Nestlé S.A. (; ; ) is a
Swiss
Swiss may refer to:
* the adjectival form of Switzerland
* Swiss people
Places
* Swiss, Missouri
* Swiss, North Carolina
*Swiss, West Virginia
* Swiss, Wisconsin
Other uses
*Swiss-system tournament, in various games and sports
*Swiss Internation ...
multinational food and drink processing conglomerate corporation headquartered in
Vevey
Vevey (; frp, Vevê; german: label=former German, Vivis) is a town in Switzerland in the canton of Vaud, on the north shore of Lake Geneva, near Lausanne. The German name Vivis is no longer commonly used.
It was the seat of the district of ...
,
Vaud
Vaud ( ; french: (Canton de) Vaud, ; german: (Kanton) Waadt, or ), more formally the canton of Vaud, is one of the 26 cantons forming the Swiss Confederation. It is composed of ten districts and its capital city is Lausanne. Its coat of arms b ...
, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other metrics, since 2014.
["Nestlé's Brabeck: We have a "huge advantage" over big pharma in creating medical foods"](_blank)
, ''CNN Money'', 1 April 2011 It ranked No. 64 on the
''Fortune'' Global 500 in 2017 and No. 33 in the 2016 edition of the ''
Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
'' Global 2000 list of largest public companies.
Nestlé's products include
baby food
Baby food is any soft easily consumed food other than breastmilk or infant formula that is made specifically for human babies between four and six months and two years old. The food comes in many varieties and flavors that are purchased ready- ...
(some including
human milk oligosaccharide
Human milk oligosaccharides (HMOs), also known as human milk glycans, are short polymers of simple sugars that can be found in high concentrations in human breast milk. Human milk oligosaccharides promote the development of the immune system, can ...
s),
medical food
Medical foods are foods that are specially formulated and intended for the dietary management of a disease that has distinctive nutritional needs that cannot be met by normal diet alone. In the United States they were defined in the Food and Drug A ...
, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestlé's brands have annual sales of over 1 billion
CHF (about ) including
Nespresso
Nestlé Nespresso S.A., trading as Nespresso, is an operating unit of the Nestlé Group, based in Lausanne, Switzerland. Nespresso machines brew espresso and coffee from coffee capsules (or ''pods'' in machines for home or professional use) ...
,
Nescafé
Nescafé is a brand of coffee made by Nestlé. It comes in many different forms. The name is a portmanteau of the words "Nestlé" and "café". Nestlé first introduced their flagship coffee brand in Switzerland on 1 April 1938.
History
Nestl ...
,
Kit Kat
Kit Kat (stylised as KitKat in various countries) is a chocolate-covered wafer bar confection created by Rowntree's of York, United Kingdom, and is now produced globally by Nestlé (which acquired Rowntree's in 1988), except in the United Sta ...
,
Smarties
Smarties are colour-varied sugar-coated chocolate confectionery. They have been manufactured since 1937, originally by H.I. Rowntree & Company in the United Kingdom, and now by Nestlé.
Smarties are oblate spheroids with a minor axis of about ...
,
Nesquik
Nesquik is a brand of food products made by Swiss company Nestlé. In 1948, Nestlé launched a drink mix for chocolate-flavored milk called Nestlé Quik in the United States; this was released in Europe during the 1950s as ''Nesquik''.
Since 1 ...
,
Stouffer's
Stouffer's is a brand of frozen prepared foods currently owned by Nestlé. Its products are available in the United States and Canada. Stouffer's is known for such popular fare as lasagna, macaroni and cheese, meatloaf, ravioli, and salisbury ...
,
Vittel
Vittel (; archaic ) is a commune in the Vosges department in Grand Est in northeastern France.
Mineral water is bottled and sold here by Nestlé Waters France, under the '' Vittel'' brand.
History
In 1854, after visiting the baths at nearby ...
, and
Maggi
Maggi ( or ) is an international brand of seasonings, instant soups, and noodles that originated in Switzerland in the late 19th century. The Maggi company was acquired by Nestlé in 1947.
History
Early history
Julius Maggi (1846–1912) ...
. Nestlé has 447 factories, operates in 189 countries, and employs around 339,000 people.
It is one of the main shareholders of
L'Oreal, the world's largest cosmetics company.
Nestlé was formed in 1905 by the merger of the "Anglo-Swiss Milk Company", which was established in 1866 by brothers George and Charles Page, and "Farine Lactée Henri Nestlé" founded in 1867 by
Henri Nestlé
Henri Nestlé () (born Heinrich Nestle; 10 August 1814 – 7 July 1890) was a German-Swiss confectioner and the founder of Nestlé, the world's largest food and beverage company.
Early life
Heinrich Nestle was born on 10 August 1814 in Frankfu ...
. The company grew significantly during the
World War I
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
and again following
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, expanding its offerings beyond its early
condensed milk
Condensed milk is cow's milk from which water has been removed (roughly 60% of it). It is most often found with sugar added, in the form of ''sweetened condensed milk'' (SCM), to the extent that the terms "condensed milk" and "sweetened condens ...
and
infant formula
Infant formula, baby formula, or simply formula (American English); or baby milk, infant milk or first milk (British English), is a manufactured food designed and marketed for feeding to babies and infants under 12 months of age, usually prepar ...
products. The company has made a number of corporate acquisitions including
Crosse & Blackwell
Crosse & Blackwell is a British food brand. The original company was established in London in 1706, then was acquired by Edmund Crosse and Thomas Blackwell in 1830. It became independent until it was acquired by Swiss conglomerate Nestlé in 1960. ...
in 1950,
Findus
Findus () is a frozen food brand which was first sold in Sweden in 1945. Findus products include ready meals, peas and Crispy Pancakes, the latter of which were invented in the early 1970s.
The Swiss food company Nestlé owned the Findus brand ...
in 1963,
Libby's
Libby's (Libby, McNeill & Libby) was an American company that produced canned food and beverages. The firm was established in 1869 in Chicago, Illinois. The Libby's trademark is currently owned by Libby's Brand Holding based in Geneva, Switzerlan ...
in 1971,
Rowntree Mackintosh
Rowntree Mackintosh Confectionery was a British company formed by the merger of Rowntree's and John Mackintosh Co. The company was famous for making chocolate brands, such as Kit Kat, Aero and Quality Street. It was purchased by Nestlé in 19 ...
in 1988,
Klim in 1998, and
Gerber in 2007.
The company has been associated with various controversies, facing criticism and
boycotts
A boycott is an act of nonviolent, voluntary abstention from a product, person, organization, or country as an expression of protest. It is usually for moral, social, political, or environmental reasons. The purpose of a boycott is to inflict som ...
over its marketing of baby formula as an alternative to
breastfeeding
Breastfeeding, or nursing, is the process by which human breast milk is fed to a child. Breast milk may be from the breast, or may be expressed by hand or pumped and fed to the infant. The World Health Organization (WHO) recommends that br ...
in developing countries (where clean water may be scarce), its reliance on
child labour in cocoa production
Ivory Coast and Ghana, together produce nearly 60% of the world's cocoa each year. During the 2018/19 cocoa-growing season, research commissioned by the U.S Department of Labor was conducted by NORC at the University of Chicago in these two coun ...
, and its production and promotion of
bottled water
Bottled water is drinking water (e.g., well water, distilled water, mineral water, or spring water) packaged in plastic or glass water bottles. Bottled water may be carbonated or not. Sizes range from small single serving bottles to lar ...
.
History
1866–1900: Founding and early years
![Henry Nestle](https://upload.wikimedia.org/wikipedia/commons/a/ae/Henry_Nestle.jpg)
Nestlé's origin dates back to the 1860s, when two separate Swiss enterprises were founded that would later form Nestlé. In the following decades, the two competing enterprises expanded their businesses throughout
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
and the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
.
Timeline
* 1866: Charles Page (
US consul to Switzerland) and George Page, brothers from
Lee County, Illinois
Lee County is a county located in the U.S. state of Illinois. According to the 2010 census, it has a population of 36,031. Its county seat is Dixon.
The Dixon, IL Micropolitan Statistical Area includes all of Lee County.
History
The area's ...
established the Anglo-Swiss Condensed Milk Company in
Cham
Cham or CHAM may refer to:
Ethnicities and languages
*Chams, people in Vietnam and Cambodia
**Cham language, the language of the Cham people
***Cham script
*** Cham (Unicode block), a block of Unicode characters of the Cham script
*Cham Albania ...
, Switzerland. The company's first British operation was opened at
Chippenham, Wiltshire in 1873.
* 1867: In Vevey, Switzerland,
Henri Nestlé
Henri Nestlé () (born Heinrich Nestle; 10 August 1814 – 7 July 1890) was a German-Swiss confectioner and the founder of Nestlé, the world's largest food and beverage company.
Early life
Heinrich Nestle was born on 10 August 1814 in Frankfu ...
developed milk-based baby food and soon began marketing it. The following year,
Daniel Peter
Daniel Peter (9 March 1836 – 4 November 1919) was a Swiss chocolatier and entrepreneur who founded Peter's Chocolate. A neighbour of Henri Nestlé in Vevey, he was one of the first chocolatiers to make milk chocolate and is credited for inven ...
began seven years of work perfecting the
milk chocolate manufacturing process. Nestlé had the solution Peter needed to fix his problem of removing all the water from the milk added to his chocolate, thus preventing the product from developing mildew.
* 1875: Henri Nestlé retired; the company, under new ownership retained his name as ''Société Farine Lactée Henri Nestlé''.
* 1877: Anglo-Swiss added milk-based baby foods to its products; in the following year the Nestlé Company added
condensed milk
Condensed milk is cow's milk from which water has been removed (roughly 60% of it). It is most often found with sugar added, in the form of ''sweetened condensed milk'' (SCM), to the extent that the terms "condensed milk" and "sweetened condens ...
to its portfolio, which made the firms direct rivals.
* 1879: Nestlé merged with milk chocolate inventor Daniel Peter.
* 1890: Henri Nestlé dies.
1901–1989: Mergers
In the late 19th and early 20th century, Henri Nestlé and his successors participated in the development of the chocolate industry in Switzerland, together with the
Peter
Peter may refer to:
People
* List of people named Peter, a list of people and fictional characters with the given name
* Peter (given name)
** Saint Peter (died 60s), apostle of Jesus, leader of the early Christian Church
* Peter (surname), a sur ...
,
Kohler
Kohler is a surname of German origin. The name was first found in Saxony. It means, "charcoal burner" so the first "Kohlers" were most likely of that occupation. Notable people with the surname include:
*Alan Kohler, Australian journalist
*Anton ...
, and
Cailler
Cailler is a Swiss chocolate brand and production factory based in Broc. It was founded in Vevey by François-Louis Cailler in 1819 and remained independent until the early 20th century, when it associated with other producers. Shortly before, ...
families. In 1904, Daniel Peter and Charles-Amédée Kohler (son of
Charles-Amédée Kohler
Charles-Amédée Kohler (born Charles-Gottlieb Kohler; 15 June 1790 – 15 September 1874) was a Swiss chocolatier and entrepreneur who founded Chocolat Kohler. He notably invented hazelnut chocolate, in his factory opened in 1830 in Lausanne. ...
who founded a chocolate factory in 1830) became partners and founded the ''Société générale suisse des chocolats Peter et Kohler réunis''. in 1911, the company created by Peter and Kohler merged with Cailler. Alexandre Cailler (grandson of
François-Louis Cailler
François-Louis Cailler (11 June 1796 – 6 April 1852) was a Swiss entrepreneur and early chocolatier who founded Cailler, the first modern brand of Swiss chocolate and the oldest still in existence, in 1819.
Biography
Cailler was born in Ve ...
) had founded a chocolate factory in
Broc
Broc (; frp, Broc, locally ) is a municipality in the district of Gruyère in the canton of Fribourg in Switzerland.
History
Broc is first mentioned in 1115 as ''Broc'' and ''Broch''. The municipality was formerly known by its German name ' ...
in 1898, still used by Nestlé today; which enabled the production of milk chocolate on a large scale. In 1929, Peter, Cailler, Kohler, Chocolats Suisses finally merged with the Nestlé group.
An earlier alliance in 1904 between Peter and Nestlé also allowed the production of milk chocolate in the United States, at the
Fulton
Fulton may refer to:
People
* Robert Fulton (1765–1815), American engineer and inventor who developed the first commercially successful steam-powered ship
* Fulton (surname)
Given name
* Fulton Allem (born 1957), South African golfer
* Fult ...
plant.
In 1905, Nestlé and Anglo-Swiss merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947 when the name 'Nestlé Alimentana SA' was taken as a result of the acquisition of Fabrique de Produits
Maggi
Maggi ( or ) is an international brand of seasonings, instant soups, and noodles that originated in Switzerland in the late 19th century. The Maggi company was acquired by Nestlé in 1947.
