HISTORY OF NESTLE Nestlé began in Switzerland in the mid 1860s when founder Henri Nestlé created one of the

first baby formulas. Henri realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable to breastfeed often lost their infants to malnutrition. Henri‟s product was a carefully formulated mixture of cow‟s milk, flour and sugar. Nestlé‟s first product was called Farine Lactée (“cornflour gruel” in French) Henri Nestlé. The product was first used on a premature baby who could not tolerate his mother‟s milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henri‟s new formula and it provided the nourishment that saved his life. Within a few years the first Nestlé product was marketed in Europe. In 1874 the Nestlé Company was purchased by Jules Monnerat. Nestlé developed its own condensed milk to contend with its competitor, the Anglo-Swiss Condensed Milk Company. The Anglo-Swiss Condensed Milk Company made products like cheese and instant formulas. The two companies merged in 1905, the year after Nestlé added chocolate to its line of foods. The newly formed Nestlé and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany. Soon the company was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong and Bombay. Most production still took place in Europe. The start of World War I made it difficult for Nestlé to buy raw ingredients and distribute products. Fresh milk was scarce in Europe, and factories had to sell milk for the public need instead of using it as an ingredient in foods. Nestlé purchased several factories in the U.S. to keep up with the increasing demand for condensed milk and dairy products via government contracts. The company‟s production doubled by the end of the war. When fresh milk became available again after the war, Nestlé suffered and slipped into debt. The price of ingredients was increasing, the economy has slowed and exchange rates deteriorated because of the war. An expert banker helped Nestlé find ways to reduce its debt. By the 1920s Nestlé was creating new chocolate and powdered beverage products. Adding to the product line once again, Nestlé developed Nescafé in the 1930s and Nestea followed. Nescafé, a soluble powder, revolutionized coffee drinking and became an instant hit. With the onset of the Second World War, profits plummeted. Switzerland was neutral in the war and became increasingly isolated in Europe. Many of Nestlé‟s executive officers were transferred to offices in the U.S. Because of distribution problems in Europe and Asia, Nestlé opened factories in developing countries in Latin America. Production increased dramatically after America entered the war. Nescafé became a main beverage for the American servicemen in Europe and Asia. Total sales increased by $125 million from 1938 to 1945. Nestlé continued to prosper, merging with Alimentana S.A., a company that manufactured soups and seasonings, in 1947. In the coming years, Nestlé acquired Crosse & Blackwell, Findus frozen foods, Libby‟s fruit juices, and Stouffer‟s frozen foods. Nescafé instant coffee sales quadrupled from 1960 to 1974, and the new technology of freeze-drying allowed the company to create a new kind of instant coffee, which they named Taster‟s Choice. Expanding its product line outside of the food market, Nestlé became a major stockholder in L‟Oréal cosmetics in 1974. Soon after the company suffered with increasing oil prices and the slowing growth in industrialized countries. Foreign exchange rates decreased, in turn reducing the value of sterling, the pound, dollar and franc. Prices of coffee beans and cocoa rose

