Are Purina and Nestle the same company

Nestl

Swiss multinational food company

Nestl S.A.

Nestl's Headquarters in Vevey , Vaud , Switzerland.
Formerly	Anglo-Swiss Condensed Milk Company (18661867) Farine Lacte Henri Nestl (18671905) Nestl and Anglo-Swiss Condensed Milk Company (19051947) Nestl Alimentana SA (19471977)
Company type	Public (SA)
SIX:NESN
ISIN	CH0038863350
Industry	Food processing
Founded	1866; 158years ago(1866) (for the Anglo-Swiss Condensed Milk Company branch)
Founder	Henri Nestl (for the Farine Lacte Henri Nestl branch)
Headquarters	Vevey, Switzerland
Area served	Worldwide
Key people
Products	Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods (list...)
Revenue	CHF 94.424 billion (2022)[3]
CHF 13.195 billion (2022)[3]
CHF 9.596 billion (2022)[3]
Total assets	CHF 135.182 billion (2022)[3]
Total equity	CHF 42.792 billion (2022)[3]
Number of employees	275,000 (2022)[3]
Subsidiaries	Cereal Partners Worldwide (50%)
Website	nestle.com
Footnotes/ references[3][4]

Nestl S.A.^[a] ( NESS-lay, -lee, -l,^[5] French: [nsle], German: [nstl] ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Switzerland. It has been the largest publicly held food company in the world, measured by revenue and other metrics, since 2014.^{[6][7][8][9][10][excessive citations]} It ranked No. 64 on the Fortune Global 500 in 2017.^[11] In 2023, the company was ranked 50th in the Forbes Global 2000.^[12]

Nestl's products include baby food (some including human milk oligosaccharides), medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestl's brands have annual sales of over 1billion CHF (about US$1.1billion),^[13] including Nespresso, Nescaf, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestl has 447 factories, operates in 189 countries, and employs around 339,000 people.^[14] It is one of the main shareholders of L'Oreal, the world's largest cosmetics company.^[15]

Nestl was formed in 1905 by the merger of the "Anglo-Swiss Milk Company", which was established in 1866 by brothers George and Charles Page, and "Farine Lacte Henri Nestl" founded in 1867 by Henri Nestl.^[16] The company grew significantly during World WarI and again following World WarII, expanding its offerings beyond its early condensed milk and infant formula products. The company has made a number of corporate acquisitions including Crosse & Blackwell in 1960, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, Klim in 1998, and Gerber in 2007.

The company has been associated with various controversies, facing criticism and boycotts over its marketing of baby formula as an alternative to breastfeeding in developing countries (where clean water may be scarce), its reliance on child labour in cocoa production, and its production and promotion of bottled water.

History

18661900: Founding and early years

Nestl's origin dates back to the 1860s when two separate Swiss enterprises were founded that would later form Nestl. In the following decades, the two competing enterprises expanded their businesses throughout Europe and the United States.^[17]

Timeline

• 1866: Charles Page (US consul to Switzerland) and George Page, brothers from Lee County, Illinois established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. The company's first British operation was opened at Chippenham, Wiltshire in 1873.^[18][19]
• 1867: In Vevey, Switzerland, Henri Nestl developed milk-based baby food and soon began marketing it. The following year, Daniel Peter began seven years of work perfecting the milk chocolate manufacturing process. Nestl had the solution Peter needed to fix his problem of removing all the water from the milk added to his chocolate, thus preventing the product from developing mildew.
• 1875: Henri Nestl retired; the company, under new ownership, retained his name as Socit Farine Lacte Henri Nestl.^{[citation needed]}
• 1877: Anglo-Swiss added milk-based baby foods to its products; in the following year, the Nestl Company added condensed milk to its portfolio, which made the firms direct rivals.
• 1879: Nestl merged with milk chocolate inventor Daniel Peter.^[20]
• 1890: Henri Nestl died.

