Nestlé has repositioned its portfolio, is focused on growth from innovation across its brands and emerging markets.
Swiss-based but definitely global in reach and operations, in recent years Nestlé has been repositioning itself within and across the food and drinks sector with innovation at the core. With over 140 years of non-stop R&D activity, Nestlé is clearly a powerhouse for food innovation and is now focused on three key areas – safety and quality; nutrition and health; and taste, texture and convenience. While these are not unique to Nestlé and can be found in many of its peers’ strategic objectives, over the past couple of years, Nestlé’s labs have been coming up with a compelling range of new products. With the largest R&D network of any food company, new launches included diet pet-food, affordable fortified milks; Chinese herb based soups; low salt noodles; low fat and low temperature ice creams with all the taste and new home cappuccinos.
With mature markets in the US and Western Europe, Nestlé has been focusing on both Eastern Europe and Asia for primary growth: Markets such as Russia, Poland and the Ukraine have been specifically targeted for category development and the company has recently opened a new R&D Centre in Singapore: Overall emerging markets now account for a third of Nestlé’s revenues. The company has regained innovation leadership in this highly competitive sector. Across its product portfolio from chocolate, ice cream and coffee to water, soups and noodles, it is once again raising its innovation game. More top and bottom line growth has been delivered from new products and with iconic brands like Nespresso growing at 20% a year, Nestlé has continued to outperform the market.