Nestlé Press Releases

Changes to the Executive Board of Nestlé S.A.

Fri, 20 Nov 2009 15:34:17 GMT

Vevey, Switzerland November 20, 2009

Francisco Castañer, Executive Vice President, Human Resources, Centre Administration, Pharmaceutical and Cosmetic Products, will retire on 31 December 2009 after a long and distinguished career with Nestlé spanning 45 years. Francisco Castañer started working for the market research department of Nestlé Spain in 1964. After a number of different positions both in Vevey and Spain, he was appointed Market Head Nestlé Spain in 1986 and joined the Executive Board of Nestlé S.A. in his present capacity in 1997. Francisco Castañer will continue to represent the company on the Boards of Alcon, L'Oréal and Galderma. The Board of Directors of Nestlé S.A. expressed its gratitude for his valuable contribution to the company over the years.

The Board of Directors of Nestlé S.A. has decided to appoint Jean-Marc Duvoisin to the Executive Board as Deputy Executive Vice President, Human Resources and Centre Administration, with effect on 1 January 2010. Jean-Marc Duvoisin joined Nestlé in 1986 and, after holding different responsibilities in the area of marketing and sales, was appointed Ecuador Country Manager in 1999. He became Market Head of the Bolivarian Region (Colombia, Ecuador and Venezuela) in 2003 and Market Head of Mexico in 2004. Since 1 May 2007, Jean-Marc Duvoisin has held the post of Senior Vice President, Head of Corporate Human Resources.

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Nestlé Professional to acquire Vitality Foodservice

Thu, 19 Nov 2009 09:56:14 GMT

Glendale, California, United States of America November 19, 2009

Nestlé Professional today announced it has agreed to acquire Vitality Foodservice Inc., one of North America's leading beverage solution providers to the foodservice industry. The acquisition price was not disclosed. This move allows Nestlé Professional, Nestlé's globally managed business dedicated to the out-of-home food and beverage market, to accelerate its drive in becoming the recognized leader in branded hot and cold non-carbonated beverage solutions to the out-of-home industry in North America. The transaction excludes the Vitality European manufacturing and distribution business.

Headquartered in Tampa, FL, Vitality Foodservice Inc. manufactures and markets a complete range of beverage products from juices, teas, coffees and smoothies to innovative specialty drinks. Vitality’s high-performance organization with 700 employees and its expertise in sales, service and dispensing innovative products, will be complementary to Nestlé Professional's North American beverage business and is well aligned to Nestlé’s global commitment to the out-of-home business as one of its main growth drivers.

Marc Caira, CEO of Nestlé Professional, said: “We are very excited to welcome Vitality Foodservice into the Nestlé Professional family. Vitality not only complements our business but strengthens our position in North America and will enable us to accelerate growth in this important out-of-home market. Additionally, Vitality’s product offerings align strongly with Nestlé’s commitment to nutrition, health, and wellness.”

Nestlé Professional North America employs over 900 employees and is solely focused and dedicated to the out-of-home market. Its beverages division provides the commercial and institutional restaurant industry with branded hot and cold non-carbonated beverage solutions under brands such as Nescafé, Coffee-mate, Nesquik, Nestea and Nestlé.

The transaction is subject to regulatory approval and is expected to be completed within 30 days from the date of this announcement.

About Nestlé Professional
Nestlé Professional, the world’s leading global foodservice manufacturer with presence in over 97 countries is an inspiring growth partner that delivers creative, branded food and beverage solutions, enabling foodservice operators to innovate and to delight consumers. From innovative beverage systems under the NESCAFÉ® and COFFEE-MATE® brands, to on-trend culinary items from STOUFFER’S®, MINOR’S®, and HOT POCKETS® brand sandwiches, Nestlé Professional in North America meets the needs of foodservice operators while satisfying the tastes of the out-of-home consumer. Nestlé Professional is part of Nestlé S.A. in Vevey, Switzerland, the world’s leading nutrition, health and wellness company. Worldwide Nestlé employs 276,000 employees, and achieved sales of $108 billion in 2008.

Contact: Kathy Lenkov
Nestlé Professional
Office: 001 818-549-5540
Cellular: 001 818-540-5166
Kathy.lenkov@us.nestle.com

Nestlé R&D Tours signed Cooperation Agreement with the Indonesian Coffee & Cocoa Research Institute

Sun, 15 Nov 2009 16:20:23 GMT

Jakarta, Indonesia November 15, 2009

The Cooperation Agreement between Nestlé Research & Development in Tours (Nestlé R&D Tours), France and the Indonesian Coffee & Cocoa Research Institute (ICCRI), Jember (East Java) to develop high quality Indonesian Robusta Coffee plantlets was signed today (15 November 2009) in Bali.

The cooperation that has been started in 1994 is expected to produce Robusta coffee plant with better yield and more resistance to drought and disease, while preserving the originality of Indonesian coffee.

Through the present cooperation agreement signed by the Head of Nestlé R&D Tours, Dr. Pierre Broun and the Director of ICCRI, Dr. Teguh Wahyudi, which is witnessed by the Minister of Agriculture of Republic of Indonesia, Ir. H. Suswono, MMA, Nestlé R&D Tours and ICCRI will perform the genetic mapping of Indonesian Robusta Coffee to ensure the quality of coffee plants that have been developed from the earlier cooperation. This effort has been fully supported by the Ministry of Agriculture of the Republic of Indonesia.

Based on the earlier cooperation agreement, Nestlé R&D Tours had granted the Somatic Embryogenesis (SE) technology to ICCRI to enable ICCRI to propagate coffee and cacao plantlets in large quantity in a shorter period of time. With the SE technology from Nestlé, since 2008 ICCRI has successfully produced 21.6 mio cacao plantlets. These have been planted across 10 (ten) provinces in Indonesia to revitalise cocoa plantations with plants that are more productive and resistant to disease. This will help the competitiveness of Indonesian farmers on the International markets.

Creating Shared Value

During this occasion, the Legal & Corporate Affairs Director of PT Nestlé Indonesia, Debora R. Tjandrakusuma stated, “What we are doing today is part of our business strategy to create shared value along our value chains. Creating Shared Value (CSV) is the key to Nestlé’s success. We believe that our long term success is dependent on our ability to create value along our value chain, be it our shareholders, employees, consumers, society and our stakeholders.”

“And we are pleased that with the SE technology granted from Nestlé, based on the partnership between Nestlé and ICCRI since 1994, ICCRI has supported the government in developing original Indonesian coffee and cocoa plantlets with better yield and resistant to disease in a shorter time.”

Nestlé Indonesia

Nestlé Indonesia is a subsidiary of Nestlé S.A. the world prominent foods and beverages producer, having its centre in Vevey, Switzerland, and has been operating since over 140 years, and well-known in nutrition, health and wellness.

Nestlé Indonesia with its 3 factories in Indonesia, produces milk, foods and beverages products under its well-known brands DANCOW, MILO, NESCAFÉ, CERELAC, KIT KAT, FOX’S, BEAR BRAND, NESTLÉ IDEAL etc.

Nestlé’s motto “Good Food Good Life” explains Nestlé’s commitment to continuously combine the science and technology and its famous brands for its products in fulfilling the human basic need for safe, quality, nutritious foods and beverages that are enjoyable to consume.

For further information, please contact:
Brata T. Hardjosubroto, Head of Public Relations Nestlé Indonesia
Tel: +62 21 7883 6000 ex 1512
Fax:+62 21 7883 6001
E-mail: Nestle.Indonesia@id.nestle.com

Nestlé 9-month sales: 3.6% organic growth based on increased real internal growth momentum

Thu, 22 Oct 2009 15:15:50 GMT

Vevey, Switzerland October 22, 2009

Sales of CHF 79.5 billion, 3.8% organic growth in third quarter
Real internal growth up to 1% for nine months, 2% real internal growth in third quarter
2009 share buyback increases from CHF 4 billion to CHF 7 billion due to solid operational performance
Full-year outlook unchanged: volume-driven organic growth acceleration and EBIT margin improvement in constant currencies

Paul Bulcke, CEO of Nestlé: "The increased momentum of real internal growth in the third quarter, coming on top of high growth in 2008, once again proves the strength of Nestlé's strategy. In these challenging times, we have been streamlining our structures and product portfolio and, at the same time, we continue to invest in innovative technologies and expand our R&D capabilities around the world. In addition, we have increased spending in product innovation and consumer-facing brand-support. All this allows me to confirm my expectation that volume-driven organic growth will further accelerate and that the EBIT margin in constant currencies will improve for the full year."

In the first nine months of 2009 the Group achieved organic growth of 3.6%. Real internal growth reached 1.0% having accelerated throughout the year and across most segments of the business. Divestitures, net of acquisitions, had a negative impact of -0.6% on Group sales, as did the currency effect of -5.2% due to the strength of the Swiss franc compared to most other currencies. These two factors contributed to a reduction in Nestlé Group sales of -2.2%, to CHF 79.5 billion.

Organic growth for Nestlé's food and beverage business was 3.5%. Real internal growth accelerated in the third quarter to reach 0.7% for the nine months from 0.1% at the half year. This improvement was evident in each region, resulting in organic growth of 4.4% in the Americas, 0.9% in Europe and 6.5% in Asia, Oceania and Africa for Nestlé's total food and beverage businesses.

The nine-month sales and the first half EBIT margin improvement demonstrate Nestlé's ability to deliver solid performance on top of strong growth in 2008, whilst continuing to invest in longer-term strategic priorities. Emerging markets enjoyed 7.5% organic growth. Popularly Positioned Products, a business model now well established in emerging markets, delivered double-digit growth as the roll-out in developed countries gathered pace.

Sales by operating segment
	Jan-Sept 2009 Sales in CHF millions	Jan-Sept 2009 Organic Growth (%)	Jan-Sept 2009 Real Internal Growth (%)	Real Internal Growth (bps) Jan-Sept 2009 Vs. Jan-June 2009
Food & Beverages
- Zone Americas	23 393	+ 6.4%	+ 2.3%	+ 40
- Zone Europe	16 514	0.0%	- 1.5%	0
- Zone Asia, Oceania, Africa	11 713	+ 5.8%	+ 3.0%	+ 80
Nestlé Waters	7 220	- 1.8%	- 2.3%	+ 140
Nestlé Nutrition	7 479	+ 2.0%	- 1.5%	+ 90
Other Food & Beverages	7 390	+ 6.2%	+ 2.8%	+ 40
Total Food & Beverages	73 709	+ 3.5%	+ 0.7%	+ 60
Pharma	5 838	+ 5.9%	+ 5.5%	+ 40
Group Total	79 547	+ 3.6%	+ 1.0%	+ 50

All calculations based on non-rounded figures.
Globally managed Nestlé Professional activities have been taken out of the Zones and included in “Other Food & Beverages”.

Zone Americas: sales of CHF 23.4 billion, 6.4% organic growth and 2.3% real internal growth. In North America, the real internal growth of petcare, ice cream, soluble coffee and chocolate accelerated in the third quarter, but slowed for frozen food. Brazil continued to build on the positive momentum, mainly due to growth in the ambient dairy category. Mexico and the rest of the region also showed improvement in the third quarter.

Zone Europe: sales of CHF 16.5 billion, 0% organic growth and -1.5% real internal growth. Germany, France, Switzerland, the Iberian region and Italy saw a rise in real internal growth. The Great Britain region delivered a strong performance, although the third quarter was weaker. Eastern Europe presented a mixed picture with weaker third-quarter real internal growth in Russia and the Czech and Slovak Republics, while Poland and the Ukraine enjoyed stronger growth. By category, sales volumes were good in soluble coffee, chilled culinary, powdered beverages and petcare.

Zone Asia, Oceania and Africa: sales of CHF 11.7 billion, 5.8% organic growth and 3.0% real internal growth. All the emerging regions contributed to improved volumes, although real internal growth in Oceania and Japan was unchanged. There was strong real internal growth in China, the Philippines, South Asia and Africa. The Middle East continued to improve. By category, real internal growth in ambient dairy improved and remained strong in ambient culinary, soluble coffee, powdered beverages and chocolate.

Nestlé Waters: sales of CHF 7.2 billion, -1.8% organic growth and -2.3% real internal growth. Real internal growth for the third quarter improved, mainly due to an acceleration in Europe where the business benefited from renewed brand support. The category as a whole was weak in North America, but the Nestlé business gained market share. The emerging markets business enjoyed strong growth. Nestlé Pure Life continued to achieve double-digit growth in the emerging markets and North America.

Nestlé Nutrition: sales of CHF 7.5 billion, 2.0% organic growth and -1.5% real internal growth. Infant nutrition's real internal growth improved in all three zones, benefiting from a strong innovation and renovation pipeline and increased marketing support. NaturNes continued to build market share in Europe. Healthcare Nutrition achieved good momentum in its core areas in the wake of recent rationalisation measures, and performed particularly well in Zone Asia, Oceania and Africa. Jenny Craig was affected by weak discretionary spend in the US. Performance nutrition saw good acceleration in all three zones.

Other Food and Beverages: sales of CHF 7.4 billion, 6.2% organic growth and 2.8% real internal growth. Nespresso continued to deliver double-digit growth. Growth was positive in both the joint ventures, Cereal Partners Worldwide and Beverage Partners Worldwide. As a newly-created, globally-managed business, Nestlé Professional delivered slightly improved growth momentum, in spite of weak out-of-home consumption.

Pharma: sales of CHF 5.8 billion, 5.9% organic growth, 5.5% real internal growth. Alcon and the joint ventures as a whole achieved good growth.

Sales by product segment
	Jan-Sept 2009 Sales in CHF millions	Jan-Sept 2009 Organic Growth (%)	Jan-Sept 2009 Real Internal Growth (%)	Real Internal Growth (bps) Jan-Sept 2009 Vs. Jan-June 2009
Powdered and Liquid Beverages	13 952	+ 9.8%	+ 5.3%	+ 60
Water	7 224	- 1.9%	- 2.3%	+ 140
Milk products and ice cream	14 883	+ 0.7%	- 0.2%	+ 110
Nutrition	7 481	+ 2.0%	- 1.5%	+ 90
Prepared dishes and cooking aids	12 379	0.0%	- 0.5%	- 50
Confectionery	8 177	+ 4.0%	- 1.6%	- 30
PetCare	9 613	+ 8.8%	+ 3.2%	+ 50
Total Food & Beverages	73 709	+ 3.5%	+ 0.7%	+ 60
Pharmaceutical products	5 838	+ 5.9%	+ 5.5%	+ 40
Group Total	79 547	+ 3.6%	+ 1.0%	+ 50

All calculations based on non-rounded figures.
The slight difference in the figures for water and nutrition between the “Sales by operating segment” and “Sales by product” tables is due to the fact that some water and nutrition products are also sold by management segments other than Nestlé Waters and Nestlé Nutrition.

Powdered and liquid beverages: sales of CHF 14.0 billion, 9.8% organic growth and 5.3% real internal growth. All segments contributed to the acceleration in real internal growth, with strong results for billionaire brands Nescafé, Nesquik, Nespresso and Nestea, which accounted for 80% of this product group's sales. Nesquik in North America and Europe and Milo in Asia benefited from their health and wellness profiles. Nescafé enjoyed strong growth in all three zones. Nescafé Dolce Gusto reached organic growth of over 50%, taking strategic market positions in the 16 countries where it has so far been rolled out. Nespresso delivered 28% organic growth.

Milk products and ice cream: sales of CHF 14.9 billion, 0.7% organic growth and -0.2% real internal growth. Real internal growth for ambient dairy continued to build momentum during the year, driven by a strong range of Popularly Positioned Products with brands such as Nido. Coffee-mate, primarily in the US, continued to achieve almost double-digit growth. The ice cream business increased its leadership position in the US, its biggest market, with strong communication around nutrition-focused innovations, particularly in the super-premium segment. In Europe, the performance was stronger in the North with successful launches of Nestlé Extrême All Natural in countries such as Germany and Switzerland, but weaker in the South.

Prepared dishes and cooking aids: sales of CHF 12.4 billion, 0% organic growth and -0.5% real internal growth. In Europe, the dough segment and frozen pizza business delivered growth, with Herta also performing well, whilst ambient culinary and frozen meals were weaker, particularly due to lower out-of-home consumption. In the US, Hot Pockets and Stouffer's family packs performed well, but demand was weaker for its single serve offerings and for Lean Cuisine. Good demand in Africa, Asia, Eastern Europe and Latin America continued to deliver double-digit growth for Maggi in emerging markets.

Confectionery: sales of CHF 8.2 billion, 4.0% organic growth and -1.6% real internal growth. There was some softness in the growth of biscuits and sugar confectionery, but the chocolate business continued to make good progress. Kit Kat continued to perform well overall. Demand was weak in Russia, while many emerging markets delivered strong growth with products such as Nestlé Classic tablets in Turkey, Munch in India and Sahne Nuss in Chile. Core brands gained momentum in the US.

PetCare: sales of CHF 9.6 billion, 8.8% organic growth and 3.2% real internal growth. Strong growth for the nine months in petcare reflected continued innovation and renovation of key brands such as Friskies, Beneful, Dog Chow, Bakers, ONE and Gourmet, which outperformed the category in all regions. New product launches, such as Chef Michael’s dry and wet dog food, also contributed to the strong performance.

Share buyback

Based on Nestlé's solid operational performance, the Board of Directors has agreed to increase the 2009 share buyback programme from CHF 4 billion to CHF 7 billion. This change will allow the company to complete its current CHF 25 billion share buyback programme earlier than initially contemplated. The Board of Directors expressed satisfaction at Nestlé's current credit rating which allowed easy access to financial markets at attractive pricing during the financial crisis, and reaffirmed its decision to maintain the company's current credit quality for the foreseeable future.

2009 outlook

The nine-months performance is in line with earlier guidance, with growth momentum increasingly driven by real internal growth. The Group therefore continues to expect volume-driven organic growth to further accelerate as well as an EBIT margin improvement in constant currencies for the full year.

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

New Innovation Centre to accelerate research on breakfast cereal solutions

Fri, 02 Oct 2009 14:29:25 GMT

Vevey October 2, 2009

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Visit our events page for more details.

Cereal Partners Worldwide (CPW S.A.), a joint venture between Nestlé S.A. and General Mills Inc., today announced the creation of a new Innovation Centre in Orbe (Switzerland). The investment of close to CHF 50 million underlines Cereal Partners Worldwide’s strategic focus on nutrition, health and wellness and will accelerate the company’s development of innovative and nutritious breakfast cereals. The construction, which started in early 2009, is nearing the half way stage and is due to be completed by the middle of 2010.

The CPW Innovation Centre will bring together expertise from Nestlé and General Mills in the field of breakfast cereals. This new Innovation Centre will further build on General Mills’ technical strengths and Nestlé’s 50 years of R&D experience in Orbe, as well as on both partners’ know-how in food processing technologies. Part of Cereal Partners Worldwide’s global R&D network, the CPW Innovation Centre will work on breakfast cereal solutions that will deliver consumer benefits, such as improved nutritional content, as well as freshness, taste and texture.

Sustainability and low environmental impact are at the heart of the building project. Local and regional construction materials are being used, such as wood sourced from environmentally-responsible forest management, benefiting Orbe and the surrounding communities. Once completed, the CPW Innovation Centre will meet the requirements for LEED certification, a suite of standards for environmentally sustainable construction as determined by the U.S. Green Building Council (USGBC).

At a press event today to make the announcement were Jean-Claude Mermoud, Economic Affairs Minister of the Canton of Vaud; Claude Recordon, Mayor of Orbe; Christi Strauss, President and CEO Cereal Partners Worldwide; John Church, Senior Vice President, Global Operations, General Mills Inc.; and Werner Bauer, Executive Vice President and Chief Technology Officer, Nestlé S.A.

Currently the Number 2 breakfast cereal producer worldwide with sales of CHF 2.8 billion in 2008, Cereal Partners Worldwide employs nearly 4,000 people around the world.

Contacts:

Nestlé
Media: Hilary Green Tel.: +41 (0)21 924 22 00
Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

General Mills
Media: Kirstie Foster Tel.: +1 (0)763 764 6364

Nestlé Chocolate Centre to combine artistic creativity and cutting-edge science

Mon, 07 Sep 2009 18:38:18 GMT

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Nestlé today inaugurated the Chocolate Centre of Excellence in Broc, Switzerland, in the presence of Doris Leuthard, Swiss Minister of Economic Affairs, Beat Vonlanthen, Minister of Canton Fribourg, Stéphane Sudan, Mayor of Broc, as well as Nestlé CEO Paul Bulcke, Petraea Heynike, Nestlé Executive Vice President responsible for the Strategic Business Units, Marketing, Sales and Nespresso, and Werner Bauer, Nestlé Executive Vice President and Chief Technology Officer.

The Chocolate Centre of Excellence builds on Nestlé’s chocolate-making heritage and will spearhead its drive in the premium and luxury chocolate segment, which in turn will influence the company’s entire chocolate range. The Centre combines a team of Nestlé specialists, from fine cocoa bean scientists, sensory experts and chocolatiers to packaging designers and consumer specialists, with the artistic inspiration of a panel of independent chocolatiers such as Pierre Marcolini, Tristan Carbonatto and Roger von Rotz. This spirit of open innovation is further illustrated by the Centre’s partnership with prestigious external design institutions such as the California Art Center and the ECAL University of Art and Design in Lausanne.

The investment of CHF 25 million underlines the strategic importance Nestlé attributes to its chocolate business, especially in the premium and luxury segment. In 2008 the chocolate business reached sales of CHF 9.8 billion, with an organic growth of 7.6%. While global brands such as Kit Kat reached sales of over CHF 1 billion, 70% of Nestlé’s chocolate business comes from local brands. In the premium and luxury segment, which grows above the category average, Nestlé is leader in dark chocolate and is well known for premium brands such as Nestlé Noir, Perugina, Cailler and Nespresso luxury chocolate.

The Chocolate Centre of Excellence is part of Nestlé’s research and development network, which comprises 28 centres and employs around 5,000 people worldwide. Several of these centres contribute to the research in the field of chocolate and cocoa. Over the last 30 years Nestlé’s research has led to a technology enabling the mass production of high-yielding, disease-resistant cocoa plants to rejuvenate existing plantations. The propagation of superior plants is currently underway in Ecuador, Venezuela, Indonesia and Côte d’Ivoire, where millions of plants will continue to be distributed in the coming years. In Ecuador and Venezuela, where the finest cocoa is sourced, Nestlé helps to protect and promote unique fine cocoa varieties.

Nestlé has been providing support to farmers for many years. This commitment to rural development is an expression of the principle of Creating Shared Value, which is part of Nestlé’s business strategy. For a business to be successful in the long term, it must create value not only for its shareholders but also for society and communities at large, from farmers to employees to consumers.

The press conference and the inauguration ceremony will be !!! Error when processing "TaggedAnchor" field value: Object reference not set to an instance of an object. today from 0930 CET. An on-demand webcast will also be available. Visit our Events page for more details.

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Nestlé inaugurates the world’s largest bouillon factory in Shanghai

Sat, 05 Sep 2009 12:37:28 GMT

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Mr. Patrice Bula, CEO of Nestlé Greater China Region, Mr. Rong Yaozhong, Founder and General Manager of Shanghai Totole Food Ltd., Mr. Blaise Godet, Ambassador of Switzerland to China, and leaders of Shanghai City and Jiading district government, today jointly inaugurated the world’s largest bouillon factory, in Shanghai’s Jiading Industrial district.

This state-of-the-art factory which will employ 1500 staff will provide the needed capacity to meet the fast growing demand for Totole, the leading bouillon brand in China, driven by consumers’ trust and love for the brand with the well-known slogan ‘ TOTOLE Makes Life Better ‘. This new Shanghai Totole factory, which is a RMB 320 million investment in state-of-the-art equipment will produce more than 100,000 tons of Totole bouillon, when fully completed, doubling the capacity of the existing facility. With this new factory, Totole not only becomes the largest bouillon producer in the world but also take leadership in technology, product quality and safety. Mr. Patrice Bula said: “Today is a major milestone in the history of Totole and Nestlé in China. Thanks to its product quality, Totole is the preferred culinary brand of Chinese consumers.

Ten years ago Nestlé and Totole joined a partnership with the objective to make Totole the leading culinary brand in China. To achieve this ambitious goal we decided to combine Totole management passion for its products, deep consumer understanding and Chinese entrepreneurship, with Nestlé’s advanced technology, global manufacturing and marketing know-how, to develop the local Totole brand. This is the essence of successful Nestlé partnerships which through a ‘Win-Win’ synergy of the best of local and international contribution, boost the development and growth of such precious Chinese brands like Totole.

Since 1999, several important milestones have been achieved, with major capacity addition, launch of new products and a major step with the opening of a Nestlé R&D Center for culinary product situated within Totole compound to provide Totole products with Nestlé’s latest R&D breakthrough.” Mr. Bula added. Mr. Rong Yaozhong said: “Our vision is to give 1.3 billion people a better choice of freshness, as well as ‘High Quality and Good Taste’. Thanks to all the efforts and support from Nestlé, Totole continues to grow in consumers’ and professional chefs’ trust. Totole has been working very diligently ever since it was founded 25 years ago in Daliang Mountain, Sichuan Province. We have achieved one milestone after another. This new factory opens a new chapter in Totole’s development. It also sets a new quality standard for the culinary industry. Whilst achieving our business goals, I hope the new factory will also create more value for both our consumers and the society.”

At the event, Mr. Bula also expressed his gratitude to the authorities, both at national and local level, for their continuous support which has benefited all parties concerned and the community at large and reiterated Nestlé’s confidence in China. Nestlé and Totole signed a partnership agreement in Switzerland in August 1999. Nestlé acquired an 80% interest in Totole.

Since the Swiss-based Nestlé Group started investing in China two decades ago, with cumulative direct investment of over RMB 8 billion from Switzerland, it has established 21 factories across the country. About 98% of Nestlé products manufactured in China are sold here. Today Nestlé employs a staff of some 13,000 people. In 2008, Nestlé had sales of our RMB 14 billion in the Greater China Region.

For more information, please contact:

Nancy He
Corporate Affairs Nestlé China
Tel: +86 10 8434 7656
Email: nancy.he@cn.nestle.com

Jonathan Dong
Corporate Affairs Nestlé China
Tel: +86 10 8434 7631
Email: jonathan.dong@cn.nestle.com

First half of 2009: Nestlé delivers 3.5% organic growth combined with a 30 bps EBIT margin improvement

Wed, 12 Aug 2009 14:12:00 GMT

Vevey, Switzerland August 12, 2009


		Change vs. Jan.-June 2008
CHF Millions	Reported Jan.-June 2009	Organic Growth	Reported	Constant Currencies
Sales
Group	52 267	+3.5%	-1.5%	+2.8%
Food & Beverages	48 313	+3.4%	-2.0%	+2.7%
EBIT Margin
Group	14.1%	—	+30 bps	+30 bps
Food & Beverages	12.4%	—	+10 bps	+20 bps
Earnings Per Share
Underlying	CHF 1.46	—	+3.5%	+8.5%

All calculations based on non-rounded figures

Nestlé Group: 3.5% organic growth, 0.5% real internal growth
EBIT margin 14.1%, +30 bps both in reported and constant currencies
Food and Beverages: 3.4% organic growth, 0.1% real internal growth
EBIT margin 12.4%, +10 bps reported, +20 bps in constant currencies
Net profit: CHF 5.1 billion, 9.7% of sales
Underlying earnings per share: CHF 1.46, +3.5% reported, +8.5% in constant currencies
Operating cash flow: CHF 6.4 billion, up from CHF 3.5 billion in the first half of 2008

Paul Bulcke, CEO of Nestlé: "With 3.5% organic growth and a 30 basis point EBIT margin improvement, Nestlé delivered a combination of growth and increased profitability in the first half of the year, and this in a very challenging business environment. The success of our efficiency initiatives enabled increased investment in consumer-facing marketing and R&D, which leads me to expect an acceleration in organic growth in the second half of 2009. Furthermore, Nestlé's healthy cash flow over the first half allowed us to return about CHF 6.5 billion in cash to shareholders. The Group remains committed to its strategic direction focused on sustainable, long-term profitable growth and is well placed to capture opportunities as economic conditions improve."

Group sales, profitability and financial position

Vevey, 12 August 2009 – In the first six months of 2009, Nestlé achieved organic growth of 3.5%, including 0.5% real internal growth. Divestitures, net of acquisitions, reduced Group sales by 0.7%, whilst the currency effect resulted in a 4.3% reduction due to the strength of the Swiss franc compared to many other currencies. These factors resulted in a decline in Nestlé Group sales of 1.5%, to CHF 52.3 billion. Food and Beverages' sales reached CHF 48.3 billion, with organic growth of 3.4%, including real internal growth of 0.1%. This builds on the strong first half of 2008 when Nestlé achieved organic growth of 8.9%.

The Group's EBIT grew to CHF 7.4 billion, resulting in an increased EBIT margin of 14.1% of sales. This represents a 30 basis points improvement, both in constant and reporting currencies. Food and Beverages' EBIT margin was up 20 basis points in constant currencies and 10 basis points reported, to 12.4%.

The acceleration of Nestlé Continuous Excellence, the Group's efficiency programme, contributed to a 30 basis points decline in both the cost of goods sold and distribution costs. The Group's commitment to brand building, including innovation and renovation, is reflected in the 10 basis points increase in consumer-facing marketing and a 20 basis points increase in Research and Development.

Nestlé's net profit margin reached 9.7% of sales. Underlying earnings per share grew by 3.5% to CHF 1.46, up 8.5% in constant currencies.

