl and Anglo-Swiss Condensed Milk
Company (1905)
Founders
Henri Nestl, Charles Page, George Page
Headquarters
Vevey, Vaud, Switzerland
Area served
Worldwide
Key people
Peter Brabeck-Letmathe (Chairman)
Paul Bulcke (CEO)
Wan Ling Martello (CFO)
Products
Baby food, coffee, dairy products,breakfast
cereals, confectionery,bottled water, ice
cream, pet foods(list...)
Revenue
CHF 92.16 billion (2013)
[1]

Operating income
CHF 13.07 billion (2013)
[1]

Profit
CHF 10.02 billion (2013)
[1]

Total assets
CHF 120.44 billion (2013)
[1]

Total equity
CHF 64.14 billion (2013)
[1]

Employees
333,000 (2013)
[1][2]

Website
www.nestle.com
Nestl S.A. (French pronunciation: [nsle]; English /nsle/, /nsl/, /nsli/) is a
Swiss multinational food and beverage company headquartered in Vevey, Switzerland. It is the
largest food company in the world measured by revenues.
[3][4]

Nestls products include baby food, bottled water, breakfast cereals, coffee and tea,
confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestls
brands have annual sales of over CHF1 billion (about US$1.1
billion),
[3][5]
including Nespresso, Nescaf, Kit Kat, Smarties, Nesquik, Stouffers,Vittel, and Maggi.
Nestl has 447 factories, operates in 194 countries, and employs around 333,000 people. It is one of
the main shareholders of LOreal, the worlds largest cosmetics company.
[6]

Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866
by brothers George Page and Charles Page, and Farine Lacte Henri Nestl, founded in 1866
by Henri Nestl. The company grew significantly during the First World War and again following
the Second World War, expanding its offerings beyond its early condensed milk and infant formula
products. The company has made a number of corporate acquisitions, including Crosse &
Blackwell in 1950, Findus in 1963, Libbys in 1971, Rowntree Mackintosh in 1988, and Gerber in
2007.
Nestl has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market
Index. It has a secondary listing on Euronext. In 2011, Nestl was listed No. 1 in the Fortune Global
500 as the worlds most profitable corporation.
[7]
With a market capitalization of US$233 billion,
Nestl ranked No. 9 in the FT Global 500 2013.
[8]

Contents
[hide]
1 History
2 Products
3 Joint ventures
4 Corporate affairs
o 4.1 Senior management
o 4.2 Financial data
5 Major competitors
6 Controversy and criticism
o 6.1 Chocolate price fixing
o 6.2 Marketing of formula
o 6.3 Ethiopian debt
o 6.4 Melamine in Chinese milk
o 6.5 Greenwashing
o 6.6 Zimbabwe farms
o 6.7 Palm oil use
o 6.8 E. coli
o 6.9 Child labour
o 6.10 Bottled Life
o 6.11 Horsemeat scandal
o 6.12 We Feed The World
o 6.13 Animal welfare
7 Corporate social responsibility
o 7.1 World Cocoa Foundation
o 7.2 Sustainable Agriculture Initiative
o 7.3 Creating Shared Value
o 7.4 Ecolaboration
o 7.5 Expanding Business in Health Care Nutrition
o 7.6 Member of Fair Labour Association
8 Sponsorships
o 8.1 Good Food, Good Life
o 8.2 Animation
o 8.3 Music festivals
o 8.4 Sports
9 Selected awards, certifications and rankings
10 Bibliography
11 See also
12 Footnotes
13 External links
History[edit]

Henri Nestl
Nestls origins date back to 1866, when two separate Swiss enterprises were founded that would
later form the core of Nestl. In the succeeding decades, the two competing enterprises aggressively
expanded their businesses throughout Europe and the United States.
In August 1867, Charles (US consul in Switzerland) and George Page, two brothers from Lee
County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland.
Their first British operation was opened at Chippenham, Wiltshire, in 1873.
[9]


