Nestlé, the world’s largest food group, has said the extension of its “popularly positioned products” (PPP) strategy into developed markets will primarily be achieved by offering smaller pack sizes of existing brands.
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“The PPP initiative is one of Nestlé’s key growth drivers for the future,” a spokesperson for the group told just-food today (25 February).
“We’re going to introduce more PPP’s in developed countries in response to economic conditions which have prompted consumers to trade down.”
When the PPP strategy was launched in developing markets, it focused on offering low-priced products that are fortified to address the nutritional needs of low-income consumers.
However, in Europe and the US, Nestlé will extend its PPP offering by reducing the pack size of existing products, the spokesperson said.
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By GlobalDataAny decisions to include newly-launched products in the initiative would be decided on a “case by case” basis, the spokesperson added.
Nestlé’s comments follow the announcement last week by CEO Paul Bulcke that the group had seen some initial success with PPP products in selected European markets, like France, and the US.
“The nice thing about [PPP] is that [consumers] are still with our brands. People may trade down but they stay with our brands. That’s why we are saying we believe in growth for next year,” Bulcke said.