A. opening trade with parts of Europe and China. Executive Vice President. Nestlé explained that breastfeeding and non-breastfeeding mothers in developing countries often gave their babies whole cow‟s milk. Nestlé S. According to Nestlé the World Health Organization never made statements tying infant death or malnutrition with baby formulas. Asia. Inc. Africa.A. the Nestlé-owned pet care businesses joined to form the industry leader Nestlé Purina PetCare.A.A. Chief Technology Officer. In a watered down formula. Chief Executive Officer. Nestlé said it only sent formula to countries that allow donations for orphans. The company didn‟t deny the superiority of breastfeeding and agreed that substituting breast milk for other substances could be very dangerous. and Spillers Petfoods of the UK. The organizations argued that the misuse of formula resulted in the malnutrition or death of many infants in developing countries. With the acquisition of Ralston Purina in 2002. By the 1980s Nestlé had a new Chief Executive Officer. Nestlé S. presenting further problems for Nestlé. It resumed several years later when the organizations believed Nestlé was sending free or low cost baby formulas to developing countries. The company decided to venture into the pharmaceutical industry by acquiring Alcon Laboratories. The leading in the food industry. Research & Development Friz van Dijk. tea.radically. The company focused on improving its financial situation and continuing to expand. International trade barriers diminished in the 1990s.. BOARD OF DIRECTORS: The executive board. since the formulas had to be mixed with water. Nestlé agreed to follow the International Code in developing countries in 1984. Nestlé brings in $81 billion in overall sales and has 470 factories around the world. rice water or a mix of flour and water. Oceania. and babies with no access to breast milk. Technology. In the 1990s Nestlé acquired San Pellegrino. Paul Bulcke. While trying to deal with unstable economic conditions and exploring its new ventures. includes:    Peter Brabeck. The company‟s mission is to focus on long-term potential over short-term performance. Problems like illiteracy and poverty caused some mothers to use less formula than recommended. Werner Bauer. In the one of the largest takeovers at that time. and the boycott was suspended. Nestlé S. The company has stopped all public advertising for formula in developing countries for almost 20 years. Nestlé faced the crisis of an international boycott. These alternatives were very unhealthy and a nutritional baby formula was a better choice. Chairman of the Board of Directors. Executive Vice President. vital nutrients are lessoned. Contaminated water presented another problem. Nestlé bought Carnation for $3 billion and parted with any unprofitable businesses. Nestlé S. Head of Innovation. The boycott continues to some extent to this day without satisfactory resolution. Middle East  . multiple births. Nestlé says that it has never discouraged breastfeeding when it was possible. Nestlé will continue to grow. Many organized groups began boycotting all of Nestlé‟s products because they disapproved of Nestlé marketing its baby formula in developing countries. introduce new products and renovate existing ones. a distinct entity from the board of directors. cornstarch.

“The focus is on how businesses can be responsible in the way they make money and not just what to do with the money once they made it. ICRM chairman Datuk Johan Raslan said. Executive Vice President. Head of Human Resources and Centre Administration David P. Nestlé S. Executive Vice President. “A responsible CR approach in a company‟s . Strategic Business Units. Nestlé S. Latin America. IP.A. Luis Cantarell. Executive Vice President. Global Nestlé Business Services Laurent Freixe. Nestlé S.A. GLOBE John J. Frick.” she said. Executive Vice President. Head of Nestlé Professional Strategic Business Division Jean-Marc Duvoisin. Nestlé S. Nestlé has a reputation score of 70. Nestlé S.A. Executive Vice President.A. Caribbean José Lopez. Senior Vice President and ex officio Member of the Executive Board          According to a 2006 global survey of online consumers by the Reputation Institute. Executive Vice President. Harris.A.A. Seven companies in total were honoured for their exemplary corporate responsibility (CR) initiatives in the event jointly organised by Star Publications (M) Bhd and the Institute of Corporate Responsibility Malaysia (ICRM). Nestlé S. Legal. Deputy Executive Vice President Nestlé S.A. Executive Vice President. CEO of Nestlé Nutrition James Singh. AWARDS AND CITATIONS Nestlé Malaysia bagged two awards at the inaugural StarBiz-ICR Malaysia Corporate Responsibility Awards 2008 Nestlé Malaysia bagged two awards at the inaugural StarBiz-ICR Malaysia Corporate Responsibility Awards 2008 in the marketplace and community categories for companies with market capitalisation of RM1bil and above. Finance and Control. Star Publications group managing director and chief executive officer Datin Linda Ngiam said the awards were introduced with a strong interest and commitment to encourage responsible business practices. Canada. Nestlé S. Operations.A. Deputy Executive Vice President. Europe Petraea Heynike. Sales and Nespresso Marc Caira. Chairman & CEO of Nestlé Waters Nandu Nandkishore. United States of America.A. Nestlé S. Marketing. Tax.4 on a scale of 1–100.