A 1915 advertisement for Nestls Food, an early infant formula.
In September 1866, in Vevey, Henri Nestl developed a milk-based baby food, and soon began
marketing it. The following year saw Daniel Peter begin seven years of work perfecting his invention,
the milk chocolate manufacturing process. Nestls was the crucial cooperation that Peter needed to
solve the problem of removing all the water from the milk added to his chocolate and thus preventing
the product from developing mildew. Henri Nestl retired in 1875 but the company, under new
ownership, retained his name as Socit Farine Lacte Henri Nestl.
In 1877, Anglo-Swiss added milk-based baby foods to their products; in the following year, the
Nestl Company addedcondensed milk, such that the firms became direct and fierce rivals.
In 1905, the companies merged to become the Nestl and Anglo-Swiss Condensed Milk Company,
retaining that name until 1947, when the name Nestl Alimentana SA was taken as a result of the
acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana
SA, of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs.
The companys current name was adopted in 1977. By the early 1900s, the company was operating
factories in the United States, the United Kingdom, Germany, and Spain. The First World War
created demand for dairy products in the form of government contracts, and, by the end of the war,
Nestls production had more than doubled.
Nestl felt the effects of the Second World War immediately. Profits dropped from US$20 million in
1938, to US$6 million in 1939. Factories were established in developing countries, particularly in
Latin America. Ironically, the war helped with the introduction of the companys newest
product, Nescaf (Nestls Coffee), which became a staple drink of the US military. Nestls
production and sales rose in the wartime economy.

The logo that Nestl used until 1966.
After the war, government contracts dried up, and consumers switched back to fresh milk. However,
Nestls management responded quickly, streamlining operations and reducing debt. The 1920s saw
Nestls first expansion into new products, with chocolate-manufacture becoming the companys
second most important activity. Louis Dapples was CEO till 1937, when succeeded by douard
Muller till his death in 1948.
The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and
numerous companies were acquired. In 1947 Nestl merged with Maggi, a manufacturer of
seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963),Libbys (1971)
and Stouffers (1973). Diversification came with a shareholding in LOreal in 1974. In 1977, Nestl
made its second venture outside the food industry, by acquiring Alcon Laboratories Inc.
In the 1980s, Nestls improved bottom line allowed the company to launch a new round of
acquisitions. Carnation was acquired for $3 billion in 1984 and brought theevaporated milk brand, as
well as Coffee-Mate and Friskies to Nestl. The confectionery company Rowntree Mackintosh was
acquired in 1988 for $4.5 billion, which brought brands such as Kit Kat, Smarties and Aero.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in February 2007.
The first half of the 1990s proved to be favourable for Nestl. Trade barriers crumbled, and world
markets developed into more or less integrated trading areas. Since 1996, there have been various
acquisitions, including San Pellegrino (1997),Spillers Petfoods (1998), and Ralston Purina (2002).
There were two major acquisitions in North America, both in 2002 in June, Nestl merged its U.S.
ice cream business into Dreyers, and in August a US$2.6 billion acquisition was announced ofChef
America, the creator of Hot Pockets. In the same time-frame, Nestl came close to purchasing the
iconic American company Hersheys, one of its fiercest confectionery competitors, although the deal
eventually fell through.
[10][better source needed]
Another recent purchase included the Jenny Craig weight-loss
program, for US$600 million.
In December 2005, Nestl bought the Greek company Delta Ice Cream for 240 million. In January
2006, it took full ownership of Dreyers, thus becoming the worlds largest ice cream maker, with a
17.5% market share.
[11]

In November 2006, Nestl purchased the Medical Nutrition division of Novartis Pharmaceutical
for US$2.5 billion, also acquiring, in 2007, the milk-flavouring product known as Ovaltine.
In April 2007, returning to its roots, Nestl bought US baby-food manufacturer Gerber for
$5.5 billion.
[12][13][14]

In December 2007, Nestl entered into a strategic partnership with a Belgian chocolate maker,
Pierre Marcolini.
[15]

Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to
form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the worlds largest eye-
care company.
[16]

On 1 March 2010, Nestl concluded the purchase of Kraft Foods's North American frozen pizza
business for $3.7 billion.
In July 2011, Nestl SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about $1.7
billion.
[17]
On 23 April 2012, Nestl agreed to acquire Pfizer Inc.'sinfant-nutrition unit for $11.9
billion.
[18]
Before the acquisition, there was a 'bidding war' between the three shareholders
Nestl, Mead Johnson Nutrition and Danone. Each of the companies held a share, with Nestl
holding the biggest share (17%) (Johnson held 15%, Danone 13%).
[19]

As of 28 May 2013, Nestl has announced that it will expand R&D in its research center
in Singapore. With a primary focus on health and nutrition, Nestl is investing $4.3 million in its
Singapore center, creating 20 jobs for experts in related R&D fields.
[20]
In 2013 Nestl Nigeria
successfully pioneered and implemented the use of compressed natural gas as a fuel source to
power their Flowergate factory.
[21]

