Nestlé News & Features

Nestlé among industry leaders at European Commission President meeting on climate change

Nestlé joined a delegation of corporate leaders in Brussels today for a meeting with the European Commission President to emphasise the importance of environmental responsibility, ahead of the United Nations Climate Change Conference in Copenhagen.

José Lopez, Nestlé Executive Vice President for Operations and Global Business Excellence, and other business leaders from EU companies including Shell, Deutsche Telekom and Ikea, addressed President José Manuel Barroso at a meeting led by The Prince of Wales's EU Corporate Leaders Group on Climate Change (EU CLG), to accentuate the importance of a deal being reached at the UN conference next month. Members of the EU CLG, and companies who have signed The Copenhagen Communiqué, delivered the document to President Barroso.

Originally launched at the UN in September, the Communiqué has been developed by the group to be recognised as the definitive statement from the international business community. In addition, in an open letter sent to President Barroso ahead of the meeting, EU CLG members urged him to make the successful transition to a low carbon economy “the defining feature” in his second term in office.

The group is looking for the EU to do all it can to “retain its leadership position by establishing a short-term global pathway with other developed countries of 30% greenhouse gas emission reductions by 2020, whilst encouraging developing countries to play their part by drawing up far reaching emission reduction plans.” The companies further warned that the low carbon agenda is “under threat” and called for energy and vehicle efficiency targets, greener power generation and better transport infrastructure projects.

José Lopez commented: “Through our sustainability activity, Nestlé aims to stimulate genuine change and positively influence the environmental challenges we face. Over the last 10 years we have reduced our green house gas emissions from manufacturing by 48% per tonne of product and we will continue to make significant improvements in the future. In 2008 we invested CHF 250 million in sustainability related measures, which include improving the energy efficiency of our operations and fostering renewable energy.”

Nestlé Professional boosted by US acquisition

Nestlé Professional North America has announced it will acquire US-based Vitality Foodservice Inc. accelerating its leadership in branded hot and cold non-carbonated beverage solutions within the out-of-home industry.

The transaction – which excludes the Vitality European manufacturing and distribution business – is subject to regulatory approval. The acquisition price has not been disclosed.

Expected to be completed before the end of the year, the acquisition will strengthen Nestlé Professional’s North America division of 900 employees, with 700 Vitality employees who are headquartered in Tampa, Florida. Marc Caira, CEO of Nestlé Professional, said: “Vitality not only complements our business but strengthens our position in North America which will enable us to accelerate growth in this important out-of-home market.”

The Nestlé Professional beverages division provides the commercial and institutional restaurant industry with branded hot and cold non-carbonated drink solutions under brands such as Nescafé, Coffee-mate, Nesquik, Nestea and Nestlé.

Related information:

Press release: Nestlé Professional to acquire Vitality Foodservice
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Nestlé Professional adds France to its international alliance with Ikea

Nestlé Professional has teamed up with Ikea restaurants in France to further extend its strength internationally.

The success of the collaboration between Nestlé Professional’s Davigel food range and the Swedish furniture company’s restaurants has resulted in double digit growth in 2007, further increasing in 2008.

In seeking to maximise the restaurants’ performance with the objective of extending the time consumers spent in Ikea, this included the roll-out of local Davigel signature dishes, vegetarian offers and seasonal local specialties in Ikea’s on-site restaurants.

The restaurant menu offering promoted dishes such as scallop tartar, crisp-bread with goat’s cheese and sun-dried tomatoes as well as organic “poule au pot” – items specifically designed to appeal to younger women, a critically important consumer group for Ikea.

LIGHTER OPTIONS: Scallop cerviche, above, is part of the light menu at Ikea aimed at younger women.

Plans are now in the pipeline to make the seasonal menu a permanent feature in France and to introduce Davigel into other Ikea markets including Spain, Belgium, Italy, Switzerland and Germany. Finally, the day-to-day working partnership also featured direct contact right across the Nestlé Professional operation including food designers, nutritionists, telesales and delivery service personnel in addition to Key Account Managers (KAMs).

Already established on an international level, Nestlé Professional has worked closely with Ikea in China to provide its restaurants with three flavours of Maggi Creamy Soups – mushroom, corn and pumpkin. This solution offered shoppers more variety and choice, as well as a consistent product with a great taste. Also in support of Ikea’s aim to provide their consumers with healthier beverage options, the team developed a complete range of “better-for-you” branded drinks, including Milo, Milk Tea, Sweetened milk, Nestea and Orange C. These food and beverage solutions led to increased restaurant traffic and delivered incremental growth. While in North America, Nestlé Professional specifically created a Stouffer’s organic vegetarian red sauce, meeting the needs and requirements of Ikea which it looks to expand to more restaurants across the United States and Canada.

In addition, Nestlé Professional formed a partnership with Ikea sites in Asia and Europe to offer UTZ-certified Nescafé Santa Rica coffee, which is internationally recognised for its responsible production and sourcing. Nestlé Professional has teamed up with Ikea restaurants in France to further extend its strength internationally. The success of the collaboration between Nestlé Professional’s Davigel food range and the Swedish furniture company’s restaurants has resulted in double digit growth in 2007, further increasing in 2008. In seeking to maximise the restaurants’ performance with the objective of extending the time consumers spent in Ikea, this included the roll-out of local Davigel signature dishes, vegetarian offers and seasonal local specialties in Ikea’s on-site restaurants.

The restaurant menu offering promoted dishes such as scallop tartar, crisp-bread with goat’s cheese and sun-dried tomatoes as well as organic “poule au pot” – items specifically designed to appeal to younger women, a critically important consumer group for Ikea. Plans are now in the pipeline to make the seasonal menu a permanent feature in France and to introduce Davigel into other Ikea markets including Spain, Belgium, Italy, Switzerland and Germany.

Finally, the day-to-day working partnership also featured direct contact right across the Nestlé Professional operation including food designers, nutritionists, telesales and delivery service personnel in addition to Key Account Managers (KAMs). Already established on an international level, Nestlé Professional has worked closely with Ikea in China to provide its restaurants with three flavours of Maggi Creamy Soups – mushroom, corn and pumpkin.

This solution offered shoppers more variety and choice, as well as a consistent product with a great taste. Also in support of Ikea’s aim to provide their consumers with healthier beverage options, the team developed a complete range of “better-for-you” branded drinks, including Milo, Milk Tea, Sweetened milk, Nestea and Orange C. These food and beverage solutions led to increased restaurant traffic and delivered incremental growth. While in North America, Nestlé Professional specifically created a Stouffer’s organic vegetarian red sauce, meeting the needs and requirements of Ikea which it looks to expand to more restaurants across the United States and Canada.

In addition, Nestlé Professional formed a partnership with Ikea sites in Asia and Europe to offer UTZ-certified Nescafé Santa Rica coffee.

Related information:
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Expanding Nestlé’s halal presence in Europe

Expanding Nestlé’s halal presence in Europe

As the leading player in the global halal food market, Nestlé looks set to further expand its halal presence in Europe.

Frits van Dijk, Nestlé Executive Vice President and Zone Director for Asia, Oceania, Africa and Middle East, outlines Nestlé’s role of halal in its global expansion, during the first regional World Halal Forum Europe, on November 17-18 in the Netherlands.
Following on from the 4th World Halal Forum (WHF), which was held in Kuala Lumpur on 4-5 May this year, the “Halal Potential – A Regional Focus” event brings together a number of high-level participants, industry experts, academics and scholars to focus on the potential implications on halal integrity, business and trade.

Mr van Dijk explained that Nestlé is set to increase its supply of ethnic and halal foods in Europe, having already established a strong presence in France, the UK and Germany. With sales of Nestlé’s ethnic and halal foods in Europe reaching CHF 55 million in 2008, the company is aiming to scale up significantly in the coming years.

This will include moving into mainstream retail channels, where at the beginning of 2010 Nestlé will be offering Swiss supermarkets a selection of ethnic products, most of which are halal.

Nestlé’s ethnic business in most European markets is delivered by Nestrade, a global trading company within the Nestlé group. It developed a marketing initiative in 2004 called Taste of Home offering a wider range of ethnic foods sold in ethnic convenience stores, called Mom and Pop stores.

