The World of Nestle

5/21/2018 The World of Nestle

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The world

of Nestl


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Table of contents

Nutrition, health and wellnessNestl. Good Food, Good LifeResearch & DevelopmentNutrition: the core of the Nestl businessPriority on nutrition, health and wellnessNestl Nutrition a specialist nutrition businessThe Nestl Nutrition Council and theNestl Nutrition InstituteLooking to the futureNestl: almost 150 years pioneering nutrition and

People, products, brandsPutting the consumer firstFood is localNestl a company built on brandsContributing to nutrition, health and wellnessEnsuring quality and food safetyWherever, whenever, howeverThe changing consumer

How Nestl runs its businessPrinciples, not rulesA multi-cultural businessLooking after the environmentSourcing raw materials

A network of local companiesBenefiting local economiesNestl in the community: reaching out beyondour businessConsistent, sustainable growthPeople are Nestls greatest assetWide variety of career opportunitiesHow our business is organisedOther Nestl Group companiesThe world of Nestl

Nestl website and Nestl publicationsWebsite and publications

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Welcometo Nestl

The aim of this booklet is to introduce ourselves to you,and to share with you some special insights into themany facets of our Company.

Nestl is the largest food and beverage company inthe world. It is also well on its way to becoming worldleader in nutrition, health and wellness.

In the first part of this booklet, the emphasis is onthe way Nestl brings more nutritious products to moreconsumers all over the world. In the second part,the focus is on our brands and products; and in the thirdpart, we cover the way we run our business.

We hope you enjoy finding out more about us.

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Did you know

Nestl is aSwiss company,founded in 1866by Henri Nestl


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Did you know

Nestl investsaroundCHF 1.5 billionin Research andDevelopment

every year


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Did you know

Nestl marketsits productsin 130 countriesacross the world


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Did you know

Nestlmanufacturesaround 10,000different productsand employs some

250,000 people


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Did you know

Nestl sells overa billion productsevery day


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Nestl is more than just the largest food andbeverage company in the world. Increasingly,Nestl is becoming the worlds leader in nutrition,

health and wellness.

From the start, nutrition has been at the core ofour business. However, today we place far greateremphasis on it and on health and wellness.Our Corporate Wellness Unit and the individualbusiness units are driving forces in bringingGood Food, Good Life to all our consumers.

Nutrition, healthand wellness


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Nestl. Good Food, Good LifeWe use four simple words to describe what we believe inand what we offer consumers around the world: GoodFood, Good Life.

Food and beverages play an increasingly important rolein peoples lives not only because of the enjoyment andsocial pleasure of eating together, but more and more interms of personal health and nutrition.

Although its important, nutrition is only one aspect ofGood Food, Good Life. Consistent quality and safety, aswell as value-for-money and convenience, all play a part.Above all, great taste is fundamental to our products andour consumers appreciation of good food.

Research & DevelopmentIts the task of our Research & Development (R&D) toapply nutritional science and expertise to create productsthat combine great taste with nutritional benefits. Wefirmly believe that our research can make better food sothat more and more people live a better life.

Through continuous innovation of new products andrenovation of existing products, Nestl is creating andenhancing hundreds of Nestl products, especially interms of their nutritional benefits.

The Nestl Group invests around CHF 1.5 billion* in R&D

every year. Its more than any other food company bothas a percentage of sales and in absolute terms.

Nestl NidowithPrebio1

promotes a healthydigestive system.*Equivalent to more than USD 1.2 billion. USD ~ CHF 1.25


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Around 3,500 people fromover 50 countries work inNestls worldwide networkof 17 research, developmentand product testing centres.The Nestl Research Centerin Switzerland is our majorthink-tank. Its a constantsource of new ideas andscientific knowledge thatfeeds the pipeline for allNestl products.It covers over 100 differentprofessional areas including nutritionalscience, the life sciences,raw materials, ingredientsand production processes.


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Nutrition: the core of the Nestl businessNutrition has always been at the core of our business.Indeed, the Company was founded, back in 1866, on thelaunch of an innovative, nutritious baby food.

Now, almost 150 years later, we live in a very differentworld. The global population has grown to over six billion.People are living longer. Living standards have improved.Life styles have changed.

These, and other demographic factors, have had aconsiderable influence on Nestl both in terms of theproducts we make and the way we run our business.Nestl today is at the forefront of providing consumerswith food and beverage solutions that generate a long,healthy life.