Products[edit]
Main article: List of Nestl brands
Nestl has some 8,000 brands,
[22]
with a wide range of products across a number of markets,
including coffee, bottled water, milkshakes and other beverages,breakfast cereals, infant
foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated
foods, and pet food.
[23]
Nestl's brands include:
Coffee and tea
Coffee mate
Dolce Gusto
Nescaf
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Nespresso
Nestea and Enviga (controlled by
the joint venture with The Coca-
Cola Company, called Beverage
Partners Worldwide)
Ricor
Special.T
Sweet Leaf Tea
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Aquarel
Arrowhead Water
Cristalp
Contrex
Deer Park Spring Water
Ice Mountain
Nestl Pure Life
Ozarka
Perrier
Poland Spring
San Pellegrino
Vittel
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Dreyer's
Drumstick
Extrme
D'Onofrio (brand)
Hagen-Dazs (brand owned by General Mills. Nestl has a
licence to use the brand in the USA and Canada)
Kimy (Philippines only)
Maxibon
Mega
Mvenpick Ice Cream
Parlour (acquired from Ault Foods and rebranded
from Sealtest)
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Carnation (now part of Alaska
Milk Corporation in the
Philippines, but under a long-
term license agreement with
Nestl)
Caro
Juicy Juice
La Laitire (controlled by the
joint venture with Lactalis)
[24]

Milo
Nesquik
Ovaltine (USA only)
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Aero
After Eight
Baby Ruth
Big Turk
Butterfinger
Butter-Menthol
Caramac
Cailler
Coffee Crisp
Galak/Milky Bar
Kit Kat (licensed to The Hershey
Company in U.S.)
Lion Bar
Nestl Crunch
Quality Street
Rolo (licensed to The Hershey
Company in U.S.)
Rowntree products
Smarties
Toffee Crisp
Wonka products
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Golden Nuggets
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Nestl Fitness
Shreddies
Trix
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Gerber
Nido
S-26 Gold, SMA and Promil (acquired from Pfizer Inc.)
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Maggi
Minor's (soup base)
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DiGiorno (pizza)
Herta
Hot Pockets
Lean Cuisine
Stouffer's
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Dog Chow
Felix
Friskies
Purina ONE
Winalot
Pharmaceutical products and active cosmetics (controlled by joint ventures with L'Oral)
Biotherm
Galderma
Innov
Life insurance
Gerber Life Insurance Company
As of year end 2010, Nestl held 29.7% of the shares of L'Oral, the world's largest company
in cosmetics and beauty. Its brands including Garnier, Maybelline, andLancme as well as The Body
Shop stores. LOral holds 10.41% of the shares of Sanofi-Aventis, the world's number 3 and
Europe's number 1 pharmaceutical company.
[25]

Joint ventures[edit]
The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestl and L'Oral,
while Galderma is a joint venture in dermatology with L'Oral. Other joint ventures include:
Cereal Partners Worldwide with General Mills
Beverage Partners Worldwide with The Coca-Cola Company
Lactalis Nestl Produits Frais with Lactalis (40%/60%)
[26]

Nestl Colgate-Palmolive with Colgate-Palmolive (50%/50%)
[27]

Nestl Indofood Citarasa Indonesia with Indofood (50%/50%)
[28]

Dairy Partners Americas (DPA) with Fonterra (50%/50%)
[29]

Nestl Snow with Snow Brand Milk Products (50%/50%)
[30]

Nestl Modelo with Grupo Modelo
Corporate affairs[edit]

Japan headquarters
Senior management[edit]
The executive board, a distinct entity from the board of directors, includes:
Peter Brabeck-Letmathe, Chairman of the board of directors, Nestl S.A.
Paul Bulcke, chief executive officer, Nestl S.A.
Stefan Catsicas, Executive Vice President, Nestl S.A., Chief Technology Officer, Head of
Innovation, Technology, Research & Development
Laurent Freixe, Executive Vice President, Nestl S.A. Europe
Nandu Nandkishore, Executive Vice President, Nestl S.A. Asia, Oceania, Africa, Middle East
Chris Johnson, Executive Vice President, Nestl S.A. Americas (United States of America,
Canada, Latin America, Caribbean)
Jose Lopez, Executive Vice President, Nestl S.A. Operations
John J. Harris, Executive Vice President, Nestl S.A. Chairman & CEO of Nestl Waters
Wan Ling Martello, Executive Vice President, Nestl S.A. CFO Finance and Control, Legal, IP,
Tax, Global Nestl Business Services
Marco Settembri, Executive Vice President, Nestl S.A. Head of Nestl Waters
Luis Cantarell, Executive Vice President, Nestl S.A. Head of Nestl Nutrition and CEO Nestl
Health Science
Patrice Bula, Executive Vice President, Nestl S.A. Strategic Business Units, Marketing and
Sales
Martial Rolland, Deputy Executive Vice President, Nestl S.A. Head of Nestl Professional
Peter Vogt, Deputy Executive Vice President Nestl S.A. Head of Human Resources
David P. Frick, Senior Vice President and ex officio Member of the Executive Board, Corporate
Governance, Compliance and Corporate Services