This campaign – which was extended to focus predominantly on halal, with products being sold in almost 1,000 stores in five European countries during Ramadan in September – has seen strong growth of around 50% each year, with double-digit profitability.

Alexander Klein, manager branded products channel development at Nestrade, said: “We felt a strong demand from retailers in broadening their ethnic assortment, and this is a pillar of growth we want to continue to focus on. The Taste of Home concept is designed to speak to both ethnic consumers looking for flavours and products that remind them of home, as well as European consumers looking for interesting and exotic world foods. Of course, providing the reassurance of halal-certification is also vital.”

Halal, which literally means permissible, is a way of living that all Muslims must adhere to. Halal in a food context specifically means food and drink which is allowed under the Islamic Law (Syariah). Many Muslims therefore look for reassurance that all the food they eat is halal, especially processed foods, although this varies between regions and cultures.

Since the 1980s, Nestlé has been offering halal versions of well-known products right across its range of food and beverages, including confectionery such as Kit Kat and Smarties, Maggi soups, Nido and Neslac milk, Milo malted drinks and Nescafé, accounting for 5% of Nestlé’s annual sales, around CHF 5.3 billion.

Of Nestlé’s 456 factories worldwide, 85 have a halal certification with 154 halal-certified production lines situated mainly in Indonesia, South Africa, the Middle East, Turkey and Malaysia – with Malaysia as the Halal Excellence Centre and biggest halal food producer within the Nestlé Group, exporting to more than 50 countries worldwide. Interestingly, 20 of Nestlé’s factories in Europe have halal-certified production lines, for example Nestlé’s Konolfingen factory in Switzerland produces halal-certified Nido milk power for export to South-East Asia.

Nestlé Halal products are labelled with a certification that provides assurance that it is manufactured, imported and distributed under the strictest hygienic and sanitary conditions, in accordance with the Islamic faith.

An Islamic inspection authority such as the Islamic Food and Nutrition Council of America (IFANCA) or the Islamic Food Council of Europe inspects Nestlé factories along with a Nestlé Halal Committee member to ensure that products comply before the halal logo can be used.

Background documents:
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Brabeck backs reducing food insecurity at the Private Sector Forum in Milan

A bold approach to reducing global food insecurity is vital, according to Nestlé Chairman Peter Brabeck-Letmathe.

Speaking at the Private Sector Forum held on November 12 and 13 in Milan, Mr Brabeck-Letmathe is focusing on the plight of ‘reducing food insecurity’ – emphasising that it is not just about taking measures to produce more food, it is also about taking measures that actually change expectations and lead to sound long-term food security.

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The United Nations Food and Agriculture Organisation (FAO), which is working together with the Italian city of Milan and the organisers of the Universal Exposition on the theme ‘Feeding the Planet, Energy for Life’ in 2015, created the Forum to give participants an opportunity to exchange views about the challenges, risks and possible drivers of a future food crisis, while aiming to identify concrete solutions in which companies can contribute. As the largest gathering organised for the private sector by the FAO, this earmarks a new consensus among food officials on the need to generate ideas from this sector.

The FAO estimates that the world will need until 2050 to boost agricultural investment by US$83bn (nearly CHF 84bn) a year to feed a growing population. Most of the money will come from the private sector, from small farmers to big agribusinesses. To address this, Nestlé has announced it will invest more than US$100m (around CHF 110m) over the next decade to farmers in Côte d’Ivoire and Ghana – which together account for 60% of the world’s cocoa output – to supply 38 million higher quality, disease-resistant plants to rejuvenate their farms and increase productivity. The Cocoa Plan, announced in October, aims to help address the key issues facing the cocoa farming communities that Nestlé works with.

At the Forum, Mr Brabeck-Letmathe stressed more needs to be done with a need for a broad strategy. He said: “Whatever the tools, there are high expectations for a strong leadership role from the FAO. There is also a willingness of the private sector to be actively involved and to participate, where it actually can add value.”
He continued: “We have to be aware that the challenge we are facing in the years to come goes far beyond the food insecurity for the one billion people that go hungry to bed. We therefore have to be quite bold when discussing solutions.”

In understanding the long-term economic and social challenges the world faces, Mr Brabeck-Letmathe added that there are five major challenges to overcome long-term global food insecurity. He explained that the first is producing the necessary quantities of basic calories and proteins in a sustainable way, which is also within the restrictions of water and arable land.

INVESTING IN THE FUTURE: A Nestlé agronomist works on disease-resistant high quality cocoa plantlets. 12 million of these will be provided to farmers to ensure a sustainable crop in the future. This initiative is part the Cocoa Plan.

Secondly, Mr Brabeck-Letmathe said it is necessary to generate reliable incomes for farmers, avoiding the approach with increasing subsidies and artificially high prices. Next, he believed that focusing on the affordability of food for low-income consumers is necessary. Highlighting the quality of food, including safety, is also an important role for industry.

Finally, with accessibility – in supplying food at the right time, in the right form, at the right place – is another important task for companies. But more importantly, Mr Brabeck-Letmathe stated that the most important challenge to sustainable production of food is water. In finding ways to overcome an unsustainable use of water in farming, he said: “We as a company were involved from the very beginning, and see a role for private companies with its own efforts and advice within the context of such a strategy.” He added that the second major challenge is being able to provide better and more stable incomes for farmers and rural workers. A solution would include creating a role for private companies to help farmers have access to markets over longer distances, while also maintaining higher value-added products, access to finance and inputs.

Nestlé has focused on these issues head on through its approach to business, Creating Shared Value. The Company has committed to help farmers throughout the world, especially in developing countries, in an effort to improve the global food supply chain.

To date, Nestle works with more than 600,000 farmers providing them with technical assistance to increase production, improve food quality and build rural infrastructure. Also, Nestlé is consistently developing lower-cost food products and distribution systems so that those on lower incomes have greater access to iron and vitamin-fortified products.

Conclusions from the Private Sector Forum will be submitted to the FAO World Summit on Food Security 2009, on November 16-18 in Rome.

Main documents:
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Related information:
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Creating Shared Value: The Cocoa Plan
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Creating Shared Value: Nutritional fortification

Nestlé commits to using certified sustainable palm oil by 2015

SUSTAINABLE PALM OIL: Indonesia and Malaysia produce almost 90% of global supply of palm kernel oil which is used in confectionery, household items such as soap and detergent, and for animal feeding and energy generation.

Nestlé has today announced its commitment to using only Certified Sustainable Palm Oil (CSPO) by 2015, when sufficient quantities are expected to be available.

This follows a detailed review of Nestlé’s palm oil supply chain. Under its policy on Environmental Sustainability, Nestlé has pledged to give preference to suppliers who strive to improve the efficiency and sustainability of their operations and use of resources.

The Company uses palm kernel oil for some of its confectionery and dairy products, but it is not a major raw material used. It also buys processed palm oil and processed oil mixes which often comes from multiple sources. However, Nestlé does not use crude palm oil nor has any direct links to the palm oil plantations and continues to work with suppliers to investigate the traceability of all possible sources of any palm oil used.

Over the last few years, Nestlé has been closely associated with the Roundtable on Sustainable Palm Oil (RSPO), an international non-profit association founded in 2004 to promote the growth and use of sustainable palm oil. Nestlé has now applied for full corporate membership of the RSPO, strengthening its efforts to find an effective multi-stakeholder solution to combat the environmental threat caused by the planting of palm oil plantations in South East Asia. Indonesia and Malaysia produce almost 90% of global supply of palm oil, and in total, global production is about 42 million tonnes. Nestlé uses 0.7% of the global supply (320,000 tonnes).

Palm oil, which is used in producing household items such as soap and detergent, and even for animal feeding and energy generation, is also used as a material from which biofuels are produced. Nestlé has repeatedly spoken out against the production of such fuels from materials used for food.

Contact: Nestlé Corporate Media Relations
Tel.: +41 (0)21 924 22 00
E-mail

Related information:
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Nestlé launches The Cocoa Plan

PLANT EXPERTISE: Supplying farmers with stronger, disease-resistant plantlets as well as knowledge allows them to increase their yield.

