Nestlé - SpeedyLook encyclopedia

History

Beginnings

In 1866, Henri Nestlé develops and markets the first cornflour gruel. This dried milk is regarded as a complement to meet the nutritional needs for new born, in addition to the maternal Lait. The effectiveness of its product having been shown in the food of the young children, it remained with its inventor only to market it on large scales. In 1868 the product is thus sold in Suisse (with Vevey and Lausanne) but also in Germany with Francfort-sur-le-Main. The requests whose Henri Nestlé was the object obliged it soon to deal with other markets. It organized the sale in France, took an agent with Paris and entrusted to his brother Georges, attache with LCL with Lyon, a deposit. The fame of the cornflour gruel crosses then the Atlantique and at the end of 1868, it was brought by an offer to create an agency with London. At the end of 1869 the production capacity of the cornflour gruel had already reached 500 kg per day.

Hardly its business had taken scale that the Franco-German war burst in 1870. The conflict caused an abrupt stop in the sales development, more especially as the railroads German refused the passage in transit of the goods bound for the Belgium and of the Holland. At the end of the war, the consequences of the conflict were not favorable to the development of the new company. The raising of prices of milk, sugar, of cereals, the shortage of Tinplate and the increase of the costs of transport and the customs tariffs had constrained Henri Nestlé to apply a rise of 40% to the price of the boxes. At all events the trade was going to end up reappearing so that in 1871 forwardings day laborers were from 800 to 1000 boxes and the company counted about thirty workmen then.

Shortly after the hostilities, Henri Nestlé increases his factory and the production of Cornflour gruel doubled July 1871 at July 1873. The cornflour gruel was then sold in 1873 in Germany, America, England, Argentine, Australia, Austria, Belgium, Spain, France, Holland, with the the Indies Dutchwomen, in Italy, with the Mexico, in Russia, Scandinavia, Serbia and of course in Suisse. With a production of 500 ' 000 boxes of cornflour gruels per annum, the proportions taken by the company forced Henri Nestlé to put in the search of a purchaser in 1874. Thus the company was sold in 1875 at a company veveysanne for 1 million frankly S. the new business was made up the March 8th 1875 under trade name “Cornflour gruel Henri Nestlé”, having as administrator Jules Monnerat (Syndic of Vevey, former deputy), Pierre-Samuel Roussy (miller and supplier of Henri Nestlé until there) and Gustave Marquis (owner in Châtelard on Montreux). The company became then a Public limit company with the capital of 200 actions of 5000 francs each one. Henri Nestlé did not preserve any interest of owner in the new business of which it was never Actionnaire.

Manufacture not corresponding more to the needs, the new leaders bought machines, made build hangars, increase the workshops and did not neglect anything to maintain on the market a product of quality. Manufacture was carried to more than 4000 boxes of cornflour gruel per day. However, at the beginning of 1878, the Anglo-Swiss Condensed Milk Co., specialized company in milks out of box and having its seat in central Switzerland, launched its own cornflour gruel. The company of Vevey having had a presentiment of that this company could become a serious competitor answered, the same year, by manufacturing it also milk condensed. The sales of this new product benefitted largely from the reputation of the cornflour gruel and the requests were done increasing so that it had to be given up the idea that the supply of the markets of Nestlé are made only center of manufacture of Vevey. Also, in March 1880, the company of Vevey acquires a Moulin with Bercher in the Canton of Vaud to transform it into factory of Milk condensed then, in 1890 adds the factory of Payerne to its installations. However, more the years passed, more competition with the company Anglo-Swiss Condensed Milk Co. took an acute turning.

The difficulties of fresh milk supply as well as the consecutive aggravation of the cost price to the Customs duties on the Sugar and the Fer-blanc led soon the company to note that, in certain countries, it could not face the Concurrence any more and that it was thus necessary to change policy and decides to settle industrially abroad. It is thing made in 1898 where Nestlé is established in Norway by acquiring of Norwegian Milk Condensing Co. with Kap then with the the United States in the State of New York to Fulton in 1900, Great Britain with Tutbury in 1901, Germany with Hegge in 1903, and Spain with Penilla in 1905. During this time, Nestlé had also acquired of a fourth factory in Switzerland, with Neuenegg in the Canton of Bern. In 1905 Nestlé thus counted 9 production centres, 4 in Suisse, 1 in Norway, 1 in America, 1 in Great Britain, 1 in Germany and 1 in Spain.

