Peter Brabeck, chief executive of Nestlé, emphasised the company’s goal to transform itself from a traditional business to a health, nutrition and wellness company in his Beating the Benchmark presentation, delivered yesterday (11 January).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Looking ahead to 2007, the world’s largest food and drink company said that it intends to accelerate this transformation through the integration of the Novartis Healthcare Nutrition business and drive growth through “bigger, better, bolder innovation”.
Brabeck also emphasised the need for organisational transformation, emphasising the company’s aim to create an agile fleet of businesses operating in different markets. In 2007, Nestlé must focus on profitable growth, Brabeck said, leveraging its scale and tackling underperforming businesses. To facilitate these organisational changes, the company has begun the reorganisation of its R&D and supply chain operations, which have now been placed under separate leadership.
Nestlé’s model will focus on its food and beverage businesses, Brabeck said. The company intends to drive simplicity across its food and beverage businesses, leverage its scale for competitive advantage and “increase discipline and execution in all we do”.
Reports have emerged that the company is eyeing the acquisition of baby food company Gerber Products from Novartis.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataNestle’s finance chief, Paul Polman, told investors at a meeting in Bad Ragaz Nestlé was interested in buying the US-based unit off the Swiss pharmaceutical company.
“But for every buyer you need a seller,” Polman said.
The Wall Street Journal reported in November 2006 that the food giant was interested in buying Novartis’ medical nutrition and baby foods units and was prepared to pay up to $5bn. One month later, when the two reached a deal on the medical nutrition unit for $2.5bn, Gerber was not included.
