World Library  
Flag as Inappropriate
Email this Article


Article Id: WHEBN0000160227
Reproduction Date:

Title: Nestlé  
Author: World Heritage Encyclopedia
Language: English
Subject: List of chocolate bar brands, List of breakfast cereals, Gerber Products Company, List of candies, Libby's
Collection: 1866 Establishments in Switzerland, Brand Name Beverage Products, Breakfast Cereal Companies, British Royal Warrant Holders, Chocolate Companies, Companies Established in 1866, Companies Formerly Listed on the London Stock Exchange, Companies Formerly Listed on the Tokyo Stock Exchange, Companies Listed on the Pink Sheets, Companies Listed on the Six Swiss Exchange, Dairy Products Companies, Dairy Products Companies of Switzerland, Food Companies of Switzerland, Household Brands, Multinational Companies Headquartered in Switzerland, Multinational Food Companies, Nestlé, Swiss Confectionery, Vevey
Publisher: World Heritage Encyclopedia


Nestlé S.A.
Société Anonyme
Traded as SIX: NESN
Euronext: NESTS
BSE: 500790
Industry Food processing
Founded Anglo-Swiss Condensed Milk Company (1866)
Farine Lactée Henri Nestlé (1867)
Nestlé and Anglo-Swiss Condensed Milk Company (1905)
Founder Henri Nestlé, Charles Page, George Page
Headquarters Vevey, Vaud, Switzerland
Area served
Key people
Peter Brabeck-Letmathe (Chairman)
Paul Bulcke (CEO)
François-Xavier Roger (CFO)
Products Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods (list...)
Revenue Decrease CHF 91.6 billion (2014)[1]
Decrease CHF 14.0 billion (2014)[1]
Profit Increase CHF 14.5 billion (2014)[1]
Total assets Increase CHF 133.45 billion (2014)[2]
Total equity Increase CHF 71.88 billion (2014)[2]
Number of employees
339,000 (2014)[1][3]
Website .com.nestlewww

Nestlé S.A. (French pronunciation: ​; English , , ) is a Swiss transnational food and beverage company headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the world measured by revenues,[4][5] and ranked #72 on the Fortune Global 500 in 2014.[6]

Nestlé’s products include baby food, 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 CHF1 billion (about US$1.1 billion),[7] including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer’s, Vittel, and Maggi. Nestlé has 447 factories, operates in 194 countries, and employs around 339,000 people.[1] It is one of the main shareholders of L’Oreal, the world’s largest cosmetics company.[8]

Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri Nestlé (born Heinrich Nestle). The company grew significantly during the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infant formula products. The company has made a number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, and Gerber in 2007.

Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market Index. It has a secondary listing on Euronext. In 2011, Nestlé was listed No. 1 in the Fortune Global 500 as the world’s most profitable corporation.[9] With a market capitalisation of US$239.6 billion, Nestlé ranked No. 11 in the FT Global 500 2014.[10]


  • History 1
  • Products 2
  • Corporate affairs 3
  • Joint ventures 4
  • Safety of food products 5
    • Maggi noodles 5.1
    • Milk products and baby food 5.2
    • Cookie 5.3
  • Sponsorships 6
  • Controversy and criticisms 7
  • Corporate social responsibility 8
  • Recognition and awards 9
  • Bibliography 10
  • See also 11
  • Notes and references 12
  • External links 13


Nestlé’s origins date back to 1866, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States.

In August 1867, Charles (US consul in Switzerland) and George Page, two brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Their first British operation was opened at Chippenham, Wiltshire, in 1873.[11]

A 1915 advertisement for "Nestlés Food", an early infant formula

In September 1866, in Vevey, Henri Nestlé developed milk-based baby food, and soon began marketing it. The following year saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process. Nestlé was the crucial co-operation that Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew. Henri Nestlé retired in 1875 but the company, under new ownership, retained his name as Société Farine Lactée Henri Nestlé.

In 1877, Anglo-Swiss added milk-based baby foods to their products; in the following year, the Nestlé Company added condensed milk to their portfolio, which made the firms direct and fierce rivals.