19011989: Mergers

In the late 19th and early 20th century, Henri Nestl and his successors participated in the development of the chocolate industry in Switzerland, together with the Peter, Kohler, and Cailler families.^[21] In 1904, Daniel Peter and Charles-Amde Kohler (son of Charles-Amde Kohler who founded a chocolate factory in 1830) became partners and founded the Socit gnrale suisse des chocolats Peter et Kohler runis. In 1911, the company created by Peter and Kohler merged with Cailler.^[22] Alexandre Cailler (grandson of Franois-Louis Cailler) had founded a chocolate factory in Broc in 1898, still used by Nestl today; which enabled the production of milk chocolate on a large scale. In 1929, Peter, Cailler, Kohler, Chocolats Suisses finally merged with the Nestl group.^[23][24] An earlier alliance in 1904 between Peter and Nestl also allowed the production of milk chocolate in the United States, at the Fulton plant.^[25]

In 1905, Nestl and Anglo-Swiss merged to become the Nestl and Anglo-Swiss Condensed Milk Company, retaining that name until 1947 when the name 'Nestl Alimentana SA' was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA, of Kempttal, Switzerland. The company's current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, the United Kingdom, Germany, and Spain.^[26] The First World War created a demand for dairy products in the form of government contracts, and by the end of the war, Nestl's production had more than doubled.^{[citation needed]}

Certificate for 100 shares of the Nestl and Anglo-Swiss Condensed Milk Co., issued 1. November 1918

In January 1919, Nestl bought two condensed milk plants in Oregon from the company Geibisch and Joplin for $250,000. One was in Bandon, while the other was in Milwaukie. They expanded them considerably, processing 250,000 pounds of condensed milk daily in the Bandon plant.^[27]

After the World War I, government contracts dried up, and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate-manufacture becoming the company's second most important activity; white chocolate was created in the following decade. Louis Dapples was CEO till 1937 when succeeded by douard Muller till his death in 1948.

Nestl felt the effects of the Second World War immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939.^[28] Factories were established in developing countries, particularly in South America.^[29] Ironically, the war helped with the introduction of the company's newest product, Nescaf ("Nestl's Coffee"), which became a staple drink of the US military. Despite that, Nestl actually supplied both sides in the war: the company had a contract to feed the German army. Nestl's production and sales rose in the wartime economy.^[29]

The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and numerous companies were acquired. In 1947 Nestl merged with Maggi, a manufacturer of seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971), and Stouffer's (1973).^[31] Diversification came under chairman & CEO Pierre Liotard-Vogt with a shareholding in L'Oreal in 1974 and the acquisition of Alcon Laboratories Inc. in 1977 for $280 million.^[31]

In the 1980s, Nestl's improved bottom line allowed the company to launch further acquisitions. Carnation was acquired for US$3billion in 1984 and brought the evaporated milk brand, as well as Coffee-Mate and Friskies, to Nestl. In 1986, the company founded Nestl Nespresso S.A. The British confectionery company Rowntree Mackintosh was acquired in 1988 for $4.5billion, which brought brands such as Kit Kat, Rolo, Smarties, and Aero.^[32]

19902011: Growth internationally

The first half of the 1990s proved to be favourable for Nestl. Trade barriers crumbled, and world markets developed into more or less integrated trading areas. Since 1996, there have been various acquisitions, including San Pellegrino (1997), D'Onofrio (1997), Spillers Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002 in June, Nestl merged its US ice cream business into Dreyer's, and in August, a US$2.6billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time-frame, Nestl entered in a joint bid with Cadbury and came close to purchasing the American company Hershey's, one of its fiercest confectionery competitors, but the deal eventually fell through.^[33]

In December 2005, Nestl bought the Greek company Delta Ice Cream for 240 million.^[34] In January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream maker, with a 17.5% market share.^[35] In June 2006, Nestl purchased weight-loss company Jenny Craig for US$600million.^[36] In July 2007, completing a deal announced the year before, Nestl acquired the Medical Nutrition division of Novartis Pharmaceutical for US$2.5billion and also acquiring the milk-flavoring product known as Ovaltine, the "Boost" and "Resource" lines of nutritional supplements, and Optifast dieting products.^[37]

In April 2007, returning to its roots, Nestl bought US baby-food manufacturer Gerber for US$5.5billion.^[38][39][40] In December 2007, Nestl entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini.^[41]

Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part of a broader US$39.3billion offer by Novartis for full acquisition of the world's largest eye-care company.^[42] On 1 March 2010, Nestl concluded the purchase of Kraft Foods's North American frozen pizza business for US$3.7billion.