Nestlé will invest CHF 460 million over the next 10 years to boost its sustainability initiatives in cocoa and coffee.

Through its pioneering plant science programme, the Company will supply 38 million high quality, disease-resistant plantlets to farmers helping them rejuvenate their farms and increase productivity.

As part of the CHF 460m total boost, Nestlé is announcing the launch of The Cocoa Plan, a new consumer-facing initiative which brings together Nestlé’s activity to promote sustainable cocoa supply under one banner.

Backed by an investment of CHF 110 million over the next decade, !!! Error when processing "TaggedAnchor" field value: Object reference not set to an instance of an object. aims to help address the key issues facing the cocoa farming communities that Nestlé works with. Although The Plan is not a quick fix for the challenging cocoa situation, it is an important and significant part of broad, collaborative efforts to improve the cocoa supply chain and the lives of cocoa farmers and communities.

This includes improving the quantity and quality of yields by providing 12 million stronger productive plantlets and increasing farmer training by teaching more efficient methods. In addition, Nestlé will commit to improve the supply chain in buying beans from farms which use sustainable practices and help cooperatives speed up the process from farm to export.

In working with partner organisations, such as the International Cocoa Initiative and the World Cocoa Foundation, Nestlé also aims to address issues such as child labour and poor access to healthcare and education.

Related information:
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Food security focus on World Food Day

Through Creating Shared Value, Nestlé has taken on a key role of addressing global food security, highlighted as the main theme of the Food and Agriculture Organization's (FAO) World Food Day 2009.

The event focuses on 'Achieving Food Security in Times of Crisis’, emphasises the ongoing problem that more people are suffering from hunger and malnutrition.

In understanding the long-term economic and social challenges the world faces, Nestlé Chairman Peter Brabeck-Letmathe stressed that there are four major obstacles to long-term global food security.

These include protectionism, which affects farmers in the developing world by shutting them out of markets resulting in inflated prices, decreased agricultural productivity, the growing use of biofuels, and the overexploitation of the natural resource water.

Mr Brabeck-Letmathe who spoke at the Foreign Policy Association event in October last year, said: “Comprehensive, sustainable solutions need to be initiated by broader changes in governance, correction of policy mistakes, increased investment in rural development and much more efficient resource utilisation, especially of the most noble of all the resources that there are, which is, of course, water. Only then will we be able to effectively feed the world.”

José Lopez, Nestlé Executive Vice President for Operations and Global Business Excellence, added that together with population growth, availability of resources, especially water and food security, this cannot be solved by governments alone. In tackling these issues, Nestlé has addressed this head on, under its approach to business, Creating Shared Value.

Since 1999, Nestlé has increased its food production volume by 67% while reducing its water withdrawal by around 58% per tonne of product.
In addition, the Company has made it a mission to help farmers throughout the world, especially in developing countries, in an effort to improve the global food supply chain. To date, Nestle works with more than 600,000 farmers providing them with technical assistance to increase production, improve food quality and build rural infrastructure.

Also, Nestlé is consistently developing lower-cost food products and distribution systems so that the lower income people have greater access to iron and vitamin-fortified products.

Mr Brabeck-Letmathe added that it is vital to provide a unified front and concluded: “The fact is that all our efforts, and those of other companies and consumers, will be in vain if all forces of society are not working together in a coordinated manner with one common goal – to effectively feed the world with nutritious food.”

Related information:

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Creating Shared Value

Speech by Peter Brabeck-Letmathe, Chairman, Nestlé SA
Why CEOs are worried about the environment

Article by José Lopez, Executive Vice President, Nestlé SA
Creating Shared Value in food manufacturing - Nestlé's experience

Nestlé Nutrir in Brazil celebrates 10 years of food education

EDUCATING: The Nestlé Nutrir programme teaches children the importance of combining a healthy, balanced diet with exercise.

A decade-long food education programme which has made a successful impact on 1.2 million children in Brazil is being celebrated by Nestlé.

Marking its 10 year anniversary, Nutrir – Nestlé Healthy Kids in Brazil, had been developed to reach out to children and teenagers aged between 5-14 years old from lower-income families. In the fight against malnutrition and obesity – which affects nearly half of the Brazilian population – a variety of games and play activities convey information about hygiene and healthy-eating habits.

Ten years on, since it began in 1999, the initiative has been driven by nearly 11,000 teachers in over 4,200 schools and social organisations in 61 Brazilian cities. Around 7,000 volunteers contribute to the financial support of the scheme, where Nestlé doubles every R$1 donated.

Kizze Fajardo Valente Lima, nutritionist from the Municipal Secretary of Education in Fortaleza, Ceará, responsible for 90 crèches with over 8,000 children, believes that Nutrir's success has been about aligning nutrition while maintaining cultural values. She said: “There are people in charge of preparing the students’ meals at school, but it is also my role, not only in practical terms, but in recreation and valuing their regional culture. As part of Nutrir, I learned to prepare recipes and avoid waste. I teach everything I know to the children. Here they can learn about having a healthy diet.”

In expanding its work, Nutrir has formed alliances with local government partnerships and universities. The Nutrir programme had established food education as a subject within the Brazilian curriculum by providing Nestlé technicians to train nutritionists, teachers and cooks in public schools, while supplying educational materials for the classroom.

Other alliances include working with the UFRN (Rio Grande do Norte University) in Natal and Univale (Universidade do Vale do Itajaí) in Santa Catarina. In addition, in 2007, Nutrir worked with Nipo Brasileiro Hospital – which caters for the low-income population in Osasco – to train nurses and hospital volunteers about Nutrir and working with patients on Nutrir activities.

This was extended to Mexico and Colombia, where a virtual Nutrir programme was introduced. Nutrir forms part of a trio of programmes under the Nestlé Brazil umbrella including Nestlé Faz Bem Cuidar, offering environmental education focusing on water preservation and Nestlé Faz Bem Saber, promoting rural development in low income regions in the country.

Related information:
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Film: Nestlé Nutrir in Brazil.

Commitment to combat iron deficiency in Ecuador with new baby food launch

A new range of toddler food which aims to tackle iron deficiency in Ecuador has been launched.

The unique Gerber ‘Step by Step’ Feeding Plan products, which are fortified with essential vitamins and minerals, are now available for babies aged from six months old.

With this plan, Nestlé’s commitment to meet nutritional needs targets the problem that an estimated 80% of babies under a year old in Ecuador suffer from anaemia due to iron deficiency, according to statistics from a study by the Human Development Bank in 2004.
The Gerber feeding plan forms the basis for Nestlé Nutrition’s Integrated Feeding Plan, in providing a complete menu of nutrients for growing babies.

Related information:
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Nescafé and Milo boost out of home sales growth down under

FAST, EFFICIENT, CONSISTENT: The Nescafé LiquiFresh system guarantees large volumes of diners a fast, fresh cup of coffee.

Nestlé Professional has marked successful growth following its expansion of coffee and malt beverages in Asia, Oceania and Africa.

From coffee in casinos to chilled drinks in quick service restaurants, Nestlé Professional has extended its well-known brands Nescafé and Milo for out-of-home consumption.

Delivering its Nescafé LiquiFresh system to Star City’s Garden Buffet Restaurant, part of Tabcorp Casinos in Australia, Nestlé has accommodated 1,500 guests a day at the 530 seat eatery.

Darren Yeap, beverage manager for Star City Food, said: “Nestlé Professional worked extremely hard at gaining a good understanding of our business and its requirements. Additionally, they proved themselves to be 100% committed to both staff training and providing excellent quality service.”
Providing for its high volumes of coffee drinkers, the system also dispenses hot water for tea lovers.

In using its Branded Machines Business Management System to monitor performance and ensure its high quality, Nestlé Professional successfully met the needs of the Australian high-volume operation. Costs were also reduced, in avoiding brewing big batches of coffee and eliminating difficult cleaning of machinery.

In the same Netslé zone, Nestlé boosted renowned brand Milo in a new healthy Milo flavoured dessert-like-drink named Krusher, at Kentucky Fried Chicken restaurants in South Africa.
In February, KFC piloted the new shake in 12 outlets, which increased the new product sales by nearly 50,000 cups of Krusher.