In 1904, François-Louis Cailler, Charles Amédée Kohler, Daniel Peter and Henri Nestlé participated in the creation and development of Swiss chocolate, marketing the first chocolate - milk Nestlé.[12]

In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company and retaining that name until 1947, when the name ‘Nestlé Alimentana SA’ was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA, of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. 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 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.

Nestlé felt the effects of the Second World War immediately. Profits dropped from US$20 million in 1938, to US$6 million in 1939. Factories were established in developing countries, particularly in Latin America. Ironically, the war helped with the introduction of the company’s newest product, Nescafé ("Nestlé’s Coffee"), which became a staple drink of the US military. Nestlé’s production and sales rose in the wartime economy.

The logo that Nestlé used until 1966.

After the war, 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.

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, a manufacturer of seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby’s (1971) and Stouffer’s (1973). Diversification came with a shareholding in L’Oreal in 1974. In 1977, Nestlé made its second venture outside the food industry, by acquiring Alcon Laboratories Inc.

In the 1980s, Nestlé’s improved bottom line which allowed the company to launch a new round of acquisitions. Carnation was acquired for $3 billion in 1984 and brought the evaporated milk brand, as well as Coffee-Mate and Friskies to Nestlé. The confectionery company Rowntree Mackintosh was acquired in 1988 for $4.5 billion, which brought brands such as Kit Kat, Smarties and Aero.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in February 2007.

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), Spillers Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002 – in June, Nestlé merged its US ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time-frame, Nestlé entered in a joint bid with Cadbury and came close to purchasing the iconic American company Hershey's, one of its fiercest confectionery competitors, but the deal eventually fell through.[13] Another recent purchase included the Jenny Craig weight-loss program, for US$600 million.

Nestlé sold the Jenny Craig business unit to North Castle Partners in 2013.[14]

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.[15] In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for US$2.5 billion, also acquiring, in 2007, the milk-flavoring product known as Ovaltine.

In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer Gerber for $5.5 billion.[16][17][18] In December 2007, Nestlé entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini.[19]

Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the world’s largest eye-care company.[20] On 1 March 2010, Nestlé concluded the purchase of Kraft Foods's North American frozen pizza business for $3.7 billion.

In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about $1.7 billion.[21] On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s infant-nutrition, formerly Wyeth Nutrition, unit for $11.9 billion, topping a joint bid from Danone and Mead Johnson.[22][23][24]

In February 2013, Nestlé Health Science bought Pamlab, which makes highdose vitamin supplements targeting depression, diabetes and Alzheimer’s.[25]

In February 2014, Nestlé sold its PowerBar sports nutrition business to Post Holdings, Inc.[26] Later, in November 2014, Nestlé announced that it was exploring strategic options for its frozen food subsidiary, Davigel.[27]

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-based solutions for gastrointestinal conditions.[28]

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 spend 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 and Bank of America.[29]


Nestlé has 64 brands,[1] with a wide range of products across a number of markets, including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food.[1]

Corporate affairs

Japan headquarters

Nestlé is the biggest food company in the world, with a market capitalisation of roughly 231 billion Swiss francs, which is more than 247 billion US dollars as of May 2015.[30]

In 2014, consolidated sales were CHF 91.61 billion and net profit was CHF 14.46 billion. Research and development investment was CHF 1.63 billion.[31]

  • Sales per category in CHF [1][3]
    • 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 petcare
    • 9.6 billion confectionary
    • 6.9 billion water
  • Percentage of sales by geographic area breakdown [1][3]
    • 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 1–100.[32]

Joint ventures

Joint ventures include:

Safety of food products

Maggi noodles

In May 2015, Food Safety Regulators from the Uttar Pradesh, India found that samples of Nestlé's leading noodles Maggi had up to 17 times beyond permissible safe limits of lead in addition to monosodium glutamate.[39][40][41][42]

