Nestl Opportunities

(1) According to two leading department stores, sales oI espresso cups are now outselling
mugs Ior the Iirst time, as more and more households switch to using coIIee machines.
This is the latest evidence that Britain, whose empire was partly Iuelled by its love oI tea,
has become a nation oI coIIee drinkers. This shows that the coIIee demand had increase
in Britain. This shiIt oI demands toward beverages product Irom tea to coIIee would
becomes an opportunities to Nestle coIIee product such as Nespresso in Britain.
Source: Telegraph.co.uk, Espresso Cup Outsell Mugs

(2) Danone dairy market Iace diIIiculties in Russia and experience loss oI U.S market share
largely responsible Ior a well-Ilagged sales slowdown Irom 8.7 percent growth in the Iirst
halI. The newly-acquired Unimilk business in Russia suIIered Irom higher milk costs and
a repositioning oI the business towards higher value-added milk products and its volumes
Iell 11.8 percent in the quarter.
Source: Reuter, UPDATE 4-Danone conIident on 2012, water still strategic

(3) Unilever report reveals why the consumer goods giant chose to pull the plug on the
alleged Iat-Iighting supplement Hoodia aIter spending a reported $25 million developing
it. In a clinical trial, it turns out that Hoodia extract had no impact on appetite or Iood
intake, but did have a lot oI side eIIects, like vomiting, weird skin sensations and elevated
blood pressure and heart rate.
Source: Reuter, Would-be Iat-Iighter Hoodia nothing but side eIIects

(4) Unilever raised its prices sharply in the second quarter to oIIset higher commodity costs,
helping it beat Iorecasts with a 7.1 percent increase in quarterly underlying sales, and said
the group should be able to grow underlying sales at 4-6 percent a year into the Iuture.
Source: Reuters, Unilever targets emerging markets Ior 75 percent oI sales


(5) Starting in the north and northeast oI the country in late July, the water has Ilowed slowly
south, overwhelming industrial provinces and rice areas in the center beIore moving into
Bangkok. The estate has 254 Iactories with almost 50,000 workers. Consumer goods
giant Unilever Pcl, Johnson & Johnson, Isuzu Motors and Honda Motor Co all have
plants there.
Source: Reuters, Floods encircle Bangkok industrial estates

(6) Among eighth graders, state bans on all sugar-sweetened drinks in schools meant Iewer
kids reported buying the drinks there but it didn't change how many oI them said they
drank soda or sports drinks regularly. The study conduct shows that it's going to take
more comprehensive policy initiatives. Those policy changes might include increased
taxes on sugar-sweetened drinks or restrictions on sports drink and soda marketing to
kids.
Source: Reuters, School soda bans don't cut kids' consumption

(7) Brazil could overtake the United States in overall coIIee consumption in the next Iew
years as increasing wealth in Brazil is driving a rise in locals' thirst Ior espressos and
cappuccinos, according to the country's coIIee association head.
Sources: Reuters, RPT-Brazil's coIIee consumption seen overtaking US












Nestl Threats

(1) Indonesia to develop Iive special economic zones and the new growth zone is projected
to quadruple the province's gross domestic product (GDP) by 2025. Consumer goods
giant, Unilever had been reported is committed to investing in the Sei Mangke zone, as
one oI Nestle close rival, this can be consider as competitive Iorces threat to the Nestle as
Unilever expand their operations there.
Source: Bernama, Indonesia To Develop Five Special Economic Zones

(2) The group, which makes chocolate Ior big Iood groups such as Nestle and KraIt, Barry
Callebaut, the world's largest maker oI chocolate and cocoa products, struck a cautious
note on market growth next year and said it expected raw material prices to remain high
and volatile.
Source: Reuters, Barry Callebaut cautious on chocolate market

(3) U.S. children and teenagers are seeing Iar more soda advertising than beIore, with blacks
and Hispanics the major targets, as marketers have expanded online. The most-visited
websites operated by soIt drink brands were MyCokeRewards.com and Capri Sun, which
is owned by KraIt Foods Inc.
Source: Reuters, SoIt drink makers target U.S. youth online: study

(4) Given the ongoing rise oI coIIee prices, KraIt is looking to penetrate the $1 billion
Ilavored water market, with the rollout oI its MiO line. The zero calorie drink will be
available in six Ilavors and priced at $3.99. KraIt has already composed a pilot survey on
the product, sending MiO samples to 100,000 Facebook users and received a positive
Ieedback Irom the survey.
Source: Forbes, KraIt Hopes Flavored Water Can Cool CoIIee Concerns




(5) The Alliance, leIt-wing political party in New Zealand warns that Iree trade deals
continue to pose a threat to New Zealand`s economic independence and democracy itselI.
The political party is against the MAI (Multi Lateral Agreement on Investment) Iree trade
deal. It also reported that the global corporate Nestle just happened to be looking to
increase its worldwide dairy acquisitions but couldn`t buy into New Zealand`s co-
operative structure. Thus, this can be considered as threat to the company in increasing
their expansion.
Source: Alliance.org.nz, Alliance hammers National/Labour 'Iree trade addiction

(6) Switzerland's chocolate maker Lindt & Spruengli is optimistic it can reach its targets this
year and is upbeat Ior 2012, He also said he believed the company, which oIIicially
launched gold-Ioil wrapped Christmas teddy bears on Monday to match the success oI its
Easter bunnies, would be able to win market share during the Christmas period.
Source: Reuter, UPDATE 1-Lindt CEO conIirms targets, upbeat Ior 2012

(7) Unilever targets emerging markets Ior 75 percent oI sales. Unilever and its brands like
Knorr, Hellmann's, Dove and Sunsilk already derive a higher proportion oI sales in
emerging markets now, 55 percent higher than its competitors.
Source: Unilever targets emerging markets Ior 75 percent oI sales

(8) Starbucks Corp said it plans to launch a new health and wellness-Iocused chain next year
aIter its acquisition oI Evolution Fresh, a CaliIornia-based premium juice maker, Ior $30
million. The Seattle-based company said the new retail concept, planned to launch in
early-to-mid-2012, will be separate Irom Starbucks caIes and does not yet have a name.
Source: Reuters, Starbucks launching new chain, buys juice company

(9) PepsiCo said it will sell its interest in 24 soIt drink bottlers in China to Hong Kong-listed
Tingyi Holdings Corp, a move that should extend its distribution deeper into China.
Source: Reuters, PepsiCo taking more time to review its business