On 30 June 2009, the Group's operating cash flow was CHF 6.4 billion, significantly up from CHF 3.5 billion in the first half of 2008, reflecting its commitment to capital efficiency. The Group's net debt was CHF 17.4 billion, down from CHF 25.8 billion at the end of June 2008. The continuing share buyback programme and the payment of the dividend together resulted in about CHF 6.5 billion of cash returned to shareholders in the first half of 2009.

Share buyback programme

On 28 July 2009, Nestlé completed the first stage of its CHF 25 billion share buyback programme, amounting to CHF 15 billion. A second stage of this programme, amounting to CHF 10 billion, will start on 13 August 2009. Nestlé's CHF 25 billion share buyback programme is foreseen to be completed by end of 2010.

Sales and EBIT margin by operating segment

In the first half of 2009, the organic growth of Nestlé's overall Food and Beverages activities amounted to 0.5% in Europe, 4.6% in the Americas and 6.6% in Asia, Oceania and Africa.

	Jan.-June 2009 Sales in CHF millions	Jan.-June 2009 Organic Growth (%)	EBIT Margins
	Jan.-June 2009 Sales in CHF millions	Jan.-June 2009 Organic Growth (%)	Jan.-June 2009	Change vs. Jan.-June 2008
Food & Beverages
- Zone Europe	10 791	+ 0.2	11.8%	0 bps
- Zone Americas	15 197	+ 6.6	15.2%	+20 bps
- Zone Asia, Oceania and Africa	7 733	+ 5.9	16.7%	+60 bps
Nestlé Waters	4 723	- 2.9	8.3%	+110 bps
Nestlé Nutrition	4 995	+ 1.5	17.4%	-110 bps
Other Food & Beverages	4 874	+ 6.1	16.1%	+20 bps
Total Food & Beverages	48 313	+ 3.4	12.4%	+10 bps
Pharma	3 954	+ 5.0	34.6%	+80 bps
Group Total	52 267	+ 3.5	14.1%	+30 bps

All calculations based on non-rounded figures
Globally managed Nestlé Professional activities have been taken out of the Zones and included in "Other Food & Beverages". 2008 comparatives have been restated.

Zone Europe: sales of CHF 10.8 billion, 0.2% organic growth and -1.5% real internal growth. The EBIT margin was 11.8%, the same level as a year ago. Savings from the acceleration of the Nestlé Continuous Excellence Programme compensated temporary volume softness, additional pension costs and continued investment in marketing. Great Britain and Eastern Europe, particularly Russia and the Ukraine, as well as the regional petcare business and soluble coffee, achieved high organic growth.

Zone Americas: sales of CHF 15.2 billion, 6.6% organic growth and 1.9% real internal growth. The EBIT margin improved by 20 basis points due to growth and significant cost savings from the Nestlé Continuous Excellence Programme. Both North and Latin America experienced strong organic growth, particularly the US, Brazil and Mexico. Soluble coffee and beverages, frozen food and petcare did particularly well.

Zone Asia, Oceania and Africa: sales of CHF 7.7 billion, 5.9% organic growth and 2.2% real internal growth. The EBIT margin improved by 60 basis points due to growth leverage and operational efficiencies. There were good performances across the emerging markets with Africa, China, India and the Philippines, amongst others, achieving double-digit organic growth. Soluble coffee, ambient culinary, powdered and ready-to-drink beverages, petcare and chocolate all delivered strong organic growth. Popularly Positioned Products (PPPs), aimed at emerging consumers, continued to achieve double-digit organic growth.

Nestlé Waters: sales of CHF 4.7 billion, -2.9% organic growth and -3.7% real internal growth. The EBIT margin increased by 110 basis points, benefiting from lower oil-related costs, efficiencies and supply chain optimisation. The organic growth reflects the current environment in the bottled water industry as a whole, particularly in Western Europe and North America. The emerging market businesses achieved double-digit organic growth. Nestlé Pure Life maintained good momentum around the world and drove market share gains in the US.

Nestlé Nutrition: sales of CHF 5.0 billion, 1.5% organic growth and -2.4% real internal growth. The EBIT margin decreased by 110 basis points, reflecting upfront investments in media campaigns and increased support for the accelerating NaturNes launch in Europe. All divisions accelerated during the first half from their first quarter performance. The infant nutrition business showed signs of improving momentum in Europe and the US during the period, and maintained good organic growth in Latin America, Asia, Oceania and Africa, supported by a strong innovation and renovation pipeline.

Other Food and Beverages: sales of CHF 4.9 billion, 6.1% organic growth and 2.4% real internal growth. The EBIT margin increased by 20 basis points due to growth leverage and operational efficiencies. Cereal Partners Worldwide and Nespresso continued to perform well. Nestlé Professional was affected by a softer out-of-home market in developed countries but delivered strong performances in many emerging markets such as Greater China, Philippines and the Middle East, resulting in virtually flat organic growth.

Pharma: sales of CHF 4.0 billion, 5.0% organic growth and 5.1% real internal growth. The EBIT margin improved by 80 basis points, mainly due to growth, operational efficiencies and a positive product mix.

Sales and EBIT margin by product

	Jan.-June 2009 Sales in CHF millions	Jan.-June 2009 Organic Growth (%)	EBIT Margins
	Jan.-June 2009 Sales in CHF millions	Jan.-June 2009 Organic Growth (%)	Jan.-June 2009	Change vs. Jan.-June 2008
Powdered and liquid beverages	9 242	+ 9.7	21.8%	-110 bps
Water	4 726	- 2.9	8.3%	+110 bps
Milk products and Ice cream	9 628	0.0	11.0%	-20 bps
Nutrition	4 997	+ 1.5	17.4%	-110 bps
Prepared dishes and cooking aids	8 221	+ 1.0	12.2%	+90 bps
Confectionery	5 118	+ 4.3	11.3%	+60 bps
PetCare	6 381	+ 9.1	15.7%	+120 bps
Total Food & Beverages	48 313	+ 3.4	12.4%	+10 bps
Pharmaceutical products	3 954	+ 5.0	34.6%	+80 bps
Group Total	52 267	+ 3.5	14.1%	+30 bps

All calculations based on non-rounded figures
The slight difference in the figures for water and nutrition between the "Sales by operating segment" and "Sales by product" tables is due to the fact that some water and nutrition products are also sold by management segments other than Nestlé Waters and Nestlé Nutrition.

Powdered and liquid beverages: sales of CHF 9.2 billion, 9.7% organic growth and 4.7% real internal growth. The EBIT margin declined by 110 basis points, mainly due to the increased support for the enlarged Nescafé Dolce Gusto roll-out and raw material cost pressures. The strong growth confirms the dynamism of Nestlé's billionaire brands Nescafé, Nesquik, Nespresso, Milo and Nestea. These brands benefited from a strong pipeline of new products, ranging from PPP offerings to super-premium. The successful roll-out of Nescafé Dolce Gusto continued and allowed Nestlé to increase its market share in the fast-growing portioned coffee segment. Nespresso continued its outstanding performance with organic growth over 25%. Overall, the product segment achieved double-digit growth in Eastern Europe, the Americas, Asia, Oceania, the Middle East and Africa.

Milk products and ice cream: sales of CHF 9.6 billion, 0% organic growth and -1.3% real internal growth. The EBIT margin declined by 20 basis points due to lower pricing in ambient dairy in anticipation of falling raw material costs. The EBIT margin in ice cream increased due to efficiencies and the exit from underperforming markets. There were the first signs of a pick up in consumer demand for ambient dairy in emerging markets after the high prices seen in 2008. Ice cream's organic growth improved over the first half of 2009 thanks to innovations such as Häagen Dazs 5 in North America and the successful launch of Nestlé Extrême all natural in Switzerland.

Prepared dishes and cooking aids: sales of CHF 8.2 billion, 1.0% organic growth and 0% real internal growth. The EBIT margin improved by 90 basis points due to product range rationalisation. Maggi achieved double-digit organic growth in Africa, Asia and Eastern Europe. In the US, Hot Pockets, Stouffer's and Lean Cuisine frozen prepared meals delivered a good first half performance. In Europe, frozen prepared meals were weak while the pizza business continued to perform well.

Confectionery: sales of CHF 5.1 billion, 4.3% organic growth and -1.3% real internal growth. The EBIT margin increased by 60 basis points due to efficiencies and product lines streamlining. Kit Kat continued its excellent performance with strong organic growth and market share gains. The UK business continued to perform well with its focus on its seven key brands, as did the US. Overall, the emerging markets in Asia, Africa, the Middle East and Latin America continued to deliver strong organic growth.

PetCare: sales of CHF 6.4 billion, 9.1% organic growth and 2.7% real internal growth. The EBIT margin increased by 120 basis points due to continued growth of high value-added strategic brands, together with pricing to offset input cost pressures. The global petcare business' excellent performance was driven by resilient demand for key premium and super premium brands such as One, Beneful, Cat Chow, Pro Plan and Friskies.

Outlook

Nestlé's first half performance of 3.5% organic growth combined with a 30 basis points EBIT margin improvement reflects the Group's strength in challenging times while making it fitter for the future. Indeed, Nestlé's successful efficiency programmes enabled it both to invest for growth and deliver this EBIT margin improvement. The Group expects volume-driven organic growth to accelerate in the second half as well as an EBIT margin improvement in constant currencies for the full year. The Group remains committed to its strategic direction focused on sustainable, long-term profitable growth and is well placed to capture opportunities as economic conditions improve.

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Nestlé completes its CHF 15 billion share buyback as part of its CHF 25 billion share buyback programme

Wed, 29 Jul 2009 15:35:21 GMT

Vevey, Switzerland July 29, 2009

Pursuant to the applicable regulatory requirements, Nestlé S.A. announces that it has completed its CHF 15 billion share buyback initiated on 24 August 2007 as part of its CHF 25 billion buyback programme. Nestlé S.A. repurchased 314,060,000 of its shares (adjusted to reflect the 10:1 share split effected in 2008) for a total of CHF 15 billion. The average purchase price per share was CHF 47.76 (also adjusted to reflect the 10:1 share split).

Amongst those shares repurchased, 10,072,500 shares (corresponding to 100,725,000 shares after the share split) were cancelled on 19 June 2008 and 180,000,000 shares were cancelled on 30 June 2009, following the resolutions on capital reduction made by the 2008 and 2009 Annual General Meetings of shareholders of Nestlé S.A. The Board of Directors intends to propose to future General Meetings to reduce the share capital by cancellation of the remaining shares repurchased.

As part of its CHF 25 billion buyback programme, Nestlé S.A. intends to launch a further share buyback of CHF 10 billion following the publication of the half-year results on 12 August 2009 and foreseen to be completed by end 2010.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

New investments reaffirm Nestlé's commitment to the ASEAN region

Sat, 13 Jun 2009 21:49:04 GMT

Singapore June 13, 2009

Speaking at a media conference at the end of his tour of South East Asia which took him to Thailand, Vietnam, Malaysia, Indonesia and Singapore, Nestlé CEO Paul Bulcke said that the Company will continue to invest in the region and expand its business and manufacturing facilities there. Over the last three years, Nestlé has spent over CHF 550 million in capital investments in its ASEAN operations. In 2008, Nestlé’s business in the region experienced 15% organic growth, with sales of around CHF 5 billion. In 2009, Nestlé's investments in the region will amount to CHF 260 million.

In Thailand Nestlé is investing in two significant manufacturing projects, the construction of a new Nestlé Purina pet food factory located in the Amata City Industrial Estate, and the expansion of the existing Navanakorn facility, where Nestlé (Thai) Ltd produces milk and coffee products. The pet food plant, which will create 135 new jobs, will be one of the most advanced factories of its kind in the world, thanks to its state-of-the-art processing technologies. The factory will supply dry pet food to the growing local and overseas markets, including Indonesia, Malaysia, Singapore and the Philippines, as well as Korea, Taiwan and Hong Kong. Nestlé’s overall capital investments for Thailand will amount to CHF 56 million in 2009.

In Vietnam Paul Bulcke opened the new Maggi production plant at the Nestlé factory in the Dong Nai province, where Nestlé will create over 800 jobs by 2010. The plant will meet the growing consumer demand for Maggi products in Vietnam, Cambodia and the Philippines. This year Nestlé will invest a total of CHF 13 million in its operations in Vietnam. For example, the La Vie Company, a local joint venture company in which Nestlé holds a 65% interest, will invest in its two mineral water factories to double their capacity.

In Malaysia, Nestlé has committed a capital investment of CHF 85 million for 2009 to meet the increasing demand for Halal products of which Nestlé Malaysia is the Centre of Excellence for the Nestlé Group. The investment supports the set-up of new regional plants for Nescafé and non-dairy creamer as well as the expansion of its Maggi facilities following the stronger export demands for its products in the region, the Middle East and Europe. Over the last three years significant investments were made in Singapore for the upgrade and expansion of the production facilities at the Jurong factory, while another CHF 3 million of investments have been committed for 2009.

In the Philippines, which Paul Bulcke visited last year, Nestlé's investments in 2009 will amount to CHF 72 million. An additional expression of Nestlé’s commitment to the region was the establishment of a Nestlé shared service centre for financial and employee services in the Philippines in 2008, which helps to maximize Nestlé’s operational efficiency throughout the ASEAN region and Oceania.

In Indonesia, Nestlé will invest a further CHF 29 million in 2009, after a major investment of CHF 130 million in the last two years, supporting the expansion of the Kejayan milk factory in East Java in order to meet the increasing demand. After the completion of the project, the Kejayan factory will be one of the ten biggest Nestlé milk processing plants in the world.

In addition to investments in its production facilities, Nestlé has globally invested around CHF 2 billion in research and development last year. One of the research projects in the ASEAN region is the partnership between Nestlé's R&D centre in Tours, France, and the Indonesian Coffee and Cocoa Research Institute (ICCRI) on the large-scale propagation of coffee and cocoa trees. So far over a million high-yield, disease-resistant cocoa plantlets have already been distributed through local partners, a figure which, according to the Indonesian Ministry of Agriculture, should reach 70 million by 2011.

At the press conference, Paul Bulcke also illustrated how Nestlé is creating long-term value for the communities in which it operates. “As is true of all of our worldwide operations, we are committed to creating shared value in the ASEAN region, both for shareholders and local communities. This means that Nestlé, through its activities wherever it operates, has to bring meaningful value to society at large by creating both direct and indirect jobs, working with farming communities, training and developing people, as well as bringing products to the market adapted to the taste and nutritional needs of local consumers. This is part of Nestlé's DNA and the long-term approach we take to everything we do”, he said. For over a century, Nestlé has been contributing to the economic development around the world. Indeed, half of the company's 456 factories are today based in the developing world. Nutrition, water and rural development were recently defined as three focus areas in Creating Shared Value, and the number of activities in these areas is being stepped up all over the world.

Paul Bulcke emphasized that “Nestlé has been operating in this part of the world for nearly 100 years. The ASEAN region is a very important part of the Nestlé business, and our continued commitment and on-going investments demonstrate our confidence in the region.” Nestlé currently has 23 factories and around 15,000 employees in its ASEAN markets. Furthermore, it has a Research and Development Center based in Singapore, which is an integral part of Nestlé’s global network of 27 Research, Technology and Development Centers. With all of this support, Nestlé is well placed to continue nourishing the 600 million consumers living in the ASEAN countries.

For further information please contact:

Tengku Marina Badlishah
Group Corporate Affairs
Nestlé Malaysia
Tel.: + 60 12 209 5275
E-mail: TengkuMarina.Badlishah@my.nestle.com

Nestlé opens major Nespresso production site in Avenches

Wed, 10 Jun 2009 19:08:17 GMT

Vevey, Switzerland June 10, 2009

Nestlé today inaugurated its second Nestlé Nespresso Production and Distribution Centre in Avenches (Switzerland) in the presence of Swiss Economic Affairs Minister Doris Leuthard and Jean-Claude Mermoud, Minister of Economic Affairs of the Canton de Vaud. Petraea Heynike, Executive Vice President of Nestlé S.A. and Chairman of Nestlé Nespresso, and Richard Girardot, CEO of Nestlé Nespresso, also attended.

Nestlé Nespresso is the world leader in top-quality, premium portioned coffee. There are currently 7 million Nespresso Club members in 50 countries and the business has enjoyed high double-digit growth rates for nearly a decade, with sales now exceeding CHF 2 billion. The new 400,000m3, state-of-the-art facility in Avenches will fuel the company's future growth, producing and distributing as many as 4.8 billion Nespresso capsules per year, a capacity which may double over the next three years.

The new Nespresso site in Avenches is a CHF 300 million investment in one of Nestlé's four key strategic growth platforms: nutrition, health and wellness; popularly positioned products (PPPs); out-of-home; and premium and luxury products. Along with Nespresso, Nestlé's other premium and luxury products include Mövenpick of Switzerland ice cream, S.Pellegrino and Perrier waters, as well as Cailler, Perugina, Baci and Nestlé Noir chocolate. The overall premium food and beverage market is due to grow by over 13% per annum through to 2020.

Nestlé's investment in Avenches is another demonstration of Creating Shared Value, the company's way of doing business. Clearly Nestlé is benefiting from this project, as is the local community: over 65 local companies participated in the construction of the site. The new Nestlé Nespresso Production and Distribution Centre will employ 340 people by the end of 2009, a number set to increase further to 600 by the end of 2012, making Nestlé Nespresso the region's largest employer. By 2012, an additional 1,400 people will benefit indirectly from the company's activities in the area. Among many benefits Nestlé has brought to Avenches are the cofinancing of the town's first child daycare centre, and the factory supplying hot water to 520 local households in summer.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

Nestlé launches first research unit in Japan

Wed, 20 May 2009 16:04:04 GMT

Vevey May 20, 2009

Nestlé S.A. today launched its first Japan-based research unit for fundamental scientific research. The research unit, part of Nestlé Science and Research in Switzerland, is based at the University of Tokyo, and focuses on fundamental research in nutrition and health.

This collaboration between Nestlé and the University of Tokyo is further strengthened by a new joint research programme, “Food for Life”. The programme was announced by Junichi Hamada, President of the University of Tokyo, and Peter van Bladeren, Head of Nestlé Science and Research and will begin on 1 June 2009. It will explore emerging research topics in health and nutrition for the 21st century, such as healthy ageing with special focus on mobility and cognitive performance. Through sharing knowledge and expertise, this research will provide the scientific basis for developing new products that will bring health benefits to consumers in Japan and world-wide.

Nestlé has committed around CHF1 million over a period of three years for a Chair endowed by Nestlé. The research collaboration will also include the secondment of scientists from the Nestlé Research Center in Lausanne. Nestlé is the first nutrition, health and wellness company outside Asia to contribute to the academic programme of the University of Tokyo.

Nestlé’s new collaboration with the University of Tokyo further strengthens the company’s commitment to the advancement of nutrition research in Japan. For almost 20 years, the Nestlé Nutrition Council of Japan has constructed an extensive national research network by providing grants and support to promising researchers in the field of food science and nutrition. Nestlé has been present in Japan since 1913. Today, Nestlé Japan operates three factories and has a strong brand portfolio in coffee, chocolate and nutrition products as well as pet food.

Nestlé’s global R&D network comprises 27 Research, Development and Technology Centers, and employs around 5,000 people. Nestlé’s internal innovation capability is expanded through innovation partnerships with renowned companies and its 300 collaborations with external research bodies, including universities.

Nestlé opens R&D Centre in West Africa to improve local agricultural crops

Thu, 30 Apr 2009 10:18:48 GMT

Vevey, Switzerland April 30, 2009

Creating Shared Value for both the company and rural communities

Nestlé today inaugurated a new R&D centre in Abidjan in the presence of Ivorian government representatives including Amadou Gon Coulibaly, Agriculture Minister, Ibrahima Bacongo Cissé, Scientific Research Minister, Gabriel Lohoury-Guigui, Special Advisor for Scientific Research to the Head of State, and Nestlé CEO Paul Bulcke.

The new R&D centre will focus on improving the quality of locally-sourced raw materials, including cocoa, coffee and cassava, and on adapting products to the nutritional needs and tastes of West African consumers. Better quality crops in West Africa will allow Nestlé to source more raw materials locally, which in turn will raise the income and the quality of life of local farmers. This is a further illustration of the principle of Creating Shared Value, Nestlé's way of doing business, which simultaneously creates value for the company and the communities in which it operates.

The new R&D centre will help Nestlé address the problem of disease and ageing plantations affecting the West African cocoa harvest every year by helping to promote the propagation of millions of high-yielding, disease-resistant cocoa trees across the region over the coming years.

Over the last 30 years, Nestlé has developed advanced technology enabling the mass production of trees with desirable characteristics through somatic embryogenesis. This enables the propagation of high-yielding, disease-resistant plants on a broad scale to rejuvenate cocoa and coffee plantations. This approach, which tends to curtail deforestation as it eliminates the need to expand existing plantations, is already being successfully implemented in different parts of the world.

In Ecuador and Indonesia, Nestlé has provided technical assistance to accelerate the propagation of superior cocoa tree varieties. Since the project started last year, as many as 1.1 million high-yield, disease-resistant cocoa plantlets have been distributed in Indonesia, a figure which should reach 70 million by 2011.

The same approach has been used for coffee. Over the last five years, Nestlé coffee propagation projects in Mexico and Thailand have provided farmers with around 1.5 million high-yielding, disease-resistant plantlets every year, which are expected to cover a total of 10,000 hectares of agricultural land in both countries by 2015.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

Nestlé launches major initiatives in nutrition, water and rural development

Mon, 27 Apr 2009 15:07:11 GMT

Vevey, Switzerland April 27, 2009

Creating Shared Value: a business response to global economic and social challenges

Nestlé today announced three new company initiatives aimed at creating new partnerships with governments, NGOs and small enterprises. The announcement comes as Nestlé launches a two-day forum on Creating Shared Value in New York in collaboration with the United Nations Office for Partnerships and the Mission of Switzerland to the United Nations. The initiatives include an expanded education programme focused on nutrition, health and wellness for school age children around the world, a research and development centre in Africa, and a new Nestlé Prize in Creating Shared Value, awarded every other year to foster innovative approaches to solve problems of nutrition, water and rural development.

These new initiatives in nutrition, water, and rural development come against a backdrop of a deep economic recession, with destruction of value for both shareholders and the public of historic proportions.

According to Nestlé Chairman Peter Brabeck-Letmathe, “the financial crisis which has resulted in the current deep recession revealed once more a basic business axiom: if you fail to work on behalf of the public interest and take shortcuts that place the public at risk, you will also fail your shareholders. We believe that to have long-term business success you must simultaneously create value for shareholders and for the public. At Nestlé, we call this Creating Shared Value, and it is the fundamental principle behind the way we conduct business at Nestlé.”

The new initiatives are related to Nestlé’s basic business strategy of nutrition, health, and wellness. Creating value for the public in terms of better nutrition, water, and food production is key to Nestlé building a sustainable business in the long-term. It makes a fundamental connection between shareholder value and community value.

“At Nestlé we recognize that our success depends on creating value for people – from the farmers who supply our products, to our employees, to our consumers and the communities where we operate,” said Nestlé Chairman Peter Brabeck-Letmathe. “Creating Shared Value is not philanthropy or an add-on. We have been integrating the improvement of the lives of workers, families and communities into our core business strategy since the Company’s creation in 1866.”

The long-term economic and social challenges the world is facing - population growth, availability of resources, particularly water and food security - cannot be solved by governments alone and corporations need to take responsibility and contribute to the solutions.

To this end, Nestlé launches today a series of initiatives to further highlight its commitment to Creating Shared Value. As a first new initiative, the Company is launching the Nestlé Healthy Kids Global Programme. Nestlé intends to double the number of countries in which it has nutrition and physical activity education projects by the end of 2011, bringing such schemes to over 100 countries where it operates. This new global programme addresses some of the world’s most complex challenges today – both malnutrition and increasing obesity rates, particularly among school-age children. Nestlé currently supports education programmes that reach over 10 million children.

Secondly, the opening of the Abidjan Research & Development Centre in Côte d’Ivoire demonstrates Nestlé’s commitment to rural development in Africa. The R&D Centre’s new research programmes will help to increase agricultural productivity and the safety of foods by developing and improving local crops - such as manioc, corn, millet, coffee and cocoa - and cereal-based products in the West African region. The R&D Centre will also build on Nestlé’s experience in tree propagation.

A third initiative, the Nestlé Prize in Creating Shared Value, provides financial support of up to CHF 500,000 (USD 461,000) to individuals, NGOs, or small enterprises offering innovative solutions to nutritional deficiencies, access to clean water, or progress in rural development. Nestlé will award the prize every two years.

“Reducing water use, improving nutrition and helping rural communities grow in the ways they want to develop are as essential to the company’s business strategy as they are to creating a healthier world. These new initiatives will benefit the people we touch and are essential building blocks for Nestlé to become the world’s recognised leading nutrition, health and wellness company,” said Paul Bulcke, CEO of Nestlé.

Over decades, Nestlé has worked with millions of milk and coffee farmers to make them better suppliers, and in doing so, has helped them out of poverty and to prosper. Today, Nestlé works directly with almost 600,000 farmers throughout the world, providing around CHF 30 million (over USD 27 million) worth of microfinance in 2008. About 2.4 million people in developing countries earn their livelihoods from the Nestlé supply chain. These examples show that the health of the communities from which Nestlé draws its labour and raw materials are vital to its success as a business and to its shareholder value.

“Nestlé has become the world’s foremost nutrition, health and wellness company, with half its factories and employees in the developing world. We owe our success in large part to those communities, and it’s that understanding that guides us to do even more than we have done before,” added Mr. Bulcke.

On 27 and 28 April 2009, Nestlé is organising a forum on Creating Shared Value in New York in collaboration with the United Nations Office for Partnerships and the Swiss Mission to the United Nations. During this Forum, Nestlé leaders will engage with world leading experts in corporate strategy, water, nutrition, and rural development. Participating in the Forum will be the 13 members of the newly formed Nestlé Creating Shared Value Advisory Board.

“I am proud that we were able to bring together such a high-calibre group of experts and global thought leaders for our Creating Shared Value Advisory Board,” commented Peter Brabeck-Letmathe. “This Advisory Board will analyse the Nestlé value chain and suggest potential actions in Creating Shared Value which can increase positive impact on society in the context of creating a successful business. Tomorrow’s Creating Shared Value Forum is the first of a series of annual meetings where we will work to address necessary action and policy changes at the global and national level, opportunities for progress, and the role of business in society in the 21st century,” concluded Mr. Brabeck.

The Forum will be webcast live. An on-demand webcast of the Press Conference will also be available. For more details go to our Press kit. You may also visit www.creatingsharedvalue.org, a new open community Web resource, to share your thoughts and discover what CSV means to the communities where Nestlé operates across the world.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

Strong support for Board proposals at Nestlé Annual General Meeting

Thu, 23 Apr 2009 08:11:00 GMT

Lausanne, Switzerland April 23, 2009

2 576 shareholders attended the Nestlé S.A. Annual General Meeting today in Lausanne. They represented 32.25 percent of the total capital and 50.78 percent of the shares entitled to vote. The annual report and the accounts were approved and the shareholders agreed to the release of the Board of Directors and the Management. For the first time at an Annual General Meeting the Nestlé Compensation Report was submitted for acceptance in a separate advisory vote, in line with the Swiss Code of Best Practice for Corporate Governance. The shareholders further approved the proposed dividend increase to CHF 1.40 per share, an increase of 14.8 percent over last year, and agreed to the capital reduction. All proposals of the Board of Directors were voted with strong majorities.

It was with sadness and regret that Nestlé Chairman Peter Brabeck-Letmathe informed shareholders at the Annual General Meeting of the untimely death of Lord George, Member of the Board of Directors, on 18 April 2009. Lord George was first elected to the Nestlé Board of Directors in 2004 and he was due to retire at the end of his present term in 2011. His expertise, judgement and wisdom were respected throughout the academic, economic and political world and immensely valued by Nestlé.

Shareholders re-elected Carolina Müller-Möhl and Daniel Borel as members of the Board of Directors for a three-year term. Due to the age limit set forth in the Board Regulations, Professor Günter Blobel did not stand for re-election. Kaspar Villiger did not stand for re-election, following his nomination to the position of Chairman of UBS. The Board extends its gratitude to Mr Villiger and Professor Blobel for their highly appreciated services as members of the Board and its committees.

At the meeting, Nestlé Chairman Peter Brabeck-Letmathe said: “In this period of economic and social turbulence, a strong, long-term orientation, clear strategies and disciplined implementation based on solid values are more important than ever. It is our firm conviction that in order to create sustainable value for our company, we must create value for society as a whole. Indeed, next Monday, we will be presenting our concept of Creating Shared Value at a high-level forum in New York.” Nestlé CEO Paul Bulcke added: “We believe that our strategy places us in a good position, and is all the more appropriate in difficult times. Not only does it give us excellent defensive characteristics, it also creates a platform for profitable growth that has proven itself to be one of the most vigorous in the industry. This will continue to guide and inspire our success through the present economic downturn.”