On 3 June 2015, New Delhi Government banned the sale of Maggi in New Delhi stores for 15 days because it found lead and monosodium glutamate in the eatable beyond permissible limit.[43] The Gujarat FDA on 4 June 2015 banned the noodles for 30 days after 27 out of 39 samples were detected with objectionable levels of metallic lead, among other things.[44] Some of India's biggest retailers like Future Group, Big Bazaar, Easyday and Nilgiris have imposed a nationwide ban on Maggi.[45] Thereafter multiple state authorities in India found unacceptable amount of lead and it has been banned in more than 5 other states in India.[46] On 5 June 2015, Food Safety and Standards Authority of India (FSSAI) orders banned all nine approved variants of Maggi instant noodles from India, terming them "unsafe and hazardous" for human consumption.[47] In June 2015 Nepal indefinitely banned Maggi over concerns about lead levels in the product.[48] On the same day Food Safety Agency, United Kingdom has launched an investigation to find levels of lead in Maggi.[49] Maggi noodles has been withdrawn in five African nations- Kenya, Uganda, Tanzania, Rwanda and South Sudan by a super-market chain after a complaint by the Consumer Federation of Kenya, as a reaction to the ban in India.[50]

On 3 June 2015, Nestlé India's shares fell down 11% due to the incident.[51] Continuously on the second day, Nestlé's share fell down by 3% over concerns related to its safety standards.[52]

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.[53] The 6,400 million rupee suit was filed with the National Consumer Disputes Redressal Commission (NCDRC), regarded as the country's top consumer court, but was settled on 13 August 2015.[54] The court ruled that the government ban on the Nestlé product was both "arbitrary" and had violated the "principles of natural justice."[55] Although Nestlé was not ordered to pay the fine requested in the government's suit, the court ruled that the Maggi noodle producers must "send five samples from each batch of Maggi [noodles] 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.[56]

Milk products and baby food

Nestlé's baby food product Nan-Pro has also been found to contain "live larvae" in India.[57] In another incident weevils and fungus were found in Cerelac baby food.[58][59]

In late September 2008, the Hong Kong government found melamine in a Chinese-made Nestlé milk product. Six infants died from kidney damage, and a further 860 babies were hospitalised.[60][61] The Dairy Farm milk was made by Nestlé's division in the Chinese coastal city Qingdao.[62] 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".[63]

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. [64]

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 will work closely with authorities to help provide the scientific foundation for food-safety policies and standards. Support will include early management of food-safety issues and collaboration with local universities, research institutes and government agencies on food-safety. [65]


In June 2009, an outbreak of E. coli O157:H7 was linked to Nestlé's refrigerated cookie dough 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.[66]



In 1993, plans were made to update and modernise the overall tone of Walt Disney's EPCOT Center, including a major refurbishment of The Land pavilion. Kraft Foods 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.[67] 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’s withdrawal from the Land dates back from 2009.[68]

Music festivals

On 5 August 2010, Nestlé and the Beijing Music Festival 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.[69]

Nestlé has partnered the prestigious Salzburg Festival in Austria for 20 years. In 2011, Nestlé renewed its sponsorship of the Salzburg Festival until 2015.[70]

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.[71]


Nestlé's sponsorship of the

  • Official website
  • Singapore website
  • Article on ownership structure of Nestlé and L'Oréal
  • Nestlé Logo: Design, History and Evolution
  • Text of the Cocoa Protocol