Following the success of introducing Milo as a cold drink option, KFC is now offering Milo Krusher as a permanent choice on its menu in 535 stores from October 2009.
Sharon Naidoo, representative for Nestlé Professional South Africa, added: “Having spent time at KFC outlets to study consumer behaviours and according to its face-to-face sales assistants, the best and most preferred shake, by far, is the Milo Krusher.”

Related information:
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Business-On-Wheels in the Philippines

Nestlé Professional in the Philippines is building relationships with operators in lower income communities by implementing a new Business-On-Wheels scheme.

Nestlé Professional is a major partner of many out-of-home operators in the Philippines such as hotels, restaurants, offices and school canteens. Until recently, however, it lacked presence in outlets frequented by millions of lower-income consumers such as small-scale eateries in markets and food counters in public transport terminals.

Having identified this gap, Nestlé Professional set out to understand the business and operator needs, resulting in the development of the Business-On-Wheels (BOW) scheme.

The BOW initiative is a dedicated route-to-market model which enables close proximity and direct sales to small-scale operators in the Philippines.

The programme employs individual entrepreneurs, called BOWers (Business-On-Wheelers), to sell Nestlé Professional products direct to eateries. To visit target accounts the BOWers are equipped with motorized tricycles, which are provided on an interest-free loan spread over four years.

A key success factor of the BOW programme is its people. Carefully selected new recruits are paired with high-performing BOWers to gain an understanding of their role in the business. They are then accompanied on their route by a Business Development Officer, who coaches and guides them on account visits.

In the first few months of the programme, BOWers receive a subsidy of PhP 150 a day to ensure that they earn at least the minimum daily wage during this start-up period, as it is presumed that they will fall short of the targets whilst learning the trade. Within three months, they are expected to have opened a good number of new accounts, sell more, hit their targets, and enjoy the projected 5% to 8% net profit from the business.

Since the launch in 2007, monthly sales generated by the BOW model have grown steadily. The street channel now contributes 20% of total Nestlé Professional distributor sales.

Nestlé Professional continues to recruit as the programme is rolled out in additional areas of the country.

Cartoon campaign to push healthy habits led by Nestlé Thailand

EAT SMART, PLAY HARD: Posters in supermarkets are part of a campaign in Thailand to encourage children and parents to exercise and make sensible choices about diet.

A creative cartoon campaign to teach healthy eating habits to youngsters is making an impact following a Nestlé Ice Cream partnership with the Public Health Department in Thailand.

The Eat Smart, Play Hard initiative which is currently running until the end of 2009, includes a 26-episode animation Eat Smart for Kids aired on Thailand’s Channel 7, every Saturday and Sunday at 18h00 for one minute.

Nestlé Ice Cream focused on children aged between 6-12 years old to encourage more health-conscious food choices while promoting better health and well-being. Montha Khongkrurphan, Ice Cream Business marketing manager for Nestlé Thailand, said: “This collaboration has stemmed from our vision and leadership in nutrition and public health, aiming for a better way of life.” Also as part of the campaign, all Nestlé Eskimo ice cream products were revamped to include natural ingredients and repackaged with nutritional information to meet government nutritional standards, following a focus to counteract the nation’s obesity issue two years ago.

She added: “Nestlé strives for quality children’s nutrition products that are formulated to meet nutritional standards, while improving and reformulating ice cream products in the Nestlé Eskimo line to be more nutritionally sound. The ice creams offer a happy and proper dietary choice for youngsters’ snacks.” Sa-nga Damapong, a nutrition expert for the Public Health Department in Thailand, continued: “The key to the success of a balanced diet in children is how parents teach their child to ‘eat smartly and play joyfully’. Parents need to encourage a smart selection of food and fun play for their child.”

Related information:
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EU Pledge

The food industry has significantly altered its advertising targeted at children across the European Union, new research has revealed.
Statistics from the first monitoring report of the EU Pledge – a commitment taken by 11 food manufacturers in December 2007 to change the products they advertise to youngsters under 12 years old – has shown a 93% decline in advertising for products that do not meet companies’ nutritional criteria in programs targeted at children.
In addition, for all EU Pledge member companies’ advertising across all products, a 61% decrease was noted in programmes targeted at children.
Research was conducted by Accenture Media Services in France, Germany, Ireland, Italy, Poland and Spain.

For more information: www.eu-pledge.eu
EU Pledge press release: http://www.eu-pledge.eu/press.php?id=4

Nestlé Japan launches e-shop to promote innovative confectionery

CHOCOLATE SALES GO ONLINE: Nestlé Japan have teamed up with the online retailer Rakuten Ichiba to allow consumers to order their favourite Kit Kat flavours online.

Led by Nestlé Confectionary K.K. (NCKK), the e-shop is hosted by Rakuten Ichiba, the largest internet ‘shopping mall’ in Japan, which boasts over 25,000 virtual shops, 40 million members and sales of JPY 664 billion.

A range of special Kit Kat souvenir gift packs featuring local speciality flavours, including baked potato and sweetcorn, was the first product to be sold in the e-shop at the launch in October 2008.

The next initiative was the launch of the Kit Kat lucky bag in December 2008, achieving number two position in the Rakuten Ichiba sales ranking based on total daily sales.

In addition, a new local premium chocolate brand Fleur de Chocolat is sold on the e-shop, after famous patissier Takagi asked NCKK to produce the product commercially.

Since the beginning of this year, NCKK has launched a series of test-market exercises via the e-shop. In February the premium Nestlé Professional product, Nestlé Truffle au Chocolat Noir was tested for Valentine’s Day. While in March, the Enjoy calorie control pack was introduced as a Nutrition, Health and Wellness initiative.

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Campaign to boost Nestlé Chokella in Turkey during Ramadan

ENJOY THE PLEASURE OF RAMADAN: As dusk falls mobile Chokella teams hand out free pita bread with Chokella chocolate spread.

A Ramadan-focused campaign in Turkey offering Nestlé Chokella during fasting breaks is running throughout the Islamic holy month.

Aiming to reach more than 10 million people, the ‘Enjoy the pleasure of Ramadan with Nestlé Chokella’ initiative has been specifically tailored for the Muslim fasting period which takes place from sunrise to sunset on the ninth month of the Islamic calendar.

The campaign is currently making an impact during Ramadan fasting breaks, where mobile Chokella teams are handing out free Nestlé Chokella chocolate spread inside slices of pita bread at public squares in Istanbul and nearby neighbourhoods.
Branded timetables detailing when fasting begins each day are also being distributed alongside Turkish daily newspapers Posta and Zaman.

New revamped packaging and products costing 20% less, are now on the shelves in pastry shops and bakeries to continue the momentum for the brand after Ramadan ends on September 20.
Devrim Cobek, business executive manager for chocolate and confectionery at Nestlé Turkey, said: “I believe the success of Chokella-Ramadan promotion represents an excellent example of localisation. This Ramadan activity perfectly fits with Chokella’s strategy in being as close as possible to our consumers and being perceived as a local brand.”

As the first chocolate spread introduced in Turkey over 40 years ago, Nestlé Chokella has boasted sales of 1,060 tonnes since the Ramadan campaign began and was named the most popular Nestlé Turkey product during the holy period.

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Boosting broth production with the opening of world's biggest bouillon factory in Shanghai

NEW CHAPTER FOR TOTOLE: The facility in Shanghai sets a new quality standard for the industry and is the 21st Nestlé factory to open in China.

A new state-of-the-art factory which looks set to become the largest bouillon producer in the world has opened in Shanghai.

With an investment of RMB 320 million (over USD $46 million), the Nestlé Totole factory aims to produce more than 100,000 tons of the seasoned broth product known for its catchy and well-known slogan, ‘Totole Makes Life Better’.
Patrice Bula, chief executive officer of the Nestlé Greater China Region, was joined by Rong Yaozhong, founder and general manager of Shanghai Totole Food Ltd at the inauguration on September 5.

Employing 1,500 staff, the factory will be housed at Shanghai’s Jiading Industrial district. Nestlé and Totole joined forces in August 1999 having signed a partnership agreement in Switzerland, where Nestlé acquired an 80% interest in Totole.