History
Early history
Julius Maggi (1846–1912) ...
SA (founded 1884) and its holding company, Alimentana SA, of Kempttal, Switzerland. The company's 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
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
created demand for dairy products in the form of government contracts, and, by the end of the war, Nestlé's production had more than doubled.
In January 1919, Nestlé bought two condensed milk plants in
Oregon
Oregon () is a U.S. state, state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington (state), Washington, while the Snake River delineates much of it ...
from the company
Geibisch and Joplin
Geibisch and Joplin was a contracting and paving company in Portland, Oregon in the 1900s and 1910s. The company was run by Ada Joplin and her husband Anton Geibisch, married on 8 June 1892. The company built the original Brooklyn neighborhood ...
for $250,000. One was in
Bandon, while the other was in
Milwaukie. They expanded them considerably, processing 250,000 pounds of condensed milk daily in the Bandon plant.
![Aleppo Nestle building Tilal street 1920s, postcard by Wattar brothers](https://upload.wikimedia.org/wikipedia/commons/0/00/Aleppo_Nestle_building_Tilal_street_1920s%2C_postcard_by_Wattar_brothers.jpg)
After the
World War I
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
, government contracts dried up, and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate-manufacture becoming the company's second most important activity. Louis Dapples was CEO till 1937 when succeeded by
Édouard Muller till his death in 1948.
Nestlé felt the effects of the
Second World War
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly in South America.
Ironically, the war helped with the introduction of the company's newest product,
Nescafé
Nescafé is a brand of coffee made by Nestlé. It comes in many different forms. The name is a portmanteau of the words "Nestlé" and "café". Nestlé first introduced their flagship coffee brand in Switzerland on 1 April 1938.
History
Nestl ...
("Nestlé's Coffee"), which became a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and numerous companies were acquired. In 1947 Nestlé merged with
Maggi
Maggi ( or ) is an international brand of seasonings, instant soups, and noodles that originated in Switzerland in the late 19th century. The Maggi company was acquired by Nestlé in 1947.
History
Early history
Julius Maggi (1846–1912) ...
, a manufacturer of seasonings and soups.
Crosse & Blackwell
Crosse & Blackwell is a British food brand. The original company was established in London in 1706, then was acquired by Edmund Crosse and Thomas Blackwell in 1830. It became independent until it was acquired by Swiss conglomerate Nestlé in 1960. ...
followed in 1950, as did
Findus
Findus () is a frozen food brand which was first sold in Sweden in 1945. Findus products include ready meals, peas and Crispy Pancakes, the latter of which were invented in the early 1970s.
The Swiss food company Nestlé owned the Findus brand ...
(1963),
Libby's
Libby's (Libby, McNeill & Libby) was an American company that produced canned food and beverages. The firm was established in 1869 in Chicago, Illinois. The Libby's trademark is currently owned by Libby's Brand Holding based in Geneva, Switzerlan ...
(1971), and
Stouffer's
Stouffer's is a brand of frozen prepared foods currently owned by Nestlé. Its products are available in the United States and Canada. Stouffer's is known for such popular fare as lasagna, macaroni and cheese, meatloaf, ravioli, and salisbury ...
(1973).
Diversification came under Chairman & CEO Pierre Liotard-Vogt with a shareholding in
L'Oreal in 1974 and the acquisition of
Alcon Laboratories Inc. in 1977 for $280 million.
In the 1980s, Nestlé's improved bottom line allowed the company to launch further acquisitions.
Carnation
''Dianthus caryophyllus'' (), commonly known as the carnation or clove pink, is a species of ''Dianthus''. It is likely native to the Mediterranean region but its exact range is unknown due to extensive cultivation for the last 2,000 years.Med ...
was acquired for US$3 billion in 1984 and brought the
evaporated milk
Evaporated milk, known in some countries as "unsweetened condensed milk", is a shelf-stable canned cow’s milk product where about 60% of the water has been removed from fresh milk. It differs from sweetened condensed milk, which contains adde ...
brand, as well as
Coffee-Mate
Coffee-mate is a coffee whitener lactose-free creamer manufactured by Nestlé, available in powdered, liquid and concentrated liquid forms. It was introduced in 1961 by Carnation.
Ingredients
Coffee-mate Original is mostly made up of three i ...
and
Friskies
Friskies is an American brand of wet and dry cat food and treats owned by Nestlé Purina PetCare Company, a subsidiary of Nestlé global. Friskies was initially introduced by Carnation Company in the 1930s as a dog food brand. When Friskies c ...
to Nestlé. In 1986, the company founded
Nestlé Nespresso S.A. The British confectionery company
Rowntree Mackintosh
Rowntree Mackintosh Confectionery was a British company formed by the merger of Rowntree's and John Mackintosh Co. The company was famous for making chocolate brands, such as Kit Kat, Aero and Quality Street. It was purchased by Nestlé in 19 ...
was acquired in 1988 for $4.5 billion, which brought brands such as
Kit Kat
Kit Kat (stylised as KitKat in various countries) is a chocolate-covered wafer bar confection created by Rowntree's of York, United Kingdom, and is now produced globally by Nestlé (which acquired Rowntree's in 1988), except in the United Sta ...
,
Rolo
Rolo (pronounced /ˈrəʊləʊ/), referring to the roll-styled chocolates, is a brand of truncated cone-shaped or conical frustum-shaped chocolates with a caramel inside. First manufactured in Norwich, Norfolk in the United Kingdom by Mackintos ...
,
Smarties
Smarties are colour-varied sugar-coated chocolate confectionery. They have been manufactured since 1937, originally by H.I. Rowntree & Company in the United Kingdom, and now by Nestlé.
Smarties are oblate spheroids with a minor axis of about ...
, and
Aero
Aero is a Greek prefix relating to flight and air. In British English, it is used as an adjective related to flight (e.g., as a shortened substitute for aeroplane).
Aero, Ærø, or Aeros may refer to:
Aeronautics Airlines and companies
* Aero ...
.
1990–2011: Growth internationally
The first half of the 1990s proved to be favourable for Nestlé. 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),
D'Onofrio (1997),
Spillers Petfoods (1998), and
Ralston Purina
Ralston Purina Company was a St. Louis, Missouri,–based American conglomerate with substantial holdings in animal feed, food, pet food, consumer products, and entertainment. On December 12, 2001, it merged with Swiss food-giant Nestlé's Fri ...
(2002). There were two major acquisitions in North America, both in 2002 – in June, Nestlé merged its US ice cream business into
Dreyer's
Dreyer's Grand Ice Cream, Inc. ("Dreyer's"), is an American ice cream company, founded in 1928 in Oakland, California, where its present-day headquarters office remains. The company's two signature brands, ''Dreyer's Grand Ice Cream'' and ''Edy's ...
, and in August, a acquisition was announced of
Chef America, the creator of
Hot Pockets
Hot Pockets is an American brand of microwaveable turnovers generally containing one or more types of cheese, meat, or vegetables. Hot Pockets was founded by the Chef America Inc. Since April 20, 2002, they have been produced by Nestlé.
Hi ...
. In the same time-frame, Nestlé entered in a joint bid with Cadbury and came close to purchasing the American company
Hershey's, one of its fiercest confectionery competitors, but the deal eventually fell through.
In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream maker, with a 17.5% market share. In July 2007, completing a deal announced the year before, Nestlé acquired the Medical Nutrition division of Novartis Pharmaceutical for and also acquiring the milk-flavoring product known as
Ovaltine
Ovaltine (also known by its original name Ovomaltine) is a brand of milk flavoring product made with malt extract (except in the blue packaging in the United States), sugar (except in Switzerland), and whey. Some flavors also have cocoa. Ovalt ...
, the "Boost" and "Resource" lines of nutritional supplements, and Optifast dieting products.
![Nestlé1](https://upload.wikimedia.org/wikipedia/commons/d/dc/Nestl%C3%A91.jpg)
In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer
Gerber for . In December 2007, Nestlé entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini.
Nestlé agreed to sell its controlling stake in
Alcon to
Novartis
Novartis AG is a Swiss-American multinational pharmaceutical corporation based in Basel, Switzerland and
Cambridge, Massachusetts, United States (global research).name="novartis.com">https://www.novartis.com/research-development/research-loc ...
on 4 January 2010. The sale was to form part of a broader offer by Novartis for full acquisition of the world's largest eye-care company. On 1 March 2010, Nestlé concluded the purchase of
Kraft Foods
The second incarnation of Kraft Foods is an American food manufacturing and processing conglomerate, split from Kraft Foods Inc. in 2012 and headquartered in Chicago, Illinois. It became part of Kraft Heinz in 2015.
A merger with Heinz, arra ...
's North American frozen pizza business for .
Since 2010, Nestlé has been working to transform itself into a nutrition, health and wellness company in an effort to combat declining confectionery sales and the threat of expanding government regulation of such foods. This effort is being led through the Nestlé Institute of Health Sciences under the direction of Ed Baetge. The institute aims to develop "a new industry between food and pharmaceuticals" by creating foodstuffs with preventive and corrective health properties that would replace
pharmaceutical drug
A medication (also called medicament, medicine, pharmaceutical drug, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy (pharmacotherapy) is an important part of the medical field and re ...
s from pill bottles. The Health Science branch has already produced several products, such as drinks and protein shakes meant to combat malnutrition, diabetes, digestive health, obesity, and other diseases.
In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about . On 23 April 2012, Nestlé agreed to acquire
Pfizer Inc.
Pfizer Inc. ( ) is an American Multinational corporation, multinational Pharmaceutical industry, pharmaceutical and biotechnology corporation headquartered on 42nd Street (Manhattan), 42nd Street in Manhattan, Manhattan, New York City. The co ...
's
infant-nutrition, formerly Wyeth Nutrition, unit for , topping a joint bid from
Danone
Danone S.A. () is a French multinational corporation, multinational food-products corporation based in Paris. It was founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of t ...
and Mead Johnson.
2012–present: Recent developments
In recent years, Nestlé Health Science has made several acquisitions. It acquired Vitaflo, which makes clinical nutritional products for people with genetic disorders; CM&D Pharma Ltd., a company that specialises in the development of products for patients with chronic conditions like kidney disease; and Prometheus Laboratories, a firm specialising in treatments for gastrointestinal diseases and cancer. It also holds a minority stake in Vital Foods, a New Zealand-based company that develops
kiwifruit
Kiwifruit (often shortened to kiwi in North American, British and continental European English) or Chinese gooseberry is the edible berry of several species of woody vine
A vine (Latin ''vīnea'' "grapevine", "vineyard", from ''vīnum'' ...
-based solutions for gastrointestinal conditions as of 2012.
Another recent purchase included the
Jenny Craig
Jenny Craig, Inc., often known simply as Jenny Craig, is an American weight loss, weight management, and nutrition company. The company has more than 700 weight management centers in Australia, the United States, Canada, and New Zealand. The pro ...
weight-loss program, for . Nestlé sold the
Jenny Craig
Jenny Craig, Inc., often known simply as Jenny Craig, is an American weight loss, weight management, and nutrition company. The company has more than 700 weight management centers in Australia, the United States, Canada, and New Zealand. The pro ...
business unit to North Castle Partners in 2013. In February 2013, Nestlé Health Science bought Pamlab, which makes medical foods based on L-methylfolate targeting depression, diabetes, and memory loss. In February 2014, Nestlé sold its PowerBar sports nutrition business to Post Holdings, Inc. Later, in November 2014, Nestlé announced that it was exploring strategic options for its frozen food subsidiary, Davigel.
In December 2014, Nestlé announced that it was opening 10 skin care research centres worldwide, deepening its investment in a faster-growing market for healthcare products. That year, Nestlé spent about $350 million on dermatology research and development. The first of the research hubs, Nestlé Skin Health Investigation, Education and Longevity Development (SHIELD) centres, will open mid 2015 in New York, followed by Hong Kong and São Paulo, and later others in North America, Asia, and Europe. The initiative is being launched in partnership with the Global Coalition on Aging (GCOA), a consortium that includes companies such as
Intel
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California. It is the world's largest semiconductor chip manufacturer by revenue, and is one of the developers of the x86 seri ...
and
Bank of America
The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank w ...
.
In January 2017, Nestlé announced that it was relocating its US headquarters from
Glendale, California
Glendale is a city in the San Fernando Valley and Verdugo Mountains regions of Los Angeles County, California, Los Angeles County, California, United States. At the 2020 United States Census, 2020 U.S. Census the population was 196,543, up from ...
, to
Rosslyn, Virginia, outside of
Washington, DC
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan ...