External links

  1. ^ a b c d e f g h i
  2. ^ a b
  3. ^ a b c Jobs Nestlé, global info
  4. ^ "Nestlé's Brabeck: We have a "huge advantage" over big pharma in creating medical foods", CNN Money, 1 April 2011
  5. ^ "Nestlé: The unrepentant chocolatier", The Economist, 29 October 2009. Retrieved 17 May 2012
  6. ^ 2014 Fortune Global 500 listing. Retrieved 20 May 2015.
  7. ^ "Nestlé: Tailoring products to local niches" CNN, 2 July 2010.
  8. ^ "Nestlé to Decide on L’Oreal in 2014, Chairman Brabeck Says". Bloomberg, 14 April 2011
  9. ^ "Global 500: Our annual ranking of the world's largest corporations", CNN. Retrieved 20 April 2012
  10. ^ Forbes
  11. ^ 'Other industries', A History of the County of Wiltshire: Volume 4 (1959), pp. 220–253. Retrieved 14 August 2010
  12. ^ [1]
  13. ^
  14. ^
  15. ^
  16. ^
  17. ^ Media releases Archived 29 July 2013 at the Wayback Machine
  18. ^
  19. ^ (Press release) Nestlé enters into strategic partnership with Belgian luxury chocolate maker Pierre Marcolini. Nestlé retrieved from it 23 March 2011.
  20. ^
  21. ^
  22. ^ "Nestlé to Acquire Pfizer Baby Food Unit for $11.9 Billion". Bloomberg, 23 April 2012
  23. ^
  24. ^
  25. ^
  26. ^
  27. ^
  28. ^
  29. ^
  30. ^ Forbes list of world's top companies Retrieved 20 May 2015.
  31. ^ MarketWatch page on Nestle S.A. ADS Retrieved 20 May 2015.
  32. ^
  33. ^ [2]
  34. ^ [3]
  35. ^ "Nestlé plans chilled dairy improvement with Lactalis venture", Dairy Reporter, 16 December 2005.
  36. ^ "Nestlé and Colgate-Palmolive bite into mouth market",, 11 December 2003.
  37. ^
  38. ^ "Snow Brand times thawing with Nestlé joint venture", Food Navigator, 24 January 2001.
  39. ^
  40. ^
  41. ^
  42. ^
  43. ^
  44. ^
  45. ^
  46. ^
  47. ^
  48. ^
  49. ^
  50. ^
  51. ^
  52. ^
  53. ^
  54. ^
  55. ^
  56. ^
  57. ^
  58. ^
  59. ^
  60. ^
  61. ^
  62. ^
  63. ^
  64. ^
  65. ^
  66. ^
  67. ^ Pendleton, Jennifer (23 November 1993) Rich deal for Disney, Nestlé", Variety
  68. ^
  69. ^ "Nestlé continues sponsorship of the Beijing Music Festival",, 6 August 2010
  70. ^ "Nestlé extends Salzburg Festival partnership until 2015", Nestlé, 5 October 2011
  71. ^ [4]
  72. ^ "Nestlé confirms sponsorship renewal of Tour de France"
  73. ^ [5]
  74. ^
  75. ^ "IAAF, Nestlé becomes main sponsor of worldwide IAAF Kids' Athletics", 27 January 2012
  76. ^
  77. ^ Campaigners website stating their claims
  78. ^
  79. ^
  80. ^ Bernstein, Adam. "Ernest W. Lefever dies at 89; founder of conservative public policy organization", Los Angeles Times, July 31, 2009. Accessed August 3, 2009.
  81. ^
  82. ^
  83. ^
  84. ^
  85. ^
  86. ^
  87. ^
  88. ^
  89. ^ a b
  90. ^
  91. ^
  92. ^
  93. ^
  94. ^
  95. ^ a b c d
  96. ^ a b
  97. ^ a b c
  98. ^ a b
  99. ^ a b c
  100. ^ Little oversight as Nestlé taps Morongo reservation water, The Desert Sun.July 12, 2014. Retrieved July 15, 2015.
  101. ^
  102. ^
  103. ^ a b
  104. ^
  105. ^
  106. ^
  107. ^
  108. ^ Bottled Water and the Drought: The Center of Debate over Water Policy in Oregon and California Hydrowonk Blog. An Open Intellectual Marketplace for the Water Industry.Retrieved July 15, 2015.
  109. ^ На канал Ахметова не взяли україномовну ведучу (Ukrainian). depo. 14.08.2015
  110. ^ На украинский канал не взяли ведущую, потому что она не говорит по-русски (Russian). Dusya. Telekrytyka. 13.08.2015
  111. ^ У Києві чоловік у масці кролика з автоматом протестував проти русифікації телепростору (Ukrainian). zik. 19.08.2015
  112. ^ Nestlé - спонсор русифікації України (Ukrainian). Vidsich. 10.09.2015
  113. ^ "World Cocoa Foundation"
  114. ^ a b "Sustainable Agriculture Initiative Platform"
  115. ^ 20(3):37.Ecology and SocietyPetr Matous (2015) Social networks and environmental management at multiple levels: soil conservation in Sumatra.
  116. ^ "Reuters - Nestle head emphasizes profiting from doing good"
  117. ^ "Green Biz - 6 steps to create shared value in your company"
  118. ^ "Pro Bono Australia - Global Shared Value Prize on Offer"
  119. ^ "UK Fundraising - Entries open for CHF 500k Nestlé Creating Shared Value Prize"
  120. ^ a b "Mother Nature Network - What does the 'Cocoa Plan' label on chocolate mean?"
  121. ^ "The Rainforest Alliance and Nestlé Nespresso Announce Advances in Quest for Sustainable Quality Coffee", Rain Forest Alliance, 22 June 2009. Retrieved 18 May 2012
  122. ^ "Rainforest Alliance Joins Nestlé in Plan to Transform Coffee Farming"
  123. ^ "Nestlé to Expand Business in Health Care Nutrition", New York Times, Matthew Saltmarsh, 27 September 2010
  124. ^
  125. ^ "Confectionery News - Nestlé promises action to improve women’s lives on cocoa farms"
  126. ^ "Connective Impact - How the Global Food Sector Can Solve Our Food Security Crisis"
  127. ^ "IFRC and Nestlé renew partnership to support water and sanitation programmes"
  128. ^ "Nestlé Pledges to Improve Farm Animal Welfare"
  129. ^ "Nestlé Targets Worldwide Registration of All Plants to ISO 14001, OHSAS 18001", Quality Digest, 24 March 2010
  130. ^ "Nestlé Purina Receives Malcolm Baldrige Award", Supermarket News, 15 December 2010
  131. ^ "Providing Context to the 2012 Nestlé FTSE4Good BMS Verification"
  132. ^ "Top 20 Worlds’ Best Employers", 7 October 2011 Archived 28 April 2015 at the Wayback Machine
  133. ^ "Nestlé best employer in Switzerland: survey", The Local, 13 December 2011
  134. ^ "Nestlé wins global food industry award", CSR Europe, 24 August 2010
  135. ^ Nestlé receives top environment award, FinChannel, 24 May 2011 Archived 10 April 2014 at the Wayback Machine
  136. ^ "Nestlé receives top environment award", Nestlé.com, 23 May 2011
  137. ^ 2012 "Best Workplaces in Canada (over 1000 employees)", GreatPlaceToWork, 19 April 2012
  138. ^ "The Gartner Supply Chain Top 25 for 2012", Gartner Group, 21 May 2012
  139. ^ - "Gartner Supply Chain Top 25"
  140. ^ "A Humane Nation - Major Companies Showing the Way on Animal Protection"
  141. ^ - "Behind the Brands - Company Scorecard"
  142. ^

