Nestle Palm Oil Case

Ivan Suvorov 23251

NESTLE Company
On the one hand:
The world s leading food, nutrition and health company based in Vevey, Switzerland 280000 employees More than 100 countries Sales in 2010 - $117,7 bln Around 6000 brands Over 165000 suppliers

NESTLE Company
On the other hand: one of the most socially irresponsible MNE s. 1970-1980 - infant formula marketing 2002 - Ethiopean debt claim 2008 - melamine in Chinese milk Using of child labor Greenwashing

Palm oil use

Greenpeace vs Nestle
March 2010 UK Greenpeace has presented report Caught Red-Handed: How Nestl Use of Palm Oil is Destroying Rainforests and the Climate following with video parody on Take a break Kit-Kat commercial and social networks boykott

Aim: stop Nestle buying unsustainable palm oil from Sinar Mas and its partners

Background
Location: Indonesia Reason: Increasing demand on palm oil crucial material in manufacturing food and cosmetics. By 2030 demand predicted to be doubled, by 2050 tripled. Customer: Nestle Supplier: Sinar Mas Victims: local communities, forests, orangutans, climate

Sinar Mas
The larger Indonesian producer of palm oil and pulp & paper(406,000 hectares of established palm oil plantations) Highly aggressive plantation expansion including deforestation of carbon rich peatlands and orangutans habitats. Due to this unacceptable environmental practices:
2009 - Unilever cancelled its $30 mln contract 2010 - Kraft Foods cancelled contract

Palm Oil supply chain

In Indonesia Nestle has bought oil products directly from Sinar Mas

While on other key markets Nestle was supplied from Sinar Mas partners

Reaction of Nestle
Nestle was quick to respond on GreenPeace actions by announcing official cancelling of business relationships with Sinar Mas and having a new supplier. Nevertheless part of the palm oil is still supplied by Sinar Mas partner company Cargill. Heavy investments in its own FairTrade brand. Commitment to use only certified sustainable palm oil by 2015. Becoming a member of Roundtable on Sustainable Palm Oil(RSPO).

Outcome
Successful campaign of Greenpeace invoke: Public awareness Short-term loses in Kit-Kat sales Damaged image of Nestle brand Complete changing of Nestle palm oil suppliers

THANK YOU FOR YOUR ATTENTION!