Nestle has today (20 April) reaffirmed its commitment to developing its popularly positioned products (PPP) and said it anticipates the portfolio will generate global sales of over CHF20bn (US$18.8bn) in the coming years.
The Swiss food giant has indicated that its PPPs, designed to meet the specific nutritional needs of consumers on low incomes primarily in emerging markets, are expected to be a key growth driver for the group.
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“The benefits of PPPs are threefold: they help deliver a balanced nutritional diet for emerging consumers, generate profitable growth for Nestle, and contribute to the economies of emerging countries such as Indonesia and their population,” Arshad Chaudhry, CEO for Nestlé Indonesia, said at a press conference in Jakarta.
In 2009, PPPs accounted for CHF8.8bn and grew three times faster than Nestle’s total sales.
The company said that the growth of its PPP sales will be driven by the demographic and economic growth of emerging markets, where the population is expected to grow by 3.3bn by 2050.
Overall, Nestlé reached sales of CHF35bn in emerging markets in 2009.
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By GlobalDataIn order to guarantee their affordability, PPPs are developed in a way that allows consumers to buy them on a regular basis. Typically, they are manufactured from local raw materials to minimise value chain costs and distributed via various channels, including street markets and mobile street stalls, Nestle said.
There are over 3,950 PPPs in Nestle’s portfolio, which include PPP versions of brands such as Maggi, Milo and Nescafé.