Brazil headquarters in Brooklin Novo, So Paulo
According to a 2006 global survey of online consumers by the Reputation Institute, Nestl has a
reputation score of 70.4 on a scale of 1100.
[31]

Financial data[edit]
Nestl is the biggest food company in the world, with a market capitalisation of roughly 210 billion
Swiss francs, which is more than 200 billion U.S. dollars.
[3]

In 2013, consolidated sales were CHF 92.16 billion and net profit was CHF 10.02 billion. Research
and developmentinvestment was CHF 1.50 billion.
Sales by activity breakdown
22% from drinks (coffee, tea, etc)
7% from bottled water
19% from dairy products
15% from ready-prepared dishes and ready-cooked dishes
11% from chocolate, candies, other sweets
12% from pet products
13% from Nestl Nutrition (incl. baby food) and HealthCare
Sales by geographic area breakdown
28% from Europe
44% from Americas (25% from US)
28% from Asia, Oceania and Africa
Major competitors[edit]
Nestl's largest international competitors
are PepsiCo, Kraft Foods, Unilever and Mars Incorporated.
It also faces competition in local markets or specific
product ranges from numerous companies, including Sara
Lee, Cadbury and Danone.
[32]

Controversy and criticism[edit]
Chocolate price fixing[edit]
In Canada, the Competition Bureau raided the offices of
Nestl Canada (along with those of Hershey Canada Inc.
and Mars Canada Inc) in 2007 to investigate the matter of
price fixing of chocolates. It is alleged that executives with
Nestl, the maker of KitKat, Coffee Crisp and Big Turk,
colluded with competitors in Canada to inflate prices.
[33]

The Bureau alleged that competitors' executives met in
restaurants, coffee shops and at conventions and that
Nestl Canada CEO, Robert Leonidas once handed a
competitor an envelope containing his companys pricing
information, saying: I want you to hear it from the top I
take my pricing seriously.
[33]

Nestl and the other companies were subject to class-
action lawsuits for price fixing after the raids were made
public in 2007. Nestl settled for $9 million, without
admitting liability, subject to court approval in the new year.
A massive class-action lawsuit continues in the United
States.
[33]

Nestl CEO Robert Leonidas is under threat of a criminal
charge for his role in the price fixing of chocolates in
Canada when he was at the helm of Nestl Canada from
2006 to 2010.
[33]

Marketing of formula[edit]
Main articles: Infant formula and Nestl boycott
One of the most prominent controversies involving Nestl
concerns the promotion of the use of infant formula to
mothers across the world, including developing countries
an issue that attracted significant attention in 1977 as a
result of the Nestl boycott, which is still ongoing.
[34]
Nestl
continues to draw criticism that it is in violation of a 1981
World Health Organization code that regulates the
advertising of breast milk substitutes.
[35]
Groups such as
the International Baby Food Action Network (IBFAN)
and Save the Children claim that the promotion of infant
formula over breastfeeding has led to health problems and
deaths among infants in less economically developed
countries.
[36][37]
Nestl's policy states that breast-milk is the
best food for infants, and that women who cannot or
choose not to breast feed need an alternative to ensure
that their babies are getting the nutrition they need.
[38]

Ethiopian debt[edit]
In 2002, Nestl demanded that the nation
of Ethiopia repay $6 million of debt to the company.
Ethiopia was suffering a severe famine at the time. Nestl
backed down from its demand after more than 8,500
people complained via e-mail to the company about its
treatment of the Ethiopian government. The company
agreed to re-invest any money it received from Ethiopia
back into the country.
[39]

Melamine in Chinese milk[edit]
Main article: 2008 Chinese milk scandal
In late September 2008, the Hong Kong government
found melamine in a Chinese-made Nestl milk product.
Six infants died from kidney damage, and a further 860
babies were hospitalised.
[40][41]
The Dairy Farm milk was
made by Nestl's division in the Chinese coastal
city Qingdao.
[42]
Nestl affirmed that all its products were
safe and were not made from milk adulterated with
melamine. On 2 October 2008, the Taiwan Health ministry
announced that six types of milk powders produced in
China by Nestl contained low-level traces of melamine,
and were "removed from the shelves".
[43]