Priority on nutrition, health and wellnessMore than ever before, we are putting our priority onfoods and beverages that contribute to nutrition, healthand wellness for everyone, and that includes babies,growing children, senior citizens and other people withspecial dietary needs.

The Corporate Wellness Unit is responsible for drivingthe nutrition, health and wellness orientation across thewhole of Nestl covering the entire portfolio of ourproducts, all over the world. The Corporate WellnessUnits Wellness in Action strategy aims consistently to

deliver better tasting, better-for-you nutritional productsand solutions.

We have a global network of Wellness Champions in allour business units and in every country. Their job is tofacilitate, inspire, motivate and drive wellness initiatives.


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The Nestl NutritionalCompass on our productpackaging was launchedin 2005 and was the first

worldwide nutritionlabelling initiative fromany food company.

Our science-based nutritional research and expedriving nutritional innovations. One example is oBranded Active Benefits (BABs). The objectiveis to add a specific health benefit to an existing pin a way that is meaningful and relevant to the cIn this way, the nutritional content of the producenhanced so that consumers can enjoy even mobenefits for example, improving digestive healtcontributing to healthy physical growth.

R&D also plays an important role in creating prothat have a proven taste advantage plus a specifnutritional advantage over competitors productsA global system of rigorous product testing inclua scientific nutritional assessment. Each producta measurable nutritional value to prove its superin delivering nutritional benefits.

Our packs are a highly efficient communication mto provide our consumers with nutritional informThe pack is in the consumers hands at a preciseevant moment just when they are about to buyor consume the product. But simply giving consnutritional information isnt very helpful. We go f

The Nestl Nutritional Compass which is being ion all our packaging is user-friendly, easy to readputs nutrition into a wider context. It comprises elements:Good to know Which gives factual information o

nutritional content.Good to rememberWhich gives tips for healthy cooking and diet.Good to talkWhich invites the consumer to call Consumer Services teams or log on to our webs


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Nestl Nutrition a specialist nutrition businessNestl is well-known for its wide range of everyday brandssuch asNescaf andMaggiand its confectionery, icecream and bottled water brands. But theres another sideto Nestl that is less well-known. This is its work with themedical community, and the range of specialist productsthat are marketed by Nestl Nutrition, a stand-aloneorganisation within the Nestl Group.

Nestl Nutrition develops science-based nutritionproducts and services that enhance the quality of life forpeople with specific nutritional needs. With its focus oncore nutrition, it is closer to pharmaceuticals thanmainstream Nestl food and beverage products. Whiletaste is important, the key driver for Nestl Nutritionsmore specialist products is to provide appropriatenutrition to address specific problems at all stages of life.

Nestl Nutrition covers Infant Nutrition, HealthCareNutrition and Performance Nutrition. The acquisition ofthe Jenny Craig business in the US has added a fourthnutritional area: weight management.

HealthCare NutritionNestl Nutrition NutrenBalancewith BG-3 isscientifically formulated tprovide diabetes sufferer

with better control of thelevel of glucose in theirblood after a meal and delay hunger and reducecholesterol.

Nestl Nutrition is astand-alone organisationwithin the Nestl Group.It operates in more than100 countries. Of its

10,500 employees, some3,000 are trained medicaldelegates. They workclosely with health careprofessionals such asdoctors, nurses anddietitians to provide themwith relevant informationas well as productsand services to helptheir patients.

Infant Nutrition

NestlNAN is the firstnutrient system clinicallyproven to enhance ababys immune defences.

Nestl NAN HAis clinicallyproven to reduce allergicsymptoms by 50%.


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The Nestl Nutrition Council and the NestlNutrition InstituteThe Nestl Nutrition Council was founded in 197council is composed of ten internationally renownutritional scientists with a spread of nationalitiespecialities. Its purpose is to review current anddeveloping nutritional issues, and provide the Cowith relevant information and continuous adviceto its business, policies and strategy.

The Nestl Nutrition Institute operates as a mediscientific network to provide health professionalthe most current and appropriate nutritional eduinformation and tools. It works in partnership wileading health and nutrition institutes around theand fosters sound nutrition research and educatifields of paediatric, clinical and performance nutIts the worlds largest corporate publisher of nuscience research and information. Its workshopsbeen running since 1982, bringing together leadscientists and clinicians from around the world.