The first fusion and entry in the industry of the chocolate

It is in 1905 that the first fusion of Nestlé with the Anglo-Swiss Condensed Milk Co intervenes.. This one is the work of two bankers: Wilhelm Caspar Escher, managing director of the Credit Suisse to Zurich like administrator of Anglo-Swiss Condensed Milk Co. and Benjamin Rossier, originating in Vevey and administrator of the Swiss bank and French with Paris. It is indeed this arbitration which will involve the creation of Nestlé and Anglo-Swiss Condensed Milk Co. For reasons of suitability and opportunities, fusion takes place in the form of an absorption of the Nestlé company by the Anglo-Swiss Condensed Milk Co.. The two companies bring each one 9 companies to the new entity. These 18 production centres will make make profit the news Public limit company from a geographical distribution favorable and determining for the future. The object and the methods of fusion receive the dedication of the general meetings of the two companies the 3 and April 15th 1905. The activity of the new business will be facilitated by the issue of 50.000 new shares of 400 francs. Sign perfect equality in which fusion had taken place, the new company had two head offices, one with Cham, the other with Vevey. The first Board of directors was formed of ten members, five proposed by the company Alémanique and five by the company Romande and the head office was ensured by qutre people. The Authorized capital of 40 franc million clearly translated the economic importance of the business. However it was going to be necessary nearly 20 years so that is carried out gradually a complete fusion and that creates for itself a company with truly centralized direction.

Following this fusion, the year 1905 had mainly been devoted to adjustments and reorganizations. As of 1906, the sales had developed in proportions which delighted the Actionnaire S. the Clear benefit had been at the top of 7,5 franc million. However, the industrial plants located abroad being able to produce on better account, in particular at less low price of the raw material and the lower level of the wages and the transport costs, the Swiss factory of Egnach was closed in 1906.

In 1907, Nestlé turned to the Australia, second of the markets towards which the Company exported its products. Factory construction take place by the purchase of the most important company of Milk condensed of the area, Cressbrook Dairy Co. of Brisbane which had two production centres then, with Toogoolawah and the other with Wilson Park. As Nestlé and Anglo-Swiss annually sold in this country 200 ' 000 cases of Milk condensed and that the production of the two Australian factories did not reach this volume, the decision was made in 1910 to build an industrial plant with Dennington in the State of Victoria. In 1912, the strong production of this factory made it possible to sell the factory of Wilson Park. The installation of an office with Sydney supplemented the Australian business which thus constituted the first establishment in a country little Industrialisé.

The appearance on the competitor markets of the condensed milk sweetened skimmed which was cheaper, forced soon Nestlé and Anglo-Swiss to modify against its liking its fundamental position, centered until there above all on the whole condensed milks. Competition obliging it to support the fight on this new ground, Nestlé reinforced its establishment in Holland and with the Denmark, countries which had been acquired for a long time a situation privileged in the manufacture of butter and the condensed milk. In the same way, under the impulse of increasing demands, the development of the businesses continued in England, Norway and Suisse where one made open new factories as of 1912.

Parallel to its expansion, the company improved its organization of sale by accumulating the progressive abandonment of the system of the agents in favor of that of the Succursale S. This reform was worth from the start a dominating place on the Asian market where starting from the principal deposit of Singapore many other deposits were open, in particular with HongKong, Calcutta, Madras, Bombay, Colombo and with the Japan in 1913.

Nestlé during the First World War

At the beginning of the conflict, the mobilization disorganized the services because the majority of the Nestlé factories were located in Europe. However manufacture was not stopped nowhere during the first months of the Guerre. Indeed, because of the importance of the various sectors of its production and under the terms of the character even of its products (essential food), Nestlé could continue its activities in almost all the countries. As the hostilities had created enormous requirements in dairy products, it was consequently a question less of extending the outlets to meet the increasing requirements of the customers in other words the governmental orders. Accordingly, the company reinforced its policy of decentralization by creating national new businesses of manufacture and sale in particular in Norway and Austria. In 1916, under the effect of the war, the fiftieth anniversary of the company overlooked. More the war became extensive plus fresh milk started to be lacking. Certain factories thus ceased their activities and the others yielded for the provisioning of the cities almost the totality of the milk which it received. However the company succeeds in finding other sources of supply elsewhere, inter alia in Norway.