Greenwashing[edit]
A coalition of environmental groups filed a complaint
against Nestl to the Canadian Code of Advertising
Standards after Nestl took out full-page advertisements in
October 2008 claiming that "Most water bottles avoid
landfill sites and are recycled", "Nestl Pure Life is a
healthy, eco-friendly choice" and that "Bottled water is the
most environmentally responsible consumer product in the
world".
[44][45][46]
A spokesperson from one of the
environmental groups stated: "For Nestl to claim that its
bottled water product is environmentally superior to any
other consumer product in the world is not
supportable".
[44]
In their 2008 Corporate Citizenship Report,
Nestl themselves stated that many of their bottles end up
in the solid-waste stream, and that most of their bottles are
not recycled.
[45][47]
The advertising campaign has been
called greenwashing.
[45][46][47]

Zimbabwe farms[edit]
In late September 2009, it was brought to light that Nestl
was buying milk from illegally seized farms currently
operated by President Robert Mugabe's wife, Grace
Mugabe. Mugabe and his regime are currently subject to
European Union and United States sanctions.
[48]
Nestl
later stopped buying milk from the dairy farms in
question.
[49]

Palm oil use[edit]
Rapid deforestation in Borneo and other regions, in order
to harvest hardwood and make way for palm oil
plantations, releases large amounts of carbon dioxide into
the atmosphere.
[50]
In particular, where peat swamp
forests are cleared, destroying the habitat for many
threatened species of animals such as the orangutan,
much public attention
[51]
has been given to the social and
environmental impact of palm oil and the role of
multinationals such as Nestl in this.
[52]
There is ongoing
concern by various NGOs including Greenpeace.
[53]

On its official Facebook page, the company met with "a
deluge of criticism from consumers, after a large number of
Facebook users posted negative comments about the
company's business practises."
[54]
Nestl's attempt to
engage with the issue met with criticism, including
headlines stating: "Nestl fails at social media",
[55]
and
"Nestl Loses Face on Facebook".
[54]
Nestl
Chairman, Peter Brabeck-Letmathe, in answer to a
question from Greenpeace, told the Companys Annual
General Meeting in Lausanne on 15 April 2010 that in 2009
Nestl used 320,000 tonnes of palm oil worldwide,
comparing this with the 500,000 tonnes of palm oil used
forbiodiesel in Germany and Italy alone.
[56]

In May 2010, Nestl said it was inviting The Forest Trust, a
not-for-profit group, to audit its supply chain, and promised
to cancel contracts with any firm found to be chopping
down rainforests to produce the palm oil which it uses in
KitKat, Aero and Quality Street. Greenpeace welcomed the
agreement promising to monitor it closely.
[57][58][59]

E. coli[edit]
In June 2009, an outbreak of E. coli O157:H7 was linked to
Nestl's refrigerated cookie dough originating in a plant in
Danville, Virginia. In the US, it caused sickness in at least
69 people in 29 states, half of whom required
hospitalization. Following the outbreak, Nestl voluntarily
recalled 30,000 cases of the cookie dough. The cause was
determined to be contaminated flour obtained from a raw
material supplier. When operations resumed, the flour used
was heat-treated in order to kill bacteria.
[60]

Child labour[edit]
Main articles: Child labour, Children in cocoa
production and Harkin-Engel Protocol
The 2010 documentary The Dark Side of
Chocolate
[61]
alleges that Nestl purchases cocoa beans
from Ivorian plantations that use child slave labour. The
children are usually 12 to 15 years old, and some are
trafficked from nearby countries.
[62]
The first allegations
that child slavery is used in cocoa production appeared in
1998.
[63]
In late 2000, a BBC documentary reported the use
of enslaved children in the production of cocoa in West
Africa.
[63][64][65]
Other media followed by reporting widespread
child slavery and child trafficking in the production of
cocoa.
[66][67]
In September 2001, Bradley Alford, Chairman
and CEO of Nestl USA, signed the Harkin-Engel
Protocol (commonly called the Cocoa Protocol), an
international agreement aimed at ending child labour in the
production of cocoa.
[68]

In 2005, after the cocoa industry had not met the Harkin-
Engel Protocol deadline for certifying the worst forms of
child labor (according to the International Labor
Organization's Convention 182) had been eliminated from
cocoa production, the International Labor Rights Fund filed
a lawsuit in 2005 under the Alien Tort Claims Act against
Nestl and others on behalf of three Malian children. The
suit alleged the children were trafficked to Cte d'Ivoire,
forced into slavery, and experienced frequent beatings on
a cocoa plantation.
[69][70]
In September 2010, the US District
Court for the Central District of California determined
corporations cannot be held liable for violations of
international law and dismissed the suit. The case was
appealed to the US Court of Appeals.
[71][72]