.
In March 2017, Nestlé announced that they will lower the sugar content in
Kit Kat
Kit Kat (stylised as KitKat in various countries) is a chocolate-covered wafer bar confection created by Rowntree's of York, United Kingdom, and is now produced globally by Nestlé (which acquired Rowntree's in 1988), except in the United Sta ...
,
Yorkie and
Aero
Aero is a Greek prefix relating to flight and air. In British English, it is used as an adjective related to flight (e.g., as a shortened substitute for aeroplane).
Aero, Ærø, or Aeros may refer to:
Aeronautics Airlines and companies
* Aero ...
chocolate bars by 10% by 2018. In July, a similar announcement followed concerning the reduction of sugar content in its breakfast cereals in the UK.
The company announced a $20.8 billion share buyback in June 2017, following the publication of a letter written by
Third Point Management
Third Point Management is a New York City, New York-based hedge fund founded by Daniel S. Loeb in 1995. The firm operates as an employee-owned and SEC-registered investment advisor with approximately $16 billion in assets under management . A ...
founder
Daniel S. Loeb
Daniel Seth Loeb (born December 18, 1961) is an American investor, hedge fund manager, and philanthropist. He is the founder and chief executive of Third Point, a New York-based hedge fund focused on event-driven, value-oriented investing with ...
, Nestlé's fourth-largest stakeholder with a $3.5 billion stake, explaining how the firm should change its business structure.
Consequently, the firm will reportedly focus investment on sectors such as coffee and pet care and will seek acquisitions in the consumer health-care industry.
In 2016, Nestlé and
PAI Partners
PAI Partners is a French private equity firm based in Paris, France. It is one of the oldest firms in the sector, with its origins dating back to Paribas Affaires Industrielles, the historical principal investment activity of Paribas, which sta ...
establish a joint venture,
Froneri
Froneri is a global ice cream manufacturer with its headquarters in Leeming Bar, North Yorkshire, England. It is the largest producer of ice cream in Europe by volume, and the second-largest in the world, after Unilever.
Froneri was establish ...
, to combine the two companies' ice cream activities throughout Europe and other international countries.
In July 2017, Nestlé introduced a new type of
infant formula
Infant formula, baby formula, or simply formula (American English); or baby milk, infant milk or first milk (British English), is a manufactured food designed and marketed for feeding to babies and infants under 12 months of age, usually prepar ...
in Spain, containing two
human milk oligosaccharide
Human milk oligosaccharides (HMOs), also known as human milk glycans, are short polymers of simple sugars that can be found in high concentrations in human breast milk. Human milk oligosaccharides promote the development of the immune system, can ...
s. Oligosaccharides are the third most abundant components of breast milk with various health benefits, but previously were not part of infant formula.
In September 2017, Nestlé S.A. acquired a majority stake of
Blue Bottle Coffee
Blue Bottle Coffee, Inc., is a coffee roaster and retailer once headquartered in Oakland, California, United States. In 2017, a majority stake in the company was acquired by Nestlé (68%). It is considered a major player in third wave coffee. T ...
. While the deal's financial details were not disclosed, the Financial Times reported "Nestlé is understood to be paying up to $500m for the 68 per cent stake in Blue Bottle". Blue Bottle expects to increase sales by 70% this year.
In September 2017, Nestlé USA agreed to acquire Sweet Earth, a California-based producer of plant-based foods, for an undisclosed sum.
In January 2018, Nestlé USA announced it is selling its US confectionary business to
Ferrara Candy Company
The Ferrara Candy Company is an American candy manufacturer, based in Chicago, Illinois, and owned by the Ferrero Group.
The company was formed from a 2012 merger of the Illinois-based Ferrara Pan Candy Company and Minnesota-based Farley's & ...
, an Italian chocolate and candy maker.
The company was sold for a total of an estimated $2.8 billion.
In May 2018, it was announced that Nestlé and
Starbucks
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain.
As of November 2021, the company had 33,833 stores in 80 c ...
struck a $7.15 billion distribution deal, which allows Nestlé to market, sell and distribute Starbucks coffee globally and to incorporate the brand's coffee varieties into Nestlé's proprietary single-serve system, expanding the overseas markets for both companies.
Nestlé set a new profit target in September 2017 and agreed to offload over 20 of its US candy brands in January 2018. However, sales grew only 2.4% in 2017, and as of July 2018, the share price declined more than 8%. While some suggestions were adopted, Loeb said in a July 2018 letter that the shifts are too small and too slow. In a statement, Nestlé wrote that it was "delivering results" and listed actions it had taken, including investing in key brands and its global coffee partnership with Starbucks. However, activist investors disagreed, leading Third Point Management to launch NestleNOW, a website to push its case with recommendations calling for change, accusing Nestlé of not being as fast, aggressive, or strategic as it needs to be. Activist investors called for Nestlé to divide into three units with distinct CEOs, regional structures, and marketing heads - beverage, nutrition, and grocery; spin off more businesses that do not fit its model such as ice cream, frozen foods, and confectionery; and add an outsider with expertise in the food and beverage industry to the board.
In September 2018, Nestlé announced that it would sell Gerber Life Insurance for $1.55 billion.
In October 2018, Nestlé announced the launch of the Nestlé Alumni Network, through a strategic partnership with
SAP
Sap is a fluid transported in xylem cells (vessel elements or tracheids) or phloem sieve tube elements of a plant. These cells transport water and nutrients throughout the plant.
Sap is distinct from latex, resin, or cell sap; it is a separ ...
&
EnterpriseAlumni, to engage with their over 1 million
alumni
Alumni (singular: alumnus (masculine) or alumna (feminine)) are former students of a school, college, or university who have either attended or graduated in some fashion from the institution. The feminine plural alumnae is sometimes used for grou ...
globally.
In 2019, the company announced that it would publish Nutri-Score on all of its products sold in the European countries that supported the nutritional label.
In 2020, Nestlé USA's and Nestlé Canada's ice cream divisions are acquired by Froneri. Also during that year, Nestlé announces that the company wants to invest in plant-based food, starting with a "tuna salad" and meat-free products to engage and reach younger and vegan consumers.
On 16 February 2021, Nestlé announced that it had agreed to sell its water brands in the US and Canada to One Rock Capital Partners and Metropoulos & Co. The sale, expected to conclude in spring, would include the spring water and mountain brands, the purified water brand and the delivery service. The plan did not include the Perrier, S.Pellegrino and Acqua Panna brands. In early April 2021, the sale was concluded.
The
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
did not affect Nestlé negatively. Due to lockdowns, people bought more packaged foods, not only coffee and dairy products, but also pet products, which increased the company's sales. Nestlé is recording its strongest quarterly sales growth in 10 years.
In April 2021, Nestlé agreed to purchase the vitamin manufacturing
Bountiful Company, formerly known as The Nature's Bounty Co., for $5.75 billion, noting as well that much of the company's growth that quarter came from "vitamins, minerals, and supplements that support health and the immune system". The deal acquires various assets from Bountiful, including Nature's Bounty, Solgar, Osteo Bi-Flex, and Puritan's Pride.
In January 2022, Nestlé will pay cocoa farmers cash if they send their children to school.
In May 2022, it was announced Nestlé's Health Science unit had acquired the
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
ian organic, natural, plant-based food maker Puravida.
In May 2022, Nestle was sending baby formula supplies to the U.S. from European air bases to ease the
2022 United States infant formula shortage. These relief shipments included products from the
Gerber baby
The Gerber Baby is the trademark logo of the Gerber Products Company, an American purveyor of baby food and baby products. Drawn by artist Dorothy Hope Smith, the Gerber Baby was modeled after Ann Turner Cook (1926–2022).
History
Fremont Cannin ...
food formula brand from the
Netherlands
)
, anthem = ( en, "William of Nassau")
, image_map =
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of the Netherlands
, established_title = Before independence
, established_date = Spanish Netherl ...
and Alfamino baby formula from
Switzerland
). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
.
Corporate affairs and governance
![1812 North Moore](https://upload.wikimedia.org/wikipedia/commons/e/e4/1812_North_Moore.jpg)
Nestlé is the biggest food company in the world, with a market capitalisation of roughly 231 billion Swiss francs, which is more than US$247 billion as of May 2015.
[Forbes list of world's top companies](_blank)
Retrieved 20 May 2015. Nestlé has a primary listing on the
SIX Swiss Exchange
SIX Swiss Exchange (formerly SWX Swiss Exchange), based in Zurich, is Switzerland's principal stock exchange (the other being Berne eXchange). SIX Swiss Exchange also trades other security (finance), securities such as Swiss government bonds and d ...
and is a constituent of the
Swiss Market Index
The Swiss Market Index (SMI) is Switzerland's blue-chip stock market index, which makes it the most followed in the country. It is made up of 20 of the largest and most liquid Swiss Performance Index (SPI) stocks. As a price index, the SMI is ...
. It has a secondary listing on
Euronext
Euronext N.V. (short for European New Exchange Technology) is a pan-European bourse that offers various trading and post-trade services.
Traded assets include regulated equities, exchange-traded funds (ETF), warrants and certificates, bonds, ...
.
In 2014, consolidated sales were
CHF 91.61 billion and net profit was CHF 14.46billion.
Research and development
Research and development (R&D or R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products, and improving existi ...
investment was CHF 1.63billion.
* Sales per category in CHF
[Jobs](_blank)
Nestlé, global info
** 20.3 billion powdered and liquid beverages
** 16.7 billion milk products and ice cream
** 13.5 billion prepared dishes and cooking aids
** 13.1 billion nutrition and health science
** 11.3 billion pet care
** 9.6 billion confectionery
** 6.9 billion water
* Percentage of sales by geographic area breakdown
** 43% from Americas
** 28% from Europe
** 29% from Asia, Oceania and Africa
According to a 2015 global survey of online consumers by the Reputation Institute, Nestlé has a reputation score of 74.5 on a scale of 1 to 100.
Financial data
Joint ventures
Joint ventures include:
*
Cereal Partners Worldwide
Cereal Partners Worldwide S.A. is a joint venture between General Mills and Nestlé, established in 1991 to produce breakfast cereals. The company is headquartered in Lausanne, Switzerland, and markets cereals in more than 130 countries (excep ...
with
General Mills
General Mills, Inc., is an American multinational manufacturer and marketer of branded processed consumer foods sold through retail stores. Founded on the banks of the Mississippi River at Saint Anthony Falls in Minneapolis, the company orig ...
(50%/50%)
*
Beverage Partners Worldwide with
The Coca-Cola Company
The Coca-Cola Company is an American multinational beverage corporation founded in 1892, best known as the producer of Coca-Cola. The Coca-Cola Company also manufactures, sells, and markets other non-alcoholic beverage concentrates and syrups, ...
(50%/50%), closed in 2018.
*
Froneri
Froneri is a global ice cream manufacturer with its headquarters in Leeming Bar, North Yorkshire, England. It is the largest producer of ice cream in Europe by volume, and the second-largest in the world, after Unilever.
Froneri was establish ...
with
PAI Partners
PAI Partners is a French private equity firm based in Paris, France. It is one of the oldest firms in the sector, with its origins dating back to Paribas Affaires Industrielles, the historical principal investment activity of Paribas, which sta ...
(50%/50%)
* ''Lactalis Nestlé Produits Frais'' with
Lactalis
Lactalis is a French multinational dairy products corporation, owned by the Besnier family and based in Laval, Mayenne, France. The company's former name was Besnier SA.
Lactalis is the largest dairy products group in the world, and is the sec ...
(40%/60%)
* Nestlé Colgate-Palmolive with
Colgate-Palmolive (50%/50%)
* Nestlé Indofood Citarasa Indonesia with
Indofood
PT Indofood Sukses Makmur Tbk is a major Indonesian company involved in the food industry. The company's headquarters are located in South Jakarta, Jakarta.
History
Indofood was founded in 1968 as Lambang Insan Makmur, an instant noodles bu ...
(50%/50%)
* Nestlé Snow with
Snow Brand Milk Products
, formerly is one of the largest dairy companies in Japan.
In 2000, more than 14,000 people got sick from old milk sold by Snow Brand contaminated with the staphylococcus aureus bacteria, the worst case of food poisoning in Japan.
A criminal ...
(50%/50%)
* Nestlé Modelo with
Grupo Modelo
Grupo Modelo is a large brewery in Mexico that exports beer to most countries of the world. Its export brands include ''Corona'', ''Modelo'', and '' Pacífico''. Grupo Modelo also brews brands that are intended solely for the domestic Mexican m ...
* Dairy Partners America Brasil with
Fonterra
Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy co-operative owned by around 9,000 New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exce ...