Notes and references


See also

  • La stratégie Nestlé (Nestlé Strategy), Helmut Maucher, French translation by Monique Thiollet, Maxima Ed., Paris, 1995,[142] ISBN 2840010720


  • 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.[129] In the meanwhile a lot of the Nestlé factories have obtained these certifications.
  • Nestlé Purina received in 2010 the Malcolm Baldrige National Quality Award 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.[130]
  • In March 2011, Nestlé became the first infant formula company to meet the FTSE4Good Index criteria in full.[131]
  • In September 2011, Nestlé occupied 19th position in the Universum's global ranking of Best Employers Worldwide.[132] According to a survey by Universum Communications Nestlé was in 2011 the best employer to work for in Switzerland.[133]
  • The International Union of Food Science and Technology (IUFoST) honoured Nestlé in 2010 with the Global Food Industry Award.[134]
  • In May 2011, Nestlé won the 27th World Environment Center (WEC) Gold Medal award for its commitment to environmental sustainability.[135][136]
  • 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).[137]
  • On 21 May 2012, Gartner published their annual Supply Chain Top 25, a list with global supply chain leaders. Nestlé ranks 18th in the list.[138]
  • In September 2012, Nestlé was among the top-scoring companies on the Climate Disclosure Leadership Index (CDLI)
  • In 2013, Nestlé retained its number one position in charity Oxfam’s sustainability scorecard, and improved its ratings on the issues of land, workers and climate.[139]
  • In 2014, Nestlé received the Henry Spira Corporate Progress Awards for altering its policies and practices to minimize adverse impacts on animals.[140]
  • 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.[141]

Recognition and awards

In 2014, Nestlé also made a formal pledge to improve the welfare of farm animals across its global supply chain. The company signed an international partnership agreement with World Animal Protection to help them tighten and improve their welfare guidelines and commissioned an independent auditor, SGS, to carry out check to ensure these new standards of animal welfare are met on its supplying farms.[128]

Farm Animal Welfare

In 2014, Nestlé renewed its long-standing partnership long 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 has committed to contributing five million Swiss francs over the next five years to the IFRC.[127]

