Nestlé Indonesia today announced the expansion of its three factories in Karawang (West Java), Kejayan (East Java) and Panjang (Lampung).
The CHF 99 million investment will allow Nestlé Indonesia to increase its production capacity by 25%. The cumulative expansion is intended for a new production line for liquid drinks, such as Milo and Nescafé Ready to Drink, pure sterilised milk Bear Brand and Maggi seasoning.
“We recognize an increasingly conducive business opportunity in Indonesia, coupled with the growing demand of consumers towards Nestlé’s nutritious and high-quality food and beverage products. Producing value added products has been one of our efforts to improve the quality of life and continue to contribute to a healthier future for Indonesians,” said Dharnesh Gordhon, President Director of Nestlé Indonesia.
Currently, Nestlé factories in Indonesia produce Cerelac infant cereal, Milo chocolate malt drink, and Dancow and Lactogrow milk powder, as well as instant Nescafé soluble coffee and coffee mixes.
For more information, read the Nestlé Indonesia press release
Youth teams from across Asia, Africa and the Americas are taking part in the first Milo Champions Cup, kicking off with a training session with Barça Academy at Cuitat Esportiva starting July 30.
Nestlé’s Milo brand and FC Barcelona are promoting physical activity, healthier lifestyles and the unique values that only sports can teach through their partnership.
Ten teams with a total of 80 kids will represent their country in a five-a-side tournament to be the first winner of the Milo Champions Cup. The teams of eight players under 12 years old must include boys and girls, and the rules state that at least one female player must be on the pitch for each team at all times.
For the first time in football, the player that shows the best behaviour and fair play in each game will be awarded with the ‘Milo green card’ as recognition of their sporting spirit.
The event will start with a Barça Academy training session where kids will learn the football methodology, philosophy and values of FC Barcelona. They will also take part in individual team training sessions.
Milo has been the official tonic food drink of FC Barcelona since November 2016. Milo has long been associated with sports and physical activity. For more than 50 years the brand has run youth sports programmes. More than 22 million children across the world are involved in sports events delivered by Milo every year.
Nestlé has continued to improve the nutritional profile of Milo and other cocoa and malt beverages in recent years. Reduced-sugar versions of Milo are appearing across a number of countries this year in both the classic Milo powder as well as in the ready-to-drink (RTD) format. That includes products with no added table sugar. The move is part of Nestlé’s commitment to meeting changing consumer demand and provide healthier and tastier choices.
In May 2018, Nestlé launched Nestlé for Healthier Kids, a global initiative to help 50 million children live healthier lives by 2030. It includes a commitment to accelerate the transformation of Nestlé’s food and beverage portfolio worldwide. That includes adding even more fruits, vegetables, fiber-rich grains and micronutrients, as well as continuing to reduce sugars, salt and saturated fats. It also includes simpler ingredients list and more organic and natural options.
Organic growth of 3.6%, with continued strong real internal growth (RIG) of 2.6% and pricing of 1.0%. Increased growth was led by the United States and Brazil.
Total reported sales increased by 3.5% to CHF 45.5 billion (6M-2018: CHF 43.9 billion). Net acquisitions had a positive impact of 1.1% and foreign exchange reduced sales by 1.2%.
The underlying trading operating profit (UTOP) margin reached 17.1%, up 100 basis points. The trading operating profit (TOP) margin increased by 90 basis points to 15.5%.
Mark Schneider, Nestlé CEO: "We are encouraged by our first half results and have made further progress toward our 2020 financial goals. Disciplined execution and fast innovation contributed to improved organic growth and profitability. Our growth was broad-based with our largest market, the United States, performing particularly well. Across our categories increased investment behind our brands and in innovation is clearly paying off, as reflected in our strong momentum in PetCare and the return to mid single-digit growth in coffee. Our Starbucks launch has been a great success so far and we plan on further geographic expansion and product innovation to make the most of this unique opportunity. Active portfolio management will continue to sharpen our strategic focus and position the company in attractive high-growth businesses. Our value creation model is clearly delivering the expected results and will support sustained profitable growth."