(51%/49%)
Board of directors
As of 2017, the board is composed of:
*
Paul Bulcke
Paul Bulcke (born 8 September 1954) is a Belgian businessman who is the chairman and former CEO of Nestlé.
Early life
He graduated as a commercial engineer at the Katholieke Universiteit Leuven and is an alumnus of the Vlerick Leuven Gent Man ...
, chairman and former CEO of Nestlé
*
Andreas Koopmann, former CEO of
Bobst
*
Beat Hess
Beat W. Hess (born 6 July 1949) is a Swiss lawyer and businessman. He is the chairman of the Holcim Group and the vice chairman of Sonova.
Early life
Beat W. Hess was born on 6 July 1949. He graduated from the University of Geneva in 1972 and a ...
, former legal director/general counsel for
ABB Group
ABB Ltd. is a Swedish- Swiss multinational corporation headquartered in Zürich, Switzerland. The company was formed in 1988 when Sweden's Allmänna Svenska Elektriska Aktiebolaget (ASEA) and Switzerland's Brown, Boveri & Cie merged to crea ...
and
Royal Dutch Shell
Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New Yo ...
*
Renato Fassbind, former CEO of
DKSH
DKSH, also known as DiethelmKellerSiberHegner, is a Swiss holding company specialising in market expansion services, e.g. outsourcing. Although its headquarters is in Zurich, DKSH is deeply rooted in communities all across the Asia Pacific regio ...
and former CFO of
Credit Suisse
Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global " ...
*
Steven George Hoch, founder of
Highmount Capital
*
Naina Lal Kidwai
Naina Lal Kidwai (born 1957) is an Indian banker, chartered accountant and business executive. She was formerly a Group General Manager and the Country Head of HSBC India. She is also a former President of the Federation of Indian Chambers of C ...
, former CEO of
HSBC Bank India
HSBC Bank India, an Indian subsidiary of UK-based HSBC Holdings plc, is a bank with its operational head office in Mumbai. It is a foreign bank under the Banking Regulation Act, 1949 and thus is regulated by the Reserve Bank of India (RBI).
B ...
, country head for
HSBC
HSBC Holdings plc is a British multinational universal bank and financial services holding company. It is the largest bank in Europe by total assets ahead of BNP Paribas, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 tri ...
in
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
*
Jean-Pierre Roth, former chairman of the
Swiss National Bank
The Swiss National Bank (SNB; german: Schweizerische Nationalbank; french: Banque nationale suisse; it, Banca nazionale svizzera; rm, Banca naziunala svizra) is the central bank of Switzerland, responsible for the nation's monetary policy an ...
*
Ann Veneman
Ann Margaret Veneman (born June 29, 1949) is an American attorney who served as the fifth executive director of UNICEF from 2005 to 2010. She previously served as the 27th United States Secretary of Agriculture from 2001 to 2005, and was the firs ...
, former
United States Secretary of Agriculture
The United States secretary of agriculture is the head of the United States Department of Agriculture. The position carries similar responsibilities to those of agriculture ministers in other governments.
The department includes several organi ...
and director of
UNICEF
UNICEF (), originally called the United Nations International Children's Emergency Fund in full, now officially United Nations Children's Fund, is an agency of the United Nations responsible for providing Humanitarianism, humanitarian and Devel ...
*
Henri de Castries, former CEO and chairman of
AXA
*
Eva Cheng
Eva Cheng, GBS (; born 31 May 1960, Hong Kong) was the Secretary for Transport and Housing and the chairman of the Hong Kong Housing AuthorityChina
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
and
Southeast Asia
Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical United Nations geoscheme for Asia#South-eastern Asia, south-eastern region of Asia, consistin ...
for
Amway
Amway (short for "American Way") is an American multi-level marketing (MLM) company that sells health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan. Amway and it ...
*
Ruth Khasaya Oniang’o, former member of the
Parliament of Kenya
The Parliament of Kenya is the bicameral legislature of Kenya. It is based at Parliament Buildings in Nairobi and consists of two houses:
* Senate (upper house)
* The National Assembly ( lower house)
See also
*Politics of Kenya
* List of legisl ...
, current professor at
Friedman School of Nutrition Science and Policy
The Gerald J. and Dorothy R. Friedman School of Nutrition Science and Policy (also called the ''Friedman School'') at Tufts University brings together biomedical, nutritional, clinical, social, and behavioral scientists to conduct research, ed ...
*
Patrick Aebischer, former president of
École Polytechnique Fédérale de Lausanne
École may refer to:
* an elementary school in the French educational stages normally followed by secondary education establishments (collège and lycée)
* École (river), a tributary of the Seine flowing in région Île-de-France
* École, Savoi ...
Lobbying
The company engages third party lobbying firms to engage with parliaments and governments in various jurisdictions. For example, in South Australia the company engages Etched Communications. In the US, Nestlé has a strong influence in Washington, D.C. From 2015 to 2020 their average spend on lobbying was $1,951,667 each year.
Products
![Samples of Nestle Toll House Cafe](https://upload.wikimedia.org/wikipedia/commons/7/77/Samples_of_Nestle_Toll_House_Cafe.JPG)
Nestlé currently has over 2,000 brands with a wide range of products across a number of markets, including coffee,
bottled water
Bottled water is drinking water (e.g., well water, distilled water, mineral water, or spring water) packaged in plastic or glass water bottles. Bottled water may be carbonated or not. Sizes range from small single serving bottles to lar ...
,
milkshakes and other
beverages
A drink or beverage is a liquid intended for human consumption. In addition to their basic function of satisfying thirst, drinks play important roles in human culture. Common types of drinks include plain drinking water, milk, juice, smoothies a ...
,
breakfast cereals,
infant foods,
performance and healthcare nutrition,
seasonings,
soup
Soup is a primarily liquid food, generally served warm or hot (but may be cool or cold), that is made by combining ingredients of meat or vegetables with stock, milk, or water. Hot soups are additionally characterized by boiling solid ing ...
s and
sauces
In cooking, a sauce is a liquid, cream, or semi-solid food, served on or used in preparing other foods. Most sauces are not normally consumed by themselves; they add flavor, moisture, and visual appeal to a dish. ''Sauce'' is a French word t ...
, frozen and refrigerated foods, and
pet food
Pet food is animal feed intended for consumption by pets. Typically sold in pet stores and supermarkets, it is usually specific to the type of animal, such as dog food or cat food. Most meat used for animals is a byproduct of the human food ind ...
.
In 2019, the company entered the plant-based food production business with its Incredible and Awesome Burgers (under the Garden Gourmet and Sweet Earth brands). In 2020, Nestlé announced additional plant-based products including soy-based bratwurst and chorizo-like sausages.
Food safety
Milk products and baby food
In late September 2008, the Hong Kong government found
melamine
Melamine is an organic compound with the formula C3H6N6. This white solid is a trimer of cyanamide, with a 1,3,5-triazine skeleton. Like cyanamide, it contains 67% nitrogen by mass, and its derivatives have fire retardant properties due t ...
in a Chinese-made Nestlé milk product. Six infants died from kidney damage, and a further 860 babies were hospitalised.
The
Dairy Farm
Dairy farming is a class of agriculture for long-term production of milk, which is processed (either on the farm or at a dairy plant, either of which may be called a dairy) for eventual sale of a dairy product. Dairy farming has a history th ...
milk was made by Nestlé's division in the Chinese coastal city
Qingdao
Qingdao (, also spelled Tsingtao; , Mandarin: ) is a major city in eastern Shandong Province. The city's name in Chinese characters literally means " azure island". Located on China's Yellow Sea coast, it is a major nodal city of the One Belt ...
. Nestlé 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 Nestlé contained low-level traces of melamine, and were "removed from the shelves".
As of 2013, Nestlé has implemented initiatives to prevent contamination and utilizes what it calls a "factory and farmers" model that eliminates the middleman. Farmers bring milk directly to a network of Nestlé-owned collection centers, where a computerized system samples, tests, and tags each batch of milk. To reduce further the risk of contamination at the source, the company provides farmers with continuous training and assistance in cow selection, feed quality, storage, and other areas. In 2014, the company opened the Nestlé Food Safety Institute (NFSI) in Beijing that will help meet China's growing demand for healthy and safe food, one of the top three concerns among Chinese consumers. The NFSI announced it would work closely with authorities to help provide a scientific foundation for food-safety policies and standards, with support to include early management of food-safety issues and collaboration with local universities, research institutes and government agencies on food-safety.
In an incident in 2015, weevils and fungus were found in Cerelac baby food.
Cookie dough
In June 2009, an
outbreak
In epidemiology, an outbreak is a sudden increase in occurrences of a disease when cases are in excess of normal expectancy for the location or season. It may affect a small and localized group or impact upon thousands of people across an entire ...
of
''E. coli'' O157:H7 was linked to Nestlé's refrigerated
cookie dough
Cookie dough is an un-cooked blend of cookie ingredients. Cookie dough is normally intended to be baked into individual cookies before eating, however edible cookie dough is made to be eaten as is, and usually is made without eggs to make it safer ...
originating in a plant in
Danville, Virginia. In the US, it caused sickness in more than 50 people in 30 states, half of whom required hospitalisation. Following the outbreak, Nestlé 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 to kill bacteria.
Maggi noodles
In May 2015, Food Safety Regulators from the state of
Uttar Pradesh
Uttar Pradesh (; , 'Northern Province') is a state in northern India. With over 200 million inhabitants, it is the most populated state in India as well as the most populous country subdivision in the world. It was established in 1950 ...
, India, found that samples of
Nestlé India
Nestlé India Limited is the Indian subsidiary of Nestlé which is a Swiss multinational company. The company is headquartered in Gurgaon, Haryana. The company's products include food, beverages, chocolate, and confectioneries.
The company wa ...
's
Maggi
Maggi ( or ) is an international brand of seasonings, instant soups, and noodles that originated in Switzerland in the late 19th century. The Maggi company was acquired by Nestlé in 1947.
History
Early history
Julius Maggi (1846–1912) ...
noodles had up to 17 times more than the permissible safe amount of lead, in addition to
monosodium glutamate
Monosodium glutamate (MSG), also known as sodium glutamate, is the sodium salt of glutamic acid. MSG is found naturally in some foods including tomatoes and cheese in this glutamic acid form. MSG is used in cooking as a flavor enhancer wi ...
.
Due to this, on 3 June 2015, the New Delhi Government banned the sale of Maggi in New Delhi stores for 15 days. Some of India's biggest retailers, such as
Future Group
Future Group is an Indian conglomerate, founded by Kishore Biyani and based in Mumbai. The company is known in Indian retail and fashion sectors, operating supermarket chains Big Bazaar and Food Bazaar, lifestyle stores Brand Factory and Centra ...
,
Big Bazaar
Big Bazaar was an Indian retail chain of hypermarkets, discount department stores, and grocery stores. The retail chain was founded by Kishore Biyani under his parent organisation Future Group, which is known for having a significant prominen ...
,
Easyday
Future Group is an Indian conglomerate, founded by Kishore Biyani and based in Mumbai. The company is known in Indian retail and fashion sectors, operating supermarket chains Big Bazaar and Food Bazaar, lifestyle stores Brand Factory and Centra ...
, and Nilgiris, had imposed a nationwide ban on Maggi as of 3 June 2015. On the same day, Nestlé India's shares fell 11% due to the incident. On 4 June 2015, the
Gujarat
Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the fifth-largest Indian state by area, covering some ; and the ninth ...
FD banned the sale of the noodles for 30 days after 27 out of 39 samples were detected with objectionable levels of metallic lead, among other things. Nestlé's share fell by 3% on that day over concerns related to its safety standards. On 5 June 2015,
Food Safety and Standards Authority of India
Food Safety and Standards Authority of India (FSSAI) is a statutory body established under the Ministry of Health & Family Welfare, Government of India. The FSSAI has been established under the Food Safety and Standards Act, 2006, which is a co ...
(FSSAI) orders banned all nine approved variants of Maggi instant noodles from India, deeming them "unsafe and hazardous" for human consumption, and
Nepal
Nepal (; ne, नेपाल ), formerly the Federal Democratic Republic of Nepal ( ne,
सङ्घीय लोकतान्त्रिक गणतन्त्र नेपाल ), is a landlocked country in South Asia. It is mai ...
indefinitely banned Maggi over concerns about lead levels in the product. Also on 5 June, the
Food Standards Agency
, type = Non-ministerial government department
, nativename =
, nativename_a =
, nativename_r =
, logo = Food Standards Agency.svg
, logo_width =
, logo_caption =
, seal =
, seal_width =
, seal_caption =
, picture =
, picture_width =
...
of the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
launched an investigation to test levels of lead in Maggi. Maggi noodles have been withdrawn in five African nations – Kenya, Uganda, Tanzania, Rwanda, and South Sudan – by a supermarket chain after a complaint by the Consumer Federation of Kenya, as a reaction to the ban in India.