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High-tech recycling tracking with launch of new Nestlé Waters premium water brand

Bottled water drinkers can now keep track of their recycling efforts following the launch of a new premium brand by Nestlé Waters North America. Re-source natural spring water, collected from carefully selected natural spring sources using sustainable practices, uses bottles made with 25% recycled plastic and are 100% recyclable.

Currently piloted in 26 US-based Whole Foods Market stores in California and Arizona, customers who use its interactive recycling machines will receive a code to log onto the environmentally-focused social networking site Greenopolis to monitor the recycling process.

As part of the in-store recycling programme – headed by Waste Management and Green Ops – the initiative aims to target 200 participating stores nationally by autumn this year in an effort to boost consumer recycling further.

Monique Mims, senior innovations manager for re-source, said: “Through increased consumer education, incentive-based recycling at retail and demonstration of the valuable uses for recycled plastics; re-source is taking an important first step toward changing consumer behaviour and increasing US recycling rates.”

The bottles, which come in 700 ml and 500 ml sizes, will be used as an education vehicle to the inform consumers about the importance of recycling and how plastic can be reused to create new products such as plastic bottles, fleece, reusable shopping bags and carpet.
As an added incentive to boost recycling, re-source will donate five cents to the national non-profit charity Keep America Beautiful at the recycling stations.

Michael Besancon, senior global vice president of purchasing, distribution and marketing for Whole Foods Market, added: “re-source’s use of recycled plastic in its bottles and innovative in-store recycling pilot programme will increase recycling awareness and give our customers another opportunity to be part of the solution.”

Nestlé Waters North America is the leading bottled water company in the United States with a portfolio of brands including Poland Spring Natural Spring Water, Nestlé Pure Life and San Pellegrino. Headquartered in Greenwich, Connecticut, Nestlé Waters North America has more than 8,000 employees and 24 factories throughout the US and Canada.

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Kit Kat goes veggie

A healthy combination of savoury and sweet comes together in the launch of the new vegetable-infused Kit Kat in Japan.

Nestlé Japan Confectionery K.K. has extended its flavor line with the limited-addition Kit Kat Jujitsu Yasai.

Taking the ingredients of Ito En’s Jujitsu Yasai drink, which is a popular Japanese vegetable beverage that was launched in 1992, the new Kit Kat is packed with healthy ingredients based on the drink, where the white chocolate is flavored with refreshing apple and carrot, while the light wafer and the cream is laced with the Jujitsu Yasai powder.

This latest addition backs the importance of eating vegetables as part of a healthy diet which is celebrated on Vegetable Day on August 31 in Japan.

Established since 1983, the celebration of the health-wise day stemmed from the partnership of nine private organizations including the Japanese federation of vegetables and fruits.

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Names and faces on candy wrappers strengthens Fox’s business in Indonesia

Names and faces of sweet-toothed consumers appeared on Fox’s single-serve candy wrappers following a low-cost and original initiative by Nestlé Indonesia.

Following on the growth of mobile phone ownership, Fox’s consumers were invited to share their own “words of wisdom” with friends across Indonesia.

They were encouraged to send their text by SMS to the Fox marketing team and if judged “inspirational”, messages were then printed along with their names on the packaging of millions of Fox single-serve candies. During the campaign, more than 300,000 text messages were collected.

In May 2008, the website !!! Error when processing "TaggedAnchor" field value: Object reference not set to an instance of an object. (sparklefoxs) was launched, which enabled consumers to submit photos as well as SMS for the candy wrappers campaign. The website has been upgraded to attract more visitors and encourage them to stay longer with new features including social networking functionalities.

Nestlé Australia reveals revamped healthier snack range

ONE SERVE OF FRUIT: With 99% fruit ingredients, Uncle Tobys Fruit Fix makes a truly nutritious snack

A range of popular Nestlé Australia snacks are now available with reduced sugar, fat and artificial color content following a healthy revamp.

Well-known brands including Allen’s lollies, Uncle Tobys, Milo B Smart and Nestlé Smarties have been reformulated and re-launched to meet new nutritional criteria set by the Australian Food and Grocery Council (AFGC).

Keeping in line with the guidelines, the new Allen's lollies now contain 25% less sugar, making it the only range of lollies in Australia with this reduced sugar content and no artificial sweeteners, colors or flavors.

Another new snack, Uncle Tobys Fruit Fix made with 99% fruit ingredients, has been backed by the Heart Foundation with a tick of approval symbol. While children’s favourite Uncle Tobys Roll-Ups made with real fruit now contains 40% less sugar and no artificial colors or flavors.

In addition, Nestlé Australia has cut the fat and sugar content of Milo B Smart products which are fortified with vitamins and minerals.

Nestlé products have been established in Australia and New Zealand since the 1880s. Today, Nestlé Oceania spans Australia, New Zealand and the Pacific Islands, with 5,700 employees, 20 factories and four distribution centres owned and operated by the Company.

Nestlé champions water saving

Cutting back on the consumption of water together with boosting production has enhanced Nestlé’s eco-friendly approach to leading business.

With ground-breaking projects taking place worldwide, Nestlé has increased its production by 68%, but slashed its water use by 30% over the past decade. Over the same period, Nestlé has reduced water withdrawal by 58% per tonne of product, with an aim to decrease annual consumption further by 2-3% per tonne of product over the next five years. In addition, the Nestlé Waters business reduced the amount of additional water needed to produce 1 litre of bottled water to 1.76 litres, a fall of 26% since 1999.

With World Water Week taking place during August 16-22 in Stockholm, Sweden, Nestlé takes centre stage to emphasise its stance on water saving issues.

Claus Conzelmann (pictured right), Vice President for Health, Safety and Environment at Nestlé S.A., pointed out that water is just as vital as carbon when considering the environmental impact of production. Mr Conzelmann said: “Carbon foot printing alone is not a very good environmental indicator when producing food products. At the very minimum, to evaluate the environmental impact of a product you need to know a combination of carbon footprint, greenhouse gas impact and water consumption. Even if you can reduce carbon footprint, this may be to the detriment of water. It literally would be throwing the baby out with the bath water if you only focus on one indicator. Water is so much more complex than carbon, and it is important to foster all common standards in evaluating the water impact of food products.”

World Water Week is hosted and organised by the Stockholm International Water Institute (SIWI), acting as the annual focal point for the planet’s most urgent water-related issues since 1991. Aiming to provide a unique forum for experts, practitioners, decision-makers and leaders from around the globe to exchange ideas, foster new thinking and develop solutions, the theme for this year is Responding to Global Changes: Accessing Water for the Common Good.

Nestlé’s efficient water-saving examples range from implementing new technology to educating farmers.

The Italian region of Parma – home to the European Food Safety Authority – is the centre of a new project supported by Nestlé that encourages farmers to increase their production of vine-ripened tomatoes while reducing water use. Using digital sensory tools to collect precise data on soil moisture at the root level, the technology will help farmers apply just the right levels of irrigation to the crops using drip-technology methods to avoid wasting water.

Other such water-saving targets are also taking place in Ethiopia, where the installation and operation of a new coffee processing facility in Kochere Woreda uses just 6 litres of water per kilogram of green coffee produced, saving about 26 million litres of water per crop. This represents a 96% reduction in water use compared to former practice. Also all pulp and mucilage from the coffee discarded from the wet mill is treated separately and returned to coffee farms as organic fertiliser. This process has reduced water pollution by 99% in comparison to former practices.

While in Vietnam, Nestlé has trained coffee farmers on efficient irrigation techniques allowing the direct application of water to the roots, under its public-private partnership project, the Promotion of Sustainable Robusta Production in Dak Lak. Here, estimated water savings of more than 60% are expected to be achieved.

In championing its water-saving stance, Nestlé has maintained this drive to launch its first Nestlé Prize in Creating Shared Value which will award up to 500,000 CHF every other year to an individual, non-governmental organisation (NGO) or business that has developed an outstanding innovation to improve rural development, nutrition, access to clean water, or has a significant impact on water management. To be awarded in April 2010, the Prize backs Nestlé’s long-standing commitment to place the importance of water high on its agenda.