IT Excellence Awards 2007 Nestlé Malaysia‟s Salesforce Automation Project won the MIS Asia IT Excellence Awards 2007. The Awards Presentation Ceremony was held on 22 May at The Prince Hotel Kuala Lumpur and is in its sixth year.business strategies can help reduce cost. 3 in innovation in the survey. Executive Director. based on the overall outstanding performance in many categories for 2006 and we were the proud winner of 3 out of the 10 Gold awards that were up for grabs. drive innovation and boost performance. We beat 44 other entries to win the title "Best Social Report". In addition. Finance & Control Mr Stéphane Alby accepted the award from the Managing Director of Securities Commission Dato‟ Nik Ramlah Nik Mahmood and President of ACCA Malaysia Advisory Committee Dato‟ Khalid Ahmad on behalf of the Company. The Asia 200 survey of 2.” Most Admired Company in Malaysia 2008 WALL STREET JOURNAL ASIA 200 Nestlé (Malaysia) Berhad earned the top spot as the overall most-admired Malaysian company ahead of other corporate giants such as Maxis. we were also awarded 2 Silver and 1 Bronze awards and were also named Finalist in several other categories.447 executives and professionals conducted by market-research firm Colmar Brunton in 12 Asian-Pacific countries is the ultimate performance review of Asia‟s leading companies. Nestlé was also No. improve reputation. mitigate risks. Nestlé Wins ACCA MESRA Social Reporting Award Nestlé (Malaysia) Berhad won the Association of Chartered Certified Accountants (ACCA) Malaysia Environmental and Social Reporting Awards (MESRA) 2007 for the Social Reporting category. motivate employees. and No. Public Bank. It aims to set examples and new benchmarks of reporting for corporate Malaysia. The 3rd Malaysian Media Awards 2007 Nestlé was voted „Advertiser of the Year‟ in the 3rd Malaysian Media Awards organised by Media Specialist Association (MSA) of Malaysia. Petronas and YTL Corporation in the Wall Street Journal Asia‟s Asia 200 survey of readers. The awards was held to reward transparency and to acknowledge corporations that take the effort to report on their environmental and social activities. 1 in the categories of corporate reputation and quality of its products and services. Genting. while UEM Environment won over 16 other entries for the Environment Reporting category. .

Nestlé (Malaysia) Berhad was also named the winner of 3 other categories – Communication Management for „Spicing Up the Community‟ project. Social and Environmental Development category. presented during the Malaysia Chapter of the International Association of Business Communicators (IABC) Malaysia Silver/Gold Quill Awards 2006 held at Grand Plaza Park Royal Hotel on April 3. Platinum PR Awards Nestlé (Malaysia) Berhad came out tops in the Platinum PR Awards held in New York under the category of Public Affairs. . Silver Quill Awards Apart from being awarded the “Excellence Award for the Highest Number of Silver Quills Achieved” during the International Association of Business Communicators (IABC) Malaysia Silver Quill Awards 2007. Asian Marketing Effectiveness Awards (AMEA) 2007 Together with McCann Erickson. creating new revenue streams and improving customer service. working capital and fixed assets intensity) is recognised and acknowledged by the industry. We also received honourable mention under the Community Relations category for our „Spicing Up the Community‟ Chilli project. the operational 4 drivers – sales growth. Nestlé (Malaysia) Berhad emerged top in the F&B industry and took sixth placing overall. for a submission on the Nestlé. Edaran Otomobil Nasional Bhd emerged as overall grand champion in the communications best practice awards competition which attracted 27 entries locally. NESCAFÉ Kick-Start garnered the Bronze Award under the category of „Most Effective Use of Branded Content‟ in the Asian Marketing Effectiveness Awards (AMEA) 2007. Nourishing Malaysia Showcase 2006. The Award recognises the SFA Project Implementation team which has boosted the ability of an organisation to disseminate information internally and exchange it with their partners. Nourishing Malaysia Showcase. profit margin improvement. NESCAFÉ Kick-Start (McCann Erickson) was one of the two winners from Malaysia in this prestigious award. NESTLÉ (MALAYSIA) BERHAD WINS SILVER QUILL Nestlé (Malaysia) Berhad was awarded the Silver Quill Awards for its “Click into English” education programme under the Economic. KPMG / The Edge Shareholder Value Awards 2006 In the KPMG / The Edge Shareholder Value Awards 2006. This proved that our constant focus on the 7 value drivers (in particular.under the category of Best Business Enabler (Manufacturing). up two rankings from last year‟s list of Top 100 Listed Companies in terms of Shareholder Value Creation. Social & Environment Development for „Spicing Up the Community‟ project and Communication Management (Special Events) for Nestlé. beating finalists Motorola and Tata Motors. Economic.