At that time, Nestlé counted already a dozen companies selling or manufacturing Nestlé articles. In this order of idea, Nestlé took part in France in the constitution of a Public limit company having the right to manufacture and sell in this country the Nestlé products. Thus in 1916 began the industrial activity from Nestlé with Cherbourg. This same year, the capital of Nestlé and Anglo-Swiss was carried from 40 to 60 franc million by the issue of 50 ' 000 shares of 400 francs.

In front of the reduction in its exports of Swiss and the increase in the request on the international plan, Nestlé decided to repurchase milk condensed at existing companies like taking again certain factories and improving the output of it. The purchases of milk started in America as of 1915 and developed until in 1917. The purchases reached such proportions that the Council decided to send a delegation in America to treat the purchase of factories with it. The same policy was applied in Australia. The acquisition of these factories made it possible in 1918 to double the world capacity of production compared to 1914. Such transactions at one so particular time of economic instability in the world, posed problems of financings. Nestlé thus had to be made open new appropriations near the banks for an amount of 30 franc million.

Commercial crisis with the second fusion

The end of the hostilities caused a sudden stop of the businesses treated with the governments and it was necessary to proceed to rapids readjustments to supply the civil populations affected by the war. The Capital-actions of Nestlé and Anglo-Swiss was doubled and passed to 160 million by the issue of 200 ' 000 shares of 400 francs. In 1920, the company decided to be established in South America. The choice was made on the area of Araras to the Brésil. The set up production center constituted the first link of a chain of factories of Nestlé products which during the years, were installed in this part of the world. It should be known that at that time the establishment in a country in the process of development involved an investment raised by the setting-up of a factory adapted to a region where local industry is not equipped to provide the essential installations and where the inhabitants do not have any experience. However, extremely of its experiment in Australia, Nestlé undertook it with tenacity and successfully.

In this passion according to war, the company undertook in 1920 the acquisition of 11 Australian companies as well as 11 others with the the United States. The organization then counted in the world 80 factories and more than 300 deposits, houses of sales or agencies. Such a speed of extension did not delay to have consequences on the stability of the company and in 1921 of the signs of exhaustion appeared. The title of a face value of 400 francs passed from 1020 francs in January 1920 to 550 francs in July 1921 and it dropped besides to 225 francs in December and 145 francs at the beginning of 1922. This same year, the loss reached nearly 100 million Swiss francs and the sales turnover had dropped by 20% compared to 1921. The imbalance of the exchanges, the fall of the prices and the commercial crisis were the three main causes. Under the effect of the crisis, provisions of urgencies are then taken on all the plans. Factories had to close in Suisse, Norway, and Australia and in America. To that a reorganization of the head office was added, a reduction of the administration and a reduction in stocks. However, these measurements did not bring decisive solutions on the rectification of the company and the Board of directors had then, under the recommendation of the British banking mediums, to resort to an expert in finance, Louis Dapples. This one took the reins of the company then and undertook a reduction of the volume of the American business which represented one of the greatest problems because of the plethoric productions of the 48 factories during the years of war. The reconstitution of reserve funds necessary to the refunding of the bank overdrafts made it possible the company to discharge into 1925 its debts and to take again confidence in it. Complementary corrections were also made out of administrative matter where one constituted a new head office which was gathered with Vevey.

The crisis having been faced successfully, the new team of central directors was directed towards a new policy: to associate with the principal traditional articles (condensed milk, cornflour gruel, dried milk, chocolates) of other specialities intended for the same consumers. Thus in 1927, Nestlé secured the Denmark the sale of butter and that the sale of cheese out of boxes was entrusted to him in the majority of the countries via the Swiss company Gerber & Co. A.G., Thoune . In parallel, as the activity of the chocolate became extensive, Louis Dapples, become president of the Board of directors meanwhile, decided to examine whether a base of advantageous agreement could be under consideration with the leaders of Peter, Swiss Cailler, Kohler, Chocolats S.A.. Those then state that a fusion supplements would have their approval if it could be realized under conditions acceptable for them. Fusion is accepted in 1928 and was carried out on January 1st 1929.