For the year to come, the Board and its different Committees will be composed as follows:

Board of Directors
Peter Brabeck-Letmathe, Paul Bulcke, Andreas Koopmann, Rolf Hänggi, Daniel Borel, Jean-Pierre Meyers, André Kudelski, Carolina Müller-Möhl, Jean-René Fourtou, Steven G. Hoch, Naina Lal Kidwai, Beat Hess

Chairman's and Corporate Governance Committee
Peter Brabeck-Letmathe, Paul Bulcke, Andreas Koopmann, Rolf Hänggi, Jean-René Fourtou

Compensation Committee
Daniel Borel, Andreas Koopmann, Jean-Pierre Meyers, Jean-René Fourtou

Nomination Committee
Andreas Koopmann, Peter Brabeck-Letmathe, Carolina Müller-Möhl, Steven G. Hoch

Audit Committee
Rolf Hänggi, André Kudelski, Naina Lal Kidwai, Beat Hess

The Chairman's and the CEO’s addresses to the AGM can be found in Speeches & Statements.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

Nestlé first-quarter sales performance enables confirmation of full-year outlook

Wed, 22 Apr 2009 15:45:58 GMT

Vevey, Switzerland April 22, 2009

Sales of CHF 25.2 billion, 3.8% organic growth, 0.3% real internal growth
7% organic growth in emerging markets, 2% in developed markets
Full-year outlook: organic growth at least approaching 5% together with a further improvement in EBIT margin in constant currencies

Paul Bulcke, CEO of Nestlé: "The Group achieved positive organic growth in the first quarter of 2009, despite tough comparisons with Nestlé's near 10% organic growth over the same period last year. Our response to the challenging economic environment in 2009 has been to seize new opportunities, accelerating key initiatives in areas such as product affordability, innovation and renovation, as well as cost efficiencies. The increasing momentum from such initiatives, as well as the strength of our brands and our worldwide geographic presence, enables me to confirm our guidance for 2009 as a whole."

Vevey, 22 April 2009 – In the first quarter of 2009, Nestlé achieved organic growth of 3.8%, including 0.3% real internal growth. Acquisitions, net of divestitures, had a negative impact of -0.7% on Group sales, as did the currency effect of -5.2% due to the strength of the Swiss franc compared to most other currencies. These two factors resulted in a reduction in Nestlé Group sales of 2.1%, to CHF 25.2 billion.

Sales by management responsibility

In the first quarter of 2009, the organic growth of Nestlé's total Food and Beverages business (including the Zones and globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and the Food and Beverages joint ventures) was 3.6%, with 0.7% in Europe, 5.0% in the Americas and 6.5% in Asia, Oceania and Africa.

	Jan-March 2009 Sales in CHF millions	Jan-March 2008 Sales in CHF millions	Jan-March 2009 Real Internal Growth (%)	Jan-March 2009 Organic Growth (%)
Food & Beverages
- Zone Europe	5 241	5 953	-1.3%	+0.5
- Zone Americas	7 487	7 095	+2.0%	+7.1%
- Zone Asia, Oceania and Africa	3 744	3 782	+0.8%	5.8%
Nestlé Waters	2 068	2 164	-4.0%	-2.5%
Nestlé Nutrition	2 420	2 577	-4.3%	0.0%
Other Food & Beverages	2 338	2 373	+3.1%	+6.8%
Total Food & Beverages	23 298	23 944	-0.1%	+3.6%
Pharma	1 876	1 773	+6.1%	+5.4%
Group Total	25 174	25 717	+0.3%	+3.8%

Zone Europe: sales of CHF 5.2 billion, 0.5% organic growth and -1.3% real internal growth. Consumer demand was subdued in Western Europe, whilst the performance of the Zone as a whole was impacted by the comparison with a strong first quarter in 2008 and the late start to the ice cream season. France and the UK were the strongest performers. In Central and Eastern Europe, pricing due to currency devaluations was the main contributor to organic growth. Overall, soluble coffee and petcare achieved the strongest growth.

Zone Americas: sales of CHF 7.5 billion, 7.1% organic growth and 2.0% real internal growth. Both North and South America achieved good performances with mid single-digit organic growth. In North America, frozen food, ambient dairy, soluble coffee and petcare performed well. In Latin America, ambient culinary products, soluble coffee, ice cream, petcare and biscuits showed strong growth.

Zone Asia, Oceania and Africa: sales of CHF 3.7 billion, 5.8% organic growth and 0.8% real internal growth. The vast majority of the Zone's emerging markets achieved positive organic growth despite lower reported pricing. Amongst the developed markets, there was a strong performance in Oceania, whereas Japan was somewhat softer. Overall, soluble coffee, petcare and confectionery delivered double-digit organic growth.

Nestlé Waters: sales of CHF 2.1 billion, -2.5% organic growth and -4.0% real internal growth. This reflects the continued adverse trend in the bottled water industry, particularly in Western Europe and the home-and-office segment in North America. Nestlé's retail business in North America gained market share. The emerging market business enjoyed double-digit organic growth. Nestlé Pure Life achieved double-digit organic growth with both the emerging markets and North America contributing.

Nestlé Nutrition: sales of CHF 2.4 billion, 0% organic growth and -4.3% real internal growth. This reflects the impact of the comparison with 14.4% organic growth in the first quarter of 2008, as well as weak growth in the European infant nutrition business and softer market conditions in the US, particularly affecting Jenny Craig. However, many emerging markets enjoyed good growth, supported by a strong innovation and renovation pipeline. The European roll-out of the NaturNes range continued to gather pace.

Other Food and Beverages: sales of CHF 2.3 billion, 6.8% organic growth and 3.1% real internal growth. Nespresso again achieved an outstanding double-digit organic growth. Cereal Partners Worldwide continued to perform well. Nestlé Professional was affected by a softer out-of-home market, especially in developed countries.

Sales by product category

	Jan-March 2009 Sales in CHF millions	Jan-March 2008 Sales in CHF millions	Jan-March 2009 Real Internal Growth (%)	Jan-March 2009 Organic Growth (%)
Powdered and Liquid Beverages	4 437	4 373	+4.7%	+9.7%
Water	2 069	2 165	-4.1%	-2.5%
Milk Products and Ice Cream	4 285	4 627	-3.0%	-0.2%
Nutrition	2 421	2 579	-4.3%	0.0%
Prepared Dishes and Cooking Aids	4 119	4 310	-0.5%	+1.0%
Confectionery	2 747	2 968	-1.1%	+4.3%
PetCare	3 220	2 922	+5.0%	+11.5%
Total Food & Beverages	23 298	23 944	-0.1%	+3.6%
Pharmaceutical Products	1 876	1 773	+6.1%	+5.4%
Group Total	25 174	25 717	+0.3%	+3.8%

All calculations based on non-rounded figures
The slight difference in the figures for water and nutrition between the "Sales by management responsibility" and "Sales by product category" tables is due to the fact that some water and nutrition products are also sold by management segments other than Nestlé Waters and Nestlé Nutrition.

Powdered and liquid beverages: sales of CHF 4.4 billion, 9.7% organic growth and 4.7% real internal growth. Nescafé continued to benefit from its programme of renovation launched in 2008, as well as the increasing pace of the international roll-out of Nescafé Dolce Gusto. The strong nutritional credentials of Milo and Nesquik continued to drive growth for both their powdered and liquid variants. Nespresso continued its outstanding performance. Overall, the product group achieved double-digit organic growth in the Americas and Asia, Oceania and Africa.

Milk products and ice cream: sales of CHF 4.3 billion, -0.2% organic growth and -3.0% real internal growth. These figures reflect the comparison with 16.0% organic growth in the first quarter of 2008. In the dairy category, currency devaluations in some emerging markets created pricing pressure and impacted demand. However, the category continued to benefit from a multi-tier strategy with products adapted to different affordability levels and nutritional needs. Ice cream was strongly impacted by reduced out-of-home consumption as well as a late start to the season in Europe. In the US, the super-premium brand Häagen Dazs performed well, as did Skinny Cow and Drumstick. Emerging markets benefited from the roll-out of new ice cream offerings for lower income consumers such as Nestlé Sorbets and Ice Buko in the Philippines.

Prepared dishes and cooking aids: sales of CHF 4.1 billion, 1.0% organic growth and -0.5% real internal growth. Maggi culinary products performed well in Asia, Eastern Europe and Latin America. In Europe, there was weaker growth from culinary and frozen prepared meals, but stronger growth from the Wagner and Buitoni pizza businesses as well as Herta in France. In the US, Lean Cuisine had a slow start, but Hot Pockets and Stouffer's family meals maintained their good growth momentum.

Confectionery: sales of CHF 2.7 billion, 4.3% organic growth and -1.1% real internal growth. The emerging markets in Asia, Africa and the Middle East continued to enjoy strong growth. The UK also performed well, particularly KitKat, which achieved double-digit growth. In Eastern Europe, the combination of the economic downturn, the increase in the cocoa price and currency devaluations resulted in reduced demand. In North America, growth continued to be impacted by the resizing of the portfolio. In Latin America, the biscuit business achieved strong double-digit organic growth with brands such as Passatempo in Brazil and Kuky in Chile.

PetCare: sales of CHF 3.2 billion, 11.5% organic growth and 5.0% real internal growth. This excellent performance reflects resilient demand for key premium and super premium Purina brands such as Dog Chow, Beneful, Pro Plan and Cat Chow. The growth of the business was supported by products at different price points as well as the continued success of the 2008 launches. The product category achieved strong organic growth in Europe and double-digit organic growth in the other zones.

Pharmaceutical products: sales of CHF 1.9 billion, 5.4% organic growth and 6.1% real internal growth. Alcon and the joint-venture Galderma contributed to the organic growth.

Full-year outlook

Nestlé's first-quarter sales performance of 3.8% organic growth, combined with the expected benefits from several initiatives already in progress in the markets and product groups, enables us to confirm our guidance for 2009: organic growth at least approaching 5% together with a further improvement of the EBIT margin in constant currencies. This expected performance is in line with the long-standing Nestlé model.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

The Bettencourt family and Nestlé S.A.

Thu, 09 Apr 2009 11:34:00 GMT

Paris and Vevey, Switzerland April 9, 2009

On 3 February 2004, the Bettencourt family and the Nestlé company signed an agreement organising their relationship and the management of their stakes within the L’Oréal company.

The agreement is public¹ and remains unchanged. It foresees the non-transferability of their respective stakes in the capital of L’Oréal until 29 April 2009, the other clauses (in particular, limitation cap, pre emption, escrow, prohibition on constituting a concert with any third party, formation of the board of directors and of the strategic and realisation committee) continue to be effective until the due date mentioned in the 2004 deed.

The Bettencourt family and the Nestlé company will continue acting in concert towards the L’Oréal company beyond 29 April 2009.

¹ see notably the AMF publication dated 5 February 2004

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Nestlé launches state-of-the-art factory and beverage distribution centre in USA

Wed, 04 Mar 2009 09:38:02 GMT

Vevey, Switzerland March 4, 2009 Nestlé has launched its largest ready-to-drink aseptic products factory in Anderson, Indiana. The state-of-the-art factory and distribution centre gives Nestlé a unique platform to leverage its nutrition, health and wellness strategy and sets the standard for future Nestlé ready-to-drink factories worldwide. Present at today’s official launch were Indiana Governor Mitch Daniels, Anderson Mayor Kris Ockomon, Nestlé CEO Paul Bulcke, and Nestlé USA Chairman and CEO Brad Alford.

The Anderson facility, at 880,000 sq. ft. (almost 82,000m2), covers an area the size of over 300 tennis courts and is dedicated to meet growing consumer demand of Nestlé Nesquik Ready-to-Drink and Nestlé Coffee-Mate Liquid products in the USA. It will become Nestlé’s centre for healthy beverages in the USA and allow the Company to create and develop new and innovative beverage products.

The Anderson factory has applied for LEED certification, which means that the facility meets a suite of standards for environmentally sustainable construction as determined by the U.S. Green Building Council (USGBC). It also has improved recyclability of resin packaging, a wastewater recovery system for reuse in cooling towers, and uses low-emission natural gas boilers.

Between August 2006 and June 2008, Nestlé invested USD 359 million to construct the factory and distribution centre, the Company’s largest single capital investment in its history. Last August, the company announced it will invest USD 170 million to expand the facility to more than 1 million sq. ft. (over 92,000m2) by 2011. In total, over 500 jobs will have been created in Anderson by 2011.

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Strong performance by Nestlé in 2008

Thu, 19 Feb 2009 17:35:51 GMT

Vevey, Switzerland February 19, 2009


		Change vs. 2007
CHF Millions	Reported 2008	Reported	Organic Growth	Constant Currencies
Sales
Group	109 908	+ 2.2%	+ 8.3%	+ 10.0%
Food & Beverages	102 364	+ 2.1%	+ 8.2%	+ 9.9%
EBIT Margin
Group	14.3%	+30 bps		+50 bps
Food & Beverages	12.8%	+20 bps		+40 bps
Earnings Per Share
Reported	CHF 4.87	+ 75.2%
Underlying	CHF 2.82	+ 0.7%		+ 10.9%

All calculations based on non-rounded figures

Nestlé Group: above target 8.3% organic growth, 2.8% real internal growth
EBIT of CHF 15.7 billion, EBIT margin 14.3%, up 30 bps, up 50 bps in constant currencies
Food and Beverages: 8.2% organic growth, 2.3% real internal growth
Resilient performance creates momentum for 2009
Net profit: CHF 18.0 billion (+69.4%), margin +650 bps to 16.4%
Includes profit on disposal of 24.8% of Alcon to Novartis
Proposed dividend increase of 14.8% to CHF 1.40 per share
Reflects strong performance in 2008 and confidence for 2009
CHF 25 billion share buyback programme on track: CHF 8.7 billion repurchased in 2008

Paul Bulcke, CEO of Nestlé: "Nestlé's 2008 performance reflects its ability to achieve a high level of organic growth together with an improvement in the EBIT margin, even in difficult times. The Group's results in 2008 are broad-based, demonstrate its intrinsic strength and provide momentum into 2009. Nestlé's ability to capitalize on a wide variety of market conditions across the world remains one of its decisive competitive advantages. This will enable the Group to seize growth opportunities worldwide in 2009 by leveraging the company's growth platforms, particularly nutrition, health and wellness and popularly positioned products, whilst also accelerating its cost efficiency initiatives. We believe that the Group will once again be one of the industry's fastest growing companies in 2009, in line with the long-standing Nestlé model, and we are committed to achieving organic growth at least approaching 5%, as well as a further improvement of the EBIT margin in constant currencies."

Group sales, profitability and financial position

Vevey, 19 February 2009 – In 2008 Nestlé demonstrated its ability to deliver a solid operating performance in a tough environment, with above-target organic growth and a 50 basis points EBIT margin improvement in constant currencies. 2008 was also a year in which the value of Nestlé's strong balance sheet was proven, enabling the Group to continue to access the debt markets at advantaged rates whilst also pursuing its three-year CHF 25 billion share buyback programme.

In 2008, consolidated sales of the Nestlé Group amounted to CHF 109.9 billion, an increase of 2.2% compared to the prior year, driven by organic growth of 8.3%, including real internal growth of 2.8%. Acquisitions, net of divestitures, added 1.7% to Group sales. The currency effect reduced Group sales by 7.8% due to the strength of the Swiss franc compared to most other currencies. The Group's Food and Beverages business, with sales of CHF 102.4 billion, was the main contributor to growth, achieving organic growth of 8.2%, including real internal growth of 2.3%.

The Group's EBIT grew to CHF 15.7 billion, resulting in an EBIT margin of 14.3%, up 30 basis points reported, and up 50 basis points in constant currencies. The EBIT margin for Food and Beverages was up 20 basis points reported, and up 40 basis points in constant currencies.

Net profit increased by 69.4% to CHF 18.0 billion, resulting in a net profit margin of 16.4%, up 650 basis points. This includes the CHF 9.2 billion profit on disposal from the sale of 24.8% of Alcon to Novartis. Total Earnings Per Share grew by 75.2% to CHF 4.87. The underlying earnings per share increased by 0.7% reported, and by 10.9% in constant currencies.

The Group's cost of goods sold increased by 120 basis points to 43.1% of sales. This reflects the impact of higher packaging and raw material costs, partially compensated by operational efficiencies which contributed over CHF 1 billion of savings. Operational efficiencies, enabled by GLOBE, incorporate areas such as supply chain, factories, administrative costs, product line rationalisation and improved returns on marketing and trade spends.

The main engine of Nestlé's growth is the continuous innovation and renovation of its products and brands. In 2008, an additional 15% of Nestlé products were successfully tested for superior nutritional benefits and taste characteristics over competitors' products. Innovation was driven by a 15% increase of Nestlé's Research and Development investment in Food and Beverages. Furthermore, the Company's commitment to growing its brands is demonstrated by a 7.5% increase in consumer-facing marketing expenses in constant currencies. Nestlé brands with annual sales of more than CHF 1 billion ("billionaire brands") accounted for over 70% of Nestlé's Food and Beverages sales in 2008 and were the main drivers of organic growth.

The Group's operating cash flow was CHF 10.8 billion, while free cash flow was CHF 5.0 billion. Cash flow was impacted by the decline in value of most currencies relative to the Swiss franc, and also a higher level of inventories as a hedge against the higher cost of certain raw materials. The Group’s net debt decreased to CHF 14.6 billion thanks also to the proceeds from the sale of 24.8% of Alcon, as well as from cash flow generation. The return on invested capital (ROIC), including goodwill, was 12.3%; excluding goodwill, it was 22.2%.

Share buyback programme and proposed dividend

The share buyback programme launched in September 2007 is on track and will be completed, subject to market conditions and strategic opportunities, within the 36-month period originally planned. In 2008, the Group spent CHF 8.7 billion on buying back its own shares which brings the total amount spent on repurchased shares to CHF 13.1 billion. In 2009, the Group is giving preference to a dividend increase, as evidenced by a 14.8% rise in the proposed dividend to CHF 1.40, and intends to invest around CHF 4 billion in repurchasing its own shares.

Sales and EBIT margins by management responsibility and geographic areas

In 2008, the organic growth of Nestlé's total Food and Beverages business, including globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, the Food and Beverages joint ventures, as well as the Zones, amounted to 5.3% in Europe, 8.8% in the Americas and 13.1% in Asia, Oceania and Africa.

	2008 Sales in CHF millions	2008 Organic Growth (%)	EBIT Margins
	2008 Sales in CHF millions	2008 Organic Growth (%)	2008	Change vs. 2007
Food & Beverages
- Zone Europe	28 153	+ 5.6	12.2%	+20 bps
- Zone Americas	33 134	+ 10.3	16.5%	+20 bps
- Zone Asia, Oceania and Africa	17 130	+ 12.2	16.5%	+20 bps
Nestlé Waters	9 589	- 1.6	6.0%	-220 bps
Nestlé Nutrition	10 375	+ 7.7	17.3%	+10 bps
Other Food & Beverages	3 983	+ 23.5	17.5%	+170 bps
Total Food & Beverages	102 364	+ 8.2	12.8%	+20 bps
Pharma	7 544	+ 8.8	34.1%	+80 bps
Group Total	109 908	+ 8.3	14.3%	+30 bps

All calculations based on non-rounded figures

In all three Zones, EBIT margin improvements were achieved despite significant packaging and raw material cost pressures in many categories and despite the strength of the Swiss franc. The key drivers of this improved performance were faster growth of more profitable categories and markets in line with Nestlé's nutrition, health and wellness strategy, operational efficiencies and the benefits of rationalising underperforming product lines.

Zone Europe: sales of CHF 28.2 billion, 5.6% organic growth and 1.4% real internal growth. The Zone's EBIT margin increased by 20 basis points. The Zone experienced double-digit organic growth in Eastern Europe, and positive organic growth in key Western European markets, such as France and Great Britain, as well as in the pan-European PetCare business.

Zone Americas: sales of CHF 33.1 billion, 10.3% organic growth and 2.7% real internal growth. The Zone's EBIT margin increased by 20 basis points. There was high single-digit organic growth in North America and double-digit growth in Latin America.

Zone Asia, Oceania and Africa: sales of CHF 17.1 billion, 12.2% organic growth and 3.7% real internal growth. The Zone's EBIT margin improved by 20 basis points. All the Zone's major emerging markets continued to achieve double-digit organic growth, with South Asia doing particularly well. Popularly Positioned Products continued to achieve an outstanding performance in the Zone with 27.4% organic growth.

Nestlé Waters: sales of CHF 9.6 billion, -1.6% organic growth and -3.9% real internal growth. The decline in sales reflects the continued slowdown of the bottled water category, particularly in Western Europe and North America. The emerging market businesses achieved organic growth close to 20%. Despite significant cost savings, the EBIT margin fell by 220 basis points as the impact of lower sales was compounded by a significant increase in the business' two main cost drivers, PET and distribution.

Nestlé Nutrition: sales of CHF 10.4 billion, 7.7% organic growth and 1.8% real internal growth. The EBIT margin improved by 10 basis points to 17.3%. The successful integration of Gerber and Novartis Medical Nutrition reinforced Nestlé Nutrition's position as the global leader in nutrition. Infant Nutrition performed well, supported by a highly productive innovation and renovation pipeline. Jenny Craig achieved double-digit organic growth.

Other Food and Beverages: sales of CHF 4.0 billion, 23.5% organic growth and 20.1% real internal growth. The EBIT margin was up 170 basis points to 17.5%. The three constituents, Nespresso, Cereal Partners Worldwide and Beverage Partners Worldwide, all performed well. Nespresso's annual sales exceeded CHF 2 billion for the first time.

Sales and EBIT margins by product group

	2008 Sales in CHF millions	2008 Organic Growth (%)	EBIT Margins
	2008 Sales in CHF millions	2008 Organic Growth (%)	2008	Change vs. 2007
Powdered and liquid beverages	18 885	+ 12.8	22.1%	-30 bps
Nestlé Waters	9 589	- 1.6	6.0%	-220 bps
Milk products and Ice cream	20 561	+ 9.2	11.5%	+40 bps
Nestlé Nutrition	10 375	+ 7.7	17.3%	+10 bps
Prepared dishes and cooking aids	18 117	+ 6.1	12.8%	-20 bps
Confectionery	12 370	+ 8.0	13.1%	+150 bps
PetCare	12 467	+ 12.1	15.7%	+20 bps
Total Food & Beverages	102 364	+ 8.2	12.8%	+20 bps
Pharmaceutical products	7 544	+ 8.8	34.1%	+80 bps
Group Total	109 908	+ 8.3	14.3%	+30 bps

All calculations based on non-rounded figures

Powdered and liquid beverages: sales of CHF 18.9 billion, 12.8% organic growth and 7.4% real internal growth. The EBIT margin declined by 30 basis points. This excellent sales performance confirmed the dynamism of Nestlé's billionaire brands Nescafé, Milo, Nespresso, Nesquik and Nestea. These brands benefited from a strong pipeline of nutritionally enhanced products, including new PPP offerings for lower-income consumers. In Asia and Australia, soluble coffee benefited from its continuous focus on products with improved nutritional profiles such as Nescafé Body Partner, Nescafé Protect and Nescafé Greenblend. The successful roll-out of Nescafé Dolce Gusto continued and allowed Nestlé to increase its market share in Europe in the fast-growing portioned coffee segment. Following a successful launch in Mexico, Nescafé Dolce Gusto was extended to Japan and the US. Nespresso continued to achieve an outstanding performance with more than 30% organic growth. The decline in the product group's EBIT margin reflected increased support for the accelerating Nescafé Dolce Gusto launch and raw material cost pressures.

Milk products and Ice cream: sales of CHF 20.6 billion, 9.2% organic growth and 1.2% real internal growth. The EBIT margin increased by 40 basis points with both milk products and ice cream contributing. The dairy category benefited from a multi-tier strategy with products adapted to different affordability levels and nutritional needs, reflected in the Nestlé Nido Nutrition System. Ice Cream's organic growth was impacted by the decision to discontinue less profitable products and distribution routes. The super-premium portfolio with brands such as Mövenpick of Switzerland and Häagen Dazs performed well, as did health-focused offerings such as Skinny Cow in the US.

Prepared dishes and cooking aids: sales of CHF 18.1 billion, 6.1% organic growth and 1.1% real internal growth. The EBIT margin declined only slightly, by 20 basis points, due to a strong recovery of the category over the second half of the year, particularly in frozen food, in spite of cost pressures. Culinary products in Asia and Eastern Europe achieved double digit organic growth, especially the Maggi brand. In the US, the three billionaire brands Hot Pockets, Stouffer's and Lean Cuisine accelerated during the course of the year. In Europe, the Wagner and Buitoni pizza business continued to perform well, as did Herta in France due to launches of products with nutritional advantages.

Confectionery: sales of CHF 12.4 billion, 8.0% organic growth and 1.4% real internal growth. The EBIT margin improved by 150 basis points reflecting in part the successful reorientation of the European business. The relaunch of the "Best Ever" KitKat and the launch of KitKat Senses continued successfully in Western Europe. These initiatives, as well as a continued strong performance in emerging markets, resulted in this product category's strong performance. The category continued to focus on both the lower income and the premium and super-premium segments. The upmarket move resulted in the roll out of dark chocolate products and a new range of chocolates designed by Pierre Marcolini sold exclusively in Nespresso boutiques in Switzerland and France.

PetCare: sales of CHF 12.5 billion, 12.1% organic growth and 5.2% real internal growth. The EBIT margin increased by 20 basis points with a strong second half performance. Strong organic growth was driven by resilient demand for key premium and super-premium brands across all Zones which benefited from new product launches such as Fancy Feast Elegant Medley’s, Cat Chow Healthful Life and ONE Natural Balance.

Pharmaceutical products: sales of CHF 7.5 billion, 8.8% organic growth and 8.4% real internal growth. This was the result of high single-digit growth by Alcon and double-digit growth by Galderma and Laboratoires innéov. The EBIT margin increased by 80 basis points to 34.1%.

Popularly Positioned Products

Nestlé's Popularly Positioned Product (PPP) strategy, one of Nestlé's four growth platforms and a specific business model which focuses on lower income consumers by offering them relevant and high-quality nutritious products at daily-affordable prices, is proving particularly beneficial in these turbulent economic times. Nestlé's Food and Beverages business in emerging markets achieved organic growth of 15% on sales of CHF 35 billion. With an increasing number of consumers trading down in the current economic environment, PPPs and other initiatives providing lower-priced products are proving particularly popular, also in developed countries. PPPs achieved organic growth of 27% overall, with hundreds of separate initiatives worldwide.

Nestlé Professional

Nestlé Professional, the company's division dedicated to the out-of-home food and beverage market, was organised as a globally managed business unit in 2008 with full profit and loss responsibility as of 1 January 2009. In 2008, Nestlé Professional achieved organic growth of 6.1% with sales of CHF 6.2 billion.

Outlook

The global business environment in 2008 was affected by a number of unforeseen events, especially in the latter part of the year. Economies around the world have significantly weakened over the last few months and it is likely that developments could further impact consumer demand. However, Nestlé believes that it will once again be one of the industry's fastest growing companies of this year, in line with the long-standing Nestlé model. For 2009, Nestlé is committed to achieving organic growth at least approaching 5%, as well as a further improvement of the EBIT margin in constant currencies.

L'Oréal

The conditions of Nestlé's agreement with L'Oréal are public. The main point of the agreement states that the Bettencourt family and Nestlé will keep all of their L'Oréal shares until at least 29 April 2009 and not increase their respective stakes in L'Oréal during the lifetime of Mrs. Liliane Bettencourt and six months after that. This is a commitment which Nestlé will honour whatever the circumstances. Consequently, Nestlé does not need to take any action or decision regarding its stake in L'Oréal next April.

The future of Nestlé's participation in L'Oréal is an important topic for the Group which the Nestlé Board of Directors is addressing with great attention in the framework of the Group's global nutrition, health and wellness strategy. Nestlé's participation in L'Oréal has been beneficial to both companies for many years and Nestlé will continue to take a long-term strategic view in shareholders' best interest.

Appointment to the Executive Board

The Nestlé Board of Directors has appointed Petraea Heynike as Executive Vice President in charge of Strategic Business Units, Marketing and Sales, and Nespresso, effective on 1 March 2009. Mrs. Heynike, currently Head of the Chocolate, Confectionery and Biscuits Strategic Business Unit and a former Nestlé Canada CEO, has more than 36 years of experience with Nestlé in 6 countries and, over the past three years, was responsible for the successful reorientation of Nestlé's confectionery business, giving the category new strategic direction and delivering strong business results. Her international experience combined with her deep product, market and communications expertise make her ideally suited to help define the strategic direction of Nestlé's different product categories.

Board proposals to the Annual General Meeting

The strong performance in 2008 will enable the Board to propose to shareholders a dividend increase of 14.8% to CHF 1.40 per share.

The mandate of Professor Günter Blobel, who first joined the Board in 2005, expires in April 2009. The Board wishes to express its gratitude to Professor Blobel for his highly-appreciated services over the years. Finally, the Board will propose the individual re-elections of Ms. Carolina Müller-Möhl as well as Messrs. Kaspar Villiger and Daniel Borel.

The General Meeting of Nestlé S.A. will take place on 23 April 2009 at 14:30 at the Palais de Beaulieu in Lausanne. The management report will be available from 12 March 2009, while the fully-audited financial statements are now posted on the Nestlé corporate website (www.nestle.com). The dividend will be payable from 29 April 2009.

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

WellNes Centre inaugurated in Vevey

Thu, 15 Jan 2009 08:22:08 GMT

Vevey, Switzerland January 15, 2009

Nestlé today inaugurated its new WellNes Centre at the international headquarters in Vevey in the presence of Peter Brabeck-Letmathe, Chairman of Nestlé S.A., Paul Bulcke, CEO of Nestlé S.A. and Philippe Leuba, Minister of the Vaud Cantonal Government. Meeting the highest environmental standards, the WellNes Centre is designed to provide Nestlé employees with services which contribute to their health and wellbeing. Inspired by the company's nutrition, health and wellness strategy, it reflects Nestlé's heritage, values and vision.

The two-storey building houses two restaurants, a coffee lounge, a gym and a medical centre for Nestlé employees. With 1,300 lunches served every day, the WellNes Centre is the largest company restaurant in the area. The construction of the new building, designed by Lausanne architects Richter and Dahl Rocha, started three years ago and underlines the company's commitment to the region and its development.

Contacts:
Media Robin Tickle Tel.: +41 (0)21 924 22 00
Investors Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Nestlé confirms new investments in Brazil

Thu, 11 Dec 2008 17:12:58 GMT

São Paulo December 11, 2008

Nestlé has announced today the purchase of Santa Bárbara Mineral Springs and part of its assets located in Santa Bárbara Spa, in the State of São Paulo. The current spring licensor, MINER – Mineração, Hotelaria e Turismo Ltda., will continue to act in the mineral water market.

