Creating Shared Value
Nestlé articulates its Creating Shared Value approach to business for the first time, and launches its Nestlé Cocoa Plan and Nescafé Plan to further develop sustainable supply chains in cocoa and coffee. While strengthening its position in traditional segments, infant formula and frozen foods, Nestlé strengthens its focus on medical nutrition.
Nestlé articulates its Creating Shared Value approach to doing business, whereby any action for shareholders must also create value for the communities where it operates and wider society. Nestlé acquires weight management business Jenny Craig and Australian breakfast cereals company Uncle Toby’s.
A growing focus on medical nutrition leads Nestlé to the acquire Novartis Medical Nutrition. It also buys baby food company Gerber and Swiss mineral waters concern Sources Minérales Henniez.
Read more: The Gerbers can’t get out of the house!
The first Creating Shared Value Forum in New York brings together experts to discuss global challenges in the areas of nutrition, water and rural development, and the role of business in helping to solve them. The Forum becomes an annual event. Nestlé creates a foodservice business division, named Nestlé Professional from 2009.
Nestlé acquires Kraft Foods’ frozen pizza business. The Nestlé Cocoa Plan and Nescafé Plan are both launched to develop the company’s sustainable supply chains in cocoa and coffee, improve social conditions in farming communities, and ensure their profitability.
Nestlé Health Science and the Nestlé Institute of Health Sciences are established, to research science-based nutritional products aimed at preventing and treating chronic medical conditions. Nestlé becomes the first food company to work with the Fair Labor Association (FLA), to help tackle child labour in the cocoa supply chain.
Nestlé acquires Wyeth Nutrition, formerly Pfizer Nutrition, for USD 11.9 billion, to strengthen its position in infant nutrition.
Nestlé Health Science buys US-based medical foods company Pamlab, which specialises in medical nutrition for patients with conditions including mild cognitive impairment and depression. Weight management business Jenny Craig is sold in America and Oceania.
With the creation of Nestlé Skin Health, Nestlé takes full control of the Galderma dermatology joint venture which it created with L’Oréal in 1981. The companies also end their joint venture Innéov, a cosmetic nutritional supplements business launched in 2002. Galderma subsequently acquires some of its assets.
Nestlé launches Cailler, the oldest surviving Swiss chocolate brand, as its first super-premium global chocolate. French frozen foods business Davigel is sold.