In 2009, a joint police operation conducted
by INTERPOL and Ivorian law enforcement officers
resulted in the rescue of 54 children and the arrest of eight
people involved in the illegal recruitment of children.
[73]

Bottled Life[edit]
A 2012 documentary with the title Bottled Life criticizes
Nestls practices concerning its water business. According
to the documentary, buying a truckload of water in the
United States costs Nestl 10 USD, which is then sold for
USD 50,000.
[74][75][76]
Nestl were in contact with the
producers of the documentary, but finally declined to be
interviewed, as they were under the strong impression that
the film would be one-sided and not represent the
company and its employees in a fair manner. Nestl denies
that bottled water companies pay next to nothing for the
water they use and make a huge profit for selling it.
According to Nestl, the price of a bottle of water is similar
to that of other packaged beverages, as it incurs similar
costs linked to production, quality assurance, bottling,
storage and distribution. One-third of the costs can be
attributed to water and raw materials, one-third to
production and one-third to distribution.
[77]

Horsemeat scandal[edit]
In February 2013, Nestl removed Buitoni beef pasta
meals from shelves in Italy and Spain after tests revealed
traces of horse DNA. The firm also halted deliveries of
products containing meat from a German supplier. This
was related to the 2013 meat adulteration scandal.
[78]

We Feed The World[edit]
In the 2005 documentary We Feed the World, Peter
Brabeck-Letmathe (credited as Peter Brabeck), who was
the CEO of Nestl at the time, appeared in an interview at
the end of the film. He said that water is our most valuable
resource and should have a price to ensure its efficient
use. He calls the idea of humans having a right to have
access to drinking water an "extreme solution" defended by
some NGOs.
[79]
Nestl published later a statement on their
corporate website saying Peter Brabeck-Letmathe believes
water is a human right and the value of water should be
determined in order to charge individuals and corporations
who use excess amounts of water.
[80]

Animal welfare[edit]
In 2013, dairy cow abuse was documented on video taken
in secret at a Nestl supplier in Greenleaf, Wisconsin and
exposed by Mercy for Animals. In response, Nestl cut ties
with the supplier and signed a partnership agreement
with World Animal Protection. The agreement will apply
tougher standards for Nestl's suppliers of animal-derived
products.
[81]

Corporate social responsibility[edit]
World Cocoa Foundation[edit]
In 2000, Nestl and other chocolate companies formed the
World Cocoa Foundation. The WCF was set up specifically
to deal with issues facing cocoa farmers, including
ineffective farming techniques and poor environmental
management (disease had wiped out much of the cocoa
crop in Brazil). The WCF focuses on boosting farmer
income, encouraging sustainable farming techniques, and
setting up environmental and social programmes.
[82]

Sustainable Agriculture Initiative[edit]
Together with Danone and Unilever, Nestl founded in
2002 the Sustainable Agriculture Initiative (SAI) to
promote sustainable agriculture in a comprehensive way.
Within the framework of SAI, Nestl has worked with
farmers to elaborate best practices in the areas of milk
production and coffee and cocoa growing. The main
objectives for SAI are to manage: i) Quality and safety
problems in the food supply chain that may affect
consumer confidence in everyday food products; ii) The
growing demand for quality food that will arise
from population growth, increases in expendable income
and expected changes in diet; iii) Possible adverse
effectsand pressure of agriculture on natural resources and
environment that may affect agricultural productivity.
SAI act on a worldwide scale as a platform for industry
collaboration in the development and implementation of
sustainability in agriculture. It offers a platform for
development in areas of public concern such as the quality
and safety of produce, the well being of rural
communities, animal welfare, and soil, water, air, energy
andbiodiversity aspects.
[83]

Creating Shared Value[edit]
Creating Shared Value (CSV) is a business concept
intended to encourage businesses to create economic and
social value simultaneously by focusing on the social
issues that they are capable of addressing. In 2006, Nestl
adopted the CSV approach, focusing on three areas
nutrition, water and rural development as these are core
to their business activities.
[84]

In October 2009, Nestl announced its 'The Cocoa Plan'.
The company intend to invest CHF 110 million over ten
years to achieve a sustainable cocoa supply. On 23
October 2009, Nestl and CNRA (the Ivorian National
Centre for Plant Science Research), signed a frame
agreement for cooperation in plant science and
propagation, with a target of producing 1 million high-
quality, disease-resistant cocoa plantlets a year by 2012.
The aim is to replace old, less productive trees with
healthier new ones.
[85][86]