With this new business, Nestlé Waters, the Water Division of Nestlé Group, reaches a significant production in São Paulo, Brazil’s top market in this segment. With 9.5% market share in the southeast, Nestlé Waters Brazil believes that can increase its market share significantly in the main area of the country that represents approximately 57% of the total market of bottled-water .

The estimated investment in Santa Bárbara Mineral Springs is R$100 millions (CHF52 million) in the next five years, including the value of the purchase, expansion and improvement of the production and packaging lines. Nestlé’s technology will be fully applied to Santa Bárbara to warrant excellent quality standards.

The business will be submitted to the competition defence authorities within the next few days.

This new investment confirms Nestlé’s belief in the country, and reassure, once again, that Brazil is one of its priority markets.

Santa Bárbara Mineral Springs – The Santa Bárbara brand has a strong presence in São Paulo’s countryside, and is distributed in more than 180 cities in plastic cups, small bottles and 20-liter bottles.

Nestlé Waters – Nestlé Waters, the bottled water division of the Nestlé Group, is the world leader in bottled water with 19.2% market share and presence in 130 countries with more than 70 brands. In 2007 it had a turnover of 10.4 billion Swiss francs.

In Brazil, it markets the brands Nestlé Aquarel, Petrópolis, São Lourenço, Perrier, S. Pellegrino and Acqua Panna, the latter three imported.

Nestlé launches new research programme on the specific nutritional needs of athletes

Thu, 27 Nov 2008 09:36:00 GMT

Vevey November 27, 2008

Nestlé today announced the launch of a new research programme on the specific nutritional needs of athletes engaged in different kinds of sports, thereby further strengthening the company's commitment to promoting sporting integrity through nutrition. The programme will provide data to help support a more personalised approach to sports nutrition in the future which, in time, should lead to a new generation of personalised sports nutrition products for leading athletes.

The announcement comes in the wake of the 5th International Nutrition Symposium on food and performance held at the Nestlé Research Center last month, which explored the importance of nutrition in elite physical performance. The key findings of the event, which were made public today in the presence of Werner Bauer, Nestlé CTO, and Richard Laube, Nestlé Nutrition CEO, include the fact that a good diet has a much greater potential than previously recognised to improve physical performance.

In his keynote speech, David Hemery, a former Olympic champion and founder of the 21st Century Legacy Project, underlined the importance of athletes achieving elite performances through talent, hard work and determination as role models for youth. He acknowledged that "Nestlé is playing its part, with top quality products, adding nutritional integrity to the health and well-being of young people".

In addition, two elite performers, Gunn-Rita Dahle, 8 times world champion mountain biker, and Faris Al-Sultan, 5 times Ironman winner and former Ironman world champion, conducted a landmark public debate on the proper use of nutrition during training, performance and recovery, together with Dr. Samantha Stear, Head of Nutrition at the English Institute of Sport.

Separate webcasts of these different discussions can be watched in the Press kits section of our website.

Contacts:

Media: Robin Tickle Tel.: +41 (0)21 924 22 00

Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Nestlé opens second R&D facility dedicated to its out-of-home business

Tue, 18 Nov 2008 13:24:02 GMT

Vevey, Switzerland November 18, 2008

Nestlé opened the new Nestlé Professional Customer Innovation Campus in Solon, Ohio, dedicated to the development of culinary food solutions for the out-of-home business. The new facility was inaugurated by Marc Caira, Global Business Executive Nestlé Professional, Jorge Sadurni, President Nestlé Professional Americas, and Kevin Patton, Mayor of Solon.

The establishment of the Customer Innovation Campus underlines the importance that Nestlé attributes both to R&D and to the out-of-home business, one of its four strategic growth areas. Consumers are spending more on out-of-home food and beverages, a trend which is set to continue.

Over the coming years, Nestlé Professional will invite chefs and executives from a variety of foodservice segments – restaurants, hotels, schools, business facilities – to the Customer Innovation Campus in Solon to learn more about key consumer trends and to collaborate on the development of customized menu and food solutions. The Customer Innovation Campus in Solon will employ 100 people, including world-class chefs.

Nestlé is investing around CHF 17 million in this new R&D facility. After the Nestlé Professional Beverage Centre in Orbe this is the second R&D Centre dedicated to the out-of-home business. Nestlé has the largest R&D network of any food and beverage company, with an investment of CHF 1.88 billion in 2007.

The out-of-home market has a potential of CHF 500 billion and Nestlé expects to double its sales within the next ten years. Nestlé Professional will assume full operational and financial responsibility from January 2009.

Contacts:

Media: Robin Tickle Tel.: +41 (0)21 924 22 00

Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Lars Olofsson leaves Nestlé

Tue, 18 Nov 2008 05:52:33 GMT

Vevey, Switzerland November 18, 2008

Lars Olofsson, Executive Vice President in charge of Strategic Business Units, Marketing and Sales, has decided to pursue other interests outside Nestlé and will therefore leave the company at the end of the month. During his 32 years at Nestlé, Mr. Olofsson was successively General Manager of France Glaces Findus, Head of the Nordic markets and Head of Nestlé France. In 2001, he was appointed Executive Vice President responsible for Zone Europe and, from 2005, he was in charge of Strategic Business Units, Marketing and Sales.

Throughout his long and distinguished career at Nestlé, both in operations and when in charge of marketing strategy at headquarters, Mr. Olofsson played an important role in Nestlé’s conversion into the world's leading Nutrition, Health and Wellness company. “We respect Mr. Olofsson’s decision and thank him warmly for his many years of dedication and loyalty to Nestlé and his valuable contribution to our company's development”, said Paul Bulcke, Nestlé CEO.

Nestlé has asked Werner Bauer, Executive Vice President and Chief Technology Officer, to take ad interim additional responsibility for Strategic Business Units, Marketing and Sales, effective today. Mr. Bauer already held this role on a previous occasion in 2004 and 2005. The Board of Directors will take a decision on a permanent appointment to this post in due time.

Contacts:

Media: Robin Tickle Tel.: +41 (0)21 924 22 00

Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Nestlé opens new Research and Development Centre in Beijing

Fri, 31 Oct 2008 12:50:15 GMT

Vevey, Switzerland October 31, 2008

Vevey, 31 October 2008 - Nestlé today inaugurated a new Research and Development Centre in Beijing, underlining the company’s commitment to R&D in China, as well as to Chinese consumers. The inauguration was attended by Zhao Fengtong, Vice Mayor of Beijing, Lin Fusheng, Head of Haidian District, Nestlé CEO, Paul Bulcke, CTO Werner Bauer and market Head of Nestlé China, Patrice Bula.

Nestlé is the first western food and beverage company to create a full-scale R&D Centre focusing on both basic research and product development, in China. R&D Beijing is Nestlé’s second R&D facility in China, and its 24th world-wide. This extension of Nestlé’s R&D network underlines the fact that Nestlé is a science-driven company with a long term vision.

Food safety and quality will be a major focus of this new R&D Centre. The safety and quality of food are addressed at every stage of product development – from the selection of ingredients to the choice of packaging material. Analytical science plays a vital role in safety and quality. It is used to detect absence or presence of potential contaminants in products to assure safety. It is used to quantify nutrients and to characterize ingredients to assure quality and regulatory compliance.

In addition to safety and quality, R&D Beijing will work on Nutrition and Life Sciences research, food technology, processing and packaging. Life Sciences research at the Beijing R&D Centre will use different approaches to address three key consumer health benefits – growth and development, healthy ageing and weight management.

Nestlé R&D in China will help to develop the scientific and innovative potential of the region, as well as that of the company. R&D Beijing will engage in research collaborations with Chinese universities and research organisations. Through sharing knowledge and expertise, these research collaborations will deliver a better scientific understanding of how food and food ingredients impact on human health and wellbeing. This will include research on the benefits of traditional Chinese ingredients, as well as the ways that these, and other ingredients, can be included in foods and beverages in a bioavailable form.

Nestlé is investing approximately RMB 70 million (CHF 11.5 million) in R&D Beijing, bringing the company’s total R&D investment in China to RMB 110 million (CHF 18 million). Nestlé has the largest R&D network of any food and beverage company, with an investment of CHF 1.88 billion in 2007.

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Nestlé 9-month sales: 8.9% organic growth – well above long-term target. Improved full-year outlook

Thu, 23 Oct 2008 13:08:48 GMT

Vevey, Switzerland October 23, 2008

Sales of CHF 81.4 billion, +CHF 2.7 billion, 8.9% organic growth, 3.4% real internal growth
Performance driven by Food and Beverages: 8.9% organic growth, 3.0% real internal growth
Full-year outlook: organic growth of about 8% with improved EBIT margin

Paul Bulcke, Nestlé CEO: "These record sales in the first 9 months reflect strong growth momentum in both the developing and the developed world. The Group's brands hold leadership positions in dynamic categories and will continue to deliver profitable growth on the back of our nutrition, health and wellness strategy. Indeed, such is the strength of alignment: 280,000 Nestlé people sharing the same vision and commitment to operational excellence, selling billions of products to consumers across the world, day after day. This is the driving force behind an outstanding shorter-term operational performance which, in turn, ensures the longer-term delivery of the Nestlé model: a good level of organic growth, combined with a constant currency EBIT margin improvement, year after year."

During the first nine months of 2008, consolidated sales of the Nestlé Group amounted to CHF 81.4 billion, an increase of 3.4% in Swiss francs over the same period last year. Reported sales benefited from a very strong organic growth of 8.9%, including 3.4% real internal growth. Acquisitions, net of divestitures, added another 2.5% to Group sales. The currency effect reduced Group sales by 8.0% due to the strength of the Swiss franc compared to most other currencies. The Group's Food and Beverages business, with sales of CHF 75.8 billion, was the main contributor to growth, achieving organic growth of 8.9%, including real internal growth of 3.0%.

In the first nine months of 2008, the organic growth of Nestlé's total Food and Beverages business amounted to 5.4% in Europe, 9.5% in the Americas and 14.2% in Asia, Oceania and Africa. These figures include the Zones, globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, as well as the Food and Beverages joint ventures.

Developing markets continued to experience good performances with an organic growth of 16.8% with all regions performing well. The Group's long-standing presence in these markets, combined with strong market positions and ubiquitous distribution, are some of the key success factors. These are further enhanced by Nestlé's Popularly Positioned Products (PPPs), an integrated business model to reach out to emerging consumers offering them quality, taste and nutritional content at affordable prices. PPPs achieved organic growth of more than 20%.

Developed markets also continued to achieve good performances with organic growth of 5.1%. Nestlé's multi-channel focus is delivering growth in traditional retailers, hard discounters and impulse channels. The Group's success in developed markets is increasingly driven by its capacity to innovate with new added-value products and services as well as continuously renovate the existing portfolio. Moreover, the premium and luxury end of the market continues to provide strong growth, with brands such as Nespresso, Häagen Dazs and Gourmet pet food performing well.

Sales by management responsibilities and geographic areas
	Jan-Sept 2008 Sales in CHF millions	Jan-Sept 2007 Sales in CHF millions	Jan-Sept 2008 Real Internal Growth (%)	Jan-Sept 2008 Organic Growth (%)
Food & Beverages
- Zone Europe	20 998	20 711	+ 2.1%	+ 6.0%
- Zone Americas	23 751	23 799	+ 3.0%	+ 10.7%
- Zone Asia, Oceania, Africa	12 714	12 206	+ 4.5%	+ 13.2%
Nestlé Waters	7 591	8 242	- 3.2%	- 1.0%
Nestlé Nutrition	7 802	5 745	+ 4.0%	+ 9.6%
Other Food & Beverages	2 931	2 534	+ 19.7%	+ 22.8%
Total Food & Beverages	75 787	73 237	+ 3.0%	+ 8.9%
Pharma	5 575	5 474	+ 8.9%	+ 9.5%
Group Total	81 362	78 711	+ 3.4%	+ 8.9%

All calculations based on non-rounded figures

Zone Europe: sales of CHF 21.0 billion, 6.0% organic growth and 2.1% real internal growth. The Zone's strong momentum continued in the second half of the year, with key Western European markets and businesses achieving good levels of organic growth, particularly Great Britain and the pan-European PetCare business. Organic growth in Eastern Europe continued to accelerate. The Zone's bigger categories, chocolate, culinary, PetCare and soluble coffee, achieved high single-digit organic growth.

Zone Americas: sales of CHF 23.8 billion, 10.7% organic growth and 3.0% real internal growth. The Zone continued to achieve strong organic growth, with high single-digit organic growth in North America and double-digit organic growth in Latin America. PetCare, shelf stable dairy, soluble coffee were among the categories which achieved double-digit organic growth. There were improved performances from ice cream and frozen food in North America.

Zone Asia, Oceania and Africa: sales of CHF 12.7 billion, 13.2% organic growth and 4.5% real internal growth. The strong momentum continued in the second half, with all the Zone's major emerging markets such as Middle East, South Asia, Africa and Greater China achieving double-digit organic growth. All the Zone's key categories achieved high single-digit or double-digit organic growth with PPPs contributing significantly.

Nestlé Waters: sales of CHF 7.6 billion, -1.0% organic growth and -3.2% real internal growth. This performance remains unchanged from the half year and reflects the slowdown of the bottled water category in Western Europe and North America due to a combination of economic conditions and perceived environmental issues around bottled water. Nestlé Waters' increasingly important emerging market businesses continued to achieve organic growth above 20%. The two billionaire brands, Poland Spring and Nestlé Pure Life, grew, as did the premium brands S. Pellegrino and Perrier.

Nestlé Nutrition: sales of CHF 7.8 billion, 9.6% organic growth and 4.0% real internal growth. These figures are in line with the business' long-term organic growth target of 10%. Strong performances in infant nutrition continued, driven by a strong innovation and renovation pipeline. Jenny Craig achieved double digit organic growth. The integration of Novartis Medical Nutrition and Gerber is now complete and these businesses are performing well.

Sales by product categories
	Jan-Sept 2008 Sales in CHF millions	Jan-Sept 2007 Sales in CHF millions	Jan-Sept 2008 Real Internal Growth (%)	Jan-Sept 2008 Organic Growth (%)
Powdered and Liquid Beverages	13 696	12 849	+ 8.1%	+ 13.1%
Nestlé Waters	7 591	8 242	- 3.2%	- 1.0%
Milk Products and Ice Cream	15 900	15 730	+ 1.7%	+ 10.8%
Nestlé Nutrition	7 802	5 745	+ 4.0%	+ 9.6%
Prepared Dishes and Cooking Aids	13 097	13 320	+ 1.4%	+ 6.3%
Confectionery	8 664	8 376	+ 2.8%	+ 9.1%
PetCare	9 037	8 975	+ 5.0%	+ 11.4%
Total Food & Beverages	75 787	73 237	+ 3.0%	+ 8.9%
Pharmaceutical Products	5 575	5 474	+ 8.9%	+ 9.5%
Group Total	81 362	78 711	+ 3.4%	+ 8.9%

All calculations based on non-rounded figures

Powdered and Liquid Beverages: sales of CHF 13.7 billion, 13.1% organic growth and 8.1% real internal growth. This excellent performance again confirmed the strength of Nestlé's billionaire brands Nescafé, Milo, Nespresso, Nesquik and Nestea. The roll-out of Nescafé Dolce Gusto in Western Europe continued successfully. Health-focused offerings such as Nescafé Body Partner, Nescafé Protect in Asia and sugar-reduced Nesquik performed well, while Popularly Positioned Products grew strongly in emerging markets. Nespresso continued to achieve an outstanding performance with over 30% organic growth.

Milk Products and Ice Cream: sales of CHF 15.9 billion, 10.8% organic growth and 1.7% real internal growth. The organic growth of shelf stable dairy products reflected the first effects of falling milk prices but remained double-digit in most markets. CoffeeMate continued to perform well across all Zones. Ice cream's organic growth was impacted by higher raw material costs. However, the super-premium brand Mövenpick of Switzerland achieved double-digit organic growth, as did products with an improved nutritional profile such as La Laitière in France, Skinny Cow in the US and La Cremeria in Italy.

Prepared Dishes and Cooking Aids: sales of CHF 13.1 billion, 6.3% organic growth and 1.4% real internal growth. Maggi continued to experience strong organic growth in Eastern Europe, Asia and Africa. Frozen food in the US accelerated, particularly Hot Pockets, and in Europe the Wagner and Buitoni pizza businesses continued to perform well. Chilled food continued to grow, mainly driven by Buitoni in the US and Herta in France.

Confectionery: sales of CHF 8.7 billion, 9.1% organic growth and 2.8% real internal growth. The relaunch of the "Best Ever" Kit Kat proved to be successful and the launch of Kit Kat Senses in the UK, Germany and France is also showing strong early results. These initiatives, as well as a continued strong performance in emerging markets contributed to this billionaire brand's double-digit growth. Increased consumer interest in home baking resulted in good performances of products such as Nestlé Dessert in France and Toll House in the US. In Brazil, the launch of nutritious snacking alternatives such as Combina biscuits with wholegrain and added fibre showed good results.

PetCare: sales of CHF 9.0 billion, 11.4% organic growth and 5.0% real internal growth. The acceleration in the third quarter reflects resilient demand for key premium brands such as Beneful and super-premium brands such as Fancy Feast and Gourmet, despite the timely pricing action in response to increased cost pressure earlier in the year.

Pharmaceutical Products: sales of CHF 5.6 billion, 9.5% organic growth and 8.9% real internal growth. Alcon and the joint ventures, Galderma and Innéov, continued to grow strongly.

Financial position

The proceeds of the sale of a 24.85% share of Alcon by Nestlé to Novartis, USD 10.4 billion, were used to reduce the Group's exposure to the short-term commercial paper market. Nestlé's net debt will be lower at the end of 2008 than at the end of 2007, when it stood at CHF 21.2 billion. Nestlé enjoys predictable cash flows which, combined with its high credit quality, have positioned it well in recent market conditions, enabling it to continue to make below-market rate debt offerings. Nestlé's strong financial position is reflected in the fact that it is continuing with its share buy-back programme at the accelerated level announced in August 2008.

Outlook

Nestlé is committed to becoming the recognized global leader in nutrition, health and wellness and the reference for sustainable financial performance in its industry. The alignment of the Group's businesses behind this commitment will drive profitable growth both in the current environment and in the longer term, demonstrating Nestlé's defensive qualities as well as its strong growth credentials.

In view of Nestlé's strong third quarter, the company foresees organic growth of about 8% for the full year, higher than expected at the first half, together with an improvement in EBIT margin, both reported and constant currency. Thereafter, Nestlé is committed to delivering the Nestlé model, consisting of 5 to 6% organic growth together with constant currency margin improvement, year after year.

Contacts:: Media: Robin Tickle Tel.: +41 (0)21 924 22 00; Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Further information

Following the publication of our 9-month results you may join in the following:

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10:00 CET Press Conference - !!! Error when processing "TaggedAnchor" field value: Object reference not set to an instance of an object.

Further details can be found in the Events section.

Nestlé’s management of dairy supply chain in China

Thu, 23 Oct 2008 08:56:08 GMT

Shuangcheng, China October 23, 2008

In a showcase of its state-of-the-art milk production and processing system, Nestlé today opened the doors of its Shuangcheng milk factory to highlight its world-class quality and safety management system in the industry. The Shuangcheng factory, established in 1987 and located in Heilongjiang province in northeast China, is the largest of its kind in Asia and ranks fourth in the world in terms of annual dairy production in the Nestlé Group.

Led by Mr. Patrice Bula, Chairman and CEO of Nestlé (China) Ltd., the tour of Nestlé’s Shuangcheng factory and its farmers’ training session explained that Nestlé’s manufacturing mission in China is to produce advanced, world class quality milk products for all generations of Chinese from infants to seniors, and at Nestlé, quality and safety are non-negotiable.

In order to deliver this, Nestlé has over the past 20 years put in place comprehensive quality and safety management system that features four key attributes: 1) direct relationship with the farmer; 2) a unique milk collection model; 3) world-class production and processing; and 4) advanced R&D to continually apply the latest technology and safety standards.

Win-Win-Win Partnership between Farmers, Local Government and Nestlé
Nestlé’s high quality dairy production always begins at the source with milk farmers. To build long-term, direct relationships, Nestlé has established a unique milk collection model called 'factory and farmers' through solid efforts over the past 20 years. Based on a Win-Win-Win partnership between farmers, the local government and Nestlé, this model ensures each party takes its responsibility and works together to achieve highest quality and safety. Government supports have been instrumental in the successful implementation of this model, which also effectively eliminates the 'middleman' and ensures the traceability and accountability of the overall supply chain. Most importantly, through this model Nestlé dairy farmers are provided with continuous training, technology and skill development – from cow selection, quality feed, breeding practices, disease prevention, milking, storage and transportation – to bring world-class standards and processes to local communities, which in turn produces high quality milk and promotes positive development of the local industry. Every year, for the last 20 years, Nestlé conducts more than 300 free training sessions for farmers.

Milk Collection Model
The unique milk collection model employed by Nestlé and its farmers includes a computerized system where information on each farmer, cow and batch of raw fresh milk is tracked from pickup to delivery and production. In this model, every batch of milk received needs to pass a series of strict quality checks before it is 'lead sealed' prior to being transported to the factory. In order to ensure freshness of the source milk, every Nestlé farmer is approximately one-hour from the milk stations, which are managed by Nestle-trained staff.

World-class Production and Processing
Over the past 20 years, the Shuangcheng factory has undergone rapid growth and consistent enhancement to become one of the most technologically advanced and largest Nestlé factories in the world. Its highly efficient quality and safety management and stringent regulation over its milk supply chain has ensured the consistent supply of high-quality products made from fresh milk that comply with world standards. In fact, this process includes over 70 international quality and safety tests developed through Nestlé’s worldwide network of dairy scientists and engineers. As a result, the Shuangcheng milk district has been rated as the number one county in China for milk cow production by the China Dairy Association.

Advanced Research and Development
As the world’s foremost dairy and nutrition expert for over 140 years, Nestlé’ is committed to investing in advanced research and development to ensure the quality and safety of products in China. This commitment includes leveraging its 23 global R&D centers, with one in Shanghai and another with the opening of a new state-of-the-art Beijing Research and Development Centre. With an initial set-up investment of RMB 70million, the new Beijing R&D Center provides high-tech quality testing, safety technical and scientific support. The Beijing R&D Center also strengthens Nestlé’s ability to further adapt its products to local taste preferences, and address the nutritional and health needs of future generations of Chinese consumers.

“For more than 140 years, families have trusted Nestlé for the best milk and infant nutrition products,” said Mr. Bula. “At Nestle, consumer safety is an uncompromising priority. That’s why we have been employing these best practices that set the standard for the industry.” Mr. Bula also noted that during the current milk crisis in China, Nestlé undertook immediate, decisive actions to ensure continuous and uncompromised quality and safety of its products.

Since Sept 14th, no milk products are released to the market before passing internal tests and government lab certifications.
To deliver our commitment to our consumers about product safety and quality, immediate voluntary testing is being conducted on all Nestlé milk products produced before Sept 2008. As of today, Nestlé has passed all tests and received more than 16,000 government certifications. This allowed Nestlé to respond speedily ahead of our competitors in making sure that our products remain available on store shelves after the Chinese authorities issued recently its 'Green sticker' policy to satisfy consumer needs.
Nestlé massively invested in the quality control of its fresh milk supply in order to achieve best-in-class standard of fresh milk quality. Nestlé has made immediate investment to equip its factories with 20 state-of-the-art analytical machines, including some of the most sophisticated equipment used during the Beijing Olympics.
The Nestlé headquarters in Switzerland has sent more than 20 of its leading scientists from Europe who are working on the ground with the local team as well as relevant authorities to ensure the highest product quality and safety. These actions, plus the already existing world class operations in Shuangcheng factory, enabled Nestlé to comply with all government standards and requirements, and ensure that Chinese consumers continued to enjoy our high quality dairy and infant nutrition products with confidence.

...........................

About Nestlé (China) Ltd.
Headquartered in Switzerland, Nestlé is the world’s largest food company with a long history in China. Chinese consumers have trusted the Nestlé brand name since its first sales office was established in Shanghai in 1908, making Nestlé one of the first foreign enterprises with a solid commitment to China. In the early 1980s, Nestlé started its negotiation with the Chinese government to set up factories in China, and transferred its world-leading proprietary technologies and rich expertise in nutrition and food processing to China. The first joint venture between Nestlé and its Chinese partners started in Shuangcheng in 1987, and more factories have been established ever since. Nestlé has helped China save substantial foreign exchange by replacing imports with local products made from local materials of the same quality. Today, 99% of Nestlé’s products sold in the China market are locally made. For more information about Nestlé (China) Ltd., please visit our !!! Error when processing "TaggedAnchor" field value: Object reference not set to an instance of an object.

Nestlé's milk business
As the world’s largest food producer, milk is Nestlé’s top business line and comprises about 25% of its global sales. Nestlé operates 91 milk factories in 45 countries, and purchases about 12 million tons of fresh milk from 300,000 milk farmers each year.

Contact
For interviews or more information, please contact:
Nestlé China: He Tong
Telephone: +86 10 8434 7656
E-mail: nancy.he@cn.Nestlé.com

Nestlé to invest CHF 240 million into coffee factory in Timashevsk (Russia)

Mon, 20 Oct 2008 12:00:18 GMT

Moscow, Russia October 20, 2008

Nestlé today announced its intention to invest CHF 240 million into the expansion of its coffee factory in Timashevsk, in the Russian Krasnodar region. The letter of intent was signed today by Nestlé's Executive Vice-President Mr. Luis Cantarell and the Governor of the Krasnodar region, Mr. Alexander Tkachev just before the annual plenary session of the Foreign Investments Advisory Council of Russia, headed by the Chairman of the Russian Government.

The investment goes into the introduction of state-of-the-art technologies and processes which will allow a significant capacity increase in this facility. The Timashevsk factory will benefit from Nestlé's freeze-dry technology which will create coffee products of superior quality and create additional benefits to the Russian consumers.

Mr. Cantarell said: "I am proud of this pioneering new investment that we have decided to make in Timashevsk. It strengthens our leading position in the Russian coffee market and demonstrates our strong trust in the market's potential." The Governor of the Krasnodar region, Mr. Alexander Tkachev valued Nestlé's investment plans: "We enjoy long-term relations with Nestlé. This large investment underscores the economic development of the Krasnodar region."

The Nestlé coffee factory in Timashevsk was inaugurated in November 2005 and became the first full-cycle production facility for instant coffee in Russia. The factory produces Nescafé Classic soluble coffee, Nescafé coffee mixes and other Nescafé products. In 2007, the factory produced 27,000 tons of finished products.

Over the past 14 years, Nestlé has built up a strong presence in Russia with over 11,000 employees and 14 production units. With double-digit growth rates and sales of CHF 2.1 billion in 2007, Nestlé is market leader in Russia in coffee, chocolate, culinary products and infant nutrition.

Contacts:
Marina Zibareva, Nestlé Russia
Tel: +7 (495) 725 7209
Cell: +7 (916) 322 7808
E-mail: Marina.Zibareva@ru.nestle.com

Nestlé withdraws one batch of product from Korean market

Sat, 04 Oct 2008 17:53:32 GMT

Seoul, South Korea October 4, 2008

The Korea Food and Drug Administration (KFDA) have asked Nestlé to withdraw one batch of mini Kit Kat made in China from the market after their tests detected minute traces of melamine in a single batch out of 8 Nestlé confectionery items tested.

No melamine was detected in the 7 other products.

In line with Nestlé’s Corporate Business Principles, the company immediately complied with the authorities’ request, even though this product is absolutely safe by recognized international standards. South Korea has no regulations on maximum levels of melamine in food, and the conditions under which the South Korean authorities conducted their tests are unclear.

Nestlé and Taiwan Department of Health reaffirm products are safe - Nestlé fails to understand temporary delisting request

Thu, 02 Oct 2008 06:50:52 GMT

Vevey, Switzerland October 2, 2008

The quality and safety of its products is a non-negotiable priority for Nestlé
Nestlé immediately complied with Taiwan Department of Health temporary delisting request
Nestlé urges Taiwan Department of Health to introduce science-based standards
Nestlé reaffirms all its dairy products made in China are safe

Taiwan’s Department of Health has asked Nestlé to temporarily delist Neslac and KLIM products made in China and sold in Taiwan. No other Nestlé products are concerned. In line with Nestlé’s Corporate Business Principles, the company immediately complied with authorities’ request, even though the Department of Health itself confirmed that these products are absolutely safe by any recognized international standards. Moreover, these products had already received official certification as being safe from the Department of Health.

According to international experts the levels of melamine detected in these products by Taiwan's Department of Health are so minute that they are almost certainly present in any food product anywhere in the world. Such minute traces exist in the natural food cycle. Indeed, the EU and the US have long had limits for the presence of melamine in food and the WHO recently issued recommendations which were used by other countries to set their own standards. The 0.05 ppm detection limit currently applied in Taiwan is up to 50 times below recognized and accepted international standards.

The safety of its consumers is Nestlé's top priority. In order to be able to make the vital distinction between products made from milk adulterated with melamine and those containing traces of melamine occurring naturally in the general environment, standards setting limits for the presence of melamine in food are essential. Nestlé therefore welcomes the fact that Taiwan is currently considering such legislation, but fails to understand why the authorities are asking Nestlé to temporarily delist these products which, by their own admission, are absolutely safe by any recognized international standards.

