Professional Documents
Culture Documents
Chocolate
Confectionery in
Asia-Pacific
August 2015
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Market volume
The Asia-Pacific chocolate confectionery market grew by 3.9% in 2014 to reach a volume of 942.7 million kilograms.
Category segmentation
Molded bars is the largest segment of the chocolate confectionery market in Asia-Pacific, accounting for 32.2% of the
market's total value.
Geography segmentation
Japan accounts for 35.6% of the Asia-Pacific chocolate confectionery market value.
Market share
Mondelez International Inc. is the leading player in the Asia-Pacific chocolate confectionery market, generating a 18.7%
share of the market's value.
Market rivalry
The Asia-Pacific chocolate confectionery market is concentrated, with the top four players accounting for just over half of
the total market value.
Market value............................................................................................................................................................... 2
Market volume............................................................................................................................................................ 2
Market rivalry.............................................................................................................................................................. 2
Market value............................................................................................................................................................... 8
Market volume............................................................................................................................................................ 9
Summary .................................................................................................................................................................. 16
Threat of substitutes................................................................................................................................................. 20
Methodology................................................................................................................................................................. 32
Appendix ...................................................................................................................................................................... 34
Table 2: Asia–Pacific chocolate confectionery market volume: million kilograms, 2010–14 .......................................... 9
Table 3: Asia–Pacific chocolate confectionery market category segmentation: $ million, 2014 ................................... 10
Table 4: Asia–Pacific chocolate confectionery market geography segmentation: $ million, 2014 ................................ 11
Table 5: Asia-Pacific chocolate confectionery market share: % share, by value, 2014 ................................................ 12
Table 6: Asia-Pacific chocolate confectionery market distribution: % share, by value, 2014 ....................................... 13
Table 7: Asia-Pacific chocolate confectionery market value forecast: $ million, 2014–19 ............................................ 14
Table 8: Asia–Pacific chocolate confectionery market volume forecast: million kilograms, 2014–19 ........................... 15
Figure 2: Asia–Pacific chocolate confectionery market volume: million kilograms, 2010–14 ......................................... 9
Figure 3: Asia–Pacific chocolate confectionery market category segmentation: % share, by value, 2014................... 10
Figure 4: Asia–Pacific chocolate confectionery market geography segmentation: % share, by value, 2014 ............... 11
Figure 6: Asia-Pacific chocolate confectionery market distribution: % share, by value, 2014 ...................................... 13
Figure 8: Asia–Pacific chocolate confectionery market volume forecast: million kilograms, 2014–19.......................... 15
Figure 9: Forces driving competition in the chocolate confectionery market in Asia-Pacific, 2014 ............................... 16
Figure 10: Drivers of buyer power in the chocolate confectionery market in Asia-Pacific, 2014 .................................. 17
Figure 11: Drivers of supplier power in the chocolate confectionery market in Asia-Pacific, 2014 ............................... 18
Figure 12: Factors influencing the likelihood of new entrants in the chocolate confectionery market in Asia-Pacific, 2014
..................................................................................................................................................................................... 19
Figure 13: Factors influencing the threat of substitutes in the chocolate confectionery market in Asia-Pacific, 2014 .. 20
Figure 14: Drivers of degree of rivalry in the chocolate confectionery market in Asia-Pacific, 2014 ............................ 21
For the purposes of this report, North America consists of Canada, Mexico, and the United States.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and the United
Kingdom.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines,
Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Market analysis
The market has produced some good growth in recent years staying consistent and stable year on year. This is expected
to remain the prevailing trend in the forecast period through to 2019.
Much of the consistent growth in this market is due to China’s growth in chocolate as its broader confectionary market,
moves away from just growth in sugar confectionary into chocolate. Cocoa producers such as Cargill have been
increasing capacity in the region in order to make sure they can manage the extra demand that China but also India
represents. India is producing exceptional growth and when combined with the consistent consumption in the regions
developed markets means the outlook for the region is good.