Partnership with IFRC

In 2012, Nestlé developed the Rural Development Framework, which supports farmers and cocoa growing communities.[125] It is an investment program aimed at improving infrastructure, increasing access to safe water, address financing and market efficiency gaps and improving labor conditions.[126]

Rural Development Framework

On 29 February 2012, Nestlé became the first food company to join the FLA. Building on Nestlé's efforts under the Cocoa Plan, the FLA will send independent experts to Ivory Coast 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.[124]

In 2011, Nestlé started to work with the Fair Labor Association (FLA), a non-profit, multi-stakeholder association that works with major companies to improve working conditions in their supply chains.

Member of Fair Labour Association

In September 2010, Nestlé announced to invest more than $500 million between 2011 and 2020 to develop health and wellness products to help prevent and treat major ailments like diabetes, obesity, cardiovascular disease and Alzheimer’s, which are placing an increasing burden on governments at a time when budgets are being squeezed. Nestlé created a wholly owned subsidiary, Nestlé Health Science, as well as a research body, the Nestlé Institute of Health Sciences.[123]

Committed to Health Care and Nutrition

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.[122]

The Nescafé Plan

On 22 June 2009, Nestlé Nespresso and Rainforest Alliance 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 the year 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.[121]


Another important part of the plan has been to address child labor. Nestlé says that according to U.S. statistics, there are about 800,000 children who work the cocoa supply chain. With this in mind, 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.[120]

In October 2009, Nestlé announced "The Cocoa Plan." The company is working to get 100 percent of its chocolate portfolio using certified sustainable cocoa. For third-party certification, Nestlé has partnered with UTZ Certified to ensure that best practices are being used. 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 super 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.[120]

Nestlé Cocoa Plan

Nestlé has 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. [118][119]

Nestlé CEO Paul Bulcke describes CSV as follows: “Creating Shared Value, these three words, are the fundamental way we want to behave as a company, and by nature, also as persons; it is the fundamental way we want to go about our activities; it also is linked with the conviction that in order to be meaningful and successful, a company must intersect with society in a very positive and constructive way.”[117]

Nestlé now publishes an annual progress report on its goals.[116]


Creating Shared Value

A case of Nestlé's impact on sustainable agricultural practices has been documented in academic literature.[115]

Among the latest deliverables produced, the SAI Platform developed (or co-developed) Principles and Practices for sustainable water management at 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.[114]

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.”

In 2002 Nestlé, Unilever and Danone created the Sustainable Agriculture Initiative (SAI) Platform, a non-profit organization to facilitate sharing of knowledge and initiatives to support the development and implementation of sustainable agriculture practices involving the different stakeholders of the food chain.

Sustainable Agriculture Initiative

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. It is committed to creating a sustainable cocoa economy by putting farmers first, promoting agricultural & environmental stewardship, and strengthening development in cocoa-growing communities.[113]

World Cocoa Foundation

Corporate social responsibility

In August 2015 Ukrainian TV-channel "Ukrayina" rejected to hire a worker of weekly magazine "Krayina" Alla Zheliznyak as a host of cooking show because she is Ukrainian speaking. The demand to hire only Russian speaking host was allegedly set by the sponsor of the show - "Nesquik", which is a brand of "Nestlé S.A."[109][110] After that activists of civil movement "Vidsich" held an action near the office of the company in Kyiv accusing "Nestlé" in discrimination of Ukrainian speaking and supporting russification of Ukraine.[111] Also they reminded that a part of production of the company which is sold in Ukraine is still manufactured in Russia. Activists threatened to start boycott campaign against "Nestlé" if they will not fulfill the requirements of activists. In September 2015 there were held flashmobs "Russian kills!" against goods of "Nestlé" manufactured in Russia.[112]

Boycott Nestlé products manufactured in Russia (2015)

[108] The Oregon Water Resources Department is expected to issue a proposal in 2015, that would allow Nestlé to utilise spring water for its bottling operation.[107] 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.[106] In April 2015, the city of

Considerable controversy has surrounded Nestlé's bottled water brand 'Arrowhead' sourced from wells alongside a spring in Millard Canyon situated in a Native American Reservation at the base of the San Bernardino Mountains in California. 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.[100] 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.[101][102] 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.[103] 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.[104] 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 division in 2013.[105] 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.[103]