Since 2010, Nestl has been working to transform itself into a nutrition, health and wellness company in an effort to combat declining confectionery sales and the threat of expanding government regulation of such foods. This effort is being led through the Nestl Institute of Health Sciences under the direction of Ed Baetge. The institute aims to develop "a new industry between food and pharmaceuticals" by creating foodstuffs with preventive and corrective health properties that would replace pharmaceutical drugs from pill bottles. The Health Science branch has already produced several products, such as drinks and protein shakes meant to combat malnutrition, diabetes, digestive health, obesity, and other diseases.^[43]

It acquired British pharmaceutical company Vitaflo, which makes clinical nutritional products for people with genetic disorders, in August of 2010.^[44] In July 2011, Nestl SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about US$1.7billion.^[45] On 23 April 2012, Nestl agreed to acquire Pfizer Inc.'s infant-nutrition, formerly Wyeth Nutrition, unit for US$11.9billion, topping a joint bid from Danone and Mead Johnson.^[46][47][48]

2012present

In recent years, Nestl Health Science has made several acquisitions: CM&D Pharma Ltd., a company that specialises in the development of products for patients with chronic conditions like kidney disease; and Prometheus Laboratories, a firm specialising in treatments for gastrointestinal diseases and cancer. It also holds a minority stake in Vital Foods, a New Zealand-based company that develops kiwifruit-based food products as of 2012.^[49]

Nestl sold its Jenny Craig business unit to North Castle Partners in 2013.^[50] In February 2013, Nestl Health Science bought Pamlab, which makes medical foods based on L-methylfolate targeting depression, diabetes, and memory loss.^[51] In February 2014, Nestl sold its PowerBar sports nutrition business to Post Holdings, Inc.^[52] Later, in November 2014, Nestl announced that it was exploring strategic options for its frozen food subsidiary, Davigel.^[53]

In December 2014, Nestl announced that it was opening 10 skin care research centres worldwide, deepening its investment in a faster-growing market for healthcare products. That year, Nestl spent about $350million on dermatology research and development. The first of the research hubs, Nestl Skin Health Investigation, Education and Longevity Development (SHIELD) centres, will open mid 2015 in New York, followed by Hong Kong and So Paulo, and later others in North America, Asia, and Europe. The initiative is being launched in partnership with the Global Coalition on Aging (GCOA), a consortium that includes companies such as Intel and Bank of America.^[54]

In January 2017, Nestl announced that it was relocating its US headquarters from Glendale, California, to Rosslyn, Virginia, outside of Washington, DC.^[55]

In March 2017, Nestl announced that they will lower the sugar content in Kit Kat, Yorkie and Aero chocolate bars by 10% by 2018.^[56] In July, a similar announcement followed concerning the reduction of sugar content in its breakfast cereals in the UK.^[57]

The company announced a $20.8 billion share buyback in June 2017, following the publication of a letter written by Third Point Management founder Daniel S. Loeb, Nestl's fourth-largest stakeholder with a $3.5 billion stake,^[58] explaining how the firm should change its business structure.^[59] Consequently, the firm will reportedly focus investment on sectors such as coffee and pet care and will seek acquisitions in the consumer health-care industry.^[59]

In 2016, Nestl and PAI Partners establish a joint venture, Froneri, to combine the two companies' ice cream activities throughout Europe and other international countries.^[60]

In July 2017, Nestl introduced a new type of infant formula in Spain, containing two human milk oligosaccharides.^[61] Oligosaccharides are the third most abundant components of breast milk with various health benefits, but previously were not part of infant formula.

In September 2017, Nestl S.A. acquired a majority stake of Blue Bottle Coffee.^[62] While the deal's financial details were not disclosed, the Financial Times reported "Nestl is understood to be paying up to $500m for the 68 per cent stake in Blue Bottle".^[63]

In September 2017, Nestl USA agreed to acquire Sweet Earth, a California-based producer of plant-based foods, for an undisclosed sum.^[64]

In January 2018, Nestl USA announced it was selling its US confectionary business to Ferrara Candy Company, an Italian chocolate and candy maker.^[65] The company was sold for a total of an estimated $2.8 billion.^[65]

In May 2018, it was announced that Nestl and Starbucks struck a $7.15 billion distribution deal, which allows Nestl to market, sell and distribute Starbucks coffee globally and to incorporate the brand's coffee varieties into Nestl's proprietary single-serve system, expanding the overseas markets for both companies.^[66]

Nestl set a new profit target in September 2017 and agreed to offload over 20 of its US candy brands in January 2018. However, sales grew only 2.4% in 2017, and as of July 2018, the share price declined more than 8%. While some suggestions were adopted, Loeb said in a July 2018 letter that the shifts are too small and too slow. In a statement, Nestl wrote that it was "delivering results" and listed actions it had taken, including investing in key brands and its global coffee partnership with Starbucks. However, activist investors disagreed, leading Third Point Management to launch NestleNOW, a website to push its case with recommendations calling for change, accusing Nestl of not being as fast, aggressive, or strategic as it needs to be. Activist investors called for Nestl to divide into three units with distinct CEOs, regional structures, and marketing heads - beverage, nutrition, and grocery; spin off more businesses that do not fit its model such as ice cream, frozen foods, and confectionery; and add an outsider with expertise in the food and beverage industry to the board.^[67][68]