As of August 2015, India's government made public that it was seeking damages of nearly $100 million from Nestlé India for "unfair trade practices" following the June ban on Maggi noodles. The 6.4 billion rupee (approximately US$93 million) suit was filed with the
National Consumer Disputes Redressal Commission
The National Consumer Disputes Redressal Commission (NCDRC) of India is a quasi-judicial commission in India which was set up in 1988 under the Consumer Protection Act, 1986. Its head office is in New Delhi
New Delhi (, , ''Naī Dill ...
(NCDRC), regarded as the country's top consumer court, but was settled on 13 August 2015. The court ruled that the government ban on the Nestlé product was both "arbitrary" and had violated the "principles of natural justice." Although Nestlé was not ordered to pay the fine sought in the government's suit, the court ruled that the Maggi noodle producers must "send five samples from each batch of Maggi
oodles
Many languages have words expressing indefinite and fictitious numbers—inexact terms of indefinite size, used for comic effect, for exaggeration, as placeholder names, or when precision is unnecessary or undesirable. One technical term for such ...
for testing to three labs and only if the lead is found to be lower than permitted will they start manufacturing and sale again." Although the tests have yet to take place, Nestlé has already destroyed 400 million packets of Maggi products.
In India, Maggi products were returned to the shelves in November 2015, accompanied by a Nestlé advertising campaign to win back consumer trust, featuring items such as the ''Maggi anthem'' by
Vir Das
Vir Das (born 31 May 1979) is an Indian comedian, actor and musician. After beginning a career in standup comedy, Das moved to Hindi cinema starring in films like '' Badmaash Company'' (2010), '' Delhi Belly'' (2011), and ''Go Goa Gone'' (2013 ...
and Alien Chutney. Nestlé resumed production of Maggi at all five plants in India on 30 November 2015.
In the Philippines, localised versions of Maggi instant noodles were sold until 2011 when the product group was recalled for suspected salmonella contamination. The product did not return to market, while Nestle continues to sell seasoning products including the popular Maggi Magic Sarap.
Sponsorships
Music and Entertainment
In 1993, plans were made to update and modernise the overall tone of
Walt Disney's EPCOT Center
Epcot, stylized in all uppercase as EPCOT, is a theme park at the Walt Disney World Resort in Bay Lake, Florida. It is owned and operated by The Walt Disney Company through its Parks, Experiences and Products division. Inspired by an unre ...
, including a major refurbishment of
The Land pavilion.
Kraft Foods
The second incarnation of Kraft Foods is an American food manufacturing and processing conglomerate, split from Kraft Foods Inc. in 2012 and headquartered in Chicago, Illinois. It became part of Kraft Heinz in 2015.
A merger with Heinz, arra ...
withdrew its sponsorship on 26 September 1993, with Nestlé taking its place. Co-financed by Nestlé and the Walt Disney World Resort, a gradual refurbishment of the pavilion began on 27 September 1993. In 2003, Nestlé renewed its sponsorship of The Land; however, it was under agreement that Nestlé 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. Nestlé stopped sponsoring The Land in 2009.
On 5 August 2010, Nestlé and the
Beijing Music Festival
The Beijing Music Festival (BMF) is an annual music festival held in Beijing which according to Chinaculture.org has become one of the most well-known musical events in the world, drawing international attention. According to Chinaculture.org t ...
signed an agreement to extend by three years Nestlé's sponsorship of this international music festival. Nestlé has been an extended sponsor of the Beijing Music Festival for 11 years since 2000. The new agreement will continue the partnership through 2013.
Nestlé has partnered the
Salzburg Festival
The Salzburg Festival (german: Salzburger Festspiele) is a prominent festival of music and drama established in 1920. It is held each summer (for five weeks starting in late July) in the Austrian town of Salzburg, the birthplace of Wolfgang Amad ...
in Austria for 20 years. In 2011, Nestlé renewed its sponsorship of the
Salzburg Festival
The Salzburg Festival (german: Salzburger Festspiele) is a prominent festival of music and drama established in 1920. It is held each summer (for five weeks starting in late July) in the Austrian town of Salzburg, the birthplace of Wolfgang Amad ...
until 2015.
Together, they have created the "Nestlé and Salzburg Festival Young Conductors Award", an initiative that aims to discover young conductors globally and to contribute to the development of their careers.
Sports
Nestlé's sponsorship of the
Tour de France
The Tour de France () is an annual men's multiple-stage bicycle race primarily held in France, while also occasionally passing through nearby countries. Like the other Grand Tours (the Giro d'Italia and the Vuelta a España), it consists ...
began in 2001 and the agreement was extended in 2004, a move which demonstrated the company's interest in the Tour. In July 2009,
Nestlé Waters
Nestlé Waters is a Swiss multinational bottled water division of Nestlé it was founded in 1992.
Key Facts and figures (2015)
Sales: 7.625 billion CHF
Nestlé Waters has roughly 31,740 employees and includes several brands such as Acqua Pa ...
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 Nestlé's product portfolio: Vittel, Powerbar, Nesquik, or Ricore.
On 27 January 2012, the
International Association of Athletics Federations
World Athletics, formerly known as the International Amateur Athletic Federation (from 1912 to 2001) and International Association of Athletics Federations (from 2001 to 2019, both abbreviated as the IAAF) is the international governing body for ...
announced that Nestlé 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. On 11 February 2016, Nestlé decided to withdraw its sponsorship of the IAAF's Kids' Athletics Programmes because of
doping and corruption allegations against the IAAF. Nestlé followed suit after other large sponsors, including
Adidas
Adidas AG (; stylized as adidas since 1949) is a German multinational corporation, founded and headquartered in Herzogenaurach, Bavaria, that designs and manufactures shoes, clothing and accessories. It is the largest sportswear manufactur ...
, also stopped supporting the IAAF.
In 2014, Nestlé Waters sponsored the UK leg of the Tour de France through its Buxton Natural Mineral Water brand.
In 2002, Nestlé announced it was main sponsor for the
Great Britain Lionesses Women's rugby league
Women's rugby league is the female-only version of Rugby league. There are women's clubs in Australia, Great Britain, and New Zealand, overseen internationally by the Women & Girls Rugby League.
Australia, France, England and New Zealand co ...
team for the team's second tour of Australia with its
Munchies product.
Nestlé supports the
Australian Institute of Sport
The Australian Institute of Sport (AIS) is a high performance sports training institution in Australia. The Institute's headquarters were opened in 1981 and are situated in the northern suburb of Bruce, Canberra. The AIS is a division of the ...
(AIS) on a number of nutrition and fitness fronts, funding a Fellowship position in AIS Sports Nutrition; nutrition activities in the AIS Dining Hall; research activities; and the development of education resources for use at the AIS and in the public domain.
Controversies and criticisms
Baby formula marketing
Concern about Nestlé's "aggressive marketing" of their
breast milk
Breast milk (sometimes spelled as breastmilk) or mother's milk is milk produced by mammary glands located in the breast of a human female. Breast milk is the primary source of nutrition for newborns, containing fat, protein, carbohydrates ( lacto ...
substitutes, particularly in
less economically developed countries (LEDCs), first arose in the 1970s. Critics have accused Nestlé of discouraging mothers from breastfeeding and suggesting that their baby formula is healthier than breastfeeding, despite there being no evidence for this. This led to a
boycott
A boycott is an act of nonviolent, voluntary abstention from a product, person, organization, or country as an expression of protest. It is usually for moral, social, political, or environmental reasons. The purpose of a boycott is to inflict som ...
which was launched in 1977 in the United States and subsequently spread into Europe.
The boycott was officially suspended in the US in 1984, after Nestlé agreed to follow an international marketing code endorsed by the
World Health Organization
The World Health Organization (WHO) is a specialized agency of the United Nations responsible for international public health. The WHO Constitution states its main objective as "the attainment by all peoples of the highest possible level of h ...
(WHO),
[ but was relaunched in 1989. As of 2011, the company is included in the ]FTSE4Good Index
The FTSE4Good Index Series is a series of ethical investment stock market indices launched in 2001 by the FTSE Group which reports on the performance of companies which demonstrate "strong Environmental, Social and Governance practices". A numbe ...
designed to help enable ethical investment
Socially responsible investing (SRI), social investment, sustainable socially conscious, "green" or ethical investing, is any investment strategy which seeks to consider both financial return and social/environmental good to bring about social ...
.
However, the company allegedly repeated these same marketing practices in developing countries like Pakistan
Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...
in the 1990s. A Pakistani salesman named Syed Aamir Raza Hussain became a whistle-blower against his former employer Nestlé. In 1999, two years after he left Nestlé, Hussain released a report in association with the non-profit organisation, Baby Milk Action, in which he alleged that Nestlé was encouraging doctors to push its infant formula products over breastfeeding. Nestlé has denied Raza's allegations. This story inspired the acclaimed 2014 Indian film ''Tigers
The tiger (''Panthera tigris'') is the largest living cat species and a member of the genus ''Panthera''. It is most recognisable for its dark vertical stripes on orange fur with a white underside. An apex predator, it primarily preys on un ...
'' by the Oscar
Oscar, OSCAR, or The Oscar may refer to:
People
* Oscar (given name), an Irish- and English-language name also used in other languages; the article includes the names Oskar, Oskari, Oszkár, Óscar, and other forms.
* Oscar (Irish mythology) ...
-winning Bosnian director Danis Tanović
Danis Tanović (born 20 February 1969) is a Bosnian film director and screenwriter. He is best known for having directed and written the script for the 2001 Bosnian movie ''No Man's Land'' which won him many awards, including an Academy Award f ...
.
In May 2011, nineteen Laos
Laos (, ''Lāo'' )), officially the Lao People's Democratic Republic ( Lao: ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ, French: République démocratique populaire lao), is a socialist ...
-based international NGOs, including Save the Children
The Save the Children Fund, commonly known as Save the Children, is an international non-governmental organization established in the United Kingdom in 1919 to improve the lives of children through better education, health care, and economic ...
, Oxfam
Oxfam is a British-founded confederation of 21 independent charitable organizations focusing on the alleviation of global poverty, founded in 1942 and led by Oxfam International.
History
Founded at 17 Broad Street, Oxford, as the Oxford Co ...
, CARE International, Plan International
Plan International is a development and humanitarian organisation which works in over 75 countries across Africa, the Americas, and Asia to advance children’s rights and equality for girls. Its focus is on child protection, education, child par ...
, and World Vision
In its most general sense, the term "world" refers to the totality of entities, to the whole of reality or to everything that is. The nature of the world has been conceptualized differently in different fields. Some conceptions see the worl ...
launched a boycott of Nestlé with an open letter
An open letter is a letter that is intended to be read by a wide audience, or a letter intended for an individual, but that is nonetheless widely distributed intentionally.
Open letters usually take the form of a letter addressed to an indiv ...
. Among other unethical practices, they criticised a failure to translate labelling and health information into local languages and accused the company of giving incentives to doctors and nurses to promote the use of infant formula. Nestlé denied the claims and responded by commissioning an audit, carried out by Bureau Veritas, which concluded that "the requirements of the WHO Code and Lao PDR Decree are well embedded throughout the business" but that they were violated by promotional materials "in 4% of the retail outlets visited".
Ernest W. Lefever
Ernest Warren Lefever (November 12, 1919 – July 29, 2009) was an American political theorist and foreign affairs expert who founded the Ethics and Public Policy Center in 1976 and was nominated for a State Department post by President Ronal ...
and the Ethics and Public Policy Center
The Ethics and Public Policy Center (EPPC) is a conservative, Washington, D.C.-based think tank and advocacy group. Founded in 1976, the group describes itself as "dedicated to applying the Judeo-Christian moral tradition to critical issues of pu ...
were criticized for accepting a $25,000 contribution from Nestlé while the organization was in the process of developing a report investigating medical care in developing nations which was never published. It was alleged that this contribution affected the release of the report and led to the author of the report submitting an article to ''Fortune'' magazine praising the company's position.
Nestlé has been under investigation in China since 2011 over allegations that the company bribed hospital staff to obtain the medical records of patients and push its infant formula to increase sales. This was found to be in violation of a 1995 Chinese regulation that aims to secure the impartiality of medical staff by banning hospitals and academic institutions from promoting instant formula to families. As a consequence, six Nestlé employees were given prison sentences between one and six years.