Read the press release.
Follow the investor call audio webcast hosted by Mark Schneider, Nestlé Chief Executive Officer, and François-Xavier Roger, Nestlé Chief Financial Officer live at 14:00 CEST.
Nestlé and Starbucks today announced the launch of Starbucks Creamers allowing the Starbucks brand to enter the refrigerated creamer category for the first time. The products were developed combining Starbucks well-loved flavors with Nestlé expertise and leadership in the creamer category to give consumers a new way to enjoy their Starbucks coffee at home.
Earlier this year, as a part of the global coffee alliance, Nestlé launched a range of 24 Starbucks products across various platforms. Nestlé and Starbucks continue to drive strong momentum and bring a premium coffee experience to consumers in the grocery aisle and via the Foodservice channels.
David Rennie, Head of Beverages Strategic Business Unit, Nestlé S.A., said "The global coffee alliance has allowed us to develop and launch new Starbucks products at an unprecedented speed. We are very pleased to expand the Starbucks brand into the creamers category less than a year after we closed the deal. We will continue to move fast to deliver great Starbucks coffee experiences to our consumers around the world."
Starbucks Creamers offer a great taste and creamy texture that celebrates the coffee in the finished cup. They will be available in three flavors: Caramel, White Chocolate and Cinnamon Dolce. They are inspired by customer-favorite handcrafted beverages served at Starbucks cafés: Caramel Macchiato, White Chocolate Mocha and Cinnamon Dolce Latte.
Beginning this August, these products can be found in the U.S. where groceries are sold and via select online retailers.
"We know that Starbucks customers are passionate about their coffee, and with Starbucks Creamers we are delighted to give them another way to enjoy their favorite Starbucks experience and flavors at home and outside our cafes," said Duncan Moir, president, global channel development at Starbucks.
Read the full press release
Nestlé has announced it has created a unique chocolate made entirely from the cocoa fruit, using the beans and pulp as the only ingredients and therefore not adding any refined sugar.
Nestlé plans to introduce the first product in Japan in the autumn of this year through its KitKat Chocolatory. Further products in other countries will follow next year, through some of Nestlé’s most popular confectionery brands.
Nestlé has developed a natural approach, which allows it to extract the pulp and use it in chocolate with no compromise on taste, texture and quality.
Until now chocolate has been made with the addition of refined sugars. This patented innovation delivers a great tasting chocolate using only one ingredient – the cocoa fruit.
Patrice Bula, Head of Strategic Business Units, Marketing and Sales at Nestlé, said: "We’re proud to bring chocolate lovers a new chocolate made entirely from the cocoa fruit without adding refined sugar. This is a real innovation which uses the natural sweetness of the cocoa pulp to provide a pure, novel chocolate experience."
The cocoa fruit contains cocoa beans and cocoa pulp. The pulp surrounds the beans, it is soft, sweet and white in colour. Some of the pulp is used in the fermentation of the cocoa beans after they are harvested, but a significant proportion is usually removed and the value is lost. Until now it has not been used as an ingredient to naturally sweeten chocolate.
With the announcement today, Nestlé reaffirms its leadership in the confectionery category by driving innovation and creating new, natural and exciting products. Nestlé was the first to bring Ruby chocolate to market in 2018 with KitKat, first in Japan and then across Europe.
For more details on the launch in Japan, read the press release (pdf, 100 Kb)
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Today, natural mineral water brand Valvert in Belgium launches its new bottle made entirely from recycled PET (rPET), a first for Nestlé in Europe. This innovation is a step further towards meeting Nestlé's commitment to increase the rPET content in its water bottles to 35% globally by 2025.