In September 2018, Nestl announced that it would sell Gerber Life Insurance for $1.55 billion.^[69][70]

In October 2018, Nestl announced the launch of the Nestl Alumni Network, through a strategic partnership with SAP & EnterpriseAlumni, to engage with their over 1 million alumni globally.^[71]

In 2019, the company announced that it would publish Nutri-Score on all of its products sold in the European countries that supported the nutritional label.^[72]

In 2020, Nestl USA's and Nestl Canada's ice cream divisions were acquired by Froneri.^[73] Also during that year, Nestl announced that the company wants to invest in plant-based food, starting with a "tuna salad" and meat-free products to engage and reach younger and vegan consumers.^[74]

Nestle is expanding manufacturing capacity in India and increasing investments the company will invest between 60-65 billion ($723-783 million) from 2020 to 2025.^[75]

On 16 February 2021, Nestl announced that it had agreed to sell its water brands in the US and Canada to One Rock Capital Partners and Metropoulos & Co. The sale would include the spring water and mountain brands, the purified water brand and the delivery service. The plan did not include the Perrier, S.Pellegrino and Acqua Panna brands.^[76][77] In early April 2021, the sale was concluded.^[78]

The COVID-19 pandemic did not affect Nestl negatively. Due to lockdowns, people bought more packaged foods, not only coffee and dairy products, but also pet products, which increased the company's sales. Nestl is recording its strongest quarterly sales growth in 10 years.^[79]

In April 2021, Nestl agreed to purchase the vitamin manufacturing Bountiful Company, formerly known as The Nature's Bounty Co., for $5.75 billion, noting as well that much of the company's^[which?] growth that quarter came from "vitamins, minerals, and supplements that support health and the immune system". Bountiful's brands included Nature's Bounty, Solgar, Osteo Bi-Flex, and Puritan's Pride.^[80][81][82]

In July 2021, Vitaflo International Ltd. (subsidiary to Nestl Health Science since 2010) acquired the Dr. Schr brands, Mevalia and ComidaMed, wich are used for the dietary management of IEM and cows milk protein allergy to complement Vitaflos existing IEM product portfolio.^[83]

In January 2022, Nestl will pay cocoa farmers cash if they send their children to school.^[84]

In May 2022, it was announced Nestl's Health Science unit had acquired the Brazilian organic, natural, plant-based food maker Puravida.^[85]

In May 2022, Nestl was sending baby formula supplies to the U.S. from European air bases to ease the 2022 United States infant formula shortage. These relief shipments included products from the Gerber baby food formula brand from the Netherlands and Alfamino baby formula from Switzerland.^[86]

In September 2023, it was announced Nestl had acquired a majority stake in the Extrema, Minas Gerais-headquartered premium chocolate manufacturer, Grupo CRM for an undisclosed amount.^[87]

Following the 2022 Russian invasion of Ukraine, the company continued doing business in Russia; therefore in November 2023, Ukraine's National Agency on Corruption Prevention listed Nestl as an International Sponsor of War. Nestle stated that it had already "halted all non-essential imports and exports to and from Russia".^[88]

Corporate affairs and governance

Capital ownership of Nestl by country of origin as of 2014:^[89]

Switzerland (35.28%)

United States (28.53%)

All others (36.19%)

Nestl is the biggest food company in the world, with a market capitalisation of roughly 231billion Swiss francs, which is more than US$247billion as of May 2015.^[90] Nestl has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market Index. It previously had a secondary listing on Euronext.

In 2014, consolidated sales were CHF 91.61billion and net profit was CHF 14.46billion. Research and development investment was CHF 1.63billion.^[91]

• Sales per category in CHF^[92][14]
  • 20.3billion powdered and liquid beverages
  • 16.7billion milk products and ice cream
  • 13.5billion prepared dishes and cooking aids
  • 13.1billion nutrition and health science
  • 11.3billion pet care
  • 9.6billion confectionery
  • 6.9billion water
• Percentage of sales by geographic area breakdown^[92][14]
  • 43% from Americas
  • 28% from Europe
  • 29% from Asia, Oceania and Africa

According to a 2015 global survey of online consumers by the Reputation Institute, Nestl has a reputation score of 74.5 on a scale of 1 to 100.^[93]