The Asia-Pacific chocolate market had total revenues of $14,511.4m in 2014, representing a compound annual growth
rate (CAGR) of 3.9% between 2010 and 2014. In comparison, the Chinese and Japanese markets grew with CAGRs of
10.4% and 1.1% respectively, over the same period, to reach respective values of $1,888.0m and $5,159.4m in 2014.
Market consumption volume increased with a CAGR of 4% between 2010-2014, to reach a total of 942.7 million
kilograms in 2014. The market's volume is expected to rise to 1,175.8 million kilograms by the end of 2019, representing
a CAGR of 4.5% for the 2014-2019 period.
The molded bars segment was the market's most lucrative in 2014, with total revenues of $4,668.5m, equivalent to
32.2% of the market's overall value. The chocolate countlines segment contributed revenues of $4,319.6m in 2014,
equating to 29.8% of the market's aggregate value.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 4.5% for the five-year period 2014
- 2019, which is expected to drive the market to a value of $18,076.1m by the end of 2019. Comparatively, the Chinese
and Japanese markets will grow with CAGRs of 10% and 0.8% respectively, over the same period, to reach respective
values of $3,036.1m and $5,359.6m in 2019.
The compound annual growth rate of the market in the period 2010–14 was 3.9%.
The compound annual growth rate of the market in the period 2010–14 was 4%.
The Chocolate countlines segment accounts for a further 29.8% of the market.
Category 2014 %
Molded bars 4,668.5 32.2%
Chocolate countlines 4,319.6 29.8%
Boxed Chocolate 1,921.7 13.2%
Novelties 1,732.0 11.9%
Chocolate straightlines 1,500.7 10.3%
Other chocolate 368.9 2.5%
Geography 2014 %
Japan 5,159.4 35.6
China 1,888.0 13.0
South Korea 867.4 6.0
India 591.8 4.1
Rest of Asia-Pacific 6,004.8 41.4
Company % Share
Mondelez International Inc. 18.7%
Lotte Group 11.7%
Mars, Inc. 11.2%
Nestle S.A. 10.6%
Other 47.8%
Total 100%
Channel % Share
Independent Retailers 41.5%
Supermarkets / hypermarkets 25.0%
Convenience Stores 20.6%
Service Stations 3.5%
Other 9.3%
Total 100%
The compound annual growth rate of the market in the period 2014–19 is predicted to be 4.5%.
The compound annual growth rate of the market in the period 2014–19 is predicted to be 4.5%.
Table 8: Asia–Pacific chocolate confectionery market volume forecast: million kilograms, 2014–19
Figure 8: Asia–Pacific chocolate confectionery market volume forecast: million kilograms, 2014–19
Summary
Figure 9: Forces driving competition in the chocolate confectionery market in Asia-Pacific, 2014
The Asia-Pacific chocolate confectionery market is concentrated, with the top four players accounting for just over half of
the total market value.
The Asia-Pacific chocolate confectionery market includes the presence of leading players, Mondelēz International, Meiji
Seika Kaisha, Ltd, the Lotte Group, and Nestle. Larger buyers achieve greater influence through factors such as
economies of scale and purchasing power. Important raw materials such as sugar and cocoa products are bought on
commodity markets, and manufacturers have little control over their prices, although maintaining stocks of raw materials
and engaging in practices such as hedging can reduce the effect of input price volatility.
The main distribution channels for the chocolate market in the Asia-Pacific (in order of most significant) include:
independent retailers, supermarkets/hypermarkets, and convenience stores. Overall, these outlets are fairly fragmented;
however larger supermarket chains will have a greater influence, and will achieve better margins through bulk
purchasing, thus buyer power is increased. Retailers need to respond to consumer demand, and the presence of strong
differentiation and brand loyalty amongst consumers leads to a weakening of buyer power. However, buyer power is
alleviated by the fact that most retailers are very diversified in terms of the products they stock (especially larger
supermarket chains) and they are therefore not heavily reliant upon the sale of chocolate confectionery products.