Nestlé will reintroduce these products as soon as regulatory standards for melamine in food are set in Taiwan.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

Nestlé milk products in China and Hong Kong absolutely safe

Tue, 23 Sep 2008 11:32:50 GMT

Vevey, Switzerland September 23, 2008

No Nestlé products made from milk adulterated with melamine
Chinese authorities confirm safety of Nestlé milk products
Nestlé welcomes clarity brought by government regulation

Nestlé reaffirms that all its milk products in China and Hong Kong are absolutely safe. No Nestlé milk products in China and Hong Kong are made from milk adulterated with melamine. This is confirmed by tests carried out by independent, government-approved laboratories in China and Hong Kong. The Chinese authorities have included Nestlé in a positive list of companies the products of which are safe. Indeed, Nestlé infant formula and other dairy products continue to be available in retail outlets throughout China and Hong Kong.

Nestlé welcomes government efforts to establish clarity on safety levels for melamine in food. Clear limits greatly contribute to making the vital distinction between safe milk products and other products made from milk adulterated with melamine.

Melamine is found throughout the natural food cycle across the world in minute traces which do not represent any health risk for consumers. This is why the EU and the US have legislation setting limits for melamine in food.

Nestlé dairy products not made from milk adulterated with melamine

Sun, 21 Sep 2008 13:58:44 GMT

Vevey, Switzerland September 21, 2008

Following press reports in Hong Kong earlier today claiming that traces of melamine had been found in a Nestlé growing up milk, Nestlé is confident that none of its products in China is made from milk adulterated with melamine.

The Hong Kong Government's Food and Environmental Health Department has just released a report declaring that Neslac Gold 1+, which was mentioned in the media reports, is safe and that no melamine was detected in the product. Neslac Gold 1+ was previously tested by government-approved independent laboratories such as the Hong Kong Standards and Testing Centre Ltd. (18-20 September) and the Food Industry Research and Development in Taiwan (16 September). Neither test detected melamine in the product.

Nestlé has a very close relationship with its milk producers in China and advises them continuously on the quality of milk production. Nestlé also has the same stringent quality control system in place in its factories in China as in any other part of the world. Over 70 different tests are routinely conducted in the course of producing infant formula and other milk products. In fact, the Chinese authorities have issued official certificates for all tested Nestlé products stating that no melamine has been detected in any of them.

In general terms, melamine is found throughout the food chain across the world in minute traces which do not represent any health risk for consumers. There is a generally accepted tolerable daily intake of melamine in food in the EU (0.5mg/kg of body weight/day) and in the US (0.63mg/kg of body weight/day). The lowest level of melamine traces which can be measured by commonly-used testing equipment (2 ppm) is 20 times below these internationally-recognised safety limits. In other words, based on this 2 ppm value, a three year-old child would have to consume over 40 litres of milk every day to exceed these safety limits.

Since the safety of consumers is of utmost importance to the company, Nestlé once again expresses confidence that none of its products in China is made from milk adulterated with melamine.

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Contacts: Media Robin Tickle Tel.: +41 (0)21 924 22 00
Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22

Paul Polman leaves Nestlé – Appointments of Luis Cantarell and Laurent Freixe

Thu, 04 Sep 2008 15:02:51 GMT

Vevey September 4, 2008

Vevey, 4 September 2008 – Paul Polman, Executive Vice President in charge of Zone Americas, has decided to leave Nestlé with immediate effect in order to pursue other interests. During his three years tenure, first as Chief Financial Officer and since February 2008 as Head of Zone Americas, he has played an important role in Nestlé’s conversion to the leading Nutrition, Health and Wellness Company. “We respect Mr. Polman’s decision and thank him for his valuable contribution during his time with Nestlé”, said Peter Brabeck-Letmathe, Chairman of Nestlé S.A.

The Board of Directors of Nestlé S.A. has appointed Luis Cantarell, Executive Vice President, Head of Zone Americas, effective today. Mr. Cantarell, who has been heading Zone Europe, has successfully transformed the Zone, taking it to higher performance levels. Previously he was in charge of establishing Nestlé Nutrition worldwide, acquiring extensive experience with the markets of Zone Americas.

To succeed Mr. Cantarell, the Board of Directors has appointed Laurent Freixe, currently Market Head of the Iberian Region, Executive Vice President in charge of Zone Europe with effect in November 2008. Mr. Freixe, with the Company since 1987, had different marketing functions with Nestlé France, where he successfully led the Nestlé Food and Nutrition division up to 2003. He was then appointed Market Head in Hungary before assuming his current function.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

Excellent first half for Nestlé in 2008: 8.9% organic growth, 3.5% real internal growth - EBIT margin in constant currencies +60 basis points, +30 basis points reported

Thu, 07 Aug 2008 16:06:00 GMT

Vevey August 7, 2008

Sales of CHF 53.1 billion, +CHF 2 billion, 8.9% organic growth, 3.5% real internal growth
EBIT of CHF 7.3 billion (+6.1%), margin +60 basis points in constant currencies, +30 basis points reported, to 13.8%
Results driven by Food and Beverages: 8.9% organic growth, 3.2% real internal growth, EBIT margin +50 basis points in constant currencies, +30 basis points reported
Net profit of CHF 5.2 billion (+6.1%), margin +20 basis points to 9.8%, total EPS CHF 1.39 (+8.6%)
Acceleration of share buyback programme, CHF 13 billion to be completed by year end

Full-year outlook: organic growth at least at 2007 level with improved EBIT margins

Paul Bulcke, CEO of Nestlé: "These figures build on the strong momentum gathered from last year's milestone results. Nestlé's drive to become the world's recognised leader in nutrition, health and wellness, its strong billionaire brands and its focus on speed and discipline in execution have allowed the company to further accelerate its performance under difficult economic conditions. I am therefore confident that 2008 will be another year of delivering the Nestlé model, with organic growth at least at the 2007 level and a further improvement in EBIT margins. Our Food and Beverages business will be the key driver of this profitable growth."


				EBIT Margins
	Jan.-June 2008	Changes vs. Jan.-June 2007		Jan.-June 2008	vs. Jan.-June 2007
Sales	CHF 53 066m	+ 3.8%	+ CHF 1 952m
EBIT	CHF 7 341m	+ 6.1%	+ CHF 422m	13.8%	+30 bps
Net profit	CHF 5 214m	+ 6.1%	+ CHF 298m	9.8%	+20 bps
Total EPS	CHF 1.39	+ 8.6%
Real internal growth Organic growth	3.5% 8.9%

All calculations based on non-rounded figures

Group sales, profitability and financial position

In the first six months of 2008, consolidated sales of the Nestlé Group amounted to CHF 53.1 billion, an increase of 3.8% over the same period last year, driven by organic growth of 8.9%, including real internal growth of 3.5%. Foreign exchange had a -8.3% impact on sales, while acquisitions net of divestitures, primarily driven by the acquisition of Novartis Medical Nutrition and Gerber, added 3.2% to sales.

The Group's EBIT grew by 6.1% to CHF 7.3 billion, resulting in an EBIT margin of 13.8%. This represents a 60 basis point improvement in constant currencies over the first half of 2007. Foreign exchange reduced the Group's EBIT margin by 30 basis points, to 30 basis points reported.

With sales of CHF 49.3 billion, Food and Beverages achieved organic growth of 8.9%, including real internal growth of 3.2%, and was the Group's main contributor to growth and EBIT margins. With an EBIT growth of 6.7%, Food and Beverages' EBIT margin was up 50 basis points in constant currencies over last year. Foreign exchange reduced Food and Beverages' EBIT margin by 20 basis points, to 30 basis points reported.

The Group's cost of goods sold increased by 190 basis points to 42.8% of sales. This reflects the impact of higher raw material costs, partially reduced by operating efficiencies. Marketing and administration costs declined by 190 basis points to 33.3% of sales, reflecting the effect of different growth rates of the company's product portfolio, efficiencies and the leverage effect from growth. In constant currencies, consumer marketing spend increased by 7%.

Net profit grew by 6.1% to CHF 5.2 billion, resulting in a net margin of 9.8%, up 20 basis points. Earnings per share grew by 8.6% to CHF 1.39.

On 30 June 2008, the Group’s operating cash flow stood at CHF 3.5 billion. This is lower than last year reflecting a higher level of inventories as a result of the increased cost of certain raw materials and the decision to selectively increase inventories of some products. The Group’s net debt, seasonally high at the half year, rose to CHF 25.8 billion. This will decline to below the level prevailing at the end of 2007, thanks partly to the proceeds received from the sale of 24.8% of Alcon to Novartis.

This performance, above-target organic growth combined with a good improvement in EBIT margins, demonstrates Nestlé's ability to grow profitably even in a difficult business environment.

Share buyback programme

The share buyback programme is accelerating and the Group expects to spend around CHF 9 billion on buying back its own shares in 2008, an increase of about CHF 2 billion compared to the original plan. By the end of the year, approximately CHF 13 billion of the CHF 25 billion share buyback programme announced a year ago will have been completed.

Sales and EBIT margins by management responsibility

In the first half of 2008, the organic growth of Nestlé's total Food and Beverages business was stronger than last year in each of the three geographic regions: 5.2% in Europe, 9.9% in the Americas and 14.2% in Asia, Oceania and Africa. This performance reflects the success of the Group's nutrition, health and wellness strategy, as well as its focus on particular geographic and consumer segments through, for example, Popularly Positioned Products (PPPs) and premiumisation. These figures include the Zones, globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, as well as the Food and Beverages joint ventures.

	Jan.-June 2008 Sales in CHF millions	Jan.-June 2008 Organic Growth (%)	EBIT Margins
	Jan.-June 2008 Sales in CHF millions	Jan.-June 2008 Organic Growth (%)	Jan.-June 2008	Change vs. Jan.-June 2007
Food & Beverages
- Zone Europe	13 768	+ 5.8	11.7%	+30 bps
- Zone Americas	15 132	+ 11.0	14.9%	+40 bps
- Zone Asia, Oceania and Africa	8 361	+ 13.1	16.3%	0 bps
Nestlé Waters	4 954	- 1.1	7.2%	-210 bps
Nestlé Nutrition	5 176	+ 11.1	18.5%	-20 bps
Other Food & Beverages	1 932	+ 23.3	20.4%	+150 bps
Total Food & Beverages	49 323	+ 8.9	12.3%	+30 bps
Pharma	3 743	+ 9.6	33.8%	+90 bps
Group Total	53 066	+ 8.9	13.8%	+30 bps

All calculations based on non-rounded figures

Zone Europe: sales of CHF 13.8 billion, 5.8% organic growth and 2.3% real internal growth. Western European markets such as Great Britain, France, Germany and the Iberian region achieved good organic growth, while the Zone experienced double-digit organic growth in Eastern Europe, particularly in Russia and Poland. Overall, soluble coffee, confectionery, PetCare and culinary products were among the stronger categories. The Zone's 30 basis points improvement in EBIT margin was mainly driven by profitable growth and operational efficiencies.

Zone Americas: sales of CHF 15.1 billion, 11% organic growth and 3% real internal growth. There were good performances across the Zone, with both North and Latin America experiencing strong organic growth. Shelf-stable dairy, soluble coffee, ready-to-drink beverages, biscuits and PetCare did particularly well. The timely implementation of price increases in categories most impacted by higher input costs and the strong innovation pipeline contributed to the 40 basis points EBIT margin improvement.

Zone Asia, Oceania and Africa: sales of CHF 8.4 billion, 13.1% organic growth and 4.5% real internal growth. All the Zone's major emerging markets such as Greater China, Africa, South Asia and the Middle East grew strongly. Shelf-stable milk products, soluble coffee, powdered beverages, culinary products and PetCare did particularly well. In spite of higher cost pressures, the Zone's EBIT margin was unchanged as a result of good growth, efficiency improvements and pricing.

Nestlé Waters: sales of CHF 5.0 billion, -1.1% organic growth and -3.1% real internal growth. This performance reflects a slowdown in the bottled water category in large markets such as western Europe and North America due to a combination of difficult economic conditions and perceived environmental issues around bottled water. Nestlé Waters' increasingly-important emerging market businesses continued to achieve organic growth above 20%. The two billionaire brands, Poland Spring and Nestlé Pure Life, achieved positive growth. The EBIT margin fell by 210 basis points. The impact of lower sales was compounded by a significant increase in the two main costs, PET and distribution, due to high oil prices.

The Group expects Nestlé Waters' organic growth to improve by the end of the year. Nestlé sees huge growth potential for its water business in different parts of the world and the healthy hydration provided by bottled water ideally fits the company's nutrition, health and wellness strategy.

Nestlé Nutrition: sales of CHF 5.2 billion, 11.1% organic growth and 5.5% real internal growth. These figures are in line with the business' long-term organic growth target of 10%. Strong performances were achieved in infant formula and infant cereals, supported by a highly productive innovation and renovation pipeline, as well as in healthcare nutrition. Jenny Craig returned to a sustainable level of organic growth after an outstanding start to the year. The performance of the recent acquisitions of Gerber and Novartis Medical Nutrition is exceeding acquisition assumptions. The EBIT margin was down 20 basis points to 18.5% due to the anticipated dilutive impact of the two acquisitions. However, the EBIT margin trend of Nestlé's Nutrition's base business continued to improve.

Other Food and Beverages: sales of CHF 1.9 billion, 23.3% organic growth and 20.3% real internal growth. Nespresso, Cereal Partners Worldwide and Beverage Partners Worldwide all performed well. Nespresso's first half sales exceeded CHF 1 billion for the first time. This segment's EBIT margin was 20.4%, up 150 basis points, with improvements from all businesses.

Sales and EBIT margins by product group
	Jan.-June 2008 Sales in CHF millions	Jan.-June 2008 Organic Growth (%)	EBIT Margins
	Jan.-June 2008 Sales in CHF millions	Jan.-June 2008 Organic Growth (%)	Jan.-June 2008	Change vs. Jan.-June 2007
Powdered and Liquid Beverages	9 041	+ 14.0	22.9%	+ 20 bps
Nestlé Waters	4 954	- 1.1	7.2%	-210 bps
Milk Products and Ice Cream	10 274	+ 12.0	11.2%	+70 bps
Nestlé Nutrition	5 176	+ 11.1	18.5%	-20 bps
Prepared Dishes and Cooking Aids	8 555	+ 5.4	11.4%	-70 bps
Confectionery	5 430	+ 7.7	10.8%	+180 bps
PetCare	5 893	+ 10.9	14.5%	-40 bps
Total Food & Beverages	49 323	+ 8.9	12.3%	+30 bps
Pharmaceutical products	3 743	+ 9.6	33.8%	+90 bps
Group Total	53 066	+ 8.9	13.8%	+30 bps

All calculations based on non-rounded figures

Powdered and liquid beverages: sales of CHF 9.0 billion, 14% organic growth and 9.4% real internal growth. All categories within the product group achieved double-digit organic growth with mid to high single-digit real internal growth. With over a million machines sold, the roll-out of Nescafé Dolce Gusto continued to make good progress. Health-focused offerings such as Nescafé Body Partner and Nescafé Protect sold mainly in Asian markets showed good results, as did single-serve sachets and refill packs in emerging markets. Nespresso continued to grow by close to 40%. There was also double-digit growth from the four other billionaire brands Nescafé, Nestea, Milo and Nesquik, benefiting from renovation and health-focused relaunches. The EBIT margin improved by 20 basis points, in spite of increasing input costs.

Milk products and ice cream: sales of CHF 10.3 billion, 12% organic growth and 1.8% real internal growth. Milk products achieved double-digit organic growth in all Zones based on good real internal growth combined with timely pricing. The CoffeeMate billionaire brand, now present in over 50 markets, performed extremely well. Ice cream's organic growth was impacted by weaker market conditions in North America and Europe. The super-premium portfolio performed well with innovations such as Häagen Dazs Hunny Bee in the US, Heaven in Australia and Création by Mövenpick of Switzerland, as did health-focused offerings such as Skinny Cow in the US. The total category's EBIT margin was up 70 basis points due to the strong organic growth of higher value-added products and continued focus on efficiencies.

Prepared dishes and cooking aids: sales of CHF 8.6 billion, 5.4% organic growth and 0.9% real internal growth. Ambient culinary products enjoyed strong organic growth in all three zones, especially under the Maggi brand which did particularly well in Asia and Eastern Europe. Frozen food was somewhat slow in the US, while in Europe the Wagner and Buitoni pizza businesses achieved good performances. The category's EBIT margin declined by 70 basis points, reflecting slow volume development in the US and input cost pressures.

Confectionery: sales of CHF 5.4 billion, 7.7% organic growth and 1.7% real internal growth. The successful Kit Kat relaunch in Western Europe continued and the brand showed good performances in emerging markets such as India, the Middle East and Russia, achieving 15.4% organic growth globally. Increasing consumer interest in nutritious snacking alternatives resulted in new product launches such as Nesquik bars with added calcium in Mexico, Chile and Turkey. The UK business performed well due to its focus on key brands and the benefit of restructuring at the York factory. The category's EBIT margin improved across all zones, with an increase of 180 basis points.

PetCare: sales of CHF 5.9 billion, 10.9% organic growth and 5.4% real internal growth. Organic growth continued to be driven by new product launches and increasing focus on premium and super-premium segments. Top performing brands included Beneful, Bakers, Cat Chow, Gourmet and Fancy Feast. The category's EBIT margin decreased by 40 basis points, reflecting the timing of launch expenses and input cost pressures.

Pharmaceutical products: sales of CHF 3.7 billion, 9.6% organic growth and 8.5% real internal growth. The EBIT margin improved by 90 basis points, mainly due to strong growth, operational efficiencies and a positive product mix.

Strategic focus

Nestlé, the world's leading nutrition, health and wellness company, is particularly focused on four core growth platforms. The first is nutrition, covering not only Nestlé Nutrition, the world's largest specialised nutrition company, but also Nestlé's entire product portfolio with the aim of ensuring that its brands offer the best nutritional profile of their respective categories. The second is out-of-home, where the focus is both on branded beverage solutions and customised food solutions for restaurants and institutions. The third is Popularly Positioned Products (PPPs), affordable nutritional products for emerging consumers. The fourth is the increasing focus of many product groups on premium and luxury segments. These four core platforms often overlap.

Nutrition, Health and Wellness. Nestlé Nutrition continues to do well based on its four growth platforms: infant nutrition, healthcare nutrition, performance nutrition and personalised weight management. The Group will continue to leverage Nestlé Nutrition's specific R&D know-how in its overall food and beverage business. Indeed, the transformation of Nestlé's product portfolio continues unabated. In the innovation and renovation process, any new product launched must obtain a consumer preference of at least 60% in blind tasting and a higher nutritional profile compared to its nearest competitor. Products enriched with Branded Active Benefits (BABs) again achieved double-digit organic growth in the first half of 2008. The objective is that around 20% of Nestlé's product portfolio is renovated each year.

Out-of-home. Nestlé Professional continued to refocus its activities on branded beverage solutions and customised food solutions, as well as pursuing a significant SKU rationalisation programme. The priority areas within Nestlé Professional performed well, and its business in Asia, Oceania and Africa grew strongly, with double-digit organic growth in markets such as China, India and South East Asia.

Popularly Positioned Products (PPPs), an integrated business model to reach out to emerging consumers in the developing world, continued to grow strongly in the first half. Nestlé's PPPs, such as dairy and cereal products, beverages and culinary products, enjoyed organic growth of over 20% overall. They grew by 40% in Zone Asia, Oceania and Africa, and also enjoyed good performances in Zone Americas and Europe. This positive trend is set to continue, as consumers migrate to Nestlé's PPPs offering quality, taste and nutritional content at affordable prices.

Premiumisation. The premium and luxury end of the market offers strong growth opportunities for Nestlé and is proving particularly resilient. The premium segment of most categories performed well, including the most visible examples such as Nespresso, which enjoyed organic growth of almost 40%, and different brands in confectionery (Perugina, Nestlé Noir), ice cream (Häagen Dazs, Mövenpick of Switzerland), water (S.Pellegrino), and PetCare (Beneful, Gourmet).

Outlook

In the first half of 2008, Nestlé's organic growth was stronger than last year in each of the three geographic regions. These performances, mirrored by strong results in the product groups, together with a positive overall development of EBIT margins, demonstrate that Nestlé is resilient and able to create opportunities for profitable growth even in challenging economic times. Indeed, the excellent first half of 2008 supports the statement made in February that Nestlé's success is increasingly driven by its capacity to innovate and use its R&D pipeline to launch new, added-value products and services in line with its nutrition, health and wellness strategy.

Nestlé's strong emphasis on speed and excellence in execution, as well as continuing momentum, will deliver profitable growth in the second half of 2008 and beyond. In view of its first half performance, Nestlé foresees organic growth at least at the 2007 level for the full year, clearly above the company's long-term target, together with an improvement in EBIT margin. 2008 will therefore be another year of delivering the Nestlé model.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

.........................................

Further information

2008 Half Year Financial Statements
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Nestlé completes sale of 24.8% of Alcon to Novartis

Tue, 08 Jul 2008 13:42:44 GMT

Vevey July 8, 2008

As a result of the conclusion of the regulatory process, Nestlé completed its sale of 24.8% of Alcon's issued and outstanding capital to Novartis on 7 July 2008. The cash transaction concerns 74 million Alcon shares at USD 143.1783 per share, with an aggregate value of USD 10.4 billion after dividend adjustment. There is no capital gains tax impact on Nestlé. Nestlé retains close to 52% of Alcon’s issued and outstanding capital and continues to fully consolidate Alcon.

The proceeds of the transaction will be used to reduce debt as Nestlé pursues its share buy-back programme. Furthermore, as already announced on 7 April 2008, Nestlé has a put option and Novartis a call option exercisable in the period from January 2010 to July 2011 on the remaining Alcon shares owned by Nestlé.

Contacts :
Media	Robin Tickle	Tel.: +41 (0)21 924 22 00
Investors	Roddy Child-Villiers	Tel.: +41 (0)21 924 36 22

Nestlé opens new production facility in Konolfingen

Fri, 25 Apr 2008 07:47:04 GMT

Konolfingen, Switzerland April 25, 2008

Nestlé today inaugurated a Nestlé Nutrition facility in Konolfingen (Switzerland) in the presence of Swiss Economic Affairs Minister Doris Leuthard. The plant will produce new-generation probiotic infant formula under the NAN brand and enable Nestlé Nutrition to meet the growing needs of consumers in over 90 countries.

The inauguration marks the first stage in a series of investments totalling around CHF 180 million over the next three years, strengthening Konolfingen's position as a global manufacturing site for highly-specialised infant formula and healthcare nutrition. The new Nestlé Nutrition industrial site will benefit from synergies with Nestlé's Product Technology Centre, also based in Konolfingen.

The establishment of the new Nestlé Nutrition plant is a further sign that Nestlé sees the nutrition business as one of its key strategic areas with above-average growth and profit potential over the coming years. Nestlé Nutrition is today the world leader in specialised nutrition with sales of about CHF 11 billion in 2008.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé)Tel.: +41-21-924 3622

Further details are available in our Press Kit section.

Nestlé: very strong organic growth of 9.8% in first quarter of 2008. Full-year outlook confirmed

Mon, 21 Apr 2008 16:22:12 GMT

Vevey April 21, 2008

Sales of CHF 25.7bn, up CHF 1.5bn (+6%)
9.8% organic growth for the Group as a whole
9.8% organic growth for Food and Beverages
Continued strong real internal growth momentum: 4.5% (Group), 4.2% (Food and Beverages)
Nestlé Nutrition achieves 14.4% organic growth, 10.2% real internal growth
Full-year outlook: organic growth approaching 2007 level with improved EBIT margins in constant currencies

Paul Bulcke, CEO of Nestlé: "The strong start to the year reflects Nestlé's momentum as the world's leading nutrition, health and wellness company. On the basis of this high-quality growth, with a good balance between real internal growth and pricing, I am confident that we will achieve our 2008 targets: organic growth approaching the 2007 level together with improved EBIT margins in constant currencies."

In the first quarter of 2008, the Nestlé group reached consolidated Swiss franc sales of 25.7 billion, up CHF 1.5 billion or 6.0% over the same period last year. Reported sales benefited from a very strong organic growth of 9.8%, including 4.5% real internal growth. Food and Beverages also delivered 9.8% organic growth, of which 4.2% consisted of real internal growth. Acquisitions, net of divestitures, added another 3.2% to Group sales, primarily due to the acquisition of Gerber and Novartis Medical Nutrition in 2007. The net currency effect reduced reported group sales by 7% due to the strength of the Swiss franc compared to most other currencies.

Food and Beverages sales

In the first quarter of 2008, the organic growth of Nestlé's total Food and Beverages business (the Zones as well as globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, the Food and Beverages joint ventures) amounted to 6.1% in Europe, 10.9% in the Americas and 14.9% in Asia, Oceania and Africa.

Sales by management responsibilities and geographic areas
	Jan.-March 2008 Sales in CHF millions	Jan.-March 2007 Sales in CHF millions	Jan.-March 2008 Real Internal Growth (%)	Jan.-March 2008 Organic Growth (%)
Food & Beverages
- Zone Europe	6 690	6 497	2.9%	6.6%
- Zone Americas	7 457	7 393	3.7%	11.5%
- Zone Asia, Oceania and Africa	4 134	3 846	5.3%	14.0%
Nestlé Waters	2 164	2 322	-2.3%	-0.6%
Nestlé Nutrition	2 577	1 632	10.2%	14.4%
Other Food & Beverages(a)	922	805	21.5%	23.2%
Total Food & Beverages	23 944	22 495	4.2%	9.8%
Pharma	1 773	1 756	8.9%	8.5%
Group Total	25 717	24 251	4.5%	9.8%

(a) Mainly Joint ventures managed on a worldwide basis and Nespresso
All calculations based on non-rounded figures

Zone Europe: sales of CHF 6.7 billion, 6.6% organic growth, 2.9% real internal growth. A majority of the countries in the Zone enjoyed strong performances. Eastern Europe continued to experience double-digit organic growth. Western Europe also did very well, with Great Britain achieving near double-digit organic growth. By category, PetCare achieved strong growth led by premium brands such as Dog Chow. Soluble coffee did well, including the continued successful roll-out of Nescafé Dolce Gusto. An increased focus on Mövenpick of Switzerland helped ice cream sales in the low season.

Zone Americas: sales of CHF 7.5 billion, 11.5% organic growth, 3.7% real internal growth. Both North and Latin America achieved good organic growth. Pricing and other actions were applied across the Zone in response to continued input cost rises. The good performance of brands such as Nescafé, Nesquik, Nido, Coffeemate, Garoto and Dog Chow ensured strong organic growth in their respective product groups.

Zone Asia, Oceania and Africa: sales of CHF 4.1 billion, 14.0% organic growth, 5.3% real internal growth. The Zone's strong real internal growth was due to the strength of key brands such as Nescafé, Milo, Nido and Maggi, and it delivered double-digit organic growth in many product groups. Emerging markets did particularly well, especially South Asia, the Middle East, Indochina and the Philippines. Dairy products achieved positive real internal growth despite cost pressures over the past year.

Nestlé Waters: sales of CHF 2.2 billion, -0.6% organic growth, -2.3% real internal growth. These figures reflect the tough comparison with an excellent first quarter in 2007, as well as softer market conditions in the developed world. However, many developing markets enjoyed strong performances. Turkey, the Middle East and Latin America delivered double-digit organic growth. In terms of brands, Nestlé Pure Life maintained strong momentum with double-digit organic growth.

Nestlé Nutrition: sales of CHF 2.6 billion, 14.4% organic growth, real internal growth of 10.2%. This excellent performance was driven by near double-digit real internal growth in infant nutrition, mainly due to the continued roll-out of premium NAN starter formulas and infant cereals with branded active benefits. Jenny Craig achieved strong double-digit organic growth and its "improved health" campaign is proving a great success. The integration of Novartis Medical Nutrition and Gerber is almost complete and these businesses are performing in line with acquisition expectations.

Sales by product group

Sales by product group
	Jan.-March 2008 Sales in CHF millions	Jan.-March 2007 Sales in CHF millions	Jan.-March 2008 Real Internal Growth (%)	Jan.-March 2008 Organic Growth (%)
Powdered and liquid beverages	4 374	4 019	10.1%	14.7%
Nestlé Waters	2 164	2 322	-2.3%	-0.6%
Milk products and ice cream	4 629	4 340	4.6%	16.0%
Nestlé Nutrition	2 577	1 632	10.2%	14.4%
Prepared dishes and cooking aids	4 310	4 380	1.2%	5.1%
Confectionery	2 968	2 870	2.1%	7.3%
PetCare	2 922	2 932	3.9%	9.5%
Total Food & Beverages	23 944	22 495	4.2%	9.8%
Pharmaceutical Products	1 773	1 756	8.9%	8.5%
Group Total	25 717	24 251	4.5%	9.8%

All calculations based on non-rounded figures

Powdered and liquid beverages: sales of CHF 4.4 billion, 14.7% organic growth, 10.1% real internal growth. This outstanding performance again confirmed the strength of Nestlé's billionaire brands: Nescafé, Milo, Nesquik, Nestea and Nespresso. Furthermore, the continued success in rolling out Nescafé Dolce Gusto in Europe allowed Nestlé to increase its market share in the fast-growing portioned coffee segment there. The product group achieved double-digit organic growth in the Americas as well as Asia, Africa and Oceania.

Milk products and ice cream: sales of CHF 4.6 billion, 16.0% organic growth, 4.6% real internal growth. The very strong performance of milk products was the result of high single-digit real internal growth despite cost pressures both in 2007 and 2008. Strategic billionaire brands Nido and Coffeemate enjoyed strong performances, as did Nestlé EveryDay, the emerging tea creaming brand. Ice Cream had a good start to the year ahead of the summer season in Europe, in particular under the Mövenpick of Switzerland premium brand. The product group as a whole achieved double-digit organic growth in the Americas, as well as in Asia, Oceania and Africa.