Creation of Nescafe

April 1st 1938, Nestlé began the marketing of the instantaneous Café with addition of carbohydrates. It will be freeze-dried in 1966.

Fusion with Maggi

1947 fusion with the group “Alimentana S.A.” (Maggi) in the company “Nestle-Alimentana S.A.”

March 16th, 2007, the general Pervez Musharraf, president of Pakistan, and Peter Brabeck-Letmathe, president and managing director of Nestlé, inaugurated with Kabirwala (Pakistan), a factory of ultramodern dairy transformation. The factory, which constitutes the greatest manifold center of milk of Nestlé in the world, has a capacity of transformation of 2 million liters of milk per day, figure which should increase with more than 3 million liters these next years.

Nestlé nowadays

In 2005, the group counted 487 sites in 84 countries and weighed nearly 2% of the world sales turnover of food industries. It is more the large company of this sector in the world, with nearly 60 billion dollars sales turnover (either a little more than 45,780 billion euros, or 73,143 billion Swiss francs 12/15/2006 ). On the other hand, the figures are less good for the European market because of the Hard discount ers (Lidl, ED the grocer, Aldi…) and of the marks of distributers (MDD) such as Crossroads, Cora, Auchan, Leclerc…

For its future, Nestlé does not see itself only any more like one company of agribusiness industry, but like a company of nutrition and good being. The watchword is “Wellnes” (pun with the English word “wellness” which means wellbeing). Just like Nike does not sell any more of the shoes but the universe of the sport and the health which goes with the physical maintenance, Nestlé does not want to be seen more as a company which sells food, but wellbeing and Nutrition.

In France

In France, Nestlé is the leader of food industry where its main competitor is Danone mainly in the field of water and the fresh dairy products.

Nestlé France counts factories in the places following:

Andrézieux-Bouthéon (42 the Loire): Fresh dairy desserts, yoghourts
Arcachon (33 the Gironde): Natural mineral water; Abatilles, spring water; Nestlé Aquarel
Aubigny (80 Somme): Feedingstuffs of company
Barbezieux (16 Charente): Specialities frozen containing paste
Beauvais (60 Oise): Frozen cooked dishes; Ice creams
Mud (02 Aisne): Dietetic powders, stop of the tinplate industry, restructures its manpower with the fall
Caudry (59 North): Pizza pies
Challerange (the 08 Ardennes): Drieds milk
Contrexéville (the 88 Vosges): Natural mineral water Contrex
Creully (14 Apple-brandy): Products of oral complementation and entérale, dietetic nutrition
Cuincy (59 North): Fresh dairy desserts, yoghourts
Dieppe (76 Seine-Maritime): Soluble chicorey and coffee powders
Dijon (21 Coast-D' Gold): Confectionery of chocolate, specialities seasonal. Nestlé yielded the factory in July 2007 to manufacturing chocolate Barry Callebaut
Épinal (the 88 Vosges): Food for babies
Obstructed (69 the Rhone): Museum of Cookie called Cookies House
Illkirch (67 the Low-Rhine): Hams, sausages, sausages
Ispagnac (48 Lozere): Natural mineral water Quézac
Itancourt (02 Aisne): Culinary bubbles, soups, assistances, sauces; Cereals
Lisieux (14 Apple-brandy): Fresh cheeses
Marconnelle (62 Pas- shifted): Feedingstuffs of company
Marseilles (13 Rhone delta): Machine of Saint-Menet, soluble powders of coffee, bars of chocolate (427 paid (2005); threaten of closing since May 2004, reopening on September 5th, 2005, ordered by the Bankruptcy court)
Montfort-on-Risle (27 the Eure): Feedingstuffs of company
Offranville (76 Seine-Maritime): Frozen and cooled
Orange (84 Vaucluse): Machine Camaret-on-Acute - (Built in 1967) Flat cooked Buitoni. Sold in 2003 with Raynal and Roquelaure.
Plancoët (22 Coasts of Armor): Natural mineral water Plancoët, Holy spring water Alix
Pontarlier (25 Doubs): Chocolate soluble powders
Quimperlé (29 Finistere): Feedingstuffs of company (216 paid in 2005; Nestlé seeks a transferee in November 2005, without specifying of them the reasons)
Ribeauvillé (68 Haut-Rhin): Spring water Carola
Rosières (80 Somme): Flakes of potatoes, mashed potatoes
Rumilly (74 Haute-Savoie): Cereals
Saint-Lambert (78 Yvelines): Spring water Saint-Lambert
Saint-Pol.-on-Ternoise (62 Pas- shifted): Sausages, hams, plugs
Servant (44 Loire-Atlantique): Dairy desserts fresh
Veauche (42 the Loire): Feedingstuffs of company
Vergèze (30 Gard): Natural mineral water Perrier
Vittel (the 88 Vosges): Natural mineral water Vittel and Hépar, spring water Nestlé Aquarel