In September 2011, Nestl introduced The Cocoa Plan in
the Netherlands. The initiative is an extensive approach in
which Nestl focuses on improving the livelihoods of cocoa
farmers. The five main focus points within the program are:
better quality cocoa plants, train farmers, chain
management, improved social circumstances and
cooperation with partners. KitKat is the first product in the
Netherlands which carries the logo of The Cocoa Plan on
pack. This means that Nestl will source the cocoa volume
needed to produce all KitKats in the Netherlands from
cocoa farmers and cooperatives that participate in The
Cocoa Plan. Part of these farmers and cooperatives are
already certified by UTZ Certified, a certification program
for agricultural products launched in 2002 which claims to
be the largest coffee certifier in the world.
[87][88]

Nestl made the commitment with UTZ Certified to source
only sustainable cocoa by 2014.
[89]

Ecolaboration[edit]
On 22 June 2009, Nestl Nespresso and Rainforest
Alliance signed a pact called "Ecolaboration". One of the
shared goals is to reduce the environmental impacts and
increase the social benefits of coffee cultivation in enough
tropical regions so that 80 percent of Nespresso's coffee
comes from Rainforest Alliance Certified farms by the year
2013. Certified farms comply with comprehensive
standards covering all aspects of sustainable farming,
including soil and water conservation, protection of wildlife
and forests, and ensuring that farm workers, women and
children have all the proper rights and benefits, such as
good wages, clean drinking water, access to schools and
health care and security.
[90]

Expanding Business in Health Care
Nutrition[edit]
In September 2010, Nestl announced to invest more than
$500 million between 2011 and 2020 to develop health and
wellness products to help prevent and treat major ailments
like diabetes, obesity, cardiovascular
disease and Alzheimers, which are placing an increasing
burden on governments at a time when budgets are being
squeezed. Nestl created a wholly owned subsidiary,
Nestl Health Science, as well as a research body, the
Nestl Institute of Health Sciences.
[91]

Member of Fair Labour Association[edit]
In 2011, Nestl started to work with the Fair Labor
Association (FLA), a non-profit, multi-stakeholder
association that works with major companies to improve
working conditions in their supply chains.
On 29 February 2012, Nestl became the first food
company to join the FLA. Building on Nestl's efforts under
the Cocoa Plan, the FLA will send independent experts
to Cte dIvoire in 2012 and where evidence of child labour
is found, the FLA will identify root causes and advise
Nestl how to address them in sustainable and lasting
ways.
[92]

Sponsorships[edit]
Good Food, Good Life[edit]
Nestl launched in several countries such
as France, United Kingdom and Russia "Good Nutrition
Programs" to help children adopt healthy nutrition habits as
a component of a healthy lifestyle.
In Russia, the programme has been introduced in 27
regions. Over 300,000 children in 5,000 schools are
annually involved in the programme, and in total nearly 1,5
million Russian children have learned about good nutrition
as a result of it.
[93]


Nesquik in the Tour de France
Animation[edit]
In 1993, plans were made to update and modernize the
overall tone of Walt Disney's EPCOT Center, including a
major refurbishment of The Land pavilion. Kraft
Foods withdrew its sponsorship on 26 September 1993,
with Nestl taking its place. Co-financed by Nestl and the
Walt Disney World Resort, a gradual refurbishment of the
pavilion began on 27 September 1993.
[94]
In 2003, Nestl
renewed its sponsorship of The Land; however, it was
under agreement that Nestl would oversee its own
refurbishment to both the interior and exterior of the
pavilion. Between 2004 and 2005, the pavilion underwent
its second major refurbishment. Nestls withdrawal from
the Land dates back from 2009.
[95]

Music festivals[edit]
On 5 August 2010, Nestl and the Beijing Music
Festival signed an agreement to extend by three years
Nestl's sponsorship of this international music festival.
Nestl has been an extended sponsor of the Beijing Music
Festival for 11 years since 2000. The new agreement will
continue the partnership through 2013.
[96]

Nestl has partnered the prestigious Salzburg
Festival in Austria for 20 years. In 2011, Nestl renewed its
sponsorship of the Salzburg Festival until 2015.
[97]

Sports[edit]
Nestl's sponsorship of the Tour de France began in 2001
and the agreement was extended in 2004, a move which
demonstrated the companys interest in the Tour. In July
2009, Nestl Waters and the organisers of the Tour de
France announced that their partnership will continue until
2013. The main promotional benefits of this partnership will
spread on four key brands from Nestl's product portfolio:
Vittel, Powerbar, Nesquik or Ricore.
[98]

In 2002 Nestl announced it was main sponsor for
the Great Britain Lionesses Women's rugby league team
for the team's second tour of Australia with
its Munchiesproduct.
[99]