We were judged on our Sustainability report in the Annual Report 2004. where top companies in 26 industries were judged by their peers in the industry. and was also short-listed under the Social Reporting Category. Annual Regional Best Managed Companies Award Presentation / Press Conference Once again. presented to the Client who has demonstrated courage and consistency in creative communication. promoting valueadded activities and management accounting information. This year. Nestlé Malaysia is proud to accept The Advertiser of the Year Award. The annual event allows Advertising & Communication Agencies to showcase their best works produced for their clients for the year. committed to building Brand Equity by taking the less beaten path. Among the criteria for the assessment were leadership and top management commitment. credibility and communication. The aim of the Awards is to identify and reward innovative attempts to communicate corporate social responsibility performance. A total of 345 companies in 26 industries and 25 countries participated. Kancil Awards 2006 The Malaysian Kancil Awards is a vehicle for the 4As to realise its vision for brand communications industry and serves as a platform to increase the visibility of our brands through effective creativity.ACCA MESRA Awards The Association of Chartered Accountants (ACCA) Malaysia held the Malaysia Environmental and Social Reporting Awards (MESRA) 2006 Awards presentation to reward transparency and recognise corporations which report their environmental and social activities. At the core of the judging criteria are completeness. whilst rewarding transparency. an advertiser who is a “brand centric” creative champion. customer and market focus. Fortune’s The World’s Most Admired Companies Nestlé clinched the top spot in the consumer food products category in a survey conducted by Fortune to determine The World‟s Most Admired Companies. ACCA-MESRA Awards Nestlé Malaysia was shortlisted for the ACCA (Association for Chartered Certified Accountants) Malaysia Environmental & Social Reporting Awards [MESRA] 2005 under the Environmental Reporting Category. The award is a tremendous recognition reflecting the evolution of Finance as an effective Business Partner and driver of Value Creation in the Pursuit of Business Excellence. Nestlé Malaysia was 1st runner-up for the Best Social Reporting in an Annual Report category. Nestlé took the Annual Regional Best Managed Companies Award in the “Best . National Award for Management Accounting (NAfMA) Awards Nestlé Malaysia won the „Excellence Award‟ at the National Award for Management Accounting (NAfMA) for 2005 which is the highest accolade given to an organisation for outstanding best practices in management accounting.

Credit Suisse. 17 Malaysian companies were ranked within this poll. . the Group Publisher and CEO of Finance Asia Mr Jonathan Hirst presented the award to Nestlé Malaysia. which was represented by Controller.Corporate Governance” (ranked 5th) category and the “Best Investor Relations” (ranked 9th) category for first time. The Annual Investor Poll was based on interviews and polling with more than 253 regional and local fund managers and buy-side equity analysts. Together with the main sponsor of the event. Confectionery Business Unit Mr Pierre Magne on August 3 at the Mandarin Oriental Hotel.

Sign up to vote on this title
UsefulNot useful