Overall, buyer power is assessed as moderate.
Key inputs in the chocolate confectionery market are ingredients such as sugar, cocoa beans, and their derivatives
(cocoa butter, cocoa liquor, and cocoa powder). Suppliers to this market are cocoa farmers, producers of the various
other raw ingredients, and companies providing raw materials for packaging. Cocoa products are differentiated to some
extent, and are sold in several grades. Much of the cocoa-based raw material is sourced within Far Eastern, West
African and South American equatorial regions. Raw ingredients are bought on commodity markets, and confectionery
companies are unlikely to have much control over supplier prices; rather, they use financial techniques such as hedging
in order to reduce the impact of price rises on their own margins. Packaging raw material suppliers do not solely rely on
the chocolate confectionery market for revenues, thus increasing supplier power. Overall, supplier power is moderate.
In order to start operations within this market, relatively high levels of capital are required to establish production
facilities, as most chocolate confectionery products are mass-marketed, and must be manufactured in significant
volumes to be profitable. However, it is also possible to enter the market on a small-scale, for example by making high-
value, low-volume products in a craft process rather than through a mechanized process. Many of the existing brands
are strong, and consumers may be unwilling to move away from their preferred brands, which weakens the threat of new
entrants.
Most chocolate confectionery is purchased by end-users as snack food. Substitutes thus include savory snacks, fresh
fruit, and similar items. For retail buyers, the substitutes have some disadvantages in terms of storage: snacks such as
potato chips require more shelf space per item as compared to chocolate bars; fruit is perishable and may need
expensive chilled display cabinets if wastage is to be avoided. However, for most food retailers there are negligible
switching costs as they usually already sell a majority of these products. Few chocolate products are purchased by
consumers as luxury or gift items rather than quick snacks for personal consumption. In cases when chocolate
confectionery is purchased as a luxury or gift, substitutes are more varied, and may include both food and non-food
items. Overall, the threat of substitutes is moderate.
The Asia-Pacific chocolate confectionery market is concentrated, with the four leading players, Mondelēz International,
Mars Inc., the Lotte Group, and Nestle collectively accounting for 41.7% market share in value terms. A majority of the
leading companies are present in many geographical regions, producing a range of other confectionery products and soft
drinks, which makes them much less reliant on the chocolate confectionery market. These factors defend their margins
against local fluctuations. Switching costs for consumers and retailers are low, however, products differentiated both by
inherent characteristics and by strong branding should allow players to maintain their hold on consumers, and so weaken
rivalry. In a business where automated, high-volume manufacturing is the norm, implementation of capacity increasing
measures are easy, and fixed costs are high. Both these factors act as drivers of rivalry. Overall, there is a moderate
degree of rivalry.
Lotte Group (Lotte or 'the group') is a business conglomerate involved in the food sector, the retail sector, the tourism
sector, the petrochemicals sector, and construction. The group has operations in South Korea, Russia, China, Japan,
India, the US and other East Asian countries.
The group's business is divided into six segments: food; retail; tourism; petrochemistry, construction and manufacturing;
finance; and service, study and foundation.
The food segment operates through the following companies: Lotte Confectionery; Lotte Asahi, Lotte Chilsung Beverage,
Lotte Chilsung Liquor, Lotteria, Lotte Boulangerie, Lotte Merchandising Service Center and Lotte Food.
Lotte Confectionery is a manufacturer of confectionery products in South Korea offering a range of snacks including
chewing gum products, candies, biscuits, chocolates, ice creams and nutritional health supplements. Lotte Asahi is
engaged in wholesale of imported liquor (beer, whiskey and wine).
Lotte Chilsung Beverage is engaged in manufacturing, wholesale and retail of carbonated drinks and liquor while Lotte
Chilsung Liquor is engaged in manufacturing and selling liquors and importing wine. Its products include Scotch Blue
whisky, Scotch Blue, Korea’s well-loved local whiskey brand, fruit-based liquors, mirin (a traditional drink similar to sake),
and other alcoholic beverages
Lotteria provides fast food services (which include hamburgers and coffee) in South Korea.