Prepared dishes and cooking aids: sales of CHF 4.3 billion, 5.1% organic growth, 1.2% real internal growth. Maggi continued to deliver double-digit growth in Africa, Asia and Eastern Europe, as well as accelerated growth in Western Europe. In North America, frozen food was slower following recent price increases. Chilled food achieved strong organic growth in the US, mainly driven by Buitoni. The product group as a whole achieved double-digit organic growth in Asia, Oceania and Africa.

Confectionery: sales of CHF 3.0 billion, 7.3% organic growth, 2.1% real internal growth. The product group benefited from a successful Easter. KitKat had an excellent start to the year with strong trade acceptance in the UK for KitKat Senses and good growth in Europe after the re-launch of 4-finger KitKat in Germany and France. Overall, Latin America continued to be an excellent performer recording double-digit organic growth thanks to strong global and local chocolate and biscuit brands (Brazil with Nestlé assortment boxes, Chile with the Sahne Nuss and Super 8 brands and Venezuela with Toronto and Samba). Double-digit organic growth was also generated in the Middle East (with strong sales of KitKat and Quality Street), in Asian markets, as well as in Great Britain.

PetCare: sales of CHF 2.9 billion, 9.5% organic growth, 3.9% real internal growth. Organic growth continued to be driven by strategic brands, new product launches and product mix improvements. Both in Europe and the Americas, pricing and other actions were taken to offset continued increases in input costs. Several new product launches took place in the first quarter of 2008. Some examples in the US were Healthful Life from Purina Cat Chow, the innovative Tidy Cat Breeze litter system as well as the national rollout of Beneful prepared meals. Super premium wet cat offerings under the Fancy Feast, Gourmet Gold and Mon Petit brands performed well. The product group achieved strong organic growth in Europe and North America and double-digit organic growth in the rest of the world.

Pharmaceutical products: sales of CHF 1.8 billion, 8.5% organic growth, 8.9% real internal growth. Both Alcon and the joint ventures achieved strong organic growth.

Corporate developments

Nestlé's recently-announced agreement to sell a 24.85% share of Alcon to Novartis is further evidence of the Group's strategy of focusing on its recognized leadership in nutrition, health and wellness. The proceeds of the transaction, which is subject to regulatory approval and expected to be completed by the autumn, will be used to reduce debt as Nestlé pursues its on-going share buy-back programme.

At Nestlé's Annual General Meeting on 10 April 2008, shareholders approved the cancellation of 10,072,500 shares repurchased under the share buy-back programme launched on 24 August 2007, as well as a 1-for-10 share split to increase the liquidity and tradability of Nestlé shares. These measures will be completed by the end of June.

Outlook

The Group expects raw material cost pressures to abate somewhat in the course of 2008 and its reported pricing to come down in the second half of the year. However, in view of its strong start to the year, Nestlé foresees organic growth approaching the 2007 level for the full year, clearly above the company's long-term target, together with improved EBIT margins in constant currencies. 2008 will be another year of delivering the Nestlé model.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

You can follow the Investor Conference Call live at 08:30 CET on Monday April 21, 2008 or access the archived version after the event. Further details are available in our Events section.

Strong support for board proposals at Nestlé Annual General Meeting

Thu, 10 Apr 2008 14:10:04 GMT

Lausanne April 10, 2008

2 570 shareholders attended the Nestlé S.A. Annual General Meeting today in Lausanne. They represented 34.89 percent of the total capital and 53.28 percent of the shares entitled to vote. All proposals of the Board of Directors were voted with strong majorities. The annual report and the accounts were approved, and the shareholders agreed to the release of the Board of Directors and the Executive Board. Shareholders further approved the proposed dividend increase to CHF 12.20 per share, up 17.3 percent over last year. They also gave their assent to the reduction in the share capital by CHF 10 072 500 through the cancellation of a corresponding number of registered shares under the share buy-back programme launched on 24 August 2007. Shareholders further approved a 1-for-10 share split and respective increase of the number of shares.

Shareholders re-elected Messrs. Andreas Koopmann and Rolf Hänggi as members of the Board of Directors for a full 3-year term. Due to the age limit set forth in the Board Regulations, Mr. Peter Böckli did not stand for re-election. The Board wishes to extend its gratitude to Mr. Peter Böckli for his invaluable services as a member of the Board, the Audit Committee and chairman of the Compensation and Nomination Committee. The AGM further elected Messrs. Paul Bulcke and Beat W. Hess as new members of the Board. After the AGM, the Board appointed Mr. Paul Bulcke as "Administrateur délégué"/Chief Executive Officer of Nestlé, succeeding Mr. Peter Brabeck-Letmathe who stepped down after 11 years as CEO.

A very strong majority of 98.88 percent of the share capital represented at the meeting approved the proposed revised Articles of Association. The new Articles include abolishing the old attendance quorums and supermajority clauses; lowering the threshold for shareholders to put items on the Annual General Meeting agenda from 0.25% to 0.15% of total share capital; reducing Board members' term of office from five years to three; and increasing the maximum voting rights' percentage of any one shareholder from 3% to 5% of total share capital.

For the year to come, the different Committees of the Board are composed as follows:

Chairman's and Corporate Governance Committee:	Messrs. Brabeck-Letmathe, Bulcke, Koopmann, Hänggi, Lord George
Compensation Committee:	Messrs. Borel, Koopmann, Lord George, Fourtou
Nomination Committee:	Messrs.Villiger, Brabeck-Letmathe, Hänggi, Hoch
Audit Committee:	Messrs. Hänggi, Meyers, Villiger, Kudelski

The Chairman's address can be read in the Media Center.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

Nestlé to Sell 24.85 % of Alcon Shares to Novartis

Mon, 07 Apr 2008 15:29:42 GMT

Vevey April 7, 2008

Nestlé has agreed to sell 24.85 percent of Alcon's issued and outstanding capital to Novartis for approximately USD 11 billion in cash.
From 2010 on, Novartis and Nestlé will have call and put option rights exercisable over Nestlé's remaining majority shareholding in Alcon.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé said: "Today's decision reflects Nestlé's commitment to ensure a strategically sound and financially attractive solution for Nestlé and Alcon. Nestlé has been able to take a further step in realizing shareholder value from its long-term Alcon investment. Alcon benefits from having a new minority shareholder whose activities are closely aligned with its own business and I am certain that this strategic decision will strengthen Alcon's leadership position in the very promising ophthalmic area."

Nestlé and Novartis have signed an agreement providing for the sale of 24.85 percent of Alcon's issued capital to Novartis. The cash transaction concerns 74 million Alcon shares at USD 143.1783 per share, with an aggregate value of approximately USD 11 billion. Nestlé will retain close to 52 percent of Alcon’s issued capital and continue to fully consolidate Alcon. There is no capital gains tax impact on Nestlé.

The proceeds of the transaction will be used by Nestlé to reduce debt as the company pursues its on-going share buy-back program. In addition, these proceeds will support opportunities for profitable growth in line with the Group's nutrition, health and wellness orientation. The transaction will have a positive effect on reported earnings per share (EPS) in 2008 and should be neutral on underlying EPS in 2008 and beyond. The transaction is subject to regulatory review and Nestlé expects the process to be completed before autumn of 2008.

In addition, Nestlé and Novartis have agreed put and call option rights on the remaining Alcon shares owned by Nestlé. From January 2010 till July 2011, Novartis will have a call option to acquire Nestlé's remaining majority shareholding in Alcon. This call option is at a fixed price of USD 181.- per share. During the same period, Nestlé will also have a put option to sell its remaining majority shareholding in Alcon to Novartis at the lower of either the call price of USD 181.- per share or the average share price during the week preceding the exercise plus a premium of 20.5 percent. The completion of the sale of Nestlé’s remaining shareholding in Alcon would also be subject to regulatory approval.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

Nestlé Raises Organic Growth Outlook

Thu, 13 Mar 2008 19:00:46 GMT

Vevey March 13, 2008

Very strong organic growth projected for first quarter 2008
Full year 2008 organic growth to approach 2007 level
Expected EBIT margin improvement in constant currencies reconfirmed

Nestlé expects organic growth for the full year 2008 to be close to the previous year's level and clearly above the long-term trend target of between 5 and 6 percent.

During 2007 and in the current year, commodity markets have been characterized by sharp upward movements and increased volatility. This reflects strong global demand for food, accelerating usage of food raw materials for biofuels and the decisive presence in the market of non-traditional speculative players.

Consequently, the Group was forced to advance price increases for finished goods in order to partially absorb the higher input costs. Combined with the pricing effects in place at the end of last year, this accounts for a strong pricing element in organic growth for the first two months of 2008. At the same time, the Company accelerated its real internal growth momentum and had a successful early Easter season as well as an additional sales day in February. Together, these factors have resulted in an outstanding organic growth rate for the first two months, and this will be reflected in the first quarter sales which will be published on April 21, 2008.

The other elements influencing sales - foreign exchange as well as acquisitions and divestitures - are evolving as expected. Currencies, mainly as a result of the strength of the Swiss franc relative to the US dollar, but also to the Euro and other currencies, will weigh on consolidated sales, whereas acquisitions net of divestitures, mainly due to Novartis Medical Nutrition and Gerber, will boost sales growth.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé, said: "The Group's organic growth is off to a very strong start in 2008. This demonstrates the benefits of Nestlé's strategic reorientation to Nutrition, Health and Wellness, reflected in the strong underlying momentum in our business, but also our strategy to respond immediately to exceptional cost evolutions in the commodity markets. We expect our raw material cost pressures to abate somewhat in the course of the year, and foresee price increases to trend lower in the second half of 2008, resulting in a full year organic growth rate close to the level reached in 2007, clearly above our long-term target. As for full year 2008 results, we maintain our commitment to the Nestlé model, delivering once again an improvement in the EBIT margin in constant currencies."

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé to open Chocolate Centre of Excellence

Mon, 10 Mar 2008 08:39:23 GMT

Vevey March 10, 2008

Nestlé today announced the establishment of the Chocolate Centre of Excellence, the company's first R&D facility entirely dedicated to the development of premium and luxury chocolate. The new Chocolate Centre of Excellence, located at Nestlé's chocolate factory in Broc (Switzerland), will be operational in the first half of 2009 and will bring together both internal and external know-how of international chocolate-making professionals such as top confiseurs, sensory experts and packaging designers. The project launch was attended by Roland Decorvet, market head of Nestlé Switzerland, and Beat Vonlanthen, Minister of Economic Affairs of the Canton of Fribourg. Petraea Heynike, Global Head of Nestlé's Chocolate Strategic Business Unit, and Klaus Zimmermann, Global Head of Nestlé's R&D and Product Technology Centers, also attended.

The establishment of the new Chocolate Centre of Excellence is a further sign that Nestlé sees luxury and premium products as one of its key strategic areas with above-average growth and profit potential over the coming years. In confectionery, the strong growth of dark and premium chocolate is the most visible sign of "premiumisation", as witnessed by strong brands such as Cailler, Perugina, Baci and Nestlé Noir. It also explains Nestlé's partnership with Belgian luxury chocolatier Pierre Marcolini who will provide inspiration to the team in Broc for some of the company's future chocolate ranges.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

Management changes at Henniez

Thu, 07 Feb 2008 16:53:24 GMT

Vevey, Switzerland February 7, 2008

Nestlé Suisse S.A., which holds 99.63% of the shares of Sources Minérales Henniez S.A., today announced the following changes to the Executive Committee of Henniez.

From 1 April 2008, Michel Beneventi, a Swiss national (37 years old), will take over the company’s general management, becoming Chief Executive Officer. He will be assisted by David Karlik, an Austrian national (34 years old), as Financial Director.

Nicolas Rouge, a Swiss national (43 years old), up to now Chief Executive Officer, will in turn be made Chairman of the Board.

This change in company management is in line with accomplishing the ongoing integration phase of Sources Minérales Henniez S.A.

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé enters into strategic partnership with Belgian luxury chocolate maker Pierre Marcolini

Thu, 13 Dec 2007 16:49:16 GMT

Vevey, Switzerland December 13, 2007

Nestlé today announced a strategic partnership with Brussels-based luxury chocolate maker Pierre Marcolini. The partnership will allow Nestlé to benefit from the know-how and artistic talent of one of the world's leading luxury chocolate makers, while Pierre Marcolini will gain access to Nestlé's global experience. Pierre Marcolini will provide inspiration for future Nestlé chocolate ranges, while Nestlé will help Pierre Marcolini expand his network of boutiques across the world. Pierre Marcolini will continue to lead his company as an independent and autonomous operation, and Nestlé will join its board. The parties have agreed not to reveal the financial details of the new partnership.

The move further underlines Nestlé's commitment to the premium and luxury chocolate market. Nestlé is strong in the premium chocolate segment with brands such as Perugina, Baci, Nestlé Noir and Cailler. Nestlé is also the world's largest buyer of fine cocoa beans with local operations in key countries such as Ecuador and Venezuela, which account for over half of the world's production of fine beans.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Anja Goemaere (Pierre Marcolini) Tel.: +32-2-247 99 81; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

Press photographs are available in our Media Center

Nestlé Holds 99.63% of Henniez

Fri, 30 Nov 2007 14:55:38 GMT

Vevey, Switzerland November 30, 2007

As of the end of the additional acceptance period on 29 November 2007, Nestlé Suisse S.A. holds 39,851 Sources Minérales Henniez S.A. (SMH) shares amounting to 99.63% of the share capital and the voting rights of Henniez.

Until the expiry of the additional acceptance period, Nestlé obtained 15,188 SMH shares tendered into the offer. This corresponds to 99.03% of the publicly held 15,337 SMH shares at the time of the publication of the offer. Together with the 24,663 SMH shares acquired from the Rouge family, Nestlé holds a total of 39,851 SMH shares, which corresponds to 99.63% of the share capital and the voting rights of SMH. The offer price per SMH share amounts to CHF 5,303 net in cash and will be paid, for the SMH shares validly tendered during the additional acceptance period, with value date of 13 December 2007.
As indicated previously, Nestlé intends to delist the SMH shares and to apply for the cancellation of the remaining SMH shares, in accordance with art. 33 of the Swiss Federal Act on Stock Exchanges and Securities Trading.

Nestlé will publish the final result of the public offer on 5 December 2007 in German in the Neue Zürcher Zeitung and in French in l'AGEFI.


Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé strengthens its leadership in the Russian chocolate market

Mon, 26 Nov 2007 08:28:40 GMT

Vevey, Switzerland November 26, 2007

Nestlé Rossiya, the leading food and beverage company in Russia, today announced the acquisition of Ruzskaya Confectionery Factory (RKF). This company offers consumers a wide range of chocolate products under the Сomilfo and Ruzanna brands. The acquisition price was not disclosed. Completion of the transaction is subject to the usual regulatory approvals by the Russian Federation authorities.

With sales of about USD 51 million in 2006 and an estimated 40% organic growth rate for 2007, RKF is a leading premium chocolate producer in Russia. Once the acquisition is completed, about 1,000 RKF employees, with their specific know-how, will join Nestlé Rossiya. Nestlé plans to extend the production capacity of RKF, which is located in the Ruza district near Moscow. With its strong supply and distribution network, Nestlé will bolster the presence of the acquired brands in Russian regions outside Moscow and Saint Petersburg.

The high-quality image of the Сomilfo and Ruzanna brands ideally complements Nestlé's chocolate brand portfolio in Russia, and will boost Nestlé's presence in the fastest growing segment of the Russian chocolate market, the premium category. Indeed, the move is a further testimony to Nestlé's commitment to the premium chocolate market across the world.

Over the past 13 years, Nestlé has built up a strong presence in Russia with over 10,000 employees and 13 factories. With double-digit growth rates and sales of more than CHF 1.6 billion in 2006, Nestlé is market leader in Russia in coffee, chocolate, culinary products and infant nutrition, and is making good progress in pet food and ice cream.

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé opens first R+D facility entirely dedicated to its out-of-home beverage business

Wed, 21 Nov 2007 11:33:55 GMT

Orbe (Switzerland) November 21, 2007

Nestlé today opened the new Nestlé Professional Beverage Centre, the company's first R&D facility entirely dedicated to its out-of-home beverage business. The new Beverage Centre, located at Nestlé's worldwide centre of expertise for coffee and cereals in Orbe, will benefit from R&D synergies of an industrial site which already employs over 1,100 people. The new facility was inaugurated by Peter Brabeck-Letmathe, Nestlé's Chairman and CEO, and Jean-Claude Mermoud, Economic Affairs Minister of the Swiss Canton of Vaud, together with Marc Caira, Head of Nestlé Professional, and Claude Recordon, Mayor of Orbe.

The establishment of the new Beverage Centre comes in the wake of the announcement on 18 October 2007 that Nestlé is upgrading its existing FoodServices Strategic Business Division into Nestlé Professional, a globally-managed business unit dedicated to the out-of-home food and beverage market. This huge business opportunity has been identified as one of Nestlé's three axes for higher growth in the future. With sales exceeding CHF 6 billion per year and 10,000 employees in 97 countries, Nestlé is already world leader in the food services market. Nevertheless, the Group feels that the overall market opportunity will better be seized with a dedicated, segment-specific organisation, including the R&D facility inaugurated in Orbe today. Nestlé Professional will have full operational responsibility from 2008 and full financial responsibility from 2009.

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Provisional Interim Result regarding the Public Tender Offer for Henniez

Fri, 16 Nov 2007 16:04:08 GMT

Vevey, Switzerland November 16, 2007

Nestlé announces the provisional interim result regarding the public tender offer of Nestlé Suisse for Henniez. As of the end of the offer period on 12 November 2007, Nestlé Suisse holds 39’441 Henniez shares which corresponds to 98.60% of the share capital and the voting rights of Henniez.

On 16 October 2007, Nestlé Suisse SA (“Nestlé Suisse”) launched the public tender offer (“the Offer”) for all publicly held registered shares (“SMH Shares”) of Sources Minérales Henniez SA (SMH). The offer period started on 16 October 2007 and expired on 12 November 2007, 4pm (CET) (“the Offer Period”).The offer price per SMH share amounts to CHF 5’303 net in cash (less the gross amount of any dilution effects, which become effective prior to the completion of the offer).

Provisional interim result
Until the expiry of the offer period, 14’778 SMH shares were tendered into the offer made by Nestlé Suisse. This corresponds to 96.36% of the issued, and at the time of the publication of the offer publicly held, 15’337 SMH shares.
Together with the 24’663 SMH shares acquired directly and indirectly through the purchase agreement with Mrs. Françoise Rouge and Messrs. Pascal and Nicolas Rouge, Nestlé Suisse holds in total 39’441 SMH shares, which corresponds to 98.60% of the share capital and the voting rights of SMH.

Satisfaction of the conditions
The offer is subject to the following condition:
No court and no other authority has passed a judgment or issued an order which prohibits or declares this offer or the execution of this offer unlawful.
Nestlé Suisse waives this condition and declares the offer successful.

Additional acceptance period
An additional acceptance period of ten trading days will run from 16 November 2007 to 29 November 2007 at 4pm (CET) in order for those holders of SMH shares who have not yet tendered them to be able to tender them into the offer.

Information and registration
Shareholders whose shares are deposited in a bank
Those shareholders of SMH who have deposited their shares in a bank in Switzerland and have not yet tendered into the offer will be informed by their bank and are invited to follow its instructions.

Shareholders who keep their shares at their place of residence
Those shareholders of SMH who keep their shares at their place of residence or in a bank safe and who have not yet tendered their shares into the offer will be informed by the share register and will be invited to follow its instructions.

Payment of the offer price
The payment for SMH shares validly tendered during the offer period will be made with value date 16 November 2007 (first execution date). For SMH shares validly tendered during the additional acceptance period the payment of the offer price will be made with value date 13 December 2007 (second execution date).

Delisting and cancellation of the shares
As outlined in section E.2 of the offer prospectus, Nestlé Suisse intends to delist the SMH shares and to apply for the cancellation of the non tendered SMH shares, in accordance with article 33 of the Swiss Federal Act on Stock Exchanges and Securities Trading.

Restrictions of the offer
Notably in the United States of America and United Kingdom. The exact wording can be found in the offer prospectus.

Mandated bank: CREDIT SUISSE

Sources Minérales Henniez SA
Shares with a nominal value of CHF 125.-
Value Number: 234 525
ISIN: CH 000 234525 1
Ticker Symbol: HIZN

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé controls 98.6% of Henniez

Tue, 13 Nov 2007 16:41:57 GMT

Vevey, Switzerland November 13, 2007 Nestlé states that by November 12, 2007 a total of 14,778 publicly held shares of Sources Minérales Henniez (SMH) were tendered. Combined with the 24,663 shares acquired from the Rouge family, Nestlé now controls 98.6% of the Henniez share capital. An additional acceptance period from November 16 till November 29, 2007, will run to allow for tendering the shares that are still outstanding; the offer price amounts to CHF 5,303.

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé 9-month sales: +9% - Continued strong organic growth of 7.2% - Full-year outlook confirmed

Thu, 18 Oct 2007 13:46:53 GMT

Vevey October 18, 2007

Sales of CHF 78.7bn, up CHF 6.5bn (+9%)

Above-target organic growth of 7.2%, real internal growth of 4.5%

Food and Beverages: 6.8% organic growth

Strong Nestlé brands allowed price increases to mitigate rising input costs

Unchanged full-year outlook: above-target organic growth with sustainable margin improvement

New, globally-managed out-of-home business, Nestlé Professional, established

Paul Polman, Nestlé's CFO, to head Zone Americas from February 2008

James Singh, Nestlé's head of Acquisitions and Business Development, to become CFO from January 2008

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé: "The Group's strong organic growth continued over the third quarter, reflecting good performances across most product categories. In spite of increasing input cost pressures, I remain confident that Nestlé will achieve above-target organic growth and a sustainable margin improvement for 2007 as a whole, once again demonstrating the strength of the Nestlé model.

Furthermore, I am very pleased to announce the establishment of Nestlé Professional, a new globally-managed business unit, as an additional pillar of this company's long-term, profitable growth strategy.

Finally, the appointment of Paul Polman as new head of Zone Americas and Jim Singh as new CFO, together with the other changes to the Executive Board, creates a strong management team under the leadership of the newly designated CEO, Paul Bulcke, which will extend and broaden the successful developments achieved over the past years."

During the first nine months of 2007, consolidated sales of the Nestlé Group amounted to CHF 78.7 billion, an increase of +9% over the comparable period of 2006. Real internal growth was strong at 4.5% and pricing added another 2.7%, resulting in an organic growth of 7.2%. The strength of Nestlé's brands allowed the Group to raise prices to offset rising raw material costs. These price increases, together with the resulting slight dip in real internal growth, reflect the Group's commitment to profitable growth regardless of market circumstances. Foreign exchange contributed +0.9% to reported sales, while acquisitions, net of divestitures, added another +0.9% to sales. The Group's Food and Beverages business achieved organic growth of 6.8%, consisting of real internal growth of 4.2% and price increases of 2.6%.

Sales by management responsibilities and geographic areas
	Jan.-Sept. 2007 Sales in CHF millions	Jan.-Sept. 2006 Sales in CHF millions(a)	Jan.-Sept. 2007 Real internal growth(%)	Jan.-Sept. 2007 Organic growth(%)
Food
- Zone Europe	20 711	19 371	+ 1.7%	+ 2.5%
- Zone Americas	23 799	22 540	+ 3.5%	+ 7.5%
- Zone Asia, Oceania, Africa	12 206	11 434	+ 5.1%	+ 8.7%
Nestlé Waters	8 242	7 554	+ 5.4%	+ 6.9%
Nestlé Nutrition	5 745	4 346	+ 6.6%	+ 9.7%
Other Food & Beverages(b)	2 534	1 977	+ 21.3%	+ 23.3%
Total Food & Beverages	73 237	67 222	+ 4.2%	+ 6.8%
Pharma	5 474	5 004	+ 9.2%	+ 10.3%
Group Total	78 711	72 226	+ 4.5%	+ 7.2%

(a) see note at end of release
(b) Mainly Joint ventures managed on a worldwide basis and Nespresso
All calculations based on non-rounded figures

Sales by product categories
	Jan.-Sept. 2007 Sales in CHF millions	Jan.-Sept. 2006 Sales in CHF millions(a)	Jan.-Sept. 2007 Real internal growth(%)	Jan.-Sept. 2007 Organic growth(%)
Nestlé Nutrition	5 745	4 346	+ 6.6%	+ 9.7%
Powdered and Liquid Beverages	12 849	11 715	+ 7.5%	+ 10.0%
Prepared Dishes and Cooking Aids	13 320	12 570	+ 3.4%	+ 3.8%
Milk Products and Ice Cream	15 730	14 938	+ 1.8%	+ 6.5%
Nestlé Waters	8 242	7 554	+ 5.4%	+ 6.9%
Confectionery	8 376	7 734	+ 2.6%	+ 5.4%
PetCare	8 975	8 365	+ 4.1%	+ 7.1%
Pharmaceutical Products	5 474	5 004	+ 9.2%	+ 10.3%
Group Total	78 711	72 226	+ 4.5%	+ 7.2%

(a) see note at end of release
All calculations based on non-rounded figures

In the first nine months of 2007, the organic growth of Nestlé's total Food and Beverages business (including globally-managed businesses such as Nestlé Waters, Nestlé Nutrition and Nespresso, as well as Food and Beverages joint ventures) amounted to 3.8% in Europe, 8.3% in the Americas and 9.5% in Asia, Oceania and Africa.

Sales by Zones: organic growth in Zone Europe (+2.5%) picked up over the third quarter as a result of accelerating innovation in the region, while Zone Americas (+7.5%) and Zone Asia, Oceania and Africa (+8.7%) both experienced strong organic growth, partly as a result of price increases to compensate for higher raw material costs, especially milk.

Nestlé Nutrition: sales of CHF 5.7 billion, 6.6% real internal growth and 9.7% organic growth, in line with the business' long-term target of 10%. Strong performances in Infant Formula and Healthcare Nutrition continued, supported by a robust innovation and renovation pipeline. NAN premium starter formulas, and Nestlé infant cereals enriched with probiotics to strengthen infants' immune systems, did particularly well in their global roll-out.

Powdered and Liquid Beverages: sales of CHF 12.8 billion, 7.5% real internal growth and 10.0% organic growth. Coffee was strongly driven by innovation, notably by the continued success of Nespresso and the successful launch of Nescafé Dolce Gusto in Europe. Nescafé Protect, a new soluble coffee with a higher antioxidant content sold mainly in Asian markets, did particularly well. Milo experienced double-digit organic growth, not least thanks to the reformulation of its Actigen E branded active benefit. Nesquik with an improved nutritional profile was especially successful in the US.

Prepared dishes and cooking aids: sales of CHF 13.3 billion, 3.4% real internal growth and 3.8% organic growth. Maggi experienced strong organic growth in emerging markets, driven in particular by popularly positioned products (PPPs) such as the reformulated, single portion Maggi Noodles in India. In North America, frozen and chilled food continued to benefit from strong innovation and consumer focus on health, with Lean Cuisine achieving double-digit organic growth and Stouffer's growing at a high single-digit rate.

Milk Products and Ice Cream: sales of CHF 15.7 billion, 1.8% real internal growth and 6.5% organic growth. This category saw the strongest price increases to mitigate input cost pressures, and its performance was driven by higher value segments and innovation. NIDO, the world leader in children's milk powder, experienced double-digit organic growth, with products containing added probiotics and branded active benefits (BABs). Across all categories, sales of products containing BABs grew by 18%. Ice cream grew strongly in Latin America, Asia and Eastern Europe thanks to higher impulse sales and strong innovation, including products with an improved nutritional profile, whereas higher prices in North America and a cool summer in Western Europe softened sales volumes there.

Nestlé Waters: sales of CHF 8.2 billion, 5.4% real internal growth and 6.9% organic growth. This somewhat lower organic growth rate compared to the first half is due to a cool summer in several key European markets, although organic growth remains positive for the region as a whole. Nestlé Pure Life experienced high double-digit organic growth in North America, and there were further strong performances in the Middle East and Latin America. Super-premium brands such as S.Pellegrino and Acqua Panna experienced double-digit growth, whereas home-and-office delivery in Europe continued to encounter difficulties.

Confectionery: sales of CHF 8.4 billion, 2.6% real internal growth and 5.4% organic growth. The acceleration of organic growth in this category was driven chiefly by the continued upmarket move towards premium dark chocolate across the world, such as Nestlé Noir in France and Perugina Nero in Italy. In geographical terms, Western Europe, especially the UK, Latin America and Asia experienced the strongest levels of organic growth.

PetCare: sales of CHF 9 billion, 4.1% real internal growth and 7.1% organic growth. This strong performance was driven by the continued upmarket movement of this category's brand portfolio towards the premium and super-premium market segments. Top performing brands included Beneful, Fancy Feast, Gourmet Gold, ONE, Pro Plan, Bakers and Dog and Cat Chow.

Pharmaceutical Products: sales of CHF 5.5 billion, 9.2% real internal growth and 10.3% organic growth. Alcon and the joint ventures, Galderma and Innéov, continued to grow strongly.

Nestlé Professional

While Nestlé is already world leader in the food services sector, the Group feels that the overall market opportunity will better be seized with a dedicated, segment-specific organisation. Consequently, Nestlé has decided to upgrade its existing FoodServices Strategic Business Division into Nestlé Professional, a globally-managed business unit dedicated to the out-of-home food and beverage market. Nestlé Professional will have full operational responsibility from 2008 and full financial responsibility from 2009. It will be managed by Marc Caira, the current head of Nestlé's FoodServices Strategic Business Division.