Financial data

Joint ventures

Joint ventures include:

Board of directors

As of 2017, the board is composed of:^[101]

• Paul Bulcke, chairman and former CEO of Nestl
• Andreas Koopmann, former CEO of Bobst
• Beat Hess, former legal director/general counsel for ABB and Shell
• Renato Fassbind, former CEO of DKSH and former CFO of Credit Suisse
• Steven George Hoch, founder of Highmount Capital
• Naina Lal Kidwai, former CEO of HSBC Bank India, country head for HSBC in India
• Jean-Pierre Roth, former chairman of the Swiss National Bank
• Ann Veneman, former United States Secretary of Agriculture and director of UNICEF
• Henri de Castries, former CEO and chairman of Axa
• Eva Cheng, former executive vice president of China and Southeast Asia for Amway
• Ruth Khasaya Oniango, former member of the Parliament of Kenya, current professor at Friedman School of Nutrition Science and Policy
• Patrick Aebischer, former president of cole Polytechnique Fdrale de Lausanne

Lobbying

The company engages third party lobbying firms to engage with parliaments and governments in various jurisdictions. For example, in South Australia the company engages Etched Communications.^[102] In the US, Nestl has a strong influence in Washington, D.C. From 2015 to 2020 their average spend on lobbying was $1,951,667 each year.^[103]

Products

Nestl currently has over 2,000 brands^[104][105] with a wide range of products across a number of markets, including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food.^[14] In 2019, the company entered the plant-based food production business with its Incredible and Awesome Burgers (under the Garden Gourmet and Sweet Earth brands). In 2020, Nestl announced additional plant-based products including soy-based bratwurst and chorizo-like sausages.^[106]

Music and entertainment

In 1993, plans were made to update and modernise the overall tone of Walt Disney's EPCOT Center, including a major refurbishment of The Land pavilion. Kraft Foods withdrew its sponsorship on 26 September 1993, with Nestl taking its place. Co-financed by Nestl and the Walt Disney World Resort, a gradual refurbishment of the pavilion began on 27 September 1993.^[107] In 2003, Nestl renewed its sponsorship of The Land; however, it was under agreement that Nestl would oversee its own refurbishment to both the interior and exterior of the pavilion. Between 2004 and 2005, the pavilion underwent its second major refurbishment. Nestl stopped sponsoring The Land in 2009.^[108]

On 5 August 2010, Nestl and the Beijing Music Festival signed an agreement to extend by three years Nestl's sponsorship of this international music festival. Nestl has been an extended sponsor of the Beijing Music Festival for 11 years since 2000. The new agreement will continue the partnership through 2013.^[109]

Nestl has partnered the Salzburg Festival in Austria for 20 years. In 2011, Nestl renewed its sponsorship of the Salzburg Festival until 2015.^[110]

Together, they have created the "Nestl and Salzburg Festival Young Conductors Award", an initiative that aims to discover young conductors globally and to contribute to the development of their careers.^[111]

Sports

Nestl's sponsorship of the Tour de France began in 2001 and the agreement was extended in 2004, a move which demonstrated the company's interest in the Tour. In July 2009, Nestl Waters and the organisers of the Tour de France announced that their partnership will continue until 2013. The main promotional benefits of this partnership will spread on four key brands from Nestl's product portfolio: Vittel, Powerbar, Nesquik, or Ricore.^[112]

On 27 January 2012, the International Association of Athletics Federations announced that Nestl will be the main sponsor for the further development of IAAF's Kids' Athletics Programme, which is one of the biggest grassroots development programmes in the world of sports. The five-year sponsorship started in January 2012.^[113] On 11 February 2016, Nestl decided to withdraw its sponsorship of the IAAF's Kids' Athletics Programmes because of doping and corruption allegations against the IAAF. Nestl followed suit after other large sponsors, including Adidas, also stopped supporting the IAAF.^[114]

In 2014, Nestl Waters sponsored the UK leg of the Tour de France through its Buxton Natural Mineral Water brand.^[115]In 2002, Nestl announced it was main sponsor for the Great Britain Lionesses Women's rugby league team for the team's second tour of Australia with its Munchies product.^[116]

Nestl supports the Australian Institute of Sport (AIS) on a number of nutrition and fitness fronts, funding a Fellowship position in AIS Sports Nutrition; nutrition activities in the AIS Dining Hall; research activities; and the development of education resources for use at the AIS and in the public domain.^[117]