Looking to the futureThe Nestl Corporate Wellness Unit, together wibusiness units, is helping the Company to be thenutrition, health and wellness. R&D plays a pivotand looking ahead, will play an even greater rolepreventive nutrition, for example, we are pioneerthe use of probiotics in our products to reduce

gastrointestinal diseases. We are also working oscientific innovations to address obesity and dia

Other personalised nutrition initiatives address tspecial nutritional needs of patients with Alzheimdisease and illness related to ageing. In specialissuch as genomics, proteomics and metabolomicinvestigating the unknown territories of genes anproteins with the aim of adapting foods to meet individual needs. There is still much to explore.

At Nestl we are determined to be at the forefrothese developments, ensuring that millions of peover the world benefit from diets that contributehealth and wellness.

Performance Nutrition

PowerBar Triple Threatisa nutrient-dense energysnack for mainstreamsports enthusiasts.

Fortified with 16 vitaminsand minerals, ithelps them perform attheir best.


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This German versionof Farine Lacte, datingfrom 1867, is an earlyexample of a science-basnutritious product that iswell branded anddistinctively packaged.

Nestl: almost 150 years pioneering nutritionand healthNestls roots date back to 1849 when an assistantpharmacist called Henri Nestl set up his laboratoryin the small Swiss town of Vevey on the shores ofLake Geneva.

It was here, in 1867, that he developed the inventionthat was to make him world-famous. To help nurtureand indeed save the lives of young babies, he createdFarine Lacte, the worlds first infant food.

Henri Nestls prime concern was a healthy life forlocal newborn babies. But he realised that he couldhelp even more mothers and their babies by exportinghis successful new product to other countries. So hebuilt a network of agents and importers to distributeit, first in Europe but also in Australia and SouthAmerica. By the 1870s it was selling in places as farafield as Egypt, Russia, Mexico, and Indonesia.

Henri Nestl set a good example, both as a pioneerof nutritional food products, and as an entrepreneur.His principles are still followed to this day, almost150 years later.

Since his name is German for little nest,Henri Nestl decided to use a birds nest as histrademark. Today its one of the best knownlogos around the world, communicating Nestlsemphasis on nutrition for a healthy life.


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Henri Nestl, the founder

of Nestl, was a life-savingchemist but also aninnovative marketeer.He used scientificknowledge to developproducts that met consumerneeds. He used his nameto brand his products ina distinctive way. And heset up systems to distributehis products quickly

and effectively.


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What makes Nestl the worlds largest food companyare the millions of consumers across the globe whoput their trust in its products, bite after bite, sip after

sip, day after day.

Nestls reputation over many years for consistentquality and safety, and its ability to meet changingconsumer needs has earned consumers trust aroundthe world.

How does Nestl go about it?

People, products,brands


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Putting the consumer firstThe whole company is dependent on consumerchoosing Nestl products in preference to ourcompetitors products. Thats why we are whole-heartedly dedicated to the consumer and focused onmeeting his or her needs.

Every day Nestl sells over a billion products. Theseindividual consumer transactions give the Company totalannual sales of more than CHF 90 billion*.

For success and growth, we have to build the greatestpossible consumer trust in both the Company and itsproducts. One way is to get as close to the consumeras possible. This is quite a challenge. It meansunderstanding people of all ages babies, toddlers,growing children, and adults from teenager to old people;and being aware and appreciative of all their needs andmotivations. Our aim is to achieve better consumerunderstanding than our competitors.

The consumer at the heart of all we do is thereforea maxim that is followed with great determinationthroughout Nestl. Our employees work hard to putthemselves in the shoes of the consumer at everystep from product concept to the writing on thepack. Our executives spend days observing consumersin their homes and in the shops. Often this type ofhands-on research is more rewarding than hugequantitative studies.

Maggisoups in GermanyChina and Indonesia. Itsthe sameMaggibrand, bthe product is different.

Each has its own flavoursand textures to meetlocal tastes.*Equivalent to more than USD 70 billion. USD ~ CHF 1.25


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Food is localNestls success is based firmly on the concept tfood is a local matter. Although our products aavailable in virtually every corner of the world, wbelieve in a standard worldwide taste. On the cowe go to considerable lengths to adapt our prodto local consumers tastes. These can vary wideonly from country to country, but even inside a cTo meet local needs, there are more than 10,000products. Almost 500 factories in over 80 countrproduce them.

Different cultures, different geographies, differetastes, flavours and habits all influence what ourconsumers eat and drink. So its vital that we haknowledge and local experience.

Getting close to our consumersNestl employees spent three days living with pein the suburbs of Lima in Peru to understand themotivations, routines, purchasing habits, decisiomaking and everyday aspects of their life.