In Switzerland

The seat of Nestlé Switzerland is, just like the world seat, located at Vevey. However the building of Nestlé Suisse is distinct from that of the world seat. Nestlé is present in Suisse at Vevey (administrative center), Bursins (administrative center, of production and sale), Orbe (production center), Broc (production center of the chocolate Cailler), Konolfingen (production center), Wangen (production center), Basle (production center), Hirzel (production center and of sale) and Rorschach (administrative center, of production and sale).

Marks of the group in France

Drinks : Dolce Gusto, Ricoré, Nescoré, Lion, Tonimalt, Caro, Hello, Nestlé, Nesquik, Nescafe.

Culinary : Maggi, Buitoni, Mousline.

Chocolates and confectionery : Nestlé serves, Nestlé, After Eight, Lanvin, Nuts, Menier, Galak, Quality Street, Smarties, Crunch, Nestlé Noir, KitKat.

Pork-butchery and delicatessen : Herta.

Ices: Dairy the , Nestlé Ices, Extrème, Yoco, Smarties, Movenpick.

Frozen : Maggi, Buitoni, Hot Pockets, Sveltess.

Nutrition infantil E: Nestlé, Guigoz, Nidal.

clinical Nutrition : Nesvital, Clinutren, Sondalis, Peptamen, Modulis Amino 5, Modulis Anti OX.

Cereals : Natéo, Chocapic, Nesquik, Chokella, Cookie crisp, Crunch, Lion, Clusters, Cheerios, Grahams Golden delicious, Fitness.

fresh Dairy products : Nestlé, the Dairy one, Slenderness, Yocco.

Nespresso : Nespresso

Water bottled : Nestlé Toilets France, Vittel, Aquarel, Contrex, Perrier, S. Pellegrino, Acqua Hammered, Quézac, Hépar, Valvert.

Produced for pets : PURINA: One, Gourmet, Felix, Friskies, Fido, Beneful, Plane Pro, Veterinary Diets, Dog Chow, Cat Chow.

Except residence : Nestlé Food Service, Davigel, Nestlé Ices, Davifrais, Nescafe, Chief, Nestlé, KitKat, the Dairy one, Maggi, Nesquik.

Marks of the group

Here a census of the marks of the group. Some are distributed only in certain countries.

; Coffee: Nescafe, Taster' S Choice, Ricoré, Ricoffy, Nespresso, Hello, Bonka, Zoégas, Loumidis, Gold Blend, Blend 37, Alta Rica, Cape Colombia, Cappuccino, Decaff, Fine Blend

; Water: Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel, Contrex, San Pellegrino, Acqua Hammered, Levissima, Nestlé Vera, Arrowhead, Poland Spring, Deer Park, Al Manhal, Ozarka, Hépar, Ice Mountain, Zephyrhills, Quézac, Viladrau, Naleczowianka, Valvert, Ashbourne, Buxton, Vittelloise

; Other drinks: Nestea, Nesquik, Nescau, Milo, Complexion, Caro, Build-up, Elevenses, Flo-Mix, Libby' C M Drinks, Mix- O-Shock, Moonshine, Nescoré, Nesfit, Slender, Superquik, Um Bongo

; Yoghourt and another dairy product: Chambourcy, the Rock with the Fairies, Gloria, Bären Marke, Slenderness, the dairy one, Will lick It, Ski, Yoco, Svelty, Molico, LC1, Chiquitin, Creola, Coffee subdue, Disney.