Controversies and criticisms

Baby formula marketing

Concern about Nestl's "aggressive marketing" of their breast milk substitutes, particularly in less economically developed countries (LEDCs), first arose in the 1970s.^[118] Critics have accused Nestl of discouraging mothers from breastfeeding and suggesting that their baby formula is healthier than breastfeeding.^[119] This led to a boycott in the United States and Europe.^[120][121]

Slavery and child labour

Multiple reports have documented the widespread use of child labour in cocoa production, as well as slavery and child trafficking, throughout West African plantations, on which Nestl and other major chocolate companies rely.^{[122][123][124][125][126]}

Food safety

In late September 2008, the Hong Kong government found melamine in a Chinese-made Nestl milk product. Six infants died from kidney damage, and a further 860 babies were hospitalised.^[127][128]

In June 2009, an outbreak of E. coli O157:H7 was linked to Nestl's refrigerated cookie dough originating in a plant in Danville, Virginia.^[129]

In May 2015, food safety regulators from the state of Uttar Pradesh, India, found that samples of Nestl India's Maggi noodles had up to 17 times more than the permissible safe amount of lead, in addition to monosodium glutamate.^{[130][131][132]}

Water

At the second World Water Forum in 2000, Nestl and other corporations persuaded the World Water Council to change its statement so as to reduce access to drinking water from a "right" to a "need". Nestl continues to take control of aquifers and bottle their water for profit.^[133]

A coalition of environmental groups filed a complaint against Nestl to the Advertising Standards of Canada after Nestl took out full-page advertisements in October 2008 with messages claiming, "Most water bottles avoid landfill sites and are recycled", "Nestl Pure Life is a healthy, eco-friendly choice", and, "Bottled water is the most environmentally responsible consumer product in the world."^{[134][135][136]}

Corporate social responsibility and recognition

In March 2011, Nestl became the first infant formula company to meet the FTSE4Good Index criteria in full.^[137]

Sustainability

In May 2006, Nestl's executive board adapted the existing Nestl management systems to full conformity with the international standards ISO 14001 (Environmental Management Systems) and OHSAS 18001 (Occupational Health and Safety Management Systems) and to certify all Nestl factories against these standards by 2010.^[138]

In October 2009, Nestl announced "The Cocoa Plan" to get 100 percent of its chocolate portfolio using certified sustainable cocoa. For third-party certification, Nestl has partnered with UTZ Certified. Many of Nestl's efforts are focused on the Ivory Coast, where 40 percent of the world's cocoa comes from. The company has developed a higher-yielding, more drought- and disease-resistant cocoa tree; and they have given 3 million of these trees to farmers thus far and plan^[when?] to give away 12 million of them in total. They are also training farmers in efficient and sustainable growing techniques, which focuses on better farming practices, including pruning trees, pest control (with an emphasis on integrated pest management) and harvesting, as well as caring for the environment. In addition, they have built 23 new schools so far and plan to build 40 in total by 2015.^{[139][needs update]} Another part of the plan has been to address child labor. Nestl says that according to US statistics, there are about 800,000 children who work the cocoa supply chain. Nestl approached the Fair Labor Association to map out strategies to help curb child labor in the cocoa sector, and these efforts including community education and the building of schools have become a focus of the Cocoa Plan.^[139]

In 2020, Nestl Waters joined a consortium to boost PET plastic recyclability.^[140]

Economy and Development

Nestl also established the Creating Shared Value Prize, which is awarded every other year with the aim of rewarding the best examples of CSV initiatives worldwide and to encourage other companies to adopt a shared value approach. These initiatives should take a business-oriented approach in addressing challenges in nutrition, water or rural development. The winner can win up to CHF 500,000. Nestl was an early mover in the shared value space and hosts a global forum, the Creating Shared Value Global Forum.^[141][142]

Rural Development Framework program: In 2012, Nestl developed the Rural Development Framework, which supports farmers and cocoa growing communities.^[143] It is an investment program aimed at improving infrastructure, increasing access to safe water, address financing and market efficiency gaps, and improving labor conditions.^[144]

Public health

Health care and nutrition product development: In September 2010, Nestl said that it would invest more than $500 million between 2011 and 2020 to develop health and wellness products to help prevent and treat major ailments like diabetes, obesity, cardiovascular disease, and Alzheimer's. Nestl created a wholly owned subsidiary, Nestl Health Science, as well as a research body, the Nestl Institute of Health Sciences.^[145]

Awards

See also

Competitors

Explanatory notes

1. ^ Not to be confused with Socit des Produits Nestl S.A., the group's intellectual property-holding subsidiary

References

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