Based on what they learnt, Nestl created the

NutriMviladvisory service, a mobile exhibition vthat goes into the busy back streets. Here our Nenutritionists can talk one-on-one with mothers.Relevant Nestl products are sold in local marke

and stalls.


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Nestl a company built on brandsThe Nestl brand portfolio covers practically all food andbeverage categories: milk and dairy products, nutrition(infant, healthcare, performance and weight management),ice cream, breakfast cereals, coffee and beverages,culinary products (prepared dishes, cooking aids, saucesetc.), chocolate and confectionery, petcare, bottled water.

Many brands have category leadership, both globally andin local markets. Many have existed for several decades.Some, likeS.Pellegrino the mineral water from Italy and Nestl Moa in Brazil, are well over 100 years old.

The best-known global brands include Nescaf, Nestea,Maggi, Buitoni, Purina and of courseNestlitself. Otherbrands also sell in many countries for example,Milo,Nesquik, Nespresso, Kit Kat, Smarties, Polo, Friskies,

Perrierand Vittel.The total number of brands includinglocal brands reaches into several thousands.

Affordable productsFor lower-income consumers in many countries, Nestlis marketing a range of products at affordable prices.Although low in cost, they provide a balanced diet bycompensating for local dietary deficiencies,and combinegood taste with convenience and relevant nutrition.

Kit Katis the single largeschocolate brand in JapanIn the UK, its country oforigin, it sells around thremillion units each day.


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The Nestl Company is built on the foundation of verystrong brands. Some are global, others are regional,and many are local to a specific country.


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Contributing to nutrition, health and wellnessMany Nestl products are naturally beneficial from anutritional point of view. They include breakfast cereals,milk and dairy products and bottled waters, all of whichare also excellent carriers of Branded Active Benefits.But what about ice cream? What about chocolate andconfectionery?

In a balanced diet, these enjoyable and sometimesindulgent products definitely have a role to play. Weshould all make sure we have plenty of healthy exercise,but then a modest amount of mainly-for-pleasure foodscan also be part of Good Food, Good Life.

That said, we are applying our nutritional expertise tothese products as well. For example,Dreyers SlowChurned andHagen-Dazs Light ice creams useproprietary technology to deliver the same, or even bettertaste than regular ice cream, but with half the fat and athird fewer calories.

In confectionery, we have introduced many sugar-freeproducts, includingPolo,as well as lower sugar contentin products such asKit Kat Light.

The over-riding factor is not to sacrifice taste. Butwhenever there is an opportunity, we find solutions thatalso contribute to nutrition, health and wellness.

Maggi Sveltesse 0%is a nourishing, healthyinstant soup, full ofvitamins and fibre,with zero fat and lowsalt content. Single-serve stick packs make

it quick and easy toprepare, wherever,whenever.


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In the ice cream categorywe have applied our reseand technological expertto make products that hasignificantly fewer calorieand less fat, yet still withsame great taste.


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Ensuring quality and food safetyWith every bite or sip of a Nestl product, we haveto ensure the highest levels of quality and safety.This happens millions of times a day. Its a heavyresponsibility. We have to assure the highest possiblestandards all along the supply chain from raw materialsvia manufacturing, packaging and distribution, to thepoint of consumption.

Every Nestl factory has a laboratory that systematicallyanalyses raw materials and ingredients. Nestl productsare checked on the production line and in their finishedstate to ensure that they meet our own strict standards,as well as national and international regulations.The quality assurance laboratories at our Nestl ResearchCenter in Lausanne, Switzerland are constantly broadeningtheir knowledge and know-how in microbiology, foodsafety, nutrients, additives, contaminants and packaging.They share this information with our factories aroundthe world.

Wherever, whenever, howeverWe sell our products in all four corners of the world atmillions of different points of sale. These include bigretail superstores, supermarkets and chain stores. Butthey also include small family-run neighbourhood shops,stalls in markets, vending machines, mobile vendors andeven door-to-door sales of chilled products in specialcooler bags.

People can buy Nestl products in schools, offices,hotels and airports. In ice-cream parlours and fast foodoutlets. On planes, trains and boats. In veterinarypractices, service stations and fitness centres.

Different formats, in all shapes and sizes, meet the needsof consumers whenever and however they want toconsume a Nestl product.

Nestls reputation overmany years for consistenquality and safety hasearned the respectof consumers all overthe world.

Consumers eat anddrink more and more out

of home. Nestl offersproducts for any occasioand any place.


