Blog: Katy AskewNestle eyes growth - "everywhere"

Katy Askew | 17 May 2011

Like many of its global food industry peers, Nestle has again emphasised its target to drive growth in emerging markets.

Speaking during an exclusive Q&A conference call hosted by Sanford Bernstein, Nestle CEO Paul Bulcke said that the appeal of emerging markets has resulted in a dramatic step-up in competition, particularly in Brazil, India and China. Local players have become increasingly formidable while multinationals have invested heavily in expanding their presence.

Nevertheless, Bulcke was quick to emphasise that Nestle remained well-positioned to capitalise on the opportunities afforded in emerging markets: "We have...competitive advantages, because we have been there for more than 100 years. We have local management managing these operations there," he said.

While Nestle may feel that it has the march on its competitors in emerging markets, the strategy that really sets the world's largest food group apart from the pack is its intention to look "everywhere" for growth - including "inducing" rising demand in developed markets.

Addressing investors, Bulcke insisted that growth must come from all parts of the business. "First of all, you have to make it explicit to your organisation that you want to look for growth in all parts of the world".

Last fiscal, Nestle generated organic growth of 3% in developed markets such as Western Europe and the US. The group drove expansion in tough conditions through innovation, a focus on "emerging consumers" and its nutrition, health and wellness framework. And, according to Bulcke, opportunities for expansion remain in developed markets.

"Food in Western Europe...is only 10-15% of family budgets...it was much more in the past. I think there is an upside opportunity...but [Nestlé] is not waiting to see the trend happening...it is actually inducing the trend".


BLOG

What does Gen Z want from brands? IRI presents its view

Industry watchers IRI has published the findings of two studies in the US they claim can give an insight into the shopping patterns of those aged 21 and under - Gen Z....

BLOG

The identity of the buyer of Tyson's Kettle business emerges

In February, we reported Tyson Foods had sold its Kettle business, one of a series of non-protein disposals at the US meat giant. But the company would not disclose the buyer. This week, the new owner...

BLOG

Leading French grocers eye buying "alliance" - and suppliers aren't happy

Buying partnerships between France's food retailers have been a feature of the country's grocery landscape for a number of years but this week came news of a potentially significant new tie-up - and s...

BLOG

just-food off for Easter

A point of admin: just-food is closed tomorrow (Good Friday) and on Easter Monday. It promises to be a wet public holiday here in the UK but we'll likely console ourselves in chocolate....



Forgot your password?