Lotte Boulangerie offers bakery products (such as bread, baguette, cookies, doughnuts, pastries and cakes) through its
Bonespe stores in Lotte department stores. Lotte Merchandising Service Center is one of South Korea's largest
distribution and sales companies. Lotte Food is engaged in the business of meat processing, milk processing and ice
cream. It is also engaged in other food businesses which include noodles, rice-cake, seasoning, cooking oil, burger,
vegetables and food service business such as meal service.
The retail segment of Lotte consists of Lotte Department Store, Korea Seven, Lotte Mart, FRL Korea, Lotte Supermarket,
Lotte International, Lotte Cinema, Lotte.com, Lotte Home Shopping, and Lotte Hi-Mart.
Lotte Department Store operates department stores and outlets in major cities across South Korea. It also offers
packaging material, food processing, and sales services. Korea Seven, a joint venture between Lotte and 7-Eleven (a
convenience store brand), operates wholesale retail convenience store in South Korea. Lotte Mart operates discount
stores in South Korea, China, Vietnam and Indonesia. FRL Korea is a joint venture between Fast Retailing and Lotte
Shopping that is engaged in apparels business. Lotte Supermarket operates supermarkets in South Korea.
Lotte International is in charge of all import and export trading operations of the group. Lotte Cinema operates multiplex
movie theater and is engaged in movie distribution and investments. Lotte.com provides online shopping services to
customers. Lotte Home Shopping offers TV home shopping services to customers. Lotte Hi-Mart is engaged in retailing
of home appliances in South Korea.
The petrochemistry, construction and manufacturing segment of Lotte is comprised of Lotte Chemical, Canon Korea
Business Solutions, KP Chemtech, Korea Fujifilm, Lotte MRC Corporation, Lotte Aluminium, Lotte E&C, Lotte
Engineering and Machinery MFG, and CM business headquarters of Lotte E&C.
Lotte Chemical is engaged in petrochemical processing business and offers basic petrochemical materials,
intermediates, synthetic resins, and synthetic-fiber raw materials, among others. Canon Korea Business Solutions is
engaged in manufacturing, sales and services in all-in-one digital equipment, copiers, printers, and other office
machines. KP Chemtech's major business is synthetic resin, synthetic fiber and by-products.
Korea Fujifilm's major business is manufacturing and sales of digital cameras, digital printers, and photographic materials
in South Korea. Lotte MRC Corporation produces materials of TFT LCD products like methyl methacrylate (MMA) and
poly methyl methacrylate (PMMA). Lotte Aluminum is one of the largest manufacturers of general packaging materials in
South Korea. It is also engaged in manufacturing and selling polyethylene terephthalate (PET) bottles.
Lotte E&C is engaged in civil engineering and construction. Lotte Engineering and Machinery MFG is engaged in the
business of cooling and heating devices for parking facilities; air ducts/air-conditioning and heating installations; and
equipment services. CM business headquarters of Lotte Engineering and Construction provides construction project
management services in South Korea.
Lotte's finance segment operates through Lotte Card, Lotte Insurance and Lotte Capital.
Lotte Card is engaged in the credit business. It also operates travel and insurance agencies and provides telemarketing
services. Lotte Insurance provides fire insurance, cargo insurance, hull insurance, casualty insurance, long-term
insurance, annuity insurance, automobile insurance, and retirement pensions. Lotte Capital offers lease services,
personal loans, corporate loans, and installment financing to its customers.
The company's service, study and foundation segment operates through the following subsidiaries: Lotte Data
Communications Company, Lotte Logistics, Lotte Strategy & Insight Center, Hyundai Information Technology, Lotte PS
Net, Lotte Scholarship Foundation, Lotte Giants, MYbi, Lotte Welfare Foundation, Lotte Skyhill, eB Card, Lotte Samdong
Welfare Foundation, Daehong Communications, Lotte R&D Center, Lotte Asset Development, and Lotte Academy.