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Reducing water consumption, Italy
Saving water during coffee processing, Ethiopia
Saving water through improved irrigation, Vietnam
Nestlé Prize in Creating Shared Value

Milo gears up for world cup success in South Africa

Frits van Dijk, Nestlé Executive Vice President; Paul Bulcke, Nestlé CEO; Xoliswa Sibeko, DG Sports & Recreation; Mandla Mazibuko, President SASFA; Mark Fish, Milo Brand Ambassador; Yves Manghardt, Nestlé South Africa Market Head; and two young participants.

In 2008, the Nestlé Milo Champions football tournament was launched in collaboration with the South African Schools Football Association. In line with Milo brand values, the tournament – aimed at school children under the age of 13 – combines football coaching with information on nutrition and healthy living. Some 75,000 children representing 4,600 schools across the country participated in the tournament in its first year.

With South Africa getting ready to host the FIFA 2010 Football World Cup, Milo is preparing to strengthen its association with the country’s most popular sport by extending the competition to neighbouring nations. The first regional Milo Champions Tournament will be held in 2010 with teams participating from other African countries including Nigeria, Ghana and Kenya.

Nestlé has also appointed national team hero, Mark Fish to act as a positive role model and inspire young players to live the values they learn through sport. A former South African football player, Mark not only acts as a coach helping youngsters develop their football skills, but also advises them how to make the right lifestyle choices in areas such as nutrition and physical activity.

Sampling is also an important element of the marketing mix for Milo. The schools sampling programme was increased in 2008 to reach over 100’000 children, nearly a quarter of the target market. Endorsed by the Department of Education, the programme seeks to educate kids in a fun and interactive manner. Sampling teams visit schools informing children about the benefits of Milo, good nutrition, and the importance of a balanced diet.

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Japanese Kit Kat postcard claims top international advertising title

Nestlé Kit Kat has achieved international recognition after winning a top media prize for its edible postcard campaign in Japan wishing students good luck for exams.

Playing on the brand name Kit Kat, which sounds like Japanese words “kitto katsu”, translated as “surely win”, Kit Kat Mail was launched as a specially-designed, ready-to-send package containing the well-known Nestlé chocolate bar and space for a message.

Having generated free PR coverage estimated to be worth USD 11 million, Nestlé's Kit Kat brand team and advertising agency JWT Japan were awarded the prestigious Media Grand Prix title at the 56th Cannes Lions International Advertising Festival in June 2009.

Working together with Japan’s postal service, the mailable Kit Kat bars were initially available in 20,000 Japan Post outlets and marked the first time Japan Post has ever partnered with a private company. With no competition from other brands, Kit Kat Mail is now established as a permanent product in Japan Post outlets.

In the UK, the Kit Kat brand will re-launch its 2 finger bars in August free from artificial flavors, colors and preservatives. Aimed to appeal to health-conscious mums, the new pack which is available in original, mint and orange flavors will be revamped with a banner displaying the healthy change.

US Häagen-Dazs campaign wins top marketing awards

Super premium ice cream brand Häagen-Dazs received a prestige accolade for its high-profile campaign to save vanishing honey bees in North America.

The eye-catching Häagen-Dazs loves Honey Bees campaign included a limited-edition ice cream flavor, an operatic animated television commercial, interactive print adverts, website launch, partner and sponsorship formations; together with a distribution of 1.2 million logo-branded seed packets to enthusiast groups and individuals.

The all-natural brand launched the initiative in February 2008 following the potential threat to its flavor line, where the fruits, nuts and berries ingredients it uses depend on honey bees for pollination.

In June 2009, the campaign was awarded the prestigious Cannes PR Lions award at the Cannes International Advertising Festival in the Corporate Responsibility and Environmental issues category. The marketing campaign also received recognition with the Gold Clio title for its Strategic Communications/Public Relations at the global Clio Awards in Las Vegas last month.

More than a dozen US national and regional awards added to the accolade, including the Silver Anvil Awards for marketing, the Silver Superior Achievement in Branding and Reputation (SABRE) and a Gold Effie for its marketing communication strategy.

Its limited-edition Vanilla Honey Bee Ice Cream also drew attention not only for its flavor, but for its part in the USD 500,000 contribution from sales to honey bee research and preservation efforts. In addition, Häagen-Dazs donated USD 250,000 to two top US universities to continue the Colony Collapse Disorder research – a term coined for the honey bee decline phenomenon.

Häagen-Dazs which leads the super premium sector in with 45% share increased its baseline sales by 5.2% in April and 4.8% in May. Other Nestlé premium ice brands include Mövenpick and Antica Gelateria del Corso.

Nido Fortified leads science drive with interactive center

Children can now get to grips with science thanks to a new Nido Fortified Science Center in the Philippines.

Nestlé Philippines joined forces with the SM’s Science Discovery Center based in Philippine capital Manila to launch the initiative.

The 3,000 square meter facility which houses nine walk-through galleries on two-levels aims to help youngsters expand their knowledge on subjects such as natural science and space.

Joseph Eugene David, Nestlé Philippines Business Executive Manager, believes that improving the science level of students is just one way Nestlé can help boost knowledge and illustrate its brand strength in Asia. He said: “We want children to have a new attitude toward science. By nurturing a child’s passion to learn science at an early age through exploration and interaction, we hope to inspire more Filipino children.”

The center is based at the country’s biggest shopping center the SM Mall of Asia and includes a 160-seat Digistar planetarium, a virtual reef and a showcase of famous robots.

The initiative follows on from the Nido campaign Let Them Go, Let Them Grow, which supports parents in encouraging their children to explore and experience different activities.

Nespresso unveils five new Grands Crus

Striving to create the ultimate coffee experience, Nespresso coffee experts travel the world in search of the highest quality coffee. Following two years of exploration and development, five new creations have recently been unveiled: three Pure Origin coffees and two Lungo blends.

While the “original” Nespresso espresso varieties are blends from several origins whose characteristics complement one another in a complex taste profile, Pure Origin coffees reveal a soul and character typical of a single origin.

The intention is to source the three Pure Origin coffees through the Nespresso AAA Sustainable Quality Program which is co-managed with the Rainforest Alliance (currently, one Pure Origin coffee is 100% sourced through the AAA Program while the other two originate from plantations where the initiative has only been launched recently). The Sustainable Quality Program aims to protect the environment and improve the lives of coffee farmers and their communities while assuring supplies of top-grade green coffee and improving product quality.

New Pure Origin coffees:

Rosabaya de Colombia: a blend of hand-picked Columbian Arabicas grown on small plantations at altitudes above 2,000m in the south and south-west of the country. Has a delicate acidity interspersed with notes of wine and balanced by hints of red fruit. Separate roasting accentuates the fruity notes and acidity whilst bringing body to the coffee.

Dulsão do Brasil: a combination of red and yellow Brazilian Bourbon coffees grown on a limited number of plantations in the hilly Pocos de Caldas region. Separately roasted and treated with the semi-dry method so that mucilage sugars infuse sweetness to the beans. Sweet notes of cereal, malt, honey and maple syrup.

Indriya from India: a blend of Arabica (85%) and Robusta (15%) beans cultivated in the shady cedar forests of the major coffee states in the south. An intense, full-bodied espresso with a whisper of cocoa and a spicy bouquet reminiscent of cloves, pepper and nutmeg.

New Lungo blends:

Fortissio Lungo: a blend of Central and South American Arabicas with a hint of Robusta. Intense, full-bodied and bitter with notes of dark roasted beans.

Finezzo Lungo: a delicate marriage of lightly roasted East African and South and Central American Arabicas. Highly aromatic with mild notes of fragrant jasmine.

Specially-designed sampling and tasting packs are enabling consumers in every Nespresso market to enjoy these latest additions to the unique Nespresso range of 16 premium coffees.

