US: Nestle CEO: We can bounce back in North America
Nestle said it has had a focus on increasing the value perception of its frozen food business in North America
Nestle CEO Paul Bulcke has told just-food he believes the world's largest food manufacturer can boost growth in North America, a market the company admitted has been "challenging" in recent years.
The Swiss food giant this morning (14 February) revealed weak sales growth from its businesses in the Americas in 2012. Nestle said the "real internal growth", which excludes M&A, price increases and currency movements, in sales in the Americas was 0.6% this year.
The company did not break out figures for North America specifically, a region where depressed consumer sentiment has proven problematic in recent years.
Speaking to just-food on the firm's earnings call today, CEO Paul Bulcke said he was "never satisfied", when asked how he viewed Nestle's performance in North America in the last year.
However, he added: "North America was a very very good platform that has driven and is accretive to the group. On growth it has been softening in some platforms like frozen food ... but we have very many pots of growth there and that includes frozen."
Chris Johnson, executive VP for Nestle's operations in the US, Canada, Latin America and Caribbean, added North America is "the most important market for Nestle", but conceded it has been "facing some challenges" over the last few years.
Nonetheless, he added: "We're optimistic. We had very good results again in the pet care category ... and also we are very encouraged about the frozen food business. We are seeing, especially toward end of the year, some good momentum coming ahead driven by some good innovations that came out at the end of last year as well as some good plans coming in this year. North America is and will continue to be an important market for us."
Nestle said it wanted to improve the perception of its frozen food business, with "improved recipes and nutritional profiles", a new promotional strategy and communication, while also prioritising the higher-value segments within ice cream.
"The result has been generally improving share trends across our categories," the company said in its trading update. "Frozen was helped by innovations including DiGiorno Italian Favorites and Lean Cuisine Salad Additions."
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
The report presents detailed data on consumption trends in the Artisanal Ice Cream category in United States, analyzing consumption volumes and values. It also provides indispensable data on distribut...
The report presents detailed data on consumption trends in the Impulse Ice Cream category in United States, analyzing consumption volumes and values at segment level. It also provides indispensable da...
The report presents detailed data on consumption trends in the Take Home Ice Cream category in United States, analyzing consumption volumes and values at segment level. It also provides indispensable ...
- M&A Watch: Raisio should sell to private equity
- Infographic: Snapshot of Japan's food sector
- On the money: Solid Lindt outpaces chocolate peers
- Spotlight: What could be impact of Russia's ban?
- Briefing: Expansion agenda of Japan's food majors
- Russian government eases ban on food imports
- Pork Farms buys Kerry Group's pastry plants
- Kerry cools claim spreads move could hit jobs
- Profits up at chocolate group Lindt
- Japan's Sanyo takes stake in Olam's food biz
- New Strategies for offering Convenience in Food - targeting new occasions, best practice and new solutions
- David Chapman's Ice Cream Ltd in Packaged Food (Canada)
- Global Bakery & Cereals Market: Merger and Acquisitions May 2014
- Food Retail: Top 5 Emerging Markets Industry Guide
- Other Dairy in Russia