Lotte Data Communications Company is engaged in software development and computer equipment business. It also
provides information technology (IT) consulting and IT outsourcing services. Lotte Logistics provides logistics
management and consulting services. Lotte Strategy & Insight Center provides strategic analysis on the economy and
industry. Hyundai Information Technology is a representative IT service business in South Korea. Lotte PS Net offers
electronic financial services to customers. Lotte Scholarship Foundation offers scholarships to students. Lotte Giants is a
professional baseball team in South Korea. MYbi is engaged in the business of electronic finance services.
Lotte Welfare Foundation is a non-profit welfare establishment in South Korea. Lotte Skyhill is engaged in the
construction and management of golf course. eB Card offers offline/online integration e-payment services. Lotte
Samdong Welfare Foundation is a non-profit social welfare foundation. Daehong Communications is an advertising
agency, which provides services such as advertisement planning, production, marketing and brand consulting. Lotte
R&D Center is engaged in the business of genetic engineering and bio-engineering, and research for future food. Lotte
Asset Development is engaged in real estate development and financial consulting, and development and management
of shopping centers. Lotte Academy provides offline and online courses to employees.
Key Metrics
As a private company, Lotte group is not required to release financial details.
Mars primarily produces and distributes food products worldwide. The company offers chocolates, candies, chewing
gums, rice, entrees, sauces, and beverages among others. Additionally, it provides dog and cat food. The company
operates across North America, Europe, Russia and Commonwealth of Independent States (CIS) countries, Asia Pacific,
Latin America, and Africa, India and Middle East (AIME).
The company operates through six business segments: petcare, chocolate, Wrigley, food, drinks and symbioscience.
The petcare segment offers a wide range of pet food products. Some of the brands marketed by the segment include
Pedigree, Royal Canin, Whiskas, Banfield, Cesar, Nutro, Sheba, Dreamies, Kitekat, Chappi, Catsan, Frolic, Perfect Fit
and Greenies, among others.
The chocolate segment offers a wide variety of chocolates under the following brand names: M&M's, Snickers, Dove,
Galaxy, Mars, Milky Way, Twix, 3 Musketeers Balisto, Bounty, Maltesers and Revels, among others.
The Wrigley segment offers gum, mints, and hard and chewy candies. These products are offered under the following
brands: Wrigley's Spearmint, Juicy Fruit, Altoids, Life Savers, Doublemint, Skittles, Big Red, Winterfresh, Extra,
Starburst, Hubba Bubba, Orbit, Eclipse and 5 gum.
The food segment's offerings include rice, entrees, sauces and condiments. These products are offered under a number
of brand names including Uncle Ben's, Dolmio, Masterfoods, Miracoli, Suzi Wan, Kan Tong, Seeds of Change, Royco,
Ebly, Abu Siouf, Raris and Pamesello. Mars Food operates 11 manufacturing facilities.
The drinks segment offers coffee, tea and hot chocolate drinks. These drinks are offered under five brands: Klix, Flavia,
Alterra, The Bright Tea Co., and Dove/Galaxy. The segment also offers hot drinks machines under Flavia and Klix
brands.
The symbioscience segment constitutes the health and life sciences business of Mars. This segment includes brands
such as CocoaVia, a daily cocoa extract supplement designed to help maintain healthy circulation; Wisdom Panel, the
company's patented DNA testing kit for canines; and Cocoapro, a process developed and patented by Mars scientists
which helps in preserving the cocoa flavanols present in cocoa beans.
Key Metrics
The company generates net sales of more than $33,000 million. Mars is a privately-held company and does not publish
its financial results.
Mondelez is one of the largest snack companies in the world. The company offers snack food and beverage products,
including biscuits (cookies, crackers and salted snacks), chocolate, gum and candy, beverages, and various cheese and
grocery products. It has operations in more than 80 countries and sells its products in approximately 165 countries.