; Freeze: Frisco, Motta, Camy, Savory, Peters, Häagen-Dazs, Mövenpick, Schöller, Dreyer' S, Lyons Maid ice cream, Fox' S Minst Glacier, Extreme

; Instantaneous product: Nan, Lactogen, Beba, Nestogen, Cérélac, Neslac, Nestum, Guigoz, Good Start, Mousline, Nidina, Alete, SMA, Follow-Up, Follow-Up Soy, Alsoy, Nursoy, Nestlé Cereal Baby

; Energy-generating product: PowerBar, Nesvita, Neston

; Complement health: Nutren, Peptamen, Modulen, SOPAD (Company of Food products and Dietetic), Healthy Balances

; Condiments/Seasonings/Pastes to be pasted/Others. : Maggi, Buitoni, Thomy, Winiary, Herta, British Shoyu, British vinegars, Cook-in-tea-Pot, Dufrais, Sarsons, Branston Pickle, Scales honey, Holgates honey, Side Yan, Sun-Stalemate, Tartex, Vessen pie, Perfect the

; Frozen: Maggi, Buitoni, Stouffer' S, Lean Cooks, Hot Pockets, Herta

; Cereals: Chocapic, FIFA, Lion, Nesquik, Shredded Wheat, Shreddies, Cheerios, Cinnamon Crunch Toast, Cocoa Puffs, Crisp Rice, Energen low calorie wheatflakes, Force, Grahams Golden delicious, Honey Nut Cheerios, Lucky Charms, TEAM, Robertson' S cornflakes, Sunny Jim, Wheatflakes

; Chocolate and Cookies: Aero, After Eight, Animal Bar, Baci (Chocolate), Ruth Baby, Black Magic, Blue Riband, Breakaway, Butterfinger, Canted, Cailler, Caramac, Caramel Wafer, Cello, Creamola, Crunch, Dairy Crunch, Drifter, Eclipse, Festival, Fruit Pastilles, Frutips, Galak, Good News, Gray & Dunn cookies, Henri Nestlé collection, Jellytots, Karima, Kit Kat, Lion, Matchmakers, Milky Bar, Montego, Muchies, Novo, Nuts, Polo, Quality Street, Rolo, Rowntree, RPC, Savana, Secret, Smarties, Toffee Crisp, Toffo, Tooty Frooties, Purple Crumble, Walnut Whip, Weekend, Yes, Yorkie

; Professional product: Chief, Davigel, Minor' S, Santa Rica

; Feedingstuff: Friskies, Fancy Feast, Alpo, Mighty Dog, Gourmet, My Small, Felix, Purina, Dog Chow, Pro Plan, ONE, Beneful, Tidy Cats, Bonzo, Latz, Ralston, Go-Cat, Go-Dog, ALPO

; Medicinal product: Alcon, Galderma, Bübchen

; Cosmetics: Innéov laboratories, Maybelline, Bübchen, Garnier, Biotherm, Guy Laroche, Matrix, Redken, Claudel

; Contact lenses: Care, Alcon

List to supplement

It should be noted that the capital of Nestlé and those of L'Oreal merge and that certain products of Unilever were repurchased by Nestlé.

Management of the firm

All the directions of the activities of Nestlé are based with the world seat with Vevey, except that of “Water”, named Nestlé Waters, whose seat is with Issy-les-Moulineaux in the department of the Hauts-de-Seine. Current chairman of the group is Peter Brabeck-Letmathe. September 20th, 2007, the board of directors of the multinational announced the Belgian nomination Paul Bulcke, until there responsible for its Americas zone, to succeed in April 2008 Peter Brabeck with the head office. Peter Brabeck will preserve the presidency of the group.

The composition of the Board of directors is defined by the statute of the company. In 2006, it is the following one:

Key figures

financial Data (in million Swiss francs):

Principal shareholders (2005): Floating 97%, Liliane Bettencourt 3%.

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