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The changing consumerWorld demographics will carry on changing. Othgeographic, economic and social factors will all our diets and eating habits. In this changing worwill continue to put priority on nutrition, health awellness, and apply its science-based research tdevelop food and beverage products that improvquality of living at every stage of life.

Its not enough to meet existing consumer needsin tune with developments, we have to be aheadgame, fully aware of trends, and ready to meet cneeds that havent yet fully emerged.

Nestl products are soldat more than two million

outlets across India.

Vittel Vitalitos is part ofa range of pure andflavoured waters speciallydesigned for childrento get them to drinkhealthier beverages.


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How Nestl runsits business

Although less than 2% of our sales are generated inSwitzerland, Nestl is a Swiss company.

Several Swiss characteristics are noticeable in the waywe run our business. Our organisation is effective,reliable, hard working and pragmatic.

But Nestl is also a very human company. Above all,we care about our people. We are committed tocreating value over the long term not only for ourshareholders, but also for all those communities aroundthe world where we market our products.


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Principles, not rulesTwo fundamental documents (The Nestl CorporateBusiness Principles and the Nestl Management andLeadership Principles) lay down principles that permeatethe whole Nestl Group. They govern our policies andstrategies. They set the tone and style for our approach.They affect everyone who works at Nestl. They alsoimpact everyone with whom we do business. In effect,they form a code of conduct which is lived out by eachone of us at Nestl.

The Nestl Corporate Business Principles outline theNestl way of doing business. They include sections onInfant Health and Nutrition, Human Rights, Child Labourand the Protection of the Environment, as well as a setof Consumer Communication Principles. They include allten principles of the United Nations Global Compact,as well as the International WHO Code of Marketing ofBreast-milk substitutes.

The Nestl Corporate Business Principles have beentranslated into more than 40 languages and distributed toour management around the world. They are built on keybeliefs that include:

Nestls business objective is to manufacture and marketits products in a way that creates value that can besustained over the long term for shareholders,employees, consumers, business partners and thenational economies in which Nestl operates.

Nestl does not favour short-term profit at the expenseof successful long-term business development.

Nestl recognizes that its consumers have a sincere andlegitimate interest in the behaviour, beliefs and actionsof the Company behind the brands in which they placetheir trust.


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Ingenuity, variety andteamwork give plenty ofopportunity for our peopleall over the world.

A multi-cultural businessThe Nestl Management and Leadership Principlbased on the many experiences that have led to companys success throughout its long history. Trelate mainly to the human aspects of our managand our employees, and stress the multi-culturalof the Company.

Nestl embraces cultural and social diversity andnot discriminate on the basis of origin, nationalitreligion, race, gender or age. Nor does Nestl hapolitical involvement.

Nestl operates in many countries and in many cthroughout the world. This rich diversity is an invsource for our leadership, and also for broadeninemployees experiences.

A key theme of the Management and LeadershipPrinciples is that we put our priority on people rathan systems. This results in a structure that is apossible, rather than hierarchical, and gives indivplenty of opportunities to advance their careers.

Together with our Corporate Business PrinciplesManagement and Leadership Principles form thefoundation of our approach to doing business. Itapproach that has been recognised by top Harvaacademics as having generated real benefits botNestl and for society over many decades.

Harvard Business School Professors Michael PorMark Kramer have stated that this puts Nestl infront rank of companies who create real shared vthemselves and society at every step of their busprocess or value chain. Porter and Kramer arguour approach has already stood the test of time; continue to do so precisely because there are wiall sides.


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Looking after the environmentWe invest an average of CHF 100 million* each year forthe protection of the environment in our factories. Ouraim is to maximise the production of goods whileminimising consumption of resources and at the sametime reduce waste and emissions. Over many years, theseinvestments and also our employees efforts haveled to continuous improvements. A rigorous system ofsurveys and audits monitors our progress.

High level investment and the application of bestpractices contribute significantly. But at the heart of oursuccessful environmental strategy is our persistencein ensuring that environmental factors are built in to allour activities.

This starts with the purchase of raw materials, theirtransportation, their transformation during themanufacturing process and their packaging; and endswith their distribution to retail outlets. Even then,the process continues: recycling of waste materialsand packaging also plays its role in protectingthe environment.

Nestl pioneered the Clean Development Mechanismwhich is part of the Kyoto Protocol an agreement tocontrol CO2emissions to combat global warming. Whileindustrialised countries have legally binding targets toreduce emissions, the developing countries areencouraged to invest in clean technologies. The Clean

Development Mechanism helps them to do this. Forexample, one of our factories in Chile converted itsair heaters and boilers from oil and coal to natural gas,resulting in annual greenhouse gas savings of19,000 tonnes CO2.