Slavery and child labour
Multiple reports have documented the widespread use of child labour
Child labour refers to the exploitation of children through any form of work that deprives children of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially and morally harmful. Such e ...
in cocoa
Cocoa may refer to:
Chocolate
* Chocolate
* ''Theobroma cacao'', the cocoa tree
* Cocoa bean, seed of ''Theobroma cacao''
* Chocolate liquor, or cocoa liquor, pure, liquid chocolate extracted from the cocoa bean, including both cocoa butter and ...
production, as well as slavery
Slavery and enslavement are both the state and the condition of being a slave—someone forbidden to quit one's service for an enslaver, and who is treated by the enslaver as property. Slavery typically involves slaves being made to perf ...
and child trafficking, throughout West Africa
West Africa or Western Africa is the westernmost region of Africa. The United Nations defines Western Africa as the 16 countries of Benin, Burkina Faso, Cape Verde, The Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Maurit ...
n plantations, on which Nestlé and other major chocolate companies rely. According to the 2010 documentary, '' The Dark Side of Chocolate'', the children working are typically 12 to 15 years old. The Fair Labor Association
The Fair Labor Association (FLA) is a non-profit collaborative effort of universities, civil society organizations, and businesses.
It describes its mission as promoting adherence to international and national labor laws.
History
The FLA was ...
has criticised Nestlé for not carrying out proper checks.
In 2005, after the cocoa industry had not met the Harkin–Engel Protocol
The Harkin–Engel Protocol, sometimes referred to as the Cocoa Protocol, is an international agreement aimed at ending the worst forms of child labor (according to the International Labour Organization's Convention 182) and forced labor (acc ...
deadline for certifying that the worst forms of child labour
The Convention Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, known in short as the Worst Forms of Child Labour Convention, was adopted by the International Labour Organization (ILO) in 1 ...
(according to the International Labour Organization
The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards. Founded in October 1919 under the League of Nations, it is the first and o ...
's Convention 182) had been eliminated from cocoa production, the International Labor Rights Fund
The International Labor Rights Forum (ILRF) is a nonprofit advocacy organization headquartered in Washington, D.C., U.S., that describes itself as "an advocate for and with the working poor around the world." ILRF, formerly the "International L ...
filed a lawsuit in 2005 under the Alien Tort Claims Act
The Alien Tort Statute ( codified in 1948 as ; ATS), also called the Alien Tort Claims Act (ATCA), is a section in the United States Code that gives federal courts jurisdiction over lawsuits filed by foreign nationals for torts committed in viol ...
against Nestlé and others on behalf of three Mali
Mali (; ), officially the Republic of Mali,, , ff, 𞤈𞤫𞤲𞥆𞤣𞤢𞥄𞤲𞤣𞤭 𞤃𞤢𞥄𞤤𞤭, Renndaandi Maali, italics=no, ar, جمهورية مالي, Jumhūriyyāt Mālī is a landlocked country in West Africa. Mali ...
an children. The suit alleged the children were trafficked to Ivory Coast
Ivory Coast, also known as Côte d'Ivoire, officially the Republic of Côte d'Ivoire, is a country on the southern coast of West Africa. Its capital is Yamoussoukro, in the centre of the country, while its largest city and economic centre is ...
, forced into slavery, and experienced frequent beatings on a cocoa plantation. In September 2010, the U.S. District Court for the Central District of California
The United States District Court for the Central District of California (in case citations, C.D. Cal.; commonly referred to as the CDCA or CACD) is a Federal trial court that serves over 19 million people in Southern and Central California, m ...
determined corporations cannot be held liable for violations of international law and dismissed the suit. The case was appealed to the U.S. Court of Appeals
The United States courts of appeals are the intermediate appellate courts of the United States federal judiciary. The courts of appeals are divided into 11 numbered circuits that cover geographic areas of the United States and hear appeals fr ...
. The Ninth Circuit Court of Appeals
The United States Court of Appeals for the Ninth Circuit (in case citations, 9th Cir.) is the U.S. federal court of appeals that has appellate jurisdiction over the U.S. district courts in the following federal judicial districts:
* District ...
reversed the decision. In 2016, the U.S. Supreme Court
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...
declined to hear Nestlé's appeal of the Ninth Circuit's decision.
A 2016 study published in ''Fortune'' magazine concluded that approximately 2.1 million children in several West African countries "still do the dangerous and physically taxing work of harvesting cocoa", noting that "the average farmer in Ghana in the 2013–14 growing season made just 84¢ per day, and farmers in Ivory Coast a mere 50¢ ..well below the World Bank's new $1.90 per day standard for extreme poverty". On efforts to reduce the issue, former secretary general of the Alliance of Cocoa Producing Countries, Sona Ebai, commented "Best-case scenario, we're only doing 10% of what's needed."
In 2019, Nestlé announced that they could not guarantee that their chocolate products were free from child slave labour, as they could trace only 49% of their purchasing back to the farm level. The ''Washington Post
''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...
'' noted that the commitment taken in 2001 to eradicate such practices within four years had not been kept, neither at the due deadline of 2005, nor within the revised deadlines of 2008 and 2010, and that the result was not likely to be achieved for 2020 either.
In 2021, Nestlé was named in a class action lawsuit filed by eight former child slaves from Mali
Mali (; ), officially the Republic of Mali,, , ff, 𞤈𞤫𞤲𞥆𞤣𞤢𞥄𞤲𞤣𞤭 𞤃𞤢𞥄𞤤𞤭, Renndaandi Maali, italics=no, ar, جمهورية مالي, Jumhūriyyāt Mālī is a landlocked country in West Africa. Mali ...
who alleged that the company aided and abetted their enslavement on cocoa plantations in Ivory Coast
Ivory Coast, also known as Côte d'Ivoire, officially the Republic of Côte d'Ivoire, is a country on the southern coast of West Africa. Its capital is Yamoussoukro, in the centre of the country, while its largest city and economic centre is ...
. The suit accused Nestlé (along with Barry Callebaut
Barry Callebaut is a Belgian-Swiss cocoa processor and chocolate manufacturer, with an average annual production of 2.3 million tonnes of cocoa & chocolate (fiscal year 2021/2022).
It was created in 1996 through the merging of the Belgian ...
, Cargill
Cargill, Incorporated, is a privately held American global food corporation based in Minnetonka, Minnesota, and incorporated in Wilmington, Delaware. Founded in 1865, it is the largest privately held corporation in the United States in ter ...
, Mars Incorporated
Mars, Incorporated is an American multinational manufacturer of confectionery, pet food, and other food products and a provider of animal care services, with US$40 billion in annual sales in 2021.
Mars was ranked as the fourth-largest privat ...
, Olam International
Olam International is a major food and agri-business company, operating in 60 countries and supplying food and industrial raw materials to over 20,900 customers worldwide. Its value chain includes farming, origination, processing and distributi ...
, The Hershey Company
The Hershey Company, commonly known as Hershey's, is an American multinational company and one of the largest chocolate manufacturers in the world. It also manufactures baked products, such as cookies and cakes, and sells beverages like milksh ...
, and Mondelez International
Mondelez International, Inc. ( ), often styled Mondelēz, is an American multinational confectionery, food, holding and beverage and snack food company based in Chicago. Mondelez has an annual revenue of about $26 billion and operates in ...
) of knowingly engaging in forced labor, and the plaintiffs sought damages for unjust enrichment, negligent supervision, and intentional infliction of emotional distress. The lawsuit was dismissed in June 2021 by the Supreme Court of the United States
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...
.
Anti-union activities in Colombia
Nestlé has been involved in extensive union-busting
Union busting is a range of activities undertaken to disrupt or prevent the formation of trade unions or their attempts to grow their membership in a workplace.
Union busting tactics can refer to both legal and illegal activities, and can range ...
activity in Colombia since it first arrived there. According to a spokesman for Sinaltrainal, the Colombian Foodworkers Union: "Nestlé converts the factories into camps for the public security forces in order to create terror in the community, destroy the unity of the workers, and misinform the members of the union, with the goal of pitting them against the leaders and destroying the movement."
Water
Status of potable water
At the second World Water Forum
The World Water Forum (WWF) is an event focusing on perceived issues surrounding water. It is organized by the World Water Council and Global Water Partnership and takes place every three years.
Aim
World Water Forum aims to:
:* Raise awareness ...
in 2000, Nestlé and other corporations persuaded the World Water Council
The World Water Council (WWC), also known as the Conseil Mondial de l'Eau (CME), is an international think tank. It was founded in 1996, with its headquarters in Marseille, France. It has 358 members (as of February 2020) which encompass organisa ...
to change its statement so as to reduce access to drinking water from a "right" to a "need". Nestlé continues to take control of aquifer
An aquifer is an underground layer of water-bearing, permeable rock, rock fractures, or unconsolidated materials (gravel, sand, or silt). Groundwater from aquifers can be extracted using a water well. Aquifers vary greatly in their characterist ...
s and bottle their water for profit. Peter Brabeck-Letmathe
Peter Brabeck-Letmathe (born 13 November 1944) is an Austrian businessman. He is the chairman emeritus, former chairman and CEO of the Nestlé Group, and former chairman of Formula One.
Early life
Brabeck-Letmathe was born in Villach, Austria, i ...
, chairman of Nestlé, later changed his statement, saying in a 2013 interview, "I am the first one to say water is a human right." In that same interview, he claimed that it was the "primary responsibility of every government" to provide 30 litres of water a day to citizens.
Plastic bottles
A coalition of environmental groups filed a complaint against Nestlé to the Advertising Standards of Canada after Nestlé took out full-page advertisements in October 2008 with messages claiming, "Most water bottles avoid landfill sites and are recycled", "Nestlé Pure Life
Nestlé Pure Life is a brand of bottled water from Nestlé Waters globally and BlueTriton Brands in North America. The brand was first established in 1998 in Pakistan and is now available in 21 countries in Asia, the Americas, Africa, and Europ ...
is a healthy, eco-friendly choice", and, "Bottled water is the most environmentally responsible consumer product in the world." A spokesperson from one of the environmental groups stated: "For Nestlé to claim that its bottled water product is environmentally superior to any other consumer product in the world is not supportable." In their 2008 Corporate Citizenship Report, Nestlé themselves stated that many of their bottles end up in the solid-waste stream, and that most of their bottles are not recycled. The advertising campaign has been called greenwashing
Greenwashing (a compound word modeled on "whitewash"), also called "green sheen", is a form of advertising or marketing spin in which green PR and green marketing are deceptively used to persuade the public that an organization's products, aims ...
. Nestlé defended its ads, saying that they will show they have been truthful in their campaign.
Water bottling operations in California, Oregon and Michigan
Considerable controversy has surrounded Nestlé's bottled water brand, Arrowhead
An arrowhead or point is the usually sharpened and hardened tip of an arrow, which contributes a majority of the projectile mass and is responsible for impacting and penetrating a target, as well as to fulfill some special purposes such as sign ...
, sourced from wells alongside a spring in Millard Canyon situated in a Native American Reservation at the base of the San Bernardino Mountains
The San Bernardino Mountains are a high and rugged mountain range in Southern California in the United States. Situated north and northeast of San Bernardino and spanning two California counties, the range tops out at at San Gorgonio Mountain ...
in California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
. While corporate officials and representatives of the governing Morongo tribe have asserted that the company, which started its operations in 2000, is providing meaningful jobs in the area and that the spring is sustaining current surface water flows, a number of local citizen groups and environmental action committees have started to question the amount of water drawn in the light of the ongoing drought, and the restrictions that have been placed on residential water use. Additionally, recent evidence suggests that representatives of the Forest Service failed to follow through on a review process for Nestlé's permit to draw water from the San Bernardino wells, which expired in 1988. In San Bernardino Nestlé pays the US Forest Service $524 yearly to pump and bottle about 30 million gallons, even during droughts. Peter Gleick, a co-founder of the Pacific Institute
The Pacific Institute for Studies in Development, Environment, and Security is an American non-profit research institute created in 1987 to provide independent research and policy analysis on issues of development, environment, and security, with a ...
, which researches freshwater issues, remarked "Every gallon of water that is taken out of a natural system for bottled water is a gallon of water that doesn't flow down a stream, that doesn't support a natural ecosystem." He also said, "Our public agencies have dropped the ball".
The former forest supervisor Gene Zimmerman has explained that the review process was rigorous, and that the Forest Service "didn't have the money or the budget or the staff" to follow through on the review of Nestlé's long-expired permit. However, Zimmerman's observations and action have come under scrutiny for a number of reasons. Firstly, along with the natural resource manager for Nestlé, Larry Lawrence, Zimmerman is a board member for and played a vital role in the founding of the nonprofit Southern California Mountains Foundation, of which Nestlé is the most noteworthy and longtime donor. Secondly, the Zimmerman Community Partnership Award – an award inspired by Zimmerman's actions and efforts "to create a public/private partnership for resource development and community engagement" – was presented by the foundation to Nestlé's Arrowhead Water
Arrowhead Water, also known as Arrowhead Mountain Spring Water, is a brand of drinking water that is sold in the western United States, particularly in Nevada, Arizona, Utah, Colorado, the Northwest, and in California. It is bottled from 1 ...
division in 2013. Finally, while Zimmerman retired from his former role in 2005, he currently works as a paid consultant for Nestlé, leading many investigative journalists to question Zimmerman's allegiances prior to his retirement from the Forest Service.