On 27 January 2012, the International Association of
Athletics Federations announced that Nestl will be the
main sponsor for the further development of IAAF's Kids'
Athletics Programme, which is one of the biggest
grassroots development programmes in the world of
sports. The five-year sponsorship started in January
2012.
[100]

Nestl supports the Australian Institute of Sport (AIS) on a
number of nutrition and fitness fronts, funding a full-time
member of the AIS Sports Nutrition team, an athlete career
scholarships for young athletes, and customised nutrition
literature for athletes and all Australians. In particular,
Nestl and the AIS have developed free nutrition
educational resources for school teachers. Over 60% of
Australian primary schools have downloaded this
information since the program's inception.
[101]

Other sponsorships of sports-related events include FIVB
Women's Club World Championship, Tour de
Langkawi, So Paulo Indy 300, Osasco Voleibol
Clube,Mentor Nestl Nesquik Cup, Southeast Asian
Games, Sukma Games, Sultan Azlan Shah
Cup and Association of Southeast Asian Nations.
[102]

Selected awards, certifications and
rankings[edit]
In May 2006, Nestls executive board decided to
adapt the existing Nestl management systems to full
conformity with the international standards ISO
14001(Environmental Management Systems)
and OHSAS 18001 (Occupational Health and Safety
Management Systems), and to certify all Nestl
factories against these standards by 2010.
[103]
In the
meanwhile a lot of the Nestl factories have obtained
these certifications. For instance, Nestls three
factories in Japan(Himeji factory: Hygo
Prefecture, Shimada factory: Shizuoka
Prefecture and Kasumigaura factory: Ibaraki
Prefecture) have each obtained ISO standard
certifications: ISO14001, ISO 22000 (Food Safety
Management Systems) and OHSAS 18001 as of the
end of December 2008.
[104]

In 2009, Nestl Waters earned a sixth LEED
certification. The certification was given by the U.S.
Green Building Council's Leadership in Energy and
Environmental Design which the company become its
first recipient. It highlights the environmentally
conscious elements of the facility which enables them
to receive the certification.
[105]

Nestl Purina received in 2010 the Malcolm Baldrige
National Quality Award for their excellence in the areas
of leadership, customer and market focus, strategic
planning, process management, measurement,
analysis and knowledge management, workforce focus
and results.
[106]

In September 2011, Nestl occupied 19th position in
the Universum's global ranking of Best Employers
Worldwide.
[107]
According to a survey by Universum
Communications Nestl was in 2011 the best employer
to work for in Switzerland.
[108]

Based on independent research by the Corporate
Research Foundation Institute, Nestl (South Africa)
has been certified in 2011 as a Best Employer in South
Africa.
[109][110]

Nestl USA has been recognized
by BusinessWeek magazine as one of the "Best
Places to Launch a Career." BusinessWeek ranked
Nestl USA No. 25 on their annual list of the best
companies for new college graduates to launch their
careers.
[111]

For the twelfth consecutive year, Fortune Magazine
included in 2011 Nestl in their list of The 10 Most
Admired Companies in the World.
[112]

Nestl won in 2011 the Stockholm Industry Water
Award for its leadership and performance to improve
water management in its internal operations and
throughout its supply chain.
[113]

The International Union of Food Science and
Technology (IUFoST) honoured Nestl in 2010 with
the Global Food Industry Award.
[114]

In May 2011, Nestl won the 27th World Environment
Center (WEC) Gold Medal award for its commitment to
environmental sustainability.
[115][116]

In 2011, Nestl Malaysia won an award of
the Association of Chartered Certified Accountants for
their Sustainability Reporting.
[117]

On 19 April 2012, The Great Place to Work Institute
Canada mentioned Nestl Canada Inc. as one of the
'50 Best Large and Multinational Workplaces'
inCanada (with more than 1,000 employees working in
Canada and/or worldwide).
[118]

In April 2012, Nestl obtained an A+ rating from
the Global Reporting Initiative (GRI) for their global
annual report on Creating Shared Value. To reach A+
the company provided new data in their annual report
on a number of criteria such as human
rights, diversity and gender, climate
change, biodiversity andcorruption. Nestl was the first
food and beverage company to achieve an A+ rating
from the GRI for a global sustainability report.
[119][120]

On 21 May 2012, Gartner published their annual
Supply Chain Top 25, a list with global supply
chain leaders. Nestl ranks 18th in the list.
[121]

In June 2014, Nestl was awarded the International
Coaching Federation's Prism Award in Switzerland for
outstanding organisational coaching.
[122]