Nestl was the first company in Europe to introduce anew biodegradable alternative to plastic for manufacturedfood products. Made from renewable resources, itdissolves when it comes into contact with water, anddisintegrates within three months.

Environmental educationencourages the fullcommitment of ouremployees to bring aboutthe best environmentalresults.

Without compromisingproduct quality, packaginmaterial savings amounte

to 284,000 tonnes ona worldwide basis overfour years.*Equivalent to more than USD 80 million. USD ~ CHF 1.25


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Variation 2001-2005

To give an idea of the scale of Nestls environmentalimprovements, during a recent four year period wereduced water consumption in our factories by 42%,energy consumption by 30%, and emissions ofgreenhouse gases by 34%.

Water consumption

Energy consumption

Greenhouse gasesConsolidated environmental performance

indicators (EPIs) per tonne of product

m3

gigajoules (GJ)

kg CO2

Variation 2001-2005


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Sourcing raw materialsWe source our agricultural raw materials principallymilk, coffee, cocoa, cereals, vegetables, fruit, herbs,sugar and spices either through trade channels ordirectly from farmers.

Although we dont have control over the farms, wesupport sustainability in the supply of agricultural rawmaterials and agricultural best practices. To put thesewords into action, we have over 800 of our ownagronomists, technical advisers and field technicians.Their job is to provide technical assistance to more than400,000 farmers throughout the world to improve theirproduction quality, as well as their output and efficiency.They do this on a daily basis in as many as 40 countriesincluding Inner Mongolia, China, Pakistan, Ethiopiaand Colombia.

This specialist team has pioneered the development ofsustainable local fresh milk and coffee production.For example, coffee farmers in the Yunan Province ofChina are improving yields and quality as a direct resultof our advisors expertise, as are farmers in Indonesia,Mexico, the Philippines and Thailand.

Similarly, hundreds of thousands of milk farmers arebenefiting from Nestl animal husbandry assistance andmilk collection initiatives in countries as far afield asChile, India, Mexico and Pakistan.

The work that Nestl isdoing with farmers,especially in remote ruralareas and in developingcountries, not only resultin better quality rawmaterials, and thereforebetter products, but alsohelps farmers. Byproviding them withregular and reliable

income, Nestl is able tocontribute to improvingtheir standard of living.


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A network of local companiesIts a genuine paradox. Although Nestl is one ofglobal giants, our priority is to be a local companeach of the 130 countries where we market our In many of them, we have been present for more100 years. So weve had time to learn and undertheir cultures and habits, and to benefit their ecoand communities.

Local Nestl units work within a global framewoon the Nestl principle: centralise what you mudecentralise what you can. In this way we combadvantages of a worldwide company with the adof smaller, local businesses.

Although Nestl is very global, essentially its a comade up of smaller local units. So wherever Nestnot an anonymous giant. Our global sales are simresult of adding together the sales of each local c

To give you a better idea of our presence aroundworld, the average number of employees in our fis 270, and the average number of employees in single country is around 3,000.


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Benefiting local economiesInvestments have to be good for the country as well asgood for the company. This has been a fundamentalNestl belief since the start of the company. We havealways found that creating long-term value for thecountries where we operate also creates long-term valuefor our shareholders. By taking a far-sighted view ofbusiness development especially in developingcountries and managing responsibly, it is possible tomake acceptable profits and at the same time stimulatesignificant local social, environmental and economicdevelopment.

Long-term investment, transfer of technology, andtraining in agriculture are just three ways in which Nestlis a force for good around the world. A recent example isNestl in China. In 1987, the first joint-venture company,Nestl Shuangcheng Ltd, was established in HeilongjiangProvince. Applying our expertise in nutrition and foodprocessing, the first local production in mainland Chinastarted in 1990.

Nestls know-how has helped China to replace importsin foreign currency with locally manufactured products ofequally high quality. Since 2000, 99% of Nestl productssold in mainland China are manufactured locally, andNestl has become a very significant buyer of local rawand packing materials.

We now have more than 20 factories in the Greater

China Region. Our Research & Development Centre inShanghai was set up in 2001. Today, we offer attractiveemployment to some 12,000 local staff, and hundreds

of additional jobs are created every year.

In China, Nestl buys milfrom some 22,000 farmeand contributes directly oindirectly to the welfare oabout 100,000 people inthe country.