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Street selling improved in the Philippines

Over the past few years, street selling of Nestlé ice cream had experienced a decline in the Philippines. It is an important channel for impulse buying, and clearly, something had to be undertaken. A project team identified three main areas for improvement:

1. Motivate the sellers
Some sellers had drifted away from ice cream to sell other goods, such as telephone cards. Those that stayed lacked focus or commitment, and price increases had cut sellers' margins. The Nestlé team put in place a plan that included three key elements: higher prices, which provide sufficient margin for vendors and distributors; a basic standard assortment of products that can easily be sold for the best margins - if vendors sell the basic assortment, they are guaranteed the statutory daily minimum wage, and anything above this increases earnings; daily and monthly incentives in the form of rewards for sellers who reach targets.

2. Get closer to operations
Previously, distributors managed the sellers, which meant that Nestlé only had a few contacts with the distributors. This system was changed to have a larger number of mini-distributors managing 10 - 30 vendors each. Nestlé regional champions oversee the mini-distributors, and this gives the opportunity for more and better contact with both the distributors and the vendors, providing them with the equipment they need (freezers and pedal carts) as well as support and training.

3. Beyond the streets
The project team broadened the selling opportunities to include private parties, corporate events and public events such as fiestas a holidays. For these, Nestlé negotiates permission to sell, and if at all possible snare exclusivity.

The project was able to turn the business around so that street selling once again became the major driver of impulse ice cream sales in the Philippines, doubling its contribution in two years. At the same time, the amount of mini-distributors and productive vendors increased, a sure sign that everyone in the chain is making more profits.

Nestlé Juicy Juice promotes good nutrition

Reinforcing its commitment to help support and educate the Hispanic community in the US, Nestlé Juicy Juice is running a series of classes and activities to promote good nutrition and physical activity among Hispanic children and their families.

The program – Talleres Mas de Juicy Juice – started in 2007 and will continue in 2009 with a four-city tour to Miami, San Antonio, Chicago and Los Angeles. Nestlé is partnering with local Hispanic health and community organisations in each city to host the educational events.

The classes will focus on smart, simple nutrition steps that families can include in their daily routines. Participants will receive tips from a registered dietitian including information about ‘nutrient-dense’ food and beverages. Additionally, the program will include fun fitness activities that children and parents can enjoy together: interactive activities for babies and toddlers and aerobic classes with Latin rhythms for all to enjoy.

"Juicy Juice wants to continue supporting Hispanic parents with events that address their children's nutritional needs and their family's cultural values," said Victoria Nuevo-Celeste, Nestlé Juicy Juice Marketing Manager. "We are excited to bring back Talleres Mas de Juicy Juice this year, so that we may continue providing practical advice that can improve the health and well being of the Hispanic community."

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Nestlé Ninho travelling cinema tours Brazil

The summer evenings of this year in 18 remote towns in north-eastern Brazil have been made less sleepy by the appearance of the Nestlé Brazil travelling cinema 'Roda Ninho Brasil' - Nestlé Ninho tours Brazil.

The towns have no cinema, and each hosts the shows for three days - Friday, Saturday and Sunday - before it moves on to the next town. The films shown are recent Brazilian movies, suitable for adults and children.

Nestlé takes the opportunity to run joint workshops with SEBRAE, the Brazilian government agency supporting small and medium enterprises for small shop-owners in the towns to help them improve their businesses.

For consumers, a promotion is run for the two weeks before the mobile cinema arrives - every BR$ 5 (CHF 2.70) spent on Nestlé products wins a ticket that can be exchanged for a pack of products including water on the day of the show. Nestlé also runs product sampling to coincide with the tour, which has put on a total of 90 shows in the towns where the seventh art never comes.

Häagen Dazs Five: pure and simple

The Washington Post newspaper in the US recently featured Häagen Dazs on its front page in a story called 'Simplicity Becomes a Selling Point'. Häagen Dazs has launched a new line of ice cream, Five - seven flavors of ice cream that use just five ingredients: in the case of Ginger, the ingredients are milk, cream, sugar, eggs and of course, ginger. The other six are similarly uncomplicated. It is refreshing for consumers not to have a long and complex ingredients list to decode, at a time when we are all being told that simple is good. The message is that super premium ice cream can also be pure and wholesome as well as indulgent.

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A neighborhood salute from Dreyer's

Every year for the past five, Dreyer's has invited people across the United States to tell them why their neighborhood is special - 1,500 winners receive an ice cream block party during the summer, so that people can relax and have a good time over scoops of Dreyer's Slow Churned ice cream with friends and neighbors.

This year, entries have already started to pour in; many mention losing jobs, falling behind on housing payments or tough times related to the recession, and Dreyer's is hoping that the Slow Churned Neighborhood Salutes will bring some happiness into areas that deserve it. The company is also offering employees the chance to win 300 ice cream parties to enable them to spread the joy of ice cream where they live.

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Nestlé UK removes plastic from 20 million Easter eggs

Nestlé UK announces an industry first by removing plastic packaging from the vast majority of its Easter egg range.

Nestlé, which sells one in four Easter eggs in the UK with favourite brands such as Smarties, Kit Kat and Aero, has reduced packaging across its entire range by 30%. This move will save at least 700 tonnes of waste, the same weight as 100 double-decker buses.

David Rennie, managing director, Nestlé Confectionery, said: “We’re taking major steps to respond to consumer concerns about excessive Easter egg packaging.

“Consumers tell us that they find plastic Easter egg packaging bulky and difficult to recycle. We’ve worked hard this year to get rid of it where we can and use recyclable cardboard instead. Our ultimate aim is to remove plastic from our Easter range all together.”

Nestlé UK is the first of the large manufacturers to remove the plastic inserts from chocolate eggs – a great step forward in reducing the estimated 4,500 tonnes of waste that Easter eggs generate each year. The move is part of an ongoing programme from Nestlé UK to reduce packaging.

All small and medium eggs, 80% of Nestlé’s total range, from favourite brands such as Smarties, Kit Kat, Aero and Milky Bar, will now come in a cardboard basket, which is easily recyclable.
Nestlé is also providing clear recycling information on the back of the boxes to help consumers.
The sweets inside Smarties and Milky Bar small eggs have also had their plastic packaging removed.
Because eggs are more compact, the move will save 48,000 road miles in transporting Easter eggs.
The 30% reduction exceeds the WRAP (Waste & Resources Action Programme) industry agreement to reduce medium egg carton weight by 25%.

Liz Goodwin, CEO of WRAP, added: "The work Nestlé is doing to reduce Easter egg packaging will cut consumer waste by 700 tonnes this year. This will make a significant difference to the amount of rubbish going to landfill this Easter and it is good to see Nestlé making significant reductions to packaging while maintaining the product’s integrity and consumer appeal.”

Improving product distribution and affordability in Indonesia

Home to more than 235 million people, Indonesia is spread across some 17,000 islands. Ensuring that Nestlé products are available to the population – especially those of remote islands – is a considerable supply chain and route-to-market challenge.

Nestlé Indonesia has embraced several creative solutions over the years, the most recent and successful being the Distribution Agent in the Island (DAI) concept which is improving the accessibility, availability and affordability of Popularly Positioned Products.

Although Nestlé had distributors in this region, they hesitated to deliver directly to the outlying islands as they considered the return on investment was not sufficiently interesting. Consequently, a sporadic delivery service was being offered by local wholesalers who would travel to a large regional city every couple of months to purchase stock from larger traders/wholesalers. What they bought depended upon their perception of the existing customer demand and was also limited to the stock available from the trader. These products would then be priced well above the recommended, affordable consumer price as the island wholesalers passed on their high transportation costs. Consumers did not always have access to the products they wanted and ageing stock would stay on the shelf.

In 2007, the local Sales team identified an opportunity to improve the distribution of Nestlé products to these islands. By having the local Nestlé Distributor deliver directly to a selected wholesaler for the islands (DAI), rather than pass via a large trader or wholesaler, the existing route to market could be shortened. The DAI would be offered a higher margin structure to subsidize the increased costs of serving the remote island area and the hiring of a direct salesperson to take orders from the small island outlets.

Two pilot projects were launched in November 2007. The local Nestlé Distributor would take the products to the nearest port to be picked up by the boat service provided by the DAI. To lower transport costs, the DAI would also ship other FMCGs to sell on the islands.

By March 2008, the DAI model was bringing about significant improvement in affordability, availability and accessibility. Numeric distribution on the remote islands was expanding in line with sales; as the DAI was demanding lower prices for the products, stores were able to sell at the recommended price; and, availability was ensured by the direct salesperson.