Water bottling operations in California and Oregon (2015)

A coalition of environmental groups filed a complaint against Nestlé to the Canadian Code of Advertising Standards after Nestlé took out full-page advertisements in October 2008 claiming that "Most water bottles avoid landfill sites and are recycled", "Nestlé Pure Life is a healthy, eco-friendly choice" and that "Bottled water is the most environmentally responsible consumer product in the world."[96][97][98] 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."[96] 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.[97][99] The advertising campaign has been called greenwashing.[97][98][99] Nestlé defended its ads, saying they will show they have been truthful in their campaign. [99]

Packaging claims (2008)

Former Nestlé Canada CEO Robert Leonidas is under threat of a criminal charge for his role in the price fixing of chocolates in Canada when he was at the helm of Nestlé Canada from 2006 to 2010.[95]

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.[95]

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."[95]

In Canada, the Competition Bureau raided the offices of Nestlé Canada (along with those of Hershey Canada Inc. and Mars Canada Inc) 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.[95]

Chocolate price fixing (2007)

The 2014 Assessments of Shared Hazelnut Supply Chain In Turkey published by the Fair Labor Association did identified "a total of 46 child workers younger than 15 years" as well as "a total of 83 young workers (between 15 and 18 years of age) working the same hours as adults and performing similar hazardous and strenuous tasks, such as carrying heavy bags of hazelnuts weighing up to 70 kilograms".[94]

The 2010 documentary The Dark Side of Chocolate brought attention to purchases of cocoa beans from Ivorian plantations that use child slave labour. The children are usually 12 to 15 years old, and some are trafficked from nearby countries.[88] The first allegations that child slavery is used in cocoa production appeared in 1998.[89] In late 2000, a BBC documentary reported the use of enslaved children in the production of cocoa in West Africa.[89][90][91] Other media followed by reporting widespread child slavery and child trafficking in the production of cocoa.[92][93] In September 2001, Bradley Alford, Chairman and CEO of Nestlé USA, signed the Harkin–Engel Protocol (commonly called the Cocoa Protocol), an international agreement aimed at ending child labour in the production of cocoa.

In 2005, after the cocoa industry had not met the Harkin–Engel Protocol deadline for certifying the Convention 182) had been eliminated from cocoa production, the International Labor Rights Fund filed a lawsuit in 2005 under the Alien Tort Claims Act against Nestlé and others on behalf of three Malian children. The suit alleged the children were trafficked to Ivory Coast, forced into slavery, and experienced frequent beatings on a cocoa plantation.[84][85] In September 2010, the US District Court for the Central District of California determined corporations cannot be held liable for violations of international law and dismissed the suit. The case was appealed to the US Court of Appeals.[86][87]

Child labour by suppliers (2005)

In 2002, Nestlé demanded that the nation of Ethiopia repay US$6 million of debt to the company. Ethiopia was suffering a severe famine at the time. 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.[82] In 2003, Nestlé agreed to accept an offer of $1.5 million, and donated the money to three active charities in Ethiopia, the Red Cross and Caritas. [83]

Ethiopian debt (2002)

At the second World Water Forum, Nestlé and other corporations persuaded the World Water Council to change its statement so as to reduce access to drinking water from a "right" to a "need." Nestlé chairman and former CEO Peter Brabeck-Letmathe stated that "access to water should not be a public right." Nestlé continues to take control of aquifers and bottle their water for profit.[81]

World Water Forum (2000)

A boycott was launched in the United States on 7 July 1977, against the Swiss-based Nestlé corporation. It spread in the United States, and expanded into Europe in the early 1980s. It was prompted by concern about Nestlé's "aggressive marketing" of infant formula in many of these countries.[80]

Nestlé baby formula boycott

Controversy and criticisms

Nestlé supports the Australian Institute of Sport (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.[76]

On 27 January 2012, the International Association of Athletics Federations 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.[75]

In 2014, Nestlé Waters sponsored the UK leg of the Tour de France through its Buxton Natural Mineral Water brand.[73] In 2002 Nestlé announced it was main sponsor for the Great Britain Lionesses Women's rugby league team for the team's second tour of Australia with its Munchies product.[74]


This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.

Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.