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Nestl in the community:reaching out beyond our businessNestl has around 400 community projects runnin 90 countries. Many of these support the UNMillennium Development Goals aimed at addressthe most pressing needs of people, particularly ideveloping countries. They focus on povertyreduction, education, health for women and childand the reduction of pandemics like HIV/AIDS anmalaria. Donations are also directed at humanitarelief, especially following natural disasters.

Nestls community projects are very varied. Therange from funding schools in rural areas inMorocco to designing and maintaining a watersupply system for refugees in Ethiopia. To achievthe best results, whenever we can, we work inpartnership with local organizations andcommunities.

A good example is India where Nestl finances ahelps to organise deep bore wells and sourcing oclean water. We construct storage tanks and inssubmersible water pumps at village schools nearfactories. The company bears 90% of the cost ofeach facility, the remaining 10% is funded by thevillage and voluntary contributions. The projectscomplemented with school programmes about wconservation, hygiene, and health. So far, some20,000 children have benefited from 60 wells.

Education for better nutritionIn Brazil, the Nutrir food education programmefocuses on malnutrition, a problem affecting abo8 million families. The programme trains hundredof volunteers, including many from Nestl, to go local communities. Through games and play, Nescommunicates health and hygiene concepts, so tthe families develop healthy eating habits and att

better nutrition from locally available resources.

To help address obesityin children, a schoolsprogramme is runningin France to improvethe dietary behaviourof children.


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Much of our support is dedicated to Red Cross activitiesin Africa to improve water and sanitation. Even morespecifically, given the importance of nutrition forincreasing chances of survival for people with HIV/AIDS,Nestl and the International Federation of Red Cross andRed Crescent Societies are working in partnership onlarge-scale education programmes in several Africancountries. For example, more than 800,000 Nigerianshave received HIV/AIDS education with 2,600 peereducators reaching youth in twelve states with high HIV/AIDS prevalence.

We have recently extended our partnership with theRed Cross and Red Crescent in the form of a commitmentto improved water and sanitation. The major part of ourfinancial support over the next few years will bededicated to various activities in Africa addressing theimmense life threatening problems resulting from thechronic lack of water and sanitation.

Education providesknowledge to help peopleunderstand HIV/AIDSand the role of relevantnutrition.

Following the devastatingTsunami of late Decembe2004, Nestl providedfunding of more thanCHF 1 million to build

15 fully equipped and reato operate pre-schools an11 fishing anchorages.


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Consistent, sustainable growthNestl has had almost 150 years of continuous, ssustainable growth. This is attributable to our lonapproach and focused business strategy, and to record of well principled governance and manag

Growth is based on the Nestl Model of strong ogrowth between 5% and 6% combined withconsistent improvement in EBIT margin. (EBIT = Before Interest and Taxes.)

Nestls policy of decentralisation has been fundto our growth strategy. Wherever possible we usraw materials and produce our products locally. way, we contribute to local economies, not only

payer, but also as a purchaser and employer.

Nestl does not own farms or retail outlets. Rathwe focus on our core competence of transforminmaterials into high quality, safe food and beveragproducts.

We firmly believe in creating long-term, mutuallybeneficial partnerships with our suppliers and recustomers. We recognize that our growth is builexcellent relationships from farm to shop. In so

we also ensure the best results for our shareholdmost important of all, our consumers.

Building on strong foundationsNestl has the largest range of foods and beveraany food company. Our products are consumed ages, from babies to old people. And by people fmany cultures. Many of our brands are market leor a close second, and have built a powerful conloyalty. These brands are extremely well establisand have become part of peoples everyday life. the years, Nestl has therefore built a solid foundfor future growth.


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People are Nestls greatest assetPerhaps its because food is such a fundamental humanneed. Perhaps its because we have to be extraordinarilyclose to our consumers and understand their physicaland emotional desires. Whatever the reason, Nestl isa very human company. We care about our people. Weencourage and bring out the best in them. We work hardto ensure that they benefit as much as they can fromtheir work at Nestl.

The result is a very close-knit company even thoughmore than 250,000 people are spread around the globe.What binds them together is a common culture anda high degree of loyalty to the Company and to eachother.

The Nestl culture or Nestl spirit is difficult to describe.Its partly to do with an openness to ideas and thoughtsand a willingness to learn from one another. Its also todo with giving individuals the opportunity to add valuein whatever way they can.

While Nestl expects a lot from its people, it gives a lotback. Theres a sense of fairness and consistency thatis reflected in a straight and honest, pragmatic hard-working ethos.