Valvert only uses already used bottles to produce the new bottle, and no new virgin PET needs to be created. Valvert has been able to secure a reliable supply of the high-quality, food grade rPET that is required for bottled water. This will allow not only the launch of the 100% rPET bottle of 150cl, but also a 50% rPET bottle of 50cl at the same time. The goal is to have the 50cl bottle also made entirely of rPET by the end of 2019.
"We believe the new Valvert 100% rPET bottle is a gamechanger in the next generation of sustainable packaging, stimulating a bottle-to-bottle circular economy", said Emmanuel Gruffat, General Manager of Nestlé Waters Benelux.
The launch of Valvert rPET bottle is an important milestone in Nestlé's innovative approach to tackling packaging waste and commitment to a circular economy.
"At Nestlé we want to take up our responsibility towards our consumers and help shape a more sustainable future", said Michel Mersch, CEO Nestlé Belgilux. "We are determined to look at every option available to help solve the plastic waste challenge and we are embracing multiple solutions that can have an impact now such as developing new materials, improving collection and recycling schemes and driving new behaviors. R&D is in our DNA and we intend to leverage this expertise to serve this goal. We are therefore proud to launch the new Valvert 100% rPET bottle as another milestone in achieving a circular economy and in our journey towards sustainability."
Last year, Nestlé Pure Life with 100% rPET bottles were launched in North America. America’s spring water brand Poland Spring also announced its plan to convert its portfolio to recycled plastic by 2021.
Read the full press release.
Osem, Nestlé's Israeli subsidiary, today announced that it agreed to sell its Noga ice cream business in Israel to Froneri. The decision completes the transition of Nestlé Europe, Middle East & North Africa (EMENA) ice cream businesses into Froneri, a joint venture set up in 2016 between Nestlé and R&R.
Marco Settembri, CEO Zone Europe, Middle East and North Africa, Nestlé commented: "With its continued growth and global prominence in the ice cream market, Froneri’s success speaks for itself. This milestone deal marks the final stage of the transition of our EMENA ice cream business into Froneri, further strengthening its presence in the region."
Read the full press release (pdf, 70Kb)
Nestlé has announced today the launch of its YES! snack bars in a new recyclable paper wrapper. In a breakthrough innovation, for the first time a confectionery bar has been packaged in paper using a high-speed flow wrap technology.
This launch has unlocked the potential for recyclable paper packaging to be widely used in the confectionery industry. Up until now, high-speed production of shelf-stable snacks was only achieved using plastic films and laminates. Now paper can be used at large scale while guaranteeing product quality and freshness over the entire shelf life.
This paper wrapper is a further step in Nestlé’s commitment to make all its packaging recyclable or reusable by 2025. The wrapper is widely recycled in the countries where it will be available. The paper is from sustainable sources, certified by the Forest Stewardship Council (FSC) and The Program for the Endorsement of Forest Certification.
Patrice Bula, Head of Strategic Business Units, Marketing and Sales at Nestlé, said: "Consumers are looking for more natural and sustainable options when they choose a snack, both in terms of ingredients and packaging. Our YES! bars are made with wholesome ingredients that celebrate and care for Nature's diversity. We are now relaunching them carefully wrapped in paper, making the packaging easy to recycle and avoiding plastic waste."
YES! snack bars are 'tasty by nature' with wholesome ingredients such as fruit, vegetables and nuts. Among others, flavors include Dark Chocolate, Sea Salt & Almond; Dark Chocolate, Banana & Pecan; and Raspberry & Chia Seeds.
Each YES! nut bar is vegetarian, high in fiber, and a source of protein. The fruit and vegetable bars are vegan, gluten free, lactose free, high in fiber, have no added sugar and contribute to one of your five a day.
With the new paper wrapper and a wider range of flavours, YES! is now being launched in more countries. It will now be available in Austria, Belgium, the Czech Republic, France, Germany, Ireland, Luxemburg, Malta, the Netherlands, Portugal, Slovakia, Spain, and the United Kingdom. More countries in Europe and beyond will follow soon.
Read more on Nestlé’s commitment to tackling plastic pollution