Mondelez operates through five business segments, classified on geographic basis: Europe; North America; Latin
America; Asia Pacific; and Eastern Europe, Middle East and Africa (EEMEA).
Mondelez offers its products across five categories: biscuits, chocolate, gum and candy, beverages, and cheese and
grocery.
The company markets biscuits, including cookies, crackers and salted snacks under the brand names such as Oreo,
Chips Ahoy!, Club Social, Barni, Triscuit, LU, Tiger, belVita, Nilla, Newtons, Nabisco, and Trakinas among others. The
chocolate products are marketed under brand names such as Toblerone, Milka, Lacta, Cadbury, Alpen Gold, Cadbury
Dairy Milk, and Cote d'Or among others. Mondelez offers gum and candy products under the following brand names:
Trident, Halls, Stride, Dentyne, Hollywood, Stimorol, and Bubbaloo among others.
The beverages category offers coffee and powdered beverages under the brand names such as Tang, Kenco, Gevalia,
Jacobs, and Tassimo among others. The company markets its cheese and grocery products under the Philadelphia,
Royal and Sottilette brand names.
Mondelez manufactures its products through manufacturing and processing facilities located in 58 countries. As of
December 31, 2013, it operated 171 manufacturing and processing facilities, of which 160 facilities were owned and 11
leased.
The company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers,
convenience stores, distributors, gasoline stations, drug stores, value stores and other retail food outlets. Mondelez
distributes its products through direct store delivery, company-owned and satellite warehouses, distribution centers and
other facilities. At the end of FY2013, Mondelez operated 220 distribution centers and depots worldwide. Of these, it
owned 54 distribution centers and depots and leased 166.
Key Metrics
The company recorded revenues of $34,244 million in the fiscal year ending December 2014, a decrease of 3.0%
compared to fiscal 2013. Its net income was $2,184 million in fiscal 2014, compared to a net income of $3,915 million in
the preceding year.
Nestle is one of the largest food and beverage companies in the world, with a product portfolio including baby foods,
bottled water, cereals, chocolate and confectionery, coffee, culinary, chilled and frozen foods, dairy products, drinks, food
service, healthcare nutrition products, ice creams, pet care products, and weight management services. The company
offers more than 2,000 global and local brands. Nestle operates a network of 447 factories located in 86 countries. The
company's products are sold in 196 countries around the world.
Nestle's primary operating segments are divided into three geographic zones and several globally managed businesses.
The three geographic zones are Zone Americas, Zone Asia, Oceania and Africa, and Zone Europe.
Zone Americas comprises the operations in the US, Canada, Latin America and Caribbean regions. Zone Asia, Oceania
and Africa includes the company's businesses across Asia-Pacific, Africa and Middle East. Zone Europe includes the
company's operations in Central, Western and Eastern Europe. The company's major product divisions in these regions
include powdered and liquid beverages, milk products and ice cream, prepared dishes and cooking aids, confectionery
and pet care.
The company's three globally managed businesses include Nestle Nutrition, Nestle Waters and other.
The Nestle Nutrition business comprises infant nutrition and weight management sub-business divisions. The infant
nutrition business offers products for infants and babies, including instant cereals, meals, infant formula and drinks,
marketed under the Cerelac, Gerber, Gerber Graduates, NaturNes and Nestum brand names. In the weight
management space, the company offers personalized weight loss programs.
Nestle Waters operates across all the three geographic zones, and is engaged in the production and marketing of bottled
water and sparkling mineral water under Nestle Pure Life, Perrier, Poland Spring, and S.Pellegrino brands, among
others.
The other segment primarily includes Nestle Professional, Nespresso, Nestle Health Science, and food and beverages
joint ventures and pharma joint ventures managed on a worldwide basis.