Above all, Nestl is genuinely international. One simpleexample is that around 80 different nationalities arerepresented among the 1,600 people in our Head Office.

Each year a thousand people from all over the worldcome to our Training Centre in Switzerland.

Our people are a hugeasset. More than anythinelse, they make theCompany what it is. Itsvery easy to becomepart of a network of like-minded people.


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Wide variety of career opportunitiesAmong university and MBA students and graduafrom many backgrounds for example in the scieconomics or marketing Nestl is often cited aof the top favourite companies to work for.

One reason is that wherever you start work at Nethe whole world is opened up for you. Its not unto work in as many as four or five different countduring the course of a career at Nestl. In some theres no such thing as a single career. The divedisciplines gives people the chance to pursue madifferent careers. To name a few among dozens:research chemist, cook in the testing kitchens, cservices manager, brand manager, manager in inrelations or human resources, auditor, productivconsultant, and many more.

People not only move from country to country, oa spell in Head Office as well, but also betweendisciplines. Thats one reason why so many peopa career for life at Nestl. Another is that we maof home-growing our own management, thereproviding more opportunities for advancement.

Employees from countriesaround the world meet atour international TrainingCentre in Switzerland.


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How our business is organisedNestl has its own local companies in most countries.

The Head Office in Switzerland works very closely withthem, and sets overall strategy which is directed via ZoneManagement and the Strategic Business Units (SBUs).

Geographically, Nestls three Zones (Europe; theAmericas; Asia, Oceania, Africa and the Middle East)work closely with the local markets and the SBUs. Theirprimary role is that of enablers, acting as the voice ofthe centre to the markets, and the voice of the marketsto the centre. They share Nestls vision so that everyonearound the world understands the direction to take andhow to get there with common tools, common strategiesand common values. This ensures that our people aroundthe world know how to act, and have a very strongframework of values and a clear reference point for fastdecision-making.

The SBUs specialise in a particular category, for exampleCoffee and Beverages, or PetCare, or Chocolate andConfectionery. They work with Research and Development(R&D) to ensure that everything the company produces isled by consumer insights and relevant innovation; andthey help the markets to achieve their business and brandobjectives.

To make it all happen, there are just under 500 factoriesin 80 countries, and 17 Research Centres.

Other Nestl Group companiesThere are a number of separate companies within theGroup such as Nestl Waters and Nestl Nutrition. Nestlalso owns Alcon, a pharmaceutical company that is theworld leader in eye care, preventing vision loss fromglaucoma, treating eye infections and restoring visionthrough cataract surgery.

Nestl also has a significant share of LOral, the world

leader in cosmetics.

For 60 years Alcon,a Nestl Group companyhas made products that

help people see better.


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The Swiss flag flieson our Headquartersbuilding. But, inside,

around 80 nationalities arerepresented by our 1,600people working there.


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The world of NestlBy now youll have realised that Nestl is a world ofits own. It spans the globe. But more importantly,Nestl employees come from all walks of life. Once theyjoin Nestl, they continue to expand their horizons.

In keeping with the world in which we all live, Nestl,too, is constantly changing. But its values remainthe same. The Company will go on providing high quality,safe and trusted food and beverages for millionsof people, providing them with nutrition, health andwellness, day after day.

Nestl. Good Food, Good Life.


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ConceptNestl S.A., Corporate Communications

Design and productionNestec Ltd., SGDU, Corporate Identity and Design, with

messi & schmidt, Lausanne (Switzerland)

PrintingEntreprise darts graphiques Jean Genoud S.A.,Le Mont-sur-Lausanne (Switzerland)

Picturesapg image Ltd., Jodi Biber, Markus Bhler-Rasom,Andrea Diglas, Sam Faulkner, Marcel Grubenmann,Harmen Hoogland, Marc Latzel, Marion Nitsch,Maurice Schobinger, Vronique Vial, Christian Vogt,

Cdric Widmer, Luca Zanetti

2006, Nestl S.A., 1800 Vevey (Switzerland)

Would you like to know more about us?

Check our websiteIf you would like more information about Nestl, thencheck our website: www.nestle.com

The portal will direct you to other specific sites includingNestl Nutrition and the Nestl Research Center, as wellas local company, brand, consumer interests (eg: childcare and cooking) and careers sites.

Request our publicationsThere are many Nestl publications that you may beinterested in. Check our website: www.nestle.com.

For further information, please contact:Nestl S.A.Corporate CommunicationsAvenue Nestl 55CH-1800 VeveySwitzerland


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The World of Nestle