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Our strategy

Puppy eating from bowl beside child and Purina ONE dog food in a modern kitchen

 

Nestlé is the Good food, Good life company. Through our focus on nutrition, health and wellness, we strive to unlock the power of food and beverages to enhance quality of life for everyone, today and for generations to come. Creating shared value for our stakeholders and shareholders alike is a fundamental part of our long-term strategy.

To deliver this strategy, we are focused on four strategic priorities: driving RIG-led growth, building a winning portfolio, advancing a performance culture and transforming for better performance. We aim to deliver sustainable, profitable growth, returning to organic growth of 4% plus in a normal operating environment, with an underlying trading operating profit margin of 17% plus.

 

Driving RIG-led growth

We are accelerating real internal growth by rigorously prioritizing our investments in marketing and innovation across strategic consumer platforms with the highest growth potential. To unlock the resources needed for bold investment at scale, we are generating efficiencies across the Group, aiming to achieve CHF 3.0 billion in cost savings by the end of 2027.

In 2025, we concentrated our resources on global platforms, our most successful brands and key innovations with significant growth potential, including Nescafé Espresso Concentrate, Purina pyramid-shaped wet cat food and NAN Sinergity. We also took measures to address our 18 key underperformers, with their contribution to Group organic growth improving by 30 basis points compared to last year, demonstrating the effectiveness of our focused approach.

Going forward, we are expanding the scope of our growth platforms from 10% to 30% of sales. These are expected to deliver high single-digit growth, supported by additional investments. At the same time, we are taking targeted measures to continue improving our underperforming businesses.

To drive the growth of these big, strategic consumer platforms, we are building multi-year innovation pipelines, based on strong consumer insights, that extend beyond individual products to encompass entire product ranges with superior consumer taste preference. These robust pipelines will be promoted under our leading brands, scaled globally and marketed with industry-leading excellence. 

Our data shows us that the consumption of cold coffee is a growing trend globally, particularly among younger consumers who are entering the coffee category. This strategic platform is a great example of how we look at increasing our impact. With innovations such as Nescafé Espresso Concentrate, a premium liquid coffee concentrate used to create a variety of iced beverages at home, Nescafé Iced Blend, the first premium soluble coffee that dissolves in cold liquids, and Nescafé ready-to‑drink offerings that are being launched in many markets, we are setting new standards in the category. Scaling such great innovations globally and to our other coffee brands will help us further accelerate growth.

Through exceptional consumer, category and customer understanding, we are transforming to deliver industry-leading brand building and innovation of our portfolio of iconic brands to delight consumers, grow categories and win with customers.

We focus our marketing investment on our strategic global and local brands, and on category-growing innovation that drives the growth of our strategic platforms. We are launching the new ‘Brand Building the Nestlé Way’ internally to drive company-wide focus, upskilling, and mastery of the drivers of real internal growth and market share gains: 

  • Unrivalled Superiority, ensuring great tasting and high-quality products as well as superior design and functionality of our packaging across our existing business and innovation
  • Unbeatable Value, delivering competitive pricing, strategic pack architecture and effective promotions
  • Unmissable Visibility, maximizing our distribution and achieving leading in-store and online placement
  • Unforgettable Communications, developing consistent, distinct and creative brand assets, and investing in high-impact media

We are transforming our marketing operating model to reach consumers in a digital, social-first media landscape. We will scale best-in-class content studios to deliver high-quality assets, alongside data, analytics and ROI tools to drive impact and strong local relevance.

Building a winning portfolio

Our portfolio is a competitive advantage, as there are significant benefits to scale. Because we aim to grow market share and lead in every business, we are taking an unbiased, data-driven approach to ensuring we have a winning portfolio. If a business is not in a growth category with attractive returns where we are winning - or positioned to - we decide whether to fix it, seek a partner or divest.

Our strategic evaluation of Nestlé Waters is ongoing, including exploring partnership opportunities. We are also continuing with the strategic evaluation of our mainstream and value brands in Vitamins, Minerals and Supplements (VMS), which may result in divestment of these brands.

Advancing a performance culture

Delivering on our strategy requires a relentless focus on execution with clear accountabilities. That is why we are fostering a culture focused on performance, where winning is rewarded. We value speed over perfection, collaboration over consensus, courage over comfort and learning over experience. We are implementing groupwide KPIs focused on growth and execution, so that compensation and personal progression in the company are driven by performance and achievement.

Transforming for better performance

Our scale and breadth bring many advantages. While we want to continue to benefit from these, we also see significant potential to become a simpler, more efficient and digitally enabled organization. To that end, we are adopting more agile ways of working, leveraging data and automation, and streamlining our structures.

We have made great progress in 2025 in mapping our processes across the organization, so that we are not looking at them in silos. This progress is facilitated by our digital transformation, which embeds new technologies and AI to help us simplify, digitalize and automate to get the full value out of our shared services.

Shared service centers play a crucial role in our transformation, allowing us to operate with less repetition, and clearer roles and responsibilities. By capitalizing on shared services and determining what should be managed above-market versus in-market, we aim to optimize our resources and drive sustainable growth.

We have a strong, standardized digital backbone with global reach. Our single Enterprise Resource Planning (ERP) system and strong data foundations support planning for our entire enterprise, enabling us to react faster in our decisions about procurement, manufacturing and distribution—avoiding wasteful spending and lost opportunities.

To optimize our digital investments, we are upskilling our people to take full advantage of new technologies. Nestlé has the highest number of people using generative AI within the consumer goods industry. Nestlé was recently selected to join the Frontier Firm AI Initiative, a collaboration by the Digital Data Design Institute at Harvard (D^3) and Microsoft to shape the future of human-led, AI-driven business.

Downloads

Nestlé's Annual Report includes our Annual Review, Corporate Governance Report, Compensation Report, Financial Statements and Non-Financial Statement.