Nestlé commits to health trend
for nutritional products, and will invest heavily in new product
development and brand support in the next few years, investors
heard yesterday.
Even the world's largest food company, it seems, is not immune to the power of the consumer. Increasing demand for healthy products has led to a sharp rise in the number of nutritional foodstuffs being launched in almost every segment of the food industry, and Swiss giant Nestlé is hoping to increase its share of this growing business.
At a meeting of investors yesterday, the dairy, confectionery and bottled water company said that it would make the development of the nutrition business its top priority in the next few years, according to a Dow Jones report.
Nestlé has a strong research and development operation, while the power of its brand name is undeniable, and these two factors combined should allow the company to become a "respected and trustworthy nutrition, health and well-being company", CEO Peter Brabeck told investors at the meeting.
Earlier this year, Laboratoires Innéov, the new joint venture between Nestlé and cosmetics firm L'Oreal, launched its first product in selected European markets.
But nutrition will not be the only area targeted for growth by Nestlé. The coffee brand Nespresso will also be given greater support, and sales are expected to top the SF1 billion mark by 2006. The company's fast food business, essentially the Chef America unit acquired last year, was also a priority for 2003 and beyond.
Investors were also told that Nestlé was hoping to see organic sales growth of 5-6 per cent in the current year, although the strength of the Swiss franc would continue to impact actual growth figures. The Swiss currency is nonetheless expected to weaken over the course of the year, Nestlé said.