In April 2015, the city of Cascade Locks, Oregon
Cascade Locks is a city in Hood River County, Oregon, United States. The city took its name from a set of locks built to improve navigation past the Cascades Rapids of the Columbia River. The U.S. federal government approved the plan for the ...
, and the Oregon Department of Fish and Wildlife
The Oregon Department of Fish and Wildlife (ODFW) is a government agency of the U.S. state of Oregon responsible for programs protecting Oregon fish and wildlife resources and their habitats.
The agency operates hatcheries, issues hunting an ...
, which is using water for a salmon hatchery, applied with the Oregon Water Resources Department to permanently trade their water rights to Nestlé; an action which does not require a public-interest review. Nestlé approached them in 2008 and they had been considering to trade their well water with Oregon's Oxbow Springs water, a publicly owned water source in the Columbia River Gorge National Scenic Area, and to sell the spring water at over 100 million gallons of water per year to Nestlé. The plan has been criticized by legislators and 80,000 citizens. The 250,000-square-foot, $50 million Nestlé bottling plant in Cascade Locks with an unemployment rate of 18.8 percent would have 50 employees and would increase property-tax collections by 67 percent. In May 2016, voters of Hood River County voted 69 percent to 31 percent for the ballot measure to ban large bottling operations in the area, but in Cascade Locks, the one precinct in Hood River County, voters decided against the ballot measure, 58 percent to 42 percent. As a result, the Cascade Locks city council voted 5-to-1 to keep up the fight. Soon after, Governor Kate Brown
Katherine Brown (born June 21, 1960) is an American politician and attorney serving as the 38th governor of Oregon since 2015. A member of the Democratic Party, she served three terms as the state representative from the 13th district of the ...
directed state officials to stop an exchange of water rights that was crucial to the deal, citing fiscal rather than environmental reasons. Nestlé then acknowledged that the exchange "will not be going forward", marking a definite end to the planned bottling operation.
Although a 2005 court settlement gave Nestlé the right to pump 250 gallons per minute (GPM) from a well in unincorporated Osceola Township, Osceola County, Michigan
Osceola Township is a civil township of Osceola County in the U.S. state of Michigan. The population was 943 at the 2020 census.
Geography
According to the United States Census Bureau, the township has a total area of 34.5 square miles (89.3&nb ...
, Nestlé has tried to increase that rate to 400 GPM. Its bottled water is sold under the Ice Mountain Spring label. The local planning commission denied the application to build a booster station to increase the capacity of the pipeline that delivers water to a water truck depot some distance from the town. Local citizens mounted considerable grassroots opposition to the plan, with 55 opponents testifying against the proposal at a meeting attended by almost 500 people in July 2017. The litigation has been costly to the small town, which receives its only compensation from a $200 annual pumping fee. Regarding the 1976 Michigan Safe Drinking Water Act, section 17, a measure precipitated by Nestlé's previous demands, Bill Cobbs, a current Democratic gubernatorial candidate said, "This is wrong -- when this act was written in 1976 it was never intentioned that water would be up for sale." The "David vs. Goliath" situation is drawing increasing national attention. Nestlé approaches water purely as a commodity. In 1994 Helmut Maucher, Nestlé's CEO commented, "Springs are like petroleum. You can always build a chocolate factory. But springs you have or you don't have." His successor, Peter Brabeck-Letmathe, was criticized when, in a 2005 documentary, he similarly promoted and rationalized the commodification of water
The commodification of water refers to the process of transforming water, especially freshwater, from a public good into a tradable commodity also known as an economic good. This transformation introduces water to previously unencumbered market ...
, saying: "One perspective held by various NGOs—which I would call extreme—is that water should be declared a human right."[Nestlé makes billions bottling water it pays nearly nothing for]
, ''Bloomberg Bloomberg may refer to:
People
* Daniel J. Bloomberg (1905–1984), audio engineer
* Georgina Bloomberg (born 1983), professional equestrian
* Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician and m ...
'', Caroline Winter, 7 September 2017. Retrieved 9 November 2017.
In April 2021, and after many water rights complaints and online petitions against Nestlé, California's Water Resources Control Board told the company that it has to stop unauthorized natural spring water diversions in the San Bernardino Forest.
Chocolate price fixing
In Canada, the Competition Bureau
The Competition Bureau (french: Bureau de la concurrence) is the competition regulator in Canada. It is an independent Canadian law enforcement agency that ensures that markets operate in a competitive, innovative manner.
Headed by the Comm ...
raided the offices of Nestlé Canada (along with those of Hershey Canada and Mars Canada) in 2007 to investigate the matter of price fixing of chocolates. It is alleged that executives with Nestlé (the maker of KitKat, Coffee Crisp, and Big Turk) colluded with competitors in Canada to inflate prices.
The Bureau alleged that competitors' executives met in restaurants, coffee shops, and at conventions, and that Nestlé Canada CEO, Robert Leonidas, once handed a competitor an envelope containing his company's pricing information, saying: "I want you to hear it from the top – I take my pricing seriously."
Nestlé and the other companies were subject to class-action lawsuits for price fixing after the raids were made public in 2007. Nestlé 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.
Ethiopian debt repayment
In 2002, Nestlé demanded that the nation of Ethiopia
Ethiopia, , om, Itiyoophiyaa, so, Itoobiya, ti, ኢትዮጵያ, Ítiyop'iya, aa, Itiyoppiya officially the Federal Democratic Republic of Ethiopia, is a landlocked country in the Horn of Africa. It shares borders with Eritrea to the ...
repay US$6 million of debt to the company at a time when Ethiopia was suffering a severe famine. Nestlé 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. In 2003, Nestlé agreed to accept an offer of US$1.5 million, and donated the money to three active charities in Ethiopia: the Red Cross, Caritas, and UNHCR
The United Nations High Commissioner for Refugees (UNHCR) is a United Nations agency mandated to aid and protect refugees, forcibly displaced communities, and stateless people, and to assist in their voluntary repatriation, local integrati ...
.
Russian-Ukrainian conflict
In August 2015, the Ukrainian
Ukrainian may refer to:
* Something of, from, or related to Ukraine
* Something relating to Ukrainians, an East Slavic people from Eastern Europe
* Something relating to demographics of Ukraine in terms of demography and population of Ukraine
* So ...
TV channel Ukrayina refused to hire a worker of the weekly magazine ''Krayina'', Alla Zheliznyak, as a host of a cooking show because she speaks Ukrainian. The demand to only hire a Russian-speaking host was allegedly set by a sponsor of the show – Nesquik
Nesquik is a brand of food products made by Swiss company Nestlé. In 1948, Nestlé launched a drink mix for chocolate-flavored milk called Nestlé Quik in the United States; this was released in Europe during the 1950s as ''Nesquik''.
Since 1 ...
, which is a brand of Nestlé S.A. Activists of the Vidsich
The сivic movement "Vidsich" ( uk, Відсіч, ''Rebuff'', Russian: Bидсич) is an active Ukrainian nonviolent social movement created in 2010 as a reaction to the policies of then President of Ukraine Victor Yanukovych and his " pro- ...
civil movement held a rally near the office of the company in Kyiv
Kyiv, also spelled Kiev, is the capital and most populous city of Ukraine. It is in north-central Ukraine along the Dnieper, Dnieper River. As of 1 January 2021, its population was 2,962,180, making Kyiv the List of European cities by populat ...
, accusing Nestlé of discriminating against people who speak Ukrainian and supporting the Russification
Russification (russian: русификация, rusifikatsiya), or Russianization, is a form of cultural assimilation in which non-Russians, whether involuntarily or voluntarily, give up their culture and language in favor of the Russian cultur ...
of Ukraine. They also criticised goods sold in Ukraine being manufactured in Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
and threatened a boycott.
Following the 2022 Russian invasion of Ukraine
On 24 February 2022, in a major escalation of the Russo-Ukrainian War, which began in 2014. The invasion has resulted in tens of thousands of deaths on both sides. It has caused Europe's largest refugee crisis since World War II. An ...
which began on 24 February, many international, particularly Western companies pulled out of Russia. Unlike most of its Western competitors, Nestlé was slow to announce any disinvestments or scaling back of its operations in Russia, drawing criticism.
Nestlé employs 7,000 workers in Russia and stated they intend to protect them. Ukraine president Volodymyr Zelensky
Volodymyr Oleksandrovych Zelenskyy, ; russian: Владимир Александрович Зеленский, Vladimir Aleksandrovich Zelenskyy, (born 25 January 1978; also transliterated as Zelensky or Zelenskiy) is a Ukrainian politicia ...
pleaded for a stop of business activities that help finance the Ukraine invasion. Nestlé suspended shipment of non-essential items but continued to produce essential food items in Russia. The company said that "our activities in Russia will focus on providing essential food, such as infant food and medical/hospital nutrition".
Forced labour in Thai fishing industry
At the conclusion of a year-long self-imposed investigation in November 2015, Nestlé disclosed that seafood products sourced in Thailand were produced with forced labour. Nestlé is not a major purchaser of seafood in Southeast Asia, but does some business in Thailand – primarily for its Purina cat food. The study found virtually all US and European companies buying seafood from Thailand are exposed to the same risks of abuse in their supply chains. This type of disclosure was a surprise to many in the industry because international companies rarely acknowledge abuses in supply chains.
Nestlé was expected to launch a year-long program in 2016 focused on protecting workers across its supply chain. The company has promised to impose new requirements on all potential suppliers, train boat owners and captains about human rights, and hire auditors to check for compliance with new rules.
Deforestation
In September 2017, an investigation conducted by NGO Mighty Earth found that a large amount of the cocoa used in chocolate produced by Nestlé and other major chocolate companies was grown illegally in national park
A national park is a nature park, natural park in use for conservation (ethic), conservation purposes, created and protected by national governments. Often it is a reserve of natural, semi-natural, or developed land that a sovereign state dec ...
s and other protected areas in Ivory Coast
Ivory Coast, also known as Côte d'Ivoire, officially the Republic of Côte d'Ivoire, is a country on the southern coast of West Africa. Its capital is Yamoussoukro, in the centre of the country, while its largest city and economic centre is ...
and Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and To ...
. The countries are the world's two largest cocoa
Cocoa may refer to:
Chocolate
* Chocolate
* ''Theobroma cacao'', the cocoa tree
* Cocoa bean, seed of ''Theobroma cacao''
* Chocolate liquor, or cocoa liquor, pure, liquid chocolate extracted from the cocoa bean, including both cocoa butter and ...
producers.
The report documents how in several national parks and other protected areas, 90% or more of the land mass has been converted to cocoa. Less than four percent of Ivory Coast remains densely forested, and the chocolate companies' laissez-faire approach to sourcing has driven extensive deforestation
Deforestation or forest clearance is the removal of a forest or stand of trees from land that is then converted to non-forest use. Deforestation can involve conversion of forest land to farms, ranches, or urban use. The most concentrated d ...
in Ghana as well. In Ivory Coast, deforestation has pushed chimpanzee
The chimpanzee (''Pan troglodytes''), also known as simply the chimp, is a species of great ape native to the forest and savannah of tropical Africa. It has four confirmed subspecies and a fifth proposed subspecies. When its close relative th ...
s into just a few small pockets, and reduced the country's elephant
Elephants are the largest existing land animals. Three living species are currently recognised: the African bush elephant, the African forest elephant, and the Asian elephant. They are the only surviving members of the family Elephantidae an ...
population from several hundred thousand to about 200–400.
Corporate social responsibility program involvements
Nestlé efforts relating to social responsibility programs include:
* World Cocoa Foundation
The World Cocoa Foundation is a non-profit membership organization with 100 member companies, including chocolate manufacturers like Nestlé, The Hershey Company and Mars, Inc. cocoa producers and suppliers such as Barry Callebaut, Olam Intern ...
: In 2000, Nestlé and other chocolate companies formed the World Cocoa Foundation (WCF). The WCF is an international membership organization representing more than 100 member companies across the cocoa value chain. Its goal is to form a sustainable cocoa economy by prioritizing farmers, promoting agricultural and environmental stewardship, and strengthening development in cocoa-growing communities.