Management changes

Following the designation of Paul Bulcke as Nestlé's next CEO as of 10 April 2008, the Board of Directors made a number of changes to the composition of the Executive Board. Paul Polman, currently CFO, will replace Paul Bulcke as Executive Vice President, Zone Americas, from 1 February 2008. James Singh, currently Senior Vice President, "Acquisitions and Business Development", will become a member of the Executive Board as Executive Vice President and succeed Paul Polman as CFO. Furthermore, to reflect the fact that Nestlé Nutrition is now an over CHF 10 billion business, Richard Laube will be appointed Executive Vice President on 1 January 2008. Finally, as already announced, John Harris, currently head of Nestlé Purina for Europe, Asia, Oceania and Africa, will take over from Carlo Donati as Executive Vice President, Nestlé Waters, on 1 December 2007. Carlo Donati, after 35 years with the Company and assignments in three continents, has expressed the wish to retire. The Board takes this opportunity to thank him warmly for his substantial contribution over the years, most recently for his successful period as head of Nestlé Waters.

Outlook

As foreseen at the time of the first-half results, input cost pressures are increasing over the second half of the year. While this has a dampening effect on real internal growth, Nestlé's outlook for 2007 as a whole remains unchanged: above-target organic growth as well as a sustainable margin improvement.

Note to the financial tables
(a) 2006 comparatives have been restated to reflect internal changes in management responsibility as of 1 January 2007, as well as the decision to transfer the fresh cheese activities in Italy, not disposed of to Lactalis Nestlé Produits Frais, to Nestlé Nutrition.

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé Board Designates Paul Bulcke as Future CEO

Thu, 20 Sep 2007 13:10:31 GMT

Vevey September 20, 2007

The Board of Directors of Nestlé S.A. today decided to propose to the shareholders that Mr. Paul Bulcke, present Head of Zone Americas, be elected to the Board at the Group's next Annual General Meeting on April 10, 2008. The Directors further declared their intention to appoint Mr. Bulcke as "Administrateur délégué"/Chief Executive Officer of Nestlé and to have him take on his new responsibilities on that same day. The Board further confirmed that Mr. Peter Brabeck-Letmathe will serve as active, non-executive, Chairman of the Board.

Mr. Bulcke's successor as Head of Zone Americas will be announced on October 18, 2007, as the new CEO designate will be involved in the necessary restructuring of the Executive Board. In April 2008, Mr. Bulcke will take over the reins of a company that has clearly outperformed its sector over the past years. Delivering the Nestlé model, consisting of both top-as well as bottom-line growth over the past 10 years, while at the same time completing the strategic transformation, new organizational structures and the implementation of GLOBE, puts the Group in a very favorable position to consolidate and enhance the progress achieved in the past.

With the forthcoming appointment of Mr. Bulcke, the Board concludes a process initiated in 2005. At that time, it decided to combine the roles of Chairman and CEO, in order to accelerate the strategic transformation process in the direction of Nutrition, Health and Wellness. The Group has now reached its objective of becoming the world's foremost nutrition company. Furthermore, the successful implementation of GLOBE allowed the Group to adopt the new organizational structure required to continue the process of generating significant performance improvement and strong growth. With the foreseeable increasing workload of the Chairman's office, Mr. Peter Brabeck-Letmathe and the Board felt the time was appropriate to again separate these two key functions, as well as bring about a generational change at the CEO level. The timing is dictated by the determination to ensure management continuity by entrusting the office of CEO to a younger person who will thus be able to assume the CEO mandate for a number of years.

The professional selection process that resulted in the nomination of Mr. Bulcke took place under the leadership of the independent Compensation and Nomination Committee. The Board unanimously approved the Committee's proposal as the best choice for the Company at this point in time.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé, said: "The Board chose a strong and pragmatic business leader, ideally suited to lead the Group in a period that will be marked by a phase of strategic and operational consolidation and a continued broadening of our Nutrition, Health and Wellness business. At the same time Nestlé will maintain its strong growth momentum in the developing and emerging world. Paul Bulcke has a proven performance record both in developing as well as in industrialized markets in Latin America and in Europe. As a member of Nestlé's Executive Board, in charge of Zone Americas, he played a decisive role in transforming this region not only into the Group's largest, but also into its most profitable one. He furthermore participated actively in the Group's strategic and operational transformation and assumed a key role in delivering the results needed to achieve the Nestlé model. The Board feels very confident in his capacity to continue Nestlé's successful transformation into the world's pre-eminent Nutrition, Health and Wellness company and I am personally looking forward to working with him in my future role as an active, non-executive, Chairman of the Board."

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Read Mr Paul Bulcke's CV

Nestlé to acquire Henniez

Tue, 04 Sep 2007 14:37:52 GMT

Vevey September 4, 2007

An agreement has been signed between Nestlé and the Rouge family, the majority shareholder of Sources Minérales !!! Error when processing "TaggedAnchor" field value: Object reference not set to an instance of an object., on the acquisition by Nestlé of 61.66% of the company for CHF 3,000 per share. In addition to the shares held by the Rouge family, Nestlé will make a public offer for the rest of the shares quoted on the SWX Swiss Exchange for CHF 5,303 per share, equivalent to the average weighted price of the last 60 trading days. The transaction, which amounts to about CHF 155 million in total, is subject to regulatory approval. Upon completion of the deal, Nestlé Waters will have slightly less than 25% of the Swiss bottled water market.

Henniez had sales of CHF 152 million in 2006. The company employs over 270 people at three sites in the Swiss cantons of Vaud and Valais and sells Henniez and Cristalp branded bottled water. Henniez's successful joint venture partnership with Eckes-Granini (Granini and Hohes C brands) will continue. With sales of CHF 77 million in 2006, Nestlé Waters Suisse markets S. Pellegrino, Vittel, Contrex, Acqua Panna and Perrier.

Henniez, a family-run business well-known for the quality of its products and its management, is thus joining the ranks of the Nestlé group. Strengthened by their common roots in the Swiss canton of Vaud and their common culture, both parties will now be better equipped to face a very competitive market with a strong distribution sector: Switzerland's three large retailers account for 85% of sales. With a yearly consumption of 127 litres per capita, the Swiss market is above the European average and enjoys a growth rate of 1 to 2% per year.

Carlo Donati, CEO of Nestlé Waters: "Henniez perfectly strengthens our existing activities in Switzerland. It brings us modern industrial capacity adapted to evolving consumer needs, a strong distribution network, as well as prestigious local brands which ideally complement our existing portfolio of international brands."

Nicolas Rouge, CEO of Sources Minérales Henniez: "This transaction safeguards the traditions behind the Henniez company and brand. With Nestlé, we have found a trusted partner to pursue these objectives."

.....................................................................................................................................

Carlo Donati, CEO of Nestlé Waters, and Nicolas Rouge, CEO of Sources Minérales Henniez, will give a press conference on this acquisition at the Hôtel Alpha-Palmiers, Rue du Petit-Chêne 34 in Lausanne, on Tuesday 4 September 2007 at 11:30. The media are kindly invited to attend.

.....................................................................................................................................

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé completes its acquisition of Gerber

Mon, 03 Sep 2007 14:16:11 GMT

Vevey September 3, 2007

As a result of the successful conclusion of the regulatory process, Nestlé completed its acquisition of Gerber, the iconic US baby food brand, on 31 August , with effect on 1 September 2007. Consequently, the integration process of Gerber will now begin as about 4,500 Gerber employees, with their specific know-how and expertise, join the Nestlé Group.

This is a major step in Nestlé's transformation into the world's leading nutrition, health and wellness company: it gives the Group the number one position in the largest single baby food market worldwide, the USA, and clearly establishes Nestlé Nutrition as the global leader in this sector.

The acquisition of Gerber, which comes in the wake of the Jenny Craig and Novartis Medical Nutrition purchases, transforms Nestlé Nutrition into a business approaching CHF 10 billion in sales with an enhanced critical mass and access to the Group's global R&D network to drive innovation.

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé maintains strong momentum over first half of 2007 - 7.4% organic growth, EBIT margin up 60 basis points - CHF 25 billion three-year share buyback programme

Wed, 15 Aug 2007 15:31:18 GMT

Vevey August 15, 2007

Sales of CHF 51.1bn, up CHF 4bn (+8.4%)
7.4% organic growth, 5.3% real internal growth
EBIT of CHF 6.9bn (+14.2%), margin of 13.5%, +60 basis points
Food and Beverages: 7.1% organic growth, EBIT margin +60 basis points
Net profit of CHF 4.9bn (+18.4%), earnings per share CHF 12.79 (+19.0%)
Operating cash flow CHF 4.3bn, up 29.4%
CHF 25bn three-year share buyback programme announced
Full-year outlook: above-target organic growth with sustainable margin improvement

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé: "The Group again achieved both strong growth and improved margins, the hallmark of the Nestlé model. These results are due to the strong performance of the Food and Beverages business and Nestlé's ongoing transformation into the world's leading nutrition, health and wellness company. In spite of increasing input cost pressures, I am confident of Nestlé achieving above-target organic growth for 2007, as well as a sustainable margin improvement. Finally, the Board has approved a new, three-year CHF 25 billion share buyback programme. This reflects our commitment to an efficient capital structure and our continued confidence in the business."


				EBIT Margins
	Jan.-June 2007	Change vs. Jan.-June 2006 (a)		Jan.-June 2007	vs. Jan.-June 2006 (a)
Sales	CHF 51 114m	+ 8.4%	+ CHF 3 956m
EBIT	CHF 6 919m	+ 14.2%	+ CHF 859m	13.5%	+60 bps
Net profit	CHF 4 916m	+ 18.4%	+ CHF 765m	9.6%	+80 bps
Total EPS	CHF 12.79	+ 19.0%
Real internal growth Organic growth	5.3% 7.4%

(a) see note at end of release
All calculations based on non-rounded figures

Group sales, profitability and financial position

In the first six months of 2007 consolidated sales of the Nestlé Group amounted to CHF 51.1 billion, an increase of 8.4% over the same period last year. This was mainly driven by organic growth of 7.4%, consisting of real internal growth of 5.3% and price increases of 2.1%. Foreign exchange pushed sales up by 0.5%, while acquisitions, net of divestitures, added another 0.5%. The Group's Food and Beverages business achieved organic growth of 7.1%, consisting of real internal growth of 4.9% and price increases of 2.2%.

Food and Beverages' strong organic growth of 7.1% yielded scale benefits both in cost of goods sold and marketing. Combined with a continued drive for efficiencies, these benefits of scale more than compensated for higher input costs. As a result, Food and Beverages’ EBIT margin (Earnings Before Interest and Taxes) was up 60 basis points and was the main contributor to the Group's overall EBIT margin improvement of 60 basis points to 13.5%. The Group’s EBIT rose 14.2% to CHF 6.9 billion. The cost of goods sold decreased by 20 basis points. Distribution expenses increased by 40 basis points, mainly as a result of the Jenny Craig acquisition in August 2006 and the strong growth of other distribution intensive businesses such as Nestlé Waters. In spite of increased investment in Nestlé's brands, marketing and administrative costs dropped by 80 basis points due to the good management of trade spend and economies of scale.

Net profit grew 18.4% to CHF 4.9 billion, resulting in a net margin of 9.6%, up 80 basis points. Earnings per share grew 19.0% to CHF 12.79.

The Group’s operating cash flow increased by 29.4% or CHF 1 billion over the same period last year, to CHF 4.3 billion. The continued focus on working capital resulted in a further improvement in this area as compared to the first half of 2006. The Group’s net debt was CHF 13.4 billion, a level similar to the corresponding period last year.

New, three-year CHF 25 billion share buyback programme

Nestlé's Board of Directors approved a new CHF 25 billion share buyback programme to be completed over the next three years, subject to market conditions and strategic opportunities. This decision takes into account the strong momentum, improving capital efficiency and future prospects of the Food and Beverages business, which is increasingly benefiting from the move towards nutrition, health and wellness. Furthermore, the recent acquisitions of Novartis Medical Nutrition and Gerber create critical mass in Nutrition, with annualised sales of over CHF 10 billion. Therefore, while the Board continues to believe that driving the performance of the Food and Beverages business offers the greatest opportunity for value creation within Nestlé, it takes the view that a significant share buyback programme should further enhance shareholder value. The scale of the buyback programme is in line with Nestlé’s financial management objectives, which aim to retain flexibility.

Sales and EBIT margins by management responsibilities and geographic areas
	Jan.-June 2007 Sales in CHF millions	Jan.-June 2007 Organic Growth(%)	EBIT Margins
	Jan.-June 2007 Sales in CHF millions	Jan.-June 2007 Organic Growth(%)	Jan.-June 2007	Change vs. Jan.-June 2006 (a)
Food
- Zone Europe	13 561	+ 1.4	11.4%	+50 bps
- Zone Americas	15 289	+ 7.4	14.5%	+80 bps
- Zone Asia, Oceania and Africa	8 030	+ 9.7	16.3%	+30 bps
Nestlé Waters	5 411	+ 10.3	9.3%	+10 bps
Nestlé Nutrition	3 441	+ 10.5	18.7%	-20 bps
Other Food & Beverages (b)	1 673	+ 22.7	18.9%	+190 bps
Total Food & Beverages	47 405	+ 7.1	12.0%	+60 bps
Pharma	3 709	+ 11.0	32.9%	+130 bps
Group Total	51 114	+ 7.4	13.5%	+60 bps

(a) see note at end of release
(b) Mainly Joint ventures managed on a worldwide basis and Nespresso
All calculations based on non-rounded figures

Sales in Food and Beverages by geography

In the first half of 2007, the organic growth of Nestlé's total Food and Beverages business (including globally-managed businesses such as Nestlé Waters, Nestlé Nutrition and Nespresso, as well as Food and Beverages joint ventures) amounted to 3.5% in Europe, 8.7% in the Americas and 10.5% in Asia, Oceania and Africa.

Zones: sales and profitability

Zone Europe: sales of CHF 13.6 billion, 0.9% real internal growth and 1.4% organic growth. The Zone continued to achieve double-digit growth in Eastern Europe. Growth in Western Europe was slow as the region focused on restoring margins, which showed a 50 basis points improvement. Confectionery experienced a notable performance improvement, particularly in the UK, and PetCare continued to do well. The Zone’s efficiency programmes and restructuring also contributed. The launch of Nescafé Dolce Gusto in Western Europe at the end of 2006 started very well.

Zone Americas: sales of CHF 15.3 billion, 4.2% real internal growth and 7.4% organic growth. The Zone’s EBIT margin increased by 80 basis points. There were good performances across the Zone, with both North and Latin America experiencing strong growth and the Ice Cream and PetCare businesses also performing well. The successful implementation of price increases in categories most impacted by input costs, especially Milk products, improved the EBIT margin. However, cost pressures will be greater in the second half and are likely to affect the EBIT margin.

Zone Asia, Oceania and Africa: sales of CHF 8 billion, 6.9% real internal growth and 9.7% organic growth. The Zone’s EBIT margin increased by 30 basis points. All the Zone's emerging markets (Asia, Africa and the Middle East) grew strongly. The Zone was also successful in achieving price increases in anticipation of the impact of rising milk costs. Together with efficiency improvements, this contributed to the Zone's better first half margin, although it too will face margin pressure as input costs escalate in the second half of the year.

Sales and EBIT margins by product groups
	Jan.-June 2007 Sales in CHF millions	Jan.-June 2007 Organic Growth(%)	EBIT Margins
	Jan.-June 2007 Sales in CHF millions	Jan.-June 2007 Organic Growth(%)	Jan.-June 2007	Change vs. Jan.-June 2006 (a)
Powdered and Liquid Beverages	8 447	+ 9.2	22.7%	+60 bps
Nestlé Waters	5 411	+ 10.3	9.3%	+10 bps
Milk Products and Ice Cream	10 098	+ 7.1	10.5%	+160 bps
Nestlé Nutrition	3 441	+ 10.5	18.7%	-20 bps
Prepared Dishes and Cooking Aids	8 785	+ 3.1	12.1%	-40 bps
Confectionery	5 307	+ 4.6	9.0%	+120 bps
PetCare	5 916	+ 7.2	14.9%	+20 bps
Pharmaceutical Products	3 709	+ 11.0	32.9%	+130 bps
Group Total	51 114	+ 7.4	13.5%	+60 bps

(a) see note at end of release
All calculations based on non-rounded figures

Product groups: sales and profitability

Powdered and Liquid Beverages: 9.2% organic growth. Nescafé did well, with its mixes and the launch of Nescafé Dolce Gusto the catalysts for growth. There was double-digit growth from the three other "billionaire" brands, Nespresso, Milo and Nestea. Milo benefited from renovation which reinforced its nutritional credentials with consumers. High growth, efficiency improvements as well as selling price adjustments resulted in a strong, 60 basis points EBIT margin improvement for the category.

Nestlé Waters: 10.3% organic growth. This was mainly driven by North America, where Nestlé Pure Life experienced over 40% organic growth. Europe achieved reasonable growth, while the smaller businesses in regions such as the Middle East and Latin America enjoyed good performances. Despite increases in packaging costs, the category's EBIT margin improved by 10 basis points due to the scale benefits of growth in North America and cost efficiencies.

Milk Products and Ice Cream: 7.1% organic growth. Milk products responded well to a challenging cost environment in Asia, Africa and Latin America, with early selling price increases to defend margins ahead of rapidly escalating milk costs. The CoffeeMate "billionaire" brand continued to perform well. Ice Cream started the year with reasonable growth, thanks to a strong innovation platform and winning initiatives in super-premium and health-focused offerings. Continued attention to manufacturing efficiencies and profitable growth contributed to the segment achieving a significant margin improvement. The EBIT margin for the total category was up 160 basis points, with all segments contributing.

Nestlé Nutrition: 10.5% organic growth. There were strong performances in the Infant formula and Healthcare Nutrition segments. This result is due to a robust innovation and renovation pipeline, including NAN premium starter formulas and Cerelac enriched with probiotics to strengthen infants' immune systems, as well as continued business recovery in China. Since its acquisition in August 2006, Jenny Craig has performed well but, as expected, the acquisition caused a slight EBIT margin decline of 20 basis points for the category as a whole. Jenny Craig is, however, accretive to Group margins on an annualised basis.

Prepared dishes and cooking aids: 3.1% organic growth. This category only saw marginal price increases in the first half of the year, but experienced good volume growth in Culinary in emerging markets and in Chilled culinary in North America and parts of Europe. Frozen recipe dishes started the year slowly in Europe. In North America, Lean Cuisine continued to benefit from strong innovation and consumers' increasing focus on health. Growth in the North American Frozen food range is expected to accelerate in the second half of the year. The product group's EBIT margin declined by 40 basis points, reflecting tough competitive conditions in some markets and a realignment of internal costs.

Confectionery: 4.6% organic growth. Double-digit performances were sustained in emerging markets such as Brazil, South Asia, Venezuela and the Middle East. The category's focus on simplification, product range rationalisation and restructuring in industrialised markets contributed to an EBIT margin improvement of 120 basis points. The main contributors were the US and the UK. The UK strategy of focusing on key brands while rationalising smaller brands and underperforming ranges resulted in key brands gaining market share as well as delivering improved EBIT margins and working capital.

PetCare: 7.2% organic growth. Good performances were achieved by key strategic global and regional brands competing in the super premium and premium dry segments, such as Dog Chow, Pro Plan and ONE. The EBIT margin increased by 20 basis points due to pricing gains and portfolio mix improvements which more than offset higher input costs.

Pharmaceutical Products: 11.0% organic growth. Both Alcon and the joint ventures achieved double-digit performances. The EBIT margin increased 130 basis points to 32.9%, mainly due to operational efficiencies and a positive product mix at Alcon.

Nutrition, health and wellness

Nestlé's strategic transformation into a nutrition, health and wellness company has continued apace. Sales of products containing Branded Active Benefits (BABs) grew by over 18% in the first half of the year, exceeding CHF 2.1 billion. The integration of Novartis Medical Nutrition into Nestlé Nutrition's Healthcare business started on 2 July and steps have been taken to ensure a speedy integration of Gerber as soon as the deal closes during the second half of the year. The addition of these businesses will create a Nutrition operation with annual sales of CHF 10 billion, the clear global leader.

Outlook

Nestlé’s first half performance was helped by the scale benefits of strong volume growth as well as the positive impact of price increases ahead of higher input costs. In the second half of the year, these higher prices are likely to slow volume growth slightly, while the increasing impact of higher raw material costs, particularly milk, will heighten pressure on EBIT margins. Nonetheless, the strong start to the year allows Nestlé to expect above-target organic growth as well as a further sustainable improvement in margins for the full year.

Notes to the financial tables
(a) 2006 comparatives have been restated to reflect internal changes in management responsibility as of 1 January 2007, as well as the decision to transfer the fresh cheese activities in Italy, not disposed of to Lactalis Nestlé Produits Frais, to Nestlé Nutrition.

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé opens new milk factory in China

Thu, 05 Jul 2007 15:40:58 GMT

Vevey July 5, 2007

Nestlé today inaugurated a new state-of-the-art milk factory in Erguna, near Hulunbeir, in the Chinese Inner Mongolia Autonomous Region. The ceremony took place in the presence of the regional authorities and Mr. Peter Brabeck-Letmathe, Chairman and CEO of the Nestlé Group.

Since the Nestlé Group began investing in China two decades ago, the Company has opened 21 factories in 18 different sites across the country and today employs about 13,000 people. In 2006, Nestlé had sales of CHF 1.9 billion in China.

The new milk powder factory is situated in an area of high-quality natural grasslands and will help Nestlé to cope with increasing consumer demand for the Company's milk products. Today, Nestlé buys fresh milk from some 40,000 Chinese farmers and provides them with an overall regular income of around CHF 500,000 per day, fostering a rural sustainable development for the communities concerned. At least 200,000 people benefit directly and indirectly from Nestlé’s milk activities in China. In addition to being a reliable and regular buyer of fresh milk, Nestlé has provided daily technical assistance to the farmers over the last 20 years, helping them to increase the quality, quantity and efficiency of their fresh milk production.

Mr. Brabeck-Letmathe said: "I am proud of this pioneering new investment that we have made in the Inner Mongolia Autonomous Region and I want to express my gratitude to the authorities, both at national and local level, for their continuous support and fruitful cooperation."

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé completes its acquisition of Novartis Medical Nutrition

Mon, 02 Jul 2007 14:28:10 GMT

Vevey July 2, 2007

As a result of the successful conclusion of the regulatory process, Nestlé completed its acquisition of Novartis Medical Nutrition on 1 July 2007. Consequently, the integration process of Novartis Medical Nutrition into Nestlé Nutrition will begin today as approximately 2,000 employees of Novartis Medical Nutrition, with their specific know-how and expertise, join the Nestlé Group. Novartis Medical Nutrition is complementary to Nestlé's Healthcare Nutrition business, and the combination of the two in over 40 countries increases Nestlé’s capabilities to satisfy the needs of consumers with special nutritional requirements.

The regulatory process included concerns expressed by the European Commission regarding activities in France and Spain. Nestlé’s remedy commitments for these countries, which are minor in value in the overall context of this transaction, satisfied the Commission's concerns and will not impact Nestlé’s ability to deliver on its acquisition objectives.

The acquisition propels Nestlé into a strong number two position globally in the fast-growing and lucrative healthcare nutrition market, helping to accelerate the profitable development of the overall nutrition business.

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

John Harris to Succeed Carlo Donati at the Helm of Nestlé Waters

Fri, 22 Jun 2007 14:13:31 GMT

Vevey June 22, 2007

At its meeting of June 21, 2007 the Board of Directors of Nestlé SA was informed that Mr. Carlo Donati, CEO of Nestlé Waters (Paris) wishes to return to Switzerland and to retire later in 2008. The Board decided to entrust the management of Nestlé Waters to Mr. John J. Harris, currently Chief Executive Officer of Nestlé Purina Europe. Mr. Harris will assume his new assignment on December 1, 2007 and be named Executive Vice President at that time.

Mr. Donati, who will be 62 in December, looks back on a very distinguished and successful career in the Nestlé Group, spanning 34 years and many countries and businesses in three continents. Named Chief Executive Officer of Nestlé Waters in February 2005, Mr. Donati consolidated the Company's leading market position through strong growth, as well as through geographical expansion in emerging countries by acquisitions and strategic alliances. He also launched it on its way to a more value-added beverage business, in line with the transformation of the Group into a Nutrition, Health and Wellness Company.

In order to ensure the necessary management continuity required to consolidate that new course over the coming years, the Board called on Mr. John J. Harris to assume leadership of Nestlé Waters, starting December 2007. John J. Harris is a U.S. citizen and was raised in California. He joined Carnation in 1974 and, after a successful career in different positions on both sides of the Atlantic, he was appointed Chief Executive Officer of Nestlé Purina Europe in August 2002. In 2005 he additionally assumed responsibility for Nestlé Purina in Asia, Oceania and Africa. His success at the helm of these Nestlé Purina operations was marked by strong innovation and renovation and by the creation of a high-performance supply chain.

The Board expresses its very sincere gratitude to Mr. Carlo Donati for his outstanding contribution to the Nestlé Group.

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Photograph of Mr Harris available here

Nestlé to submit modernised Articles of Association to the 2008 Annual General Meeting

Fri, 01 Jun 2007 13:21:57 GMT

Vevey June 1, 2007

At the April 2006 Annual General Meeting, over 98% of represented shareholders decided to give Nestlé's Board of Directors a mandate to modernise the company's Articles of Association. This decision was subsequently contested by an individual shareholder before the Vevey District Court. On 21 March 2007, this Court upheld the will of the vast majority of shareholders represented at the 2006 Annual General Meeting. As the deadline for appeal has since expired, the judgement is now definitive.

Nestlé remains convinced that modernising the Articles of Association is in the best interest of all shareholders. The Board will therefore continue its work with the aim of submitting updated Articles of Association to shareholders at the next Annual General Meeting in Lausanne on 10 April 2008.

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé donates Cambodian factory to Hagar International

Fri, 01 Jun 2007 07:38:55 GMT

Phnom Penh, Cambodia June 1, 2007

Nestlé today hands over vacated factory buildings in Phnom Penh to Hagar International, a Swiss foundation helping destitute women and children in Cambodia. The facility will be used to expand production of enriched soya milk by Hagar Soya, a commercial venture owned by the foundation.

The donation comes in the wake of an expanded partnership between Nestlé and Hagar International announced last February to fight malnutrition and poverty in Cambodia. This covers cooperation with the Nestlé Research Centre (NRC) near Lausanne and Nestlé Product Technology Centres to help optimise the nutritional composition of existing and new food products for low-income people, including the fortification of soya milk and an oral rehydration solution against diarrhoea for young children. Nestlé will also provide Hagar International with additional know-how on clean water supply, as well as further technical training for Hagar staff.

Nestlé's partnership with Hagar International began in 2006, when Nestlé technical advisers started helping Hagar Soya improve its food manufacturing practices. Nestlé's partnership with Hagar International covers activities in Cambodia, but may expand as the foundation develops similar programmes in other countries.

Hagar International was founded by Swiss national Pierre Tami in 1994 to rehabilitate destitute women and children, many of whom had been living on the streets. Over 100,000 homeless, trafficked and abused women and children have since been helped by Hagar International. The foundation is supported by a number of development agencies, including the Swiss Agency for Development and Cooperation and the World Bank's International Financial Corporation.

Hagar International has developed a number of successful programmes and three separately run businesses (design, catering and soya milk manufacturing) aimed at generating sustainable employment for underprivileged women and affordable nutrition for the population at large. Every month, nearly 20,000 children benefit from Hagar’s nutrition products aimed at HIV/AIDS sufferers, schools and hospitals. Since the inception of Hagar's water programme in 2001, over 350,000 people have gained access to clean water in Cambodia. In addition to these social activities, Hagar’s businesses also serve about 100,000 customers on a commercial basis.

Media Contacts:: François-Xavier Perroud, Nestlé S.A. Tel.: +41-21-924 2596; Pierre Tami, Hagar International Tel.: +855-23-219 045

Nestlé: Strong First-Quarter Sales 2007 Positive Outlook for the Full Year

Mon, 23 Apr 2007 14:49:00 GMT

Vevey April 23, 2007

Strong organic growth of 7.4% with a positive contribution from all regions and businesses, partly due to higher demand ahead of expected price increases
Food and beverage confirms momentum with 7.1% organic growth, fuelled by move towards nutrition, health and wellness
Nestlé Nutrition, on a like-for-like basis, reached its 10.0% target organic growth
Swiss franc sales up 6.4% to CHF 24.3 billion (CHF 22.8 billion in 2006)
Group reconfirms its 5 to 6% organic growth target with improved constant currency EBIT margins for the full year, and this in spite of continued significant input cost pressures, mainly in agricultural raw materials

Peter Brabeck-Letmathe, Chairman and CEO, said: "Nestlé is off to a strong start, not least with an excellent performance of our food and beverage business. These encouraging figures reflect the acceleration of our move towards nutrition, health and wellness across our main food and beverages brands, as well as the strong performance of our globally-managed Nestlé Nutrition unit which achieved its long-term target of 10% organic growth. Input costs remain high, but our strong brands enable us to continue to adjust prices. We therefore expect the Group to reach its objectives of organic growth between 5 and 6%, as well as continued improvement of the EBIT margin in constant currencies in 2007. The acquisition of Gerber has further accelerated the transformation process and will give Nestlé undisputed global leadership in nutrition, health and wellness."

In the first quarter of 2007, the Nestlé group reached consolidated Swiss franc sales of 24.3 billion, up 6.4% over the same period last year. Reported sales benefited from a strong organic growth of 7.4%, of which 5.7% were from real internal growth and 1.7% from price increases. Food and beverages delivered 7.1% organic growth, consisting of 5.3% real internal growth and 1.8% price increases. The net currency effect reduced reported group sales by 1.5%, whereas acquisitions, net of divestments, had a slight positive impact of 0.5%.

