Our business strategy
Our purpose is unlocking the power of food to enhance quality of life for everyone, today and for generations to come. With our global presence, in-market capabilities and diverse portfolio of iconic brands and innovative products, we can unlock growth through our Nutrition, Health and Wellness strategy and our Creating Shared Value approach.
We strive to create efficiencies to fund investments in our brands that enable us to succeed in the marketplace and drive profitable growth. We call this continuous process the Nestlé Virtuous Circle.
Nestlé Virtuous Circle
Long-term growth is only achievable with the right investments. That is why we are focused on achieving efficiencies in every dimension of our business to generate resources for our growth investments.
We have strong brands and, through strategic investments, we aim to strengthen our connections with the consumer. Our investments aim to help us continuously perform and transform.
With a focused portfolio of attractive categories, strong brands and innovative products, we want to grow our market share in all the markets where we are present. To support this goal, we are stepping up our marketing spend.
Our long-term value creation model is based on the balanced pursuit of top- and bottom-line growth as well as improved capital efficiency. We create value guided by 3 strategic pillars: operational efficiency, resource and capital allocation with clear priorities, and growth through efficiencies and continuous investment.
Our strategy in action
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Our trusted brands We have more than 2,000 brands, from global icons to local favorites. Over 30 of our trusted brands, including Maggi, Milo and Nido, generate over CHF 1 billion each in annual sales at the retail level. We partner with customers across the retail landscape to adapt our product portfolio and channel strategies, leveraging our global brands to customize new products for local tastes and preferences.
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Innovation Building a pipeline of highly differentiated innovations, while rapidly testing and launching new ideas, fuels our growth. Our focus is on delivering tasty, nutritious, affordable and sustainable products by anticipating growing trends and meeting people's diverse evolving needs and preferences, while investing in solutions with an improved environmental footprint.
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Affordable, accessible nutrition Our offering of affordable, accessible products aims to provide lower-income consumers with high-quality food products that deliver nutritional value at an affordable cost and in an appropriate format. Most of our affordable and accessible products are fortified with at least one of the 'big four' micronutrients: iron, iodine, vitamin A and zinc.
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Premium products Across our product categories, we bring distinctive and value-added innovations to market, fueled by creative exploration, consumer insight, pioneering nutrition science and culinary excellence. These innovations help to reinforce the relevance of our brands and translate into opportunities for category growth.
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Accelerated digitalization We are building a seamless consumer experience and channel-less commerce system, unlocking valuable data across geographies and categories. E-commerce is a priority, across all markets and categories. Artificial intelligence and remote assistance are allowing us to be more agile and flexible in our manufacturing sites and supply chains – increasingly important in today’s world.
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Creating Shared Value We build for the long term, act with focus and combine global resources with local know-how to create value for both society and our shareholders at a meaningful scale. Our commitment to creating shared value is illustrated by our progress toward net zero greenhouse gas emissions, regenerative agriculture, 100% deforestation-free supply chains, sustainable packaging and improved nutrition in our portfolio.