* Sustainable Agriculture Initiative: In 2002, Nestlé, Unilever, and Danone created the Sustainable Agriculture Initiative (SAI) Platform, a non-profit organization for sharing knowledge and initiatives for the development and implementation of sustainable agriculture practices involving the different stakeholders of the food chain. The SAI Platform has more than 60 members, which actively share the same view on sustainable agriculture seen as "the efficient production of safe, high-quality agricultural products, in a way that protects and improves the natural environment, the social and economic conditions of farmers, their employees and local communities, and safeguards the health and welfare of all farmed species." The SAI Platform developed (or co-developed) Principles and Practices for sustainable water management at the farm level; recommendations for Sustainability Performance Assessment (SPA); a standardised methodology for the dairy sector to assess green house gas emissions; an Executives Training on Sustainable Sourcing; and many more. One instance of Nestlé's impact on sustainable agricultural practices has been documented in academic literature.
* Creating Shared Value: Creating Shared Value
Creating shared value (CSV) is a business concept first introduced in a 2006 ''Harvard Business Review'' article, ''Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility''. The concept was further expanded i ...
(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, Nestlé adopted the CSV approach, focusing on three areas – nutrition, water and rural development
Rural development is the process of improving the quality life and economic well-being of people living in rural areas, often relatively isolated and sparsely populated areas.
Rural development has traditionally centered on the exploitation of ...
– as these are core to their business activities. Nestlé now publishes an annual progress report on its goals. Nestlé also established the Creating Shared Value Prize, which is awarded every other year with the aim of rewarding the best examples of CSV initiatives worldwide and to encourage other companies to adopt a shared value approach. These initiatives should take a business-oriented approach in addressing challenges in nutrition, water or rural development. The winner can win up to CHF 500,000. Nestlé was an early mover in the shared value space and hosts a global forum, the Creating Shared Value Global Forum.
* Nestlé Cocoa Plan: In October 2009, Nestlé announced "The Cocoa Plan" to get 100 percent of its chocolate portfolio using certified sustainable cocoa. For third-party certification, Nestlé has partnered with UTZ Certified
UTZ, formerly called UTZ Certified, is a program and a label for sustainable farming. The organization was founded as a non-profit in the Netherlands in 2002. The UTZ label is featured on more than 10,000 product packages in over 116 countries. ...
. Many of Nestlé's efforts are focused on the Ivory Coast, where 40 percent of the world's cocoa comes from. The company has developed a higher-yielding, more drought- and disease-resistant cocoa tree; and they have given 3 million of these trees to farmers thus far and plan to give away 12 million of them in total. They are also training farmers in efficient and sustainable growing techniques, which focuses on better farming practices, including pruning trees, pest control (with an emphasis on integrated pest management) and harvesting, as well as caring for the environment. In addition, they have built 23 new schools so far and plan to build 40 in total by 2015. Another part of the plan has been to address child labor. Nestlé says that according to US statistics, there are about 800,000 children who work the cocoa supply chain. Nestlé approached the Fair Labor Association to map out strategies to help curb child labor in the cocoa sector, and these efforts – including community education and the building of schools – have become a focus of the Cocoa Plan.
* Ecolaboration: On 22 June 2009, Nestlé Nespresso and Rainforest Alliance
The Rainforest Alliance is an international non-governmental organization (NGO) with staff in more than 20 countries and operations in more than 70 countries. It was founded in 1987 by Daniel Katz, an American environmental activist, who serves ...
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 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.
* The Nescafé Plan: In 2010, Nestlé launched the Nescafé Plan, an initiative to increase sustainable coffee production and make sustainable coffee farming more accessible to farmers. The plan aims to increase the company's supply of coffee beans without clearing rainforests, as well as using less water and fewer agrochemicals. According to Nestlé, Nescafé will invest 350 million Swiss francs (about $336 million) over the next ten years to expand the company's agricultural research and training capacity to help benefit many of the 25 million people who make their living growing and trading coffee. The Rainforest Alliance and the other NGOs in the Sustainable Agriculture Network will support Nestlé in meeting the objectives of the plan.
* Health care and nutrition product development: In September 2010, Nestlé said that it would invest more than $500 million between 2011 and 2020 to develop health and wellness products to help prevent and treat major ailments like diabetes
Diabetes, also known as diabetes mellitus, is a group of metabolic disorders characterized by a high blood sugar level ( hyperglycemia) over a prolonged period of time. Symptoms often include frequent urination, increased thirst and increased ap ...
, obesity
Obesity is a medical condition, sometimes considered a disease, in which excess body fat has accumulated to such an extent that it may negatively affect health. People are classified as obese when their body mass index (BMI)—a person's we ...
, cardiovascular disease
Cardiovascular disease (CVD) is a class of diseases that involve the heart or blood vessels. CVD includes coronary artery diseases (CAD) such as angina and myocardial infarction (commonly known as a heart attack). Other CVDs include stroke, h ...
, and Alzheimer's. Nestlé created a wholly owned subsidiary, Nestlé Health Science, as well as a research body, the Nestlé Institute of Health Sciences.
* Membership in Fair Labour Association: In 2011, Nestlé started to work with the Fair Labor Association
The Fair Labor Association (FLA) is a non-profit collaborative effort of universities, civil society organizations, and businesses.
It describes its mission as promoting adherence to international and national labor laws.
History
The FLA was ...
(FLA), a non-profit, multi-stakeholder association that works with major companies to improve working conditions in developing countries, to assess labor conditions and compliance risks throughout Nestlé's supply chain
In commerce, a supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products to customers through a distribution system. It refers to the network of organizations, people, acti ...
of hazelnuts and cocoa. On 29 February 2012, Nestlé became the first company in the food industry to join the FLA. Building on Nestlé's efforts under the Cocoa Plan, the FLA will send independent experts to Ivory Coast
Ivory Coast, also known as Côte d'Ivoire, officially the Republic of Côte d'Ivoire, is a country on the southern coast of West Africa. Its capital is Yamoussoukro, in the centre of the country, while its largest city and economic centre is ...
in 2012 and where evidence of child labour is found, the FLA will identify root causes and advise Nestlé how to address them in sustainable and lasting ways. As a Participating Company, Nestlé has committed to ten Principles of Fair Labor and Responsible Sourcing, and to upholding the FLA Workplace Code of Conduct throughout their supply chains, starting with farms.
* Rural Development Framework program: In 2012, Nestlé developed the Rural Development Framework, which supports farmers and cocoa growing communities. It is an investment program aimed at improving infrastructure, increasing access to safe water, address financing and market efficiency gaps, and improving labor conditions.
* Partnership with IFRC: Nestlé has had a long-standing partnership with the International Federation of Red Cross and Red Crescent Societies (IFRC) to increase access to safe water and sanitation in rural communities. In recent years, the partnership has brought clean drinking water and sanitation facilities to 100,000 people in Ivory Coast's cocoa communities. Nestlé committed to contributing five million Swiss francs during 2014–2019 to the IFRC.
* In 2020, Nestlé Waters joined a consortium to boost PET plastic recyclability.
Recognition and awards
* In May 2006, Nestlé's executive board decided to adapt the existing Nestlé 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 Nestlé factories against these standards by 2010. In the meanwhile, many of the Nestlé factories have obtained these certifications.
* In 2010, Nestlé Purina received the Malcolm Baldrige National Quality Award
The Malcolm Baldrige National Quality Award recognizes U.S. organizations in the business, health care, education, and nonprofit sectors for performance excellence. The Baldrige Award is the highest formal recognition of the performance excellen ...
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.
* In March 2011, Nestlé became the first infant formula company to meet the FTSE4Good Index criteria in full.
* In May 2011, Nestlé won the 27th World Environment Center (WEC) Gold Medal award for its commitment to environmental sustainability.
* In September 2011, Nestlé occupied 19th position in the Universum's global ranking of Best Employers Worldwide. According to a survey by Universum Communications, Nestlé was, in 2011, the best employer to work for in Switzerland.
* The International Union of Food Science and Technology
The International Union of Food Science and Technology (IUFoST) ( ) is the global scientific organization and voice for food science and technology representing more than 300,000 food scientists, engineers and technologists through its work in m ...
(IUFoST) honoured Nestlé in 2010 with the Global Food Industry Award.
* On 19 April 2012, ''The Great Place to Work Institute Canada'' mentioned Nestlé Canada Inc. as one of the '50 Best Large and Multinational Workplaces' in Canada (with more than 1,000 employees working in Canada and/or worldwide).
* On 21 May 2012, Gartner
Gartner, Inc is a technological research and consulting firm based in Stamford, Connecticut that conducts research on technology and shares this research both through private consulting as well as executive programs and conferences. Its clients ...
published their annual Supply Chain Top 25, a list with global supply chain
In commerce, a supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products to customers through a distribution system. It refers to the network of organizations, people, acti ...
leaders. Nestlé ranks 18th in the list.
* In 2013, Nestlé retained its number one position in charity Oxfam
Oxfam is a British-founded confederation of 21 independent charitable organizations focusing on the alleviation of global poverty, founded in 1942 and led by Oxfam International.
History
Founded at 17 Broad Street, Oxford, as the Oxford Co ...
's sustainability scorecard and improved its ratings on the issues of land, workers, and climate.
* In 2014, Nestlé received the Henry Spira Corporate Progress Awards for altering its policies and practices to minimize adverse impacts on animals.
* In March 2015, Nestlé ranked second in Oxfam's Behind the Brands scorecard, where the NGO ranks the world's 'Big 10' consumer food and beverage companies on their policies and commitments to improve food security and sustainability. Nestlé assumed the number one ranking for land rights while the company also outperformed its peers on transparency and water.
Books
* ''La stratégie Nestlé'' (Nestlé Strategy), Helmut Maucher
Helmut Oswald Maucher (9 December 1927 – 5 March 2018) was a German businessman. He served as the CEO of Nestlé from June 1990 to June 1997. He joined the company at a young age, completing an apprenticeship at the Nestlé SA factory in Ei ...
, French translation by Monique Thiollet, Maxima Ed., Paris, 1995,
See also
* Big Chocolate
"Big Chocolate" is a business term assigned to multi-national chocolate food producers, akin to the terms "Big Oil," " Big Pharma," and "Big Tobacco".
Definition
According to self-described fair trade proponents including Ghanaian cooperativ ...
* Cerelac
Cerelac is a brand of instant cereal made by Nestlé. The cereal is promoted for infants 6 months and older as a supplement to breast milk when it is no longer the sole item in an infant's diet. Cerelac is not a substitute for breast milk and i ...
* Farfel the Dog
Farfel the Dog is a hound dog ventriloquist's dummy created by Jimmy Nelson. The Farfel character is best known for television commercials for Nestlé's Quik which ran from 1953 to 1965. An original talking Farfel can be seen at the Chocolate E ...
* Nestlé Smarties Book Prize
The Nestlé Children's Book Prize, and Nestlé Smarties Book Prize for a time, was a set of annual awards for British children's books that ran from 1985 to 2007. It was administered by BookTrust, an independent charity that promotes books and ...
* Nestlé Tower
St George's House (also known as the Nestlé Tower or Nestlé Block) is a office tower located in Croydon, United Kingdom. It was occupied by the Swiss multinational food and consumer goods company Nestlé as the headquarters of Nestlé UK & ...
* Ultra-processed food
Ultra-processed foods, also referred to as ultra-processed food products (UPP), are food and drink products that have undergone specified types of food processing, usually by transnational and other very large ' Big food' corporations. These f ...
; Competitors
* Danone
Danone S.A. () is a French multinational corporation, multinational food-products corporation based in Paris. It was founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of t ...
* Ferrero SpA
Ferrero SpA (), more commonly known as Ferrero Group or simply Ferrero, is an Italian multinational company with headquarters in Alba, Italy. manufacturer of branded chocolate and confectionery products, and the second biggest chocolate producer ...
* Kellogg's
* Kraft Heinz
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American multinational food company formed by the merger of Kraft Foods and Heinz co-headquartered in Chicago and Pittsburgh. Kraft Heinz is the third-largest food and beverage ...
* Mars, Incorporated
Mars, Incorporated is an American multinational manufacturer of confectionery, pet food, and other food products and a provider of animal care services, with US$40 billion in annual sales in 2021.
Mars was ranked as the fourth-largest priva ...
* Mondelez International
Mondelez International, Inc. ( ), often styled Mondelēz, is an American multinational confectionery, food, holding and beverage and snack food company based in Chicago. Mondelez has an annual revenue of about $26 billion and operates in ...
* PepsiCo
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manuf ...
* Unilever
Unilever plc is a British multinational consumer goods company with headquarters in London, England. Unilever products include food, condiments, bottled water, baby food, soft drink, ice cream, instant coffee, cleaning agents, energy drink, t ...
References
External links
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