Sales by Management Responsibilities*
	Jan.-March 2007	Jan.-March 2006	Real internal growth Jan.-March 2007	Organic growth Jan.-March 2007
	in CHF million		%	%
Zone Europe	6 497	6 217	+1.6	+2.9
Zone Americas	7 393	7 235	+4.4	+7.2
Zone Asia, Oceania and Africa	3 846	3 642	+8.1	+10.3
Nestlé Waters	2 322	2 116	+9.5	+10.0
Nestlé Nutrition	1 632	1 349	+7.0	+10.0
Other food and beverages*	805	627	+19.3	+20.6
Total food and beverages	22 495	21 186	+5.3	+7.1
Pharma	1 756	1 609	+10.8	+12.1
Total	24 251	22 795	+5.7	+7.4

* Mainly Joint ventures managed on a worldwide basis and Nespresso
All calculations based on non-rounded figures

Food and beverages sales by geography

In the first quarter of 2007, the organic growth of Nestlé's total food, beverage and nutrition business (including globally-managed businesses such as Nestlé Waters, Nestlé Nutrition and Nespresso, as well as food and beverages joint ventures) amounted to 3.4% in Europe, 8.6% in the Americas and 10.8% in Asia, Oceania and Africa.

Zone Europe experienced organic growth of 1.9%. Demand in Western Europe continued to be weak, although the Nescafé Dolce Gusto launch is showing promising early results and the recovery of the UK confectionery business was reflected in market share gains. Eastern Europe delivered double-digit organic growth, with Russia doing particularly well and all product categories achieving double-digit growth there. Across the Zone, there were good performances in confectionery, soluble coffee, ice cream and chilled culinary products.

Zone Americas delivered a strong performance with organic growth of 7.2%. PetCare, confectionery, soluble coffee, culinary and ready-to-drink beverages did particularly well, and there were market share gains in most categories. There was some buying ahead of price increases, notably in PetCare and dairy-related categories.

Zone Asia, Oceania and Africa achieved organic growth of 10.3%, with strong double-digit performances in the emerging markets of Asia, including China, as well as in Africa and the Middle East. Higher demand in Asia was partly in advance of expected price increases resulting from higher milk and green coffee costs. This performance reflects good growth across most product categories, notably culinary, shelf-stable dairy and powdered beverages.

Nestlé Waters achieved 10.0% organic growth, with North America and the emerging markets delivering double-digit growth. Strong performances by Nestlé Pure Life and the regional American brands such as Poland Spring and Ozarka contributed to marked share gains in that market. France and Italy, as well as some of the smaller markets, contributed to positive organic growth in Europe, with Nestlé Aquarel, S.Pellegrino and Perrier all performing well. The performance of Nestlé Waters reflects its success in positioning its product range as a healthy choice for the whole family.

Nestlé Nutrition reached its longer-term 10.0% organic growth target for the first time. The globally-managed business achieved strong growth around the world due to a continued focus on value-added innovation across its infant nutrition products and a particularly strong performance of Healthcare Nutrition. This reported organic growth does not include any contribution from Jenny Craig, or the recently announced acquisitions of Novartis Medical Nutrition and Gerber.

Other Food and Beverage activities achieved outstanding organic growth of 20.6%, with Nespresso achieving over 30% organic growth. There were also strong performances from Beverage Partners Worldwide and Cereal Partners Worldwide.

Sales by Product Group
	Jan.-March 2007	Jan.-March 2006	Real internal growth Jan.-March 2007	Organic growth Jan.-March 2007
	in CHF million		%	%
Powdered and liquid beverages	4 019	3 758	+7.3	+8.9
Nestlé Waters	2 322	2 116	+9.5	+10.0
Milk products and ice cream	4 340	4 236	+4.1	+6.5
Nestlé Nutrition	1 632	1 349	+7.0	+10.0
Prepared dishes and cooking aids	4 380	4 280	+3.1	+3.3
Chocolate, confectionery and biscuits	2 870	2 659	+4.5	+7.3
PetCare	2 932	2 788	+4.9	+7.6
Pharmaceutical Products	1 756	1 609	+5.7	+7.4
Total	24 251	22 795	+5.7	+7.4

All calculations based on non-rounded figures

Among the product groups, Powdered and liquid beverages achieved 8.9% organic growth. Nescafé achieved high single-digit growth in the Americas and Zone Asia, Oceania and Africa. In Europe, growth was driven by the value-added mixes segment, while the Nescafé Dolce Gusto launch has got off to a good start. In Asia, Nescafé Protect continued to do well.

Milk products and ice cream achieved 6.5% organic growth. Milk products' organic growth was heavily influenced by price increases to offset significantly higher milk costs. CoffeeMate performed well in the US. Ice cream had a strong start to the year, with good performances from super premium brands such as Häagen-Dazs and Mövenpick, as well as the successful roll-out of nutritionally enhanced products.

Prepared dishes and cooking aids achieved 3.3% organic growth. Maggi had a very strong start to the year in Africa and Asia, which saw the launch of new products inspired by traditional Chinese medicine. In North America, Lean Cuisine showed good results. Europe experienced a slow start to year.

Chocolate, confectionery and biscuits reported 7.3% organic growth. All three Zones contributed to this performance, with the Americas achieving double-digit growth. The category capitalized on a successful Easter season, which came earlier this year than last, and is also benefiting from increasing consumer interest in lighter, wafer-based snacking alternatives and darker chocolate. Nestlé launched around 50 new dark chocolate products worldwide during the first quarter of 2007.

PetCare achieved 7.6% organic growth. The Americas were particularly strong with continued momentum from 2006 launches of products such as Beneful Prepared Meals and ONE Organics, as well as positive early signs from 2007 launches. There was also growth in Europe, with Friskies continuing to make progress.

Nestlé's pharma activities started the year well, with 12.1% organic growth. There were double-digit performances from the main constituent, Alcon, as well as from the two joint ventures with L’Oréal, Galderma and Laboratoires Innéov.

Outlook

In view of the strong start to the year, Nestlé can reconfirm its targets for the full year: organic growth of between 5 and 6% and an EBIT margin improvement at constant currencies, and this in spite of continued significant input price pressures, mainly in agricultural raw materials.

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Strong Majority For All Board Proposals at Nestlé Annual General Meeting

Thu, 19 Apr 2007 10:38:04 GMT

Lausanne April 19, 2007

2 405 shareholders attended the Nestlé S.A. Annual General Meeting today in Lausanne. They represented 31.65 percent of the total capital and 48.97 percent of the shares entitled to vote. All proposals of the Board of Directors were voted with strong majorities. The annual report and the accounts were approved, and the shareholders agreed to the release of the Board of Directors and the Executive Board. Shareholders further approved the proposed dividend increase to CHF 10.40 per share, up 15.5 percent over last year. They also gave their assent to the reduction in the share capital by CHF 7 663 200 through the cancellation of a corresponding number of registered shares following completion of their buy-back in 2006.

Shareholders further re-elected as members of the Board of Directors Mr. Peter Brabeck-Letmathe for a full 5-year term and Lord George for a 4-year term.

For the year to come, the different Committees of the Board are composed as follows:

Chairman's and Corporate Governance Committee: Messrs. Brabeck-Letmathe, Koopmann, Hänggi, Lord George, Villiger Finance
Committee: Messrs. Hänggi, Lord George, Villiger
Audit Committee: Messrs. Hänggi, Meyers, Villiger, Kudelski
Compensation and Nomination Committee: Messrs. Böckli, Koopmann, Lord George, Borel

The Chairman's address can be read in speeches and statements in the Media Center.

Contacts:

Media: François-Xavier Perroud Tel.: +41-21-924 2596

Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé Consolidates Nutrition Leadership Position Through Acquisition of Gerber

Thu, 12 Apr 2007 10:33:22 GMT

Vevey April 12, 2007

As part of the continuing drive to reinforce its leadership in nutrition, Nestlé has agreed to acquire Gerber, the iconic US baby food brand, from Novartis for a total amount of USD 5.5 billion. The move gives Nestlé the number one position in the world's largest single baby food market, the USA, and clearly establishes Nestlé Nutrition as the global leader in this sector. With this acquisition, Nestlé Nutrition will also leverage its existing strong core business in North America, giving the company significant scale in infant, healthcare and performance nutrition with a dedicated and focused sales force.

With net proceeds of sales for 2007 estimated at USD 1.95 billion, Gerber is among the most trusted US brands – recognized by virtually all mothers in the USA – and, furthermore, enjoys strong positions in Mexico, Poland and Central America. Gerber is also a provider of baby care products and juvenile life insurance in the US. The company has enjoyed good growth in recent years and, as a result of expected cost synergies, further improvement of operational margins is expected.

The acquisition of Gerber, which comes in the wake of the Jenny Craig and Novartis Medical Nutrition purchases, will transform Nestlé Nutrition into a business approaching CHF 10 billion in sales with an enhanced critical mass and access to the Group's global R&D network to drive innovation.

The transaction, which is expected to be completed during the second half of 2007, is subject to regulatory approval.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé, said: "The acquisition of Gerber is the perfect complementary fit. It not only gives Nestlé the leadership position in baby food, but it also constitutes a decisive step to establish Nestlé Nutrition as the undisputed global leader in the nutrition field, with annual sales of around CHF 10 billion, covering all important sectors: infant formula, baby food, medical nutrition, weight management and performance nutrition. This is a major step in the transformational journey of Nestlé toward a Nutrition, Health and Wellness Company. It is my great pleasure to welcome the employees of Gerber to the Nestlé Group."

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé and The Coca-Cola Company have reached final agreement on their Beverage Partners Worldwide (BPW) joint venture

Tue, 27 Mar 2007 10:29:09 GMT

Vevey March 27, 2007

Nestlé and The Coca-Cola Company today announced they have reached final agreement on refocusing the activities of their Beverage Partners Worldwide (BPW) joint venture. The agreement, which is subject to certain regulatory approvals and is expected to close by 30 April 2007, is a refined version of an earlier understanding reached in November 2006.

Under the terms of the agreement, BPW will cover the total ready-to-drink tea category worldwide except in the US and Japan. In this connection, Nestlé has licensed its Nestea and Enviga brands to The Coca-Cola Company in the US and to BPW for the rest of the world. As a result, both companies will be free to develop or acquire additional tea brands to compete on the US and Japanese markets, while BPW will be able to do the same in the rest of the world, to compete with other market players.

As agreed in November 2006, coffee will no longer be part of BPW's business and, consequently, Nescafé ready-to-drink coffee will be returned to Nestlé, and both Nestlé and The Coca-Cola Company will be free to compete in coffee beverages and non-tea functional beverages worldwide.

"A joint venture focused on the total ready-to-drink tea category, excluding the US and Japan, provides an opportunity to optimise value for all stakeholders," said Leslie Novos, CEO of BPW. "The redefined scope affords BPW the opportunity to grow existing and new brands consistent with a leadership agenda outside the US and Japan."

Beverage Partners Worldwide (BPW), a fifty-fifty joint venture held by Nestlé and The Coca-Cola Company, was created in 2001 following a period of 10 years during which Nestlé and The Coca-Cola Company cooperated in a joint venture called Coca-Cola and Nestlé Refreshments (CCNR).

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé opens new milk factory in Pakistan, its largest milk reception plant in the world

Fri, 16 Mar 2007 14:56:40 GMT

Kabirwala (Pakistan) March 16, 2007

General Pervez Musharraf, President of Pakistan, and Peter Brabeck-Letmathe, Chairman and CEO of Nestlé, today opened a state-of-the-art milk processing plant in Kabirwala, Punjab. The plant, Nestlé's largest milk reception facility in the world, has a processing capacity of 2 million liters of milk per day, which will rise to over 3 million liters in coming years.

General Pervez Musharraf and Peter Brabeck-Letmathe also presided over the first graduation ceremony under a unique public-private partnership between the United Nations Development Programme (UNDP) and Nestlé, which aims to train 5,000 women involved in farming in Pakistan. This partnership is a further illustration of Nestlé's model of creating shared value, whereby both companies and the societies in which they operate emerge as winners.

Since Nestlé started investing in Pakistan 18 years ago, the company has established the country's largest milk collection network. Today, Nestlé collects milk from 140,000 farmers over an area of 100,000 square kilometers in Punjab who, as a result, receive over CHF 120 million per year directly from the company.

Headquartered in Lahore, Nestlé is Pakistan's largest consumer goods company with sales of around CHF 500 million in 2006. The company has five production facilities in different parts of Pakistan: two multi-product factories in Sheikhupura and Kabirwala, respectively, and three bottled water plants, one in Islamabad and two more in Karachi. Over the years, Nestlé has created over 10,000 direct and indirect jobs in Pakistan. The company estimates that a million people earn their living with Nestlé in Pakistan, from employees, farmers and distributors to suppliers, transport companies and retailers.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé, said: "Pakistan is a great country, the fourth largest milk producer in the world. We very much hope to continue having the privilege of being part of Pakistan's economic growth for many years to come."

General Pervez Musharraf, President of Pakistan, thanked and commended Nestlé on its decision, and underscored the company's positive role in the development of agriculture and animal husbandry, a way of eliminating poverty and creating jobs in Pakistan. "You are assisting the poor of Pakistan and this helps us fight the root cause of extremism and terrorism," he said.

Contacts:: Media: Robin Tickle Tel.: +41-21-924 3517; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Record year for Nestlé in 2006: double-digit increases in EBIT, net profit and cash flow

Thu, 22 Feb 2007 15:51:32 GMT

Vevey February 22, 2007

Sales of CHF 98.5 billion, up 8.1%
Above-target organic growth of 6.2%
EBIT up 12% to CHF 13.3 billion, margin up 50 basis points to 13.5%
Food and beverages organic growth of 5.9%, margin up 40 basis points
Net profit up 13.8% to CHF 9.2 billion, margin up 40 basis points to 9.3%
Operating cash flow up 14.4% to CHF 11.7 billion
Higher R&D, marketing and input costs more than offset by efficiency and scale gains
Return on invested capital, excluding goodwill, up 40 basis points to 21.2%
Return on invested capital, including goodwill, up 30 basis points to 11.7%
Board to propose 15.6% dividend increase to CHF 10.40 and cancellation of shares following the CHF 3 billion share buy-back

Peter Brabeck-Letmathe, Chairman and CEO: "2006 was another record year for Nestlé. We are seeing the benefits of the Group's transformation into a nutrition, health and wellness company, with stronger innovation and branding, as well as improved efficiency. At the same time, we strengthened our portfolio with the acquisitions of Uncle Tobys, Jenny Craig and Novartis Medical Nutrition, while divesting more commoditised businesses. Our competitiveness was further boosted by higher spending on marketing and R&D, the roll-out of GLOBE and shared services, as well as our strong commitment to savings programmes. This drove profitability to record levels while maintaining top-line growth. The record result is, above all, a testimony to the quality of our people. For 2007, despite the tough input cost environment, we again plan to deliver organic growth of between 5 and 6% as well as an EBIT margin improvement."

Figures at a glance *(*)*
	2006	Change vs. 2005		Margins
	2006	Change vs. 2005		2006	vs. 2005
Sales	CHF 98 458m	+8.1%	+ CHF 7 343m
EBIT	CHF 13 302m	+12.0%	+ CHF 1 426m	13.5%	+50 bps
Net profit	CHF 9 197m	+13.8%	+ CHF 1 116m	9.3%	+40 bps
Total EPS	CHF 23.90	+15.0%	+ CHF 3.12
Real internal growth	4.7%
Organic growth	6.2

2005 restated to be comparable with 2006
(*) - see note at end of release

Group sales, profitability and financial position

Reported sales amounted to a new high of CHF 98.5 billion in 2006, up CHF 7.3 billion or 8.1%. The single most important factor in this increase was organic growth of 6.2%, above the Group's long-term target of between 5 and 6%. Within the organic growth, real internal growth was 4.7% and pricing 1.5%. Positive exchange rates added 1.6%, while acquisitions, net of divestitures, added 0.3%. The main driver of growth was the food and beverages business, which contributed CHF 6.7 billion to the Group's CHF 7.3 billion of growth. Its sales were up 7.8% to CHF 91.8 billion. Its organic growth was 5.9%, with real internal growth at 4.2%, reflecting strong performances over most countries and brands.

At CHF 13.3 billion, the Group's EBIT improved by 12.0%, or CHF 1.4 billion, and now stands at 13.5% of sales, an improvement of 50 basis points over 2005. Food and beverages contributed 40 basis points to this increase, with pharmaceutical products, primarily Alcon, accounting for 10 basis points. Nestlé's efficiency programme, Operation EXCELLENCE 2007, exceeded its targeted savings of CHF 1 billion and, together with scale gains and the continued roll-out of GLOBE and shared services, enabled the Group to compensate for higher marketing, R&D and input costs.

The main engine of Nestlé's growth is its brands. Today, brands with sales of more than CHF 1 billion account for over 70% of food and beverages sales. The success of many Nestlé brands is increasingly derived from their strong nutritional credentials. Others have benefited from strong performances of health-focused extensions. Products enriched with Branded Active Benefits (BABs) achieved organic growth of over 20% in 2006, with sales close to CHF 4 billion. The Company's commitment to growing its brands is demonstrated by a 6.3% increase in marketing and administration spend in 2006. This included an increase of CHF 1.8 billion in marketing-related costs. Despite this increased investment in Nestlé's brands, the strong sales growth and efficiencies in trade spend and overhead costs resulted in a drop of 60 basis points in marketing and administration expenditure as a percentage of sales. Another vital growth driver is innovation and renovation, and Nestlé's spend on research and development was up 16% in 2006, to CHF 1.7 billion (1.8% of sales).

Net profit reached a record CHF 9.2 billion, up 13.8% or CHF1.1 billion, to 9.3% of sales. Total earnings per share were up 15.0%, amounting to CHF 23.90 (CHF 20.78 in 2005). The Group's return on invested capital, excluding goodwill, was up 40 basis points to 21.2%, while, including goodwill, it was up 30 basis points to 11.7%.

The Group's operating cash flow increased by 14.4%, or CHF 1.5 billion, to CHF 11.7 billion. Free cash flow generation increased by CHF 0.5 billion to CHF 7 billion. The difference between operating and free cash flows is mainly explained by capital expenditure, which rose from 3.7% of sales in 2005 to 4.3% in 2006, or by CHF 0.8 billion to CHF 4.2 billion, to support our consistent strong growth and fast pace of innovation. The Group's working capital performance improved by CHF 1 billion, with working capital declining from 7.7% of sales in 2005 to 6.7% in 2006.

The Group's net debt increased from CHF 9.7 billion to CHF 11.0 billion. Apart from the increased capital expenditure, the Group completed the CHF 3 billion share buy-back announced in November 2005, made acquisitions including Uncle Tobys and Jenny Craig, and purchased the remaining publicly-owned shares of Dreyer's Grand Ice Cream. The Group continues to have a AAA rating.

Sales and EBIT margins by management responsibilities and geographic areas
	2006 Sales in CHF millions	2006 Organic Growth (%)	Margins
	2006 Sales in CHF millions	2006 Organic Growth (%)	2006	Changes vs. 2005(*)
Food
- Europe	26 698	+2.3	11.6	-40 bps
- Americas	31 286	+6.1	15.8%	+70 bps
- Asia, Oceania and Africa	15 439	+8.2	8.7%	+60 bps
Nestlé Waters	9 616	+7.9	16.7%	+40 bps
Nestlé Nutrition	5 955	+6.1	16.9%	-80 bps
Other Food & Beverages	2 777	+19.1	13.0%	+80 bps
Total Food & Beverages	91 771	+5.9	12.2%	+40 bps
Pharma	6 687	+11.6	31.9%	+120 bps
Group Totals	98 458	+6.2	13.5%	+50 bps

(*) - see note at end of release

Food and beverages sales and profitability by geography

The organic growth of Nestlé's total food, beverage and nutrition business (including globally-managed businesses such as Nestlé Waters, Nestlé Nutrition and Nespresso, as well as food and beverages joint ventures) amounted to 3.3% in Europe, to 7.2% in the Americas and to 8.0% in Asia, Oceania and Africa, outpacing GDP growth of all regions.

With sales of CHF 26.7 billion in 2006, Zone Europe achieved 2.3% organic growth, consisting of 1.4% real internal growth and price increases of 0.9%. Soluble coffee, pet care and powdered beverages performed strongly. The Zone continued to enjoy double-digit organic growth in Eastern Europe and in the hard discount channel in Western Europe.

With sales of CHF 31.3 billion in 2006, Zone Americas had a strong performance with 6.1% organic growth, consisting of 3.8% real internal growth and price increases of 2.3%. In North America, pet care, frozen food, shelf-stable dairy and ready-to-drink beverages performed well, while in Latin America, all categories enjoyed dynamic performances, with chocolate and culinary especially strong.

With sales of CHF 15.4 billion in 2006, Zone Asia, Oceania and Africa also performed well, with 7.9% organic growth, consisting of 6.0% real internal growth and price increases of 1.9%. There was strong organic growth across all the product groups, in particular culinary, chocolate, shelf-stable dairy and powdered beverages. China, India, Africa and the Middle East did very well as the Zone's emerging markets achieved double-digit organic growth.

With sales of CHF 9.6 billion in 2006, Nestlé Waters achieved 8.2% organic growth, consisting of 9.1% real internal growth and a decline in prices of 0.9%. Sales of Nestlé Pure Life and Poland Spring, a North American regional brand, exceeded CHF 1 billion for the first time in 2006. Emerging markets and North America were once again the driving force of growth. In Europe, Nestlé Aquarel achieved double-digit growth, while among the international brands, S.Pellegrino and Acqua Panna enjoyed good performances.

With sales of CHF 6 billion in 2006, Nestlé Nutrition achieved 6.1% organic growth, consisting of 2.2% real internal growth and price increases of 3.9%. Nestlé Nutrition did well in Latin America and much of Asia and Africa, but its overall performance was held back by China. The business achieved strong gains in infant nutrition, an area where Nestlé is global market leader, as a result of the international roll-out of a premium infant formula product, Nestlé NAN HA. Nestlé Nutrition's EBIT margin fell by 80 basis points, mainly reflecting the previously-foreseen dilutive effect of the Jenny Craig acquisition and start-up costs of the global Nestlé Nutrition business.

Other food and beverages (Nespresso, Cereal Partners Worldwide, Beverage Partners Worldwide) had sales of CHF 2.8 billion and achieved organic growth of 19.1%, with each of them enjoying good organic growth. Nespresso's sales exceeded CHF1 billion for the first time in 2006.

With sales of CHF 6.7 billion in 2006, Nestlé's pharmaceutical activities achieved 11.6% organic growth, with a strong performance by Alcon.

Sales and EBIT margins by product groups
	2006 Sales in CHF millions	2006 Organic Growth (%)	Margins
	2006 Sales in CHF millions	2006 Organic Growth (%)	2006	Changes vs. 2005(*)
Beverages	25 882	+8.0	17.3%	0 bps
Milk Products, Nutrition and Ice Cream	25 435	+5.3	11.8%	+10 bps
Prepared Dishes and Cooking Aids	17 635	+4.8	13.2%	+10 bps
Chocolate, Confectionery and Biscuits	11 399	+2.6	11.5%	-10 bps
PetCare	11 420	+7.1	15.1%	+60 bps
Pharmaceutical Products	6 687	+11.6	31.9%	+120 bps
Group Totals	98 458	+6.2	13.5%	+50 bps

(*) - see note at end of release

With sales of CHF 25.9 billion in 2006, beverages achieved 8.0% organic growth, with real internal growth of 6.9%. Nescafé performed well around the world, while the October launch of Nescafé Dolce Gusto in parts of Europe had a promising start. Milo and Nesquik's strong health credentials were the foundation of their good performances. Milo continued its successful development in Asia, while Nesquik performed well in the US in ready-to-drink form, and in Europe in powdered form.

With sales of CHF 25.4 billion in 2006, milk products, nutrition and ice cream enjoyed 5.3% organic growth, with real internal growth of 3.2%. There was a strong performance by shelf-stable dairy, with CoffeeMate continuing to grow at a double-digit rate in the US, while nutrition-focused products such as Nido, Bear Brand, Nesvita and Dancow benefited from a successful segmentation strategy. Ice cream enjoyed success in Europe with the roll-out of innovations such as low-fat varieties across a number of brands and the relaunch of Mövenpick of Switzerland. Meanwhile, the US ice cream business focused on improving margins through a higher quality of sales.

With sales of CHF 17.6 billion in 2006, prepared dishes and cooking aids experienced 4.8% organic growth, with real internal growth of 4.2%. Maggi did especially well in emerging markets, while Stouffer's, Lean Cuisine and Buitoni all grew strongly in the US. Buitoni also performed well in Europe, helped by innovation in frozen pizzas.

With sales of CHF 11.4 billion in 2006, chocolate, confectionery and biscuits reached 2.6% organic growth, with real internal growth of 0.5%. This product group achieved high single-digit growth in Zone AOA and Latin America. Kit Kat performed particularly well globally, benefiting from the growing consumer preference for lighter chocolate products. In Europe the picture was mixed with stronger performances in Italy and the Iberian peninsula, and weaker ones in Great Britain and Germany. In the US, business was down in a declining market.

With sales of CHF 11.4 billion in 2006, PetCare enjoyed 7.1% organic growth, with real internal growth of 4.3%, doing well all over the world. In the premium segment, Dog Chow and Puppy Chow together achieved CHF 1 billion of sales for the first time in 2006. The high premium and super premium segments, with products such as Beneful and Pro Plan, are also developing well.

Transformation process continues

Nestlé's strategic transformation has continued apace. In addition to the strong growth of those brands that are closely associated with nutrition, health and wellness and to ongoing product innovation and renovation, the announcement of three acquisitions in the course of 2006 further enhanced the Group's nutrition, health and wellness credentials: Uncle Tobys in Australia with activities covering breakfast cereals, nutritious snacks and instant soups, Jenny Craig in weight management, mainly in North America and Australia, and the global Novartis Medical Nutrition business.

Nestlé continued to tackle underperforming businesses throughout 2006. There were a number of disposals including the Perrier glass making operation, the vending business in Japan and certain canned liquid milk brands in parts of Asia, as well as the creation of the Lactalis Nestlé Produits Frais venture in chilled dairy in Europe. Several businesses underwent significant restructuring and increased discipline was applied to reducing product ranges as well as legal and reporting structures. By the end of 2006, 80% of Nestlé's food and beverages business was covered by GLOBE and the consequent benefits are beginning to accrue.

Board proposals to the Annual General Meeting

The strong performance in 2006 enables the Board to propose to shareholders a dividend increase of 15.6% from CHF 9.00 per share to CHF 10.40 per share. Furthermore, the Board will propose that following completion of the CHF 3 billion share buy-back programme in 2006, shares amounting to that value be cancelled.

The General Meeting of Nestlé S.A. will take place on 19 April 2007 at 14:30 at the Palais de Beaulieu in Lausanne. The management report will be available from 15 March 2007, whereas the fully-audited financial statements are now posted on the Nestlé Corporate Website. The dividend will be payable from 25 April 2007.

Outlook

For 2007, the Group is confident of once again achieving the Nestlé model: organic growth of between 5 and 6% and a further EBIT margin improvement in constant currencies, and this in spite of continued strong input cost pressure, especially on agricultural raw materials, and more investment in brands, R&D and additional capacity aimed at further accelerating the Group's transformation into a nutrition, health and wellness company.

Notes to the financial tables
(*) 2005 comparatives have been restated following the first application of the option of IAS 19 Employee Benefits § 93A ss., IFRIC 4 Determining whether an Arrangement contains a Lease on the one hand, and, on the other, the decision to transfer the fresh cheese activities in Italy, not disposed of to Lactalis Nestlé Produits Frais, to Nestlé Nutrition

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3509

Nestlé broadens strategic co-operation with Barry Callebaut in Europe

Thu, 15 Feb 2007 11:18:25 GMT

Vevey February 15, 2007

Nestlé S.A. and Barry Callebaut AG announce their intention to broaden their strategic co-operation in Europe. The project spans three countries and includes the transfer of production facilities in Italy and France, as well as a long-term supply contract for Barry Callebaut to furnish chocolate mass to Nestlé chocolate factories in Russia. The agreement is subject to employee consultation as well as to regulatory approval. The two parties expect a final agreement to be signed during the summer of 2007.

For Nestlé, the worldwide move away from primary cocoa transformation is part of its ongoing strategic transformation process. This accounts for the proposed sale of the cocoa liquor and chocolate mass production facility at the San Sisto factory in Perugia. Nestlé understands that the new acquirer will significantly increase capacity in this facility.

Nestlé looks forward to extending the already existing supplier-customer relationship with Barry Callebaut, with its high degree of specialization and state-of-the-art know how. Thus, Nestlé chocolate factories in Russia will receive significant amounts of chocolate mass from Barry Callebaut.

Furthermore, Nestlé proposes to transfer its chocolate factory in Dijon to Barry Callebaut. Widening the product range should reverse declining volumes and improve the competitiveness of this plant. Nestlé will outsource the production to Barry Callebaut who, in addition, can use the existing capacity and equipment to manufacture some of its own products. Under the proposal the existing workforce at Dijon would be transferred to Barry Callebaut.

Nestlé is convinced that the challenging and changing chocolate market in Europe remains promising, provided that the right structures are in place. Nestlé sees the strategic co-operation with Barry Callebaut as a positive element in the Group's determination to remain a key actor in the European chocolate market.

Contacts:
Nestlé Corporate: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622
Nestlé France: Media: Jean-Christophe Huertas Tel.: +33-1-60 53 15 97
Nestlé Italiana: Media: Carlo Salvadori Tel.: +39-348-72 72 052
Nestlé Russia: Media: Alik Tuigunov Tel.: +7-495-727 6640