Nestle Professional is the global foodservice manufacturing business of Nestle, with presence in over 97 countries
delivering branded food and beverage solutions to foodservice operators. To the foodservice operators, the business
offer brands like Chef stocks and bouillons, Minors sauces and gravy, Maggi, American food brand Stouffers, Nestle
Desserts, Davigel frozen and chilled foods and Erlenbacher frozen baked cakes and desserts. Its beverages business
provides branded hot and cold non-carbonated drinks including Nescafe, Coffee-Mate, Nesquik, Nestea and Vitality, to
the commercial and institutional restaurant industry. Additionally, Nestle Professional offers premium beverage systems
such as Nescafe Alegria, Nescafe Milano and Viaggi super premium beverages for the commercial and office/workplace
environments.
Nestle Health Science includes the company's healthcare nutrition business, which primarily offers products to support
six key healthcare areas, including ageing care, critical care, diabetes, obesity, oncology and pediatrics. These products
are offered under several brands including Boost, Nutren, Resource, Peptamen Junior, Modulen, Alfare, Althera and
Optifast among others.
Nestle has joint-ventures with pharmaceutical and cosmetic companies such as L'Oreal and Laboratories inneov. The
company's food and beverages joint ventures include Cereal Partners Worldwide with General Mills; Beverage Partners
Worldwide (BPW) with The Coca-Cola Company (TCCC) and Dairy Partners Americas with Fonterra.
Nestle also operates through seven categories that are organized along product groups. These include powdered and
liquid beverages, water, milk products and ice cream, nutrition and healthcare, prepared dishes and cooking aids, pet
care and confectionery.
The key products in the powdered and liquid beverages category include coffee, chocolate-based and malted drinks, and
fruit juices. Its key coffee product brands include Nescafe and Nespresso. Nescafe is a well-known brand of soluble
coffee product, while Nespresso is an espresso coffee in capsules. Nestle also produces chocolate-based and malted
drinks, under brands such as Nesquik and Milo. The company produces iced tea under the Nestea brand name.
Under the waters product category, the company sells bottled water and sparkling mineral waters under brands, such as
Nestle Pure Life, Perrier and Poland Spring, among others.
The milk products and ice cream category offers diary-based products. The milk products division produces powdered
milk, yoghurts and desserts among others. Its key brands include Coffee-Mate, Nido, Carnation and La Laitiere. The ice
cream business division offers products such as ice cream tubs, waffle cones and ice cream bars. The company's key
brands in this category include Dreyer's, Extreme, Haagen-Dazs, Movenpick and Nestle Ice Cream.
The prepared dishes and cooking aids division includes frozen and chilled, culinary and other businesses. Its well-known
brands include Buitoni (in the pasta and sauce ingredients category); Herta (packaged meals), Hot Packets (frozen
sandwiches), Lean Cuisine (low-fat packaged meals), Maggi (noodles, soups and seasonings products), Stouffer's
(frozen entrees and side dishes), and Thomy (mayonnaise, mustard, dressings, sauces, oils and spreads). This division
also includes the breakfast cereals business of Nestle that produces cereal and performance bars and cereals catering
to a wide range of age groups. The major brands include Chocapic, Cini Minis, Cookie Crisp, Estrelitas, Fitness and
Nesquik Cerea.
The pet care products division offers food products for cats and dogs. The company offers these products under Alpo,
Bakers Complete, Beneful, Cat Chow, Chef Michael's Canine Creations, Dog Chow, Fancy Feast, Felix, Friskies,
Gourmet, Purina, Purina ONE and Pro Plan brand names.
The confectionery division primarily offers chocolates and chocolate based candies. These products are offered under
Aero, Butterfinger, Cailler, Crunch, KitKat, Orion, Smarties, and Wonka brand names.
Key Metrics
The company recorded revenues of $100,388 million in the fiscal year ending December 2014, a decrease of .3%
compared to fiscal 2013. Its net income was $15,797 million in fiscal 2014, compared to a net income of $10,944 million
in the preceding year.
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