By November 2008, a year after the first pilot, 17 DAIs were operational and partnered with a Nestlé Distributor. DAI outlet coverage on the remote islands had reached nearly 1,000 stores and contributed 7% to sales in traditional trade. Many of the DAIs had considerably surpassed Nestlé targets and had even invested in building new warehouse space to support growing demand.

The DAI model has promoted sustainable, business partnerships between Nestlé, the distributor and the agent. DAIs express pride in their relationship with Nestlé and are able to leverage their status to build credibility with other traders to further drive their business.

Through these contacts, Nestlé Indonesia has gained knowledge about the physical and economic conditions of thousands of islands and the best way to make products available to them.

Nestlé Indonesia – which has set itself the goal of having products in 1 million outlets across the nation in 2009, up from 890,000 in 2008 – will expand the route-to-market programme to include 50 DAIs nationwide by year-end.

Maggi helps children learn to eat well

An innovative program to help children understand nutrition and healthy eating has been run successfully for almost two decades in the Dominican Republic.

In 1991, La Escuelita Maggi, or Little Maggi School was launched in the Dominican Republic. The main objective of La Escuelita is to give children (7-13) their first nutrition and culinary experience, learning about good eating habits in an enjoyable way.

Around 40 children, with their teachers, visit the school every day, from Monday to Friday, a total of 6,000 a year.

La Escuelita, in the capital, Santo Domingo, has a permanent staff of a director, an administrative assistant and a chef. They are helped by a Nestlé nutritionist and four characters who play specific roles during their visit.

Each visit has four stages:

Welcome - by Maggi-e, one of the characters.
Nutrition lecture - The children are given a talk on the basic concepts of
nutrition and healthy eating, using the nutritional pyramid.
Choosing ingredients - The next stop is a mini market where the chef gives the children information and advice about healthy ingredients. They then select the ingredients to prepare the meal of the day.
Healthy cooking - The children are shown how to wash their hands, clean and prepare the food, and then eat the delicious and healthy meal they have helped to prepare.

Since the launch, more than 102,000 children have benefited from La Escuelita Maggi courses. This reinforces Nestlé’s position as the leading Nutrition, Health & Wellness company.

Chef brand wins the 2009 SIRHA Innovation Prize

The Chef brand, with its Bouillons Clarifiés, has again carried off the prestigious Innovation Prize at the SIRHA – the international hotel, catering and food trade fair – held in Lyon, France, on January 24-28. The brand was awarded the same accolade at the previous event in 2007.

The 2009 !!! Error when processing "TaggedAnchor" field value: Object reference not set to an instance of an object. (Salon International de l'Hôtellerie, de la Restauration et de l'Alimentation) trade fair, attracted more than 2,000 exhibitors, 6,000 chefs from 120 countries and more than 140,000 visitors.

The event provided an ideal opportunity to showcase the Chef, Maggi, Nestlé and Nescafé brands under the Nestlé Professional umbrella and to present new products, including the award-winning Chef Bouillons Clarifiés . Recognised for having revolutionised dehydrated stocks, Chef Bouillons Clarifiés offer a powerful and refined taste, giving even more freedom for creation in the kitchen.

During the last two days of the exhibition, Nestlé Professional sponsored the world-famous Bocuse d'Or culinary competition, under the Chef brand. For more than twenty years the Bocuse d'Or has been staging the most beautiful gourmet creations in the world. Working in contest kitchens set up facing the public, 24 chefs from all over the world took up the challenge to create two perfect dishes within 5 hrs 35 minutes.

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Health and nutrition professionals give Nestlé the thumbs up

Feedback from health and nutritional professionals at the 2008 American Dietetic Association Food & Nutrition Conference and Expo confirms Nestlé products are achieving recognition in terms of Nutrition Health, and Wellness.

The American Dietetic Association is the world’s largest organization of food and nutrition professionals. Its annual event attracts over 10,000 registered dieticians, key industry influencers and public health professionals. More than 400 exhibitors from corporations, government and non-profit agencies showcase new consumer food products and nutrition education materials.

A team of Nestlé brand ambassadors, including Nestlé dieticians, brand leaders and culinary experts hosted a stand at the recent event. The main objective was to inform attendees about the nutritional value of Nestlé foods and beverages. Visitors to the stand were also encouraged to learn about balancing food choices responsibly and making more informed lifestyle choices.

The Nestlé Nutritional Compass which provides facts, observations and tips on the nutritional profile of our products through on-pack information was an integral part of the stand and its activities.

Visitors were able to taste and experience the convenience of Nestlé products including:

Buitoni Whole Wheat Chicken & Prosciutto, delivering 45 grams of whole grain per serving
Lean Cuisine Salmon with Basil, an excellent source of Omega-3’s
Nestlé Juicy Juice Harvest Surprise 100% Fruit and Veggie Juice

Other products featured on the stand:

Lean Pockets; Libby’s 100% Pure Pumpkin; Nestlé Carnation Evaporated Milk; Nestlé Toll House Mini Chocolate Chip Refrigerated Cookie Dough; Nestlé Pure Life; and Nestlé Nesquik.

After the tasting tour participants rated Nestlé products on taste and health and indicated how likely they were to recommend Nestlé products.

A total of 94% of the participants confirmed they were likely to recommend Nestlé products. A significant 85.8% of participants said that they found the Nestlé Nutritional Compass helpful in helping them and their clients make healthier choices.

Enjoyable and nutritionally-responsible confectionery

In our journey to become the recognized leading Nutrition, Health and Wellness company each Nestlé product category faces challenges. The confectionery category has been subject to much debate regarding its role in nutrition, health and wellness.

However, sweet snacking is an intrinsic part of peoples’ lives; it provides pleasure and can reduce stress. This in turn can contribute to consumers’ health and wellbeing.

The Nutrition, Health and Wellness vision for confectionery is to become the most enjoyable and nutritionally-responsible offering in the category. The objectives of this vision are to develop great tasting healthier and/or actively nutritious options, ensure nutritionally-responsible product profiles, and to provide clear communication about confectionery consumption as part of a balanced diet and lifestyle.

The Nutrition, Health and Wellness pyramid is the basis for all of our innovations and renovations. The confectionery pyramid has three tiers “Actively Nutritious”, “Healthier Options” and “Responsible Enjoyment”. Products that do not fit into one of these tiers are categorised as “Improvement Required”. All products must have 60/40 consumer preference or a nutritional profile equal to or better than competitive products.

The Nestlé Research Center has been investigating the potential health benefits of confectionery for years. Dark chocolate has been our main focus due to its high cocoa content, which is a naturally rich source of polyphenols. Polyphenols (antioxidants) are considered to be responsible for dark chocolate’s rapidly accumulating evidence of health benefits. The Nestlé Research Center has performed a variety of trials, both in-house and with different universities, in order to expand our knowledge in this area. This work helps to better understand how we can make chocolate and confectionery for consumers seeking healthier or even actively nutritious, sweet snacks.

Nescafé Cappuccino invites consumers to pamper themselves

Product improvements, new varieties and strong communication derived from Nescafé umbrella campaign helped Nescafé Cappuccino to increase volume sales in Mexico.

Over the past decade, the coffee shop boom has changed consumers’ perception of coffee, which has become a trendy, modern beverage. To capitalize on the change, Nescafé Cappuccino was repositioned in 2006 in Mexico as an indulgent coffee.

The range was relaunched with three new varieties: Cappuccino, Mokaccino and Vainilla. Two line extensions were added in January 2008: the new light and decaf varieties provide consumers with an indulgent, guilt-free experience.

The Nescafé umbrella campaign “Savour every moment” was launched at the end of 2006. It enabled Nescafé Cappuccino to break away from the previous communication that focused on the product features to concentrate on the mood and the experience. The main message was ‘love yourself’.

The reaction to the image revamp and the on-going innovation strategy has been very positive. From January to September 2008 volume sales of Nescafé Cappuccino grew 80% compared with the same period in 2007, (Nielsen September 2008), 22% of which can be attributed to the new varieties. Market share reached a record 4.5% of the coffee category.

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