Oligopoly profile: Nestle
Nestle SA is now the #1 food producer in the world, With over $64 billion of sales in 2002, its revenues far outstrip closest rival, Kraft (but Kraft is #1 in the U.S.). While Nestle's North American sales are very good, it is far more successful internationally than Kraft.
The Swiss-based company was founded in 1866 to sell baby formula. Since that time, it has come a long way through aggressive acquisitions. Nestle is now #1 in bottled water worldwide (through its Nestle Perrier division), and the leader in instant coffee (Nescafe was the first instant coffee on the market). It's a major candy manufacturer as well. In 2001, the firm purchased Ralston Purina, making it the #1 pet food player in the world. It increased its dominance in the ice cream sector with the recent acquisition of America's dominating ice cream company, Dreyers. And it has been the main impetus for the adoption of American-style breakfast cereals in Europe.
Among its biggest international brands are Buitoni, Nescafe, Nestea, KitKat, Maggi, Friskies, and Perrier. It has a growing role in prepared foods and food service. Beyond food products, Nestle is involved in cosmetics (a big stake in L'Oreal), eye care, and nutritional supplements. In 2002, Nestle sold its flavor and fragrance division, FIS to Givaudan, the second largest such company in the world.
Most controversially, it is the leading vendor of baby formula, both milk and soy-based. Nestle has been blamed for its aggressive sales of such products in the Third World, where it causes mothers to stop nursing, costs poor people excessively, and contributed to infant malnutrition from highly diluted formula. This has been the focus of boycotts, though the company claims that it has since changed its practices.
Like many large companies, it sees its future in expanding to emerging markets in India, China, Russia, and Latin America. For example, Nestle recently invested $120 million in building a coffee processing plant in Russia. India has become the number one consumer of Maggi instant noodles in the world. These successes are part of a long-term strategy to expand worldwide
In an interview with the Wall Street Journal, CEO Peter Brabeck explained the company's long-term interest in multinational expansion.
For some of the members of the financial community whose timeframe is between a half a year and a year, it is very difficult to explain what it means to build up a business in Korea or China or Russia, where you have to be willing to invest in five to 10 years before you get into profitability. I'm sure Russia will be the biggest market in Europe within 10 years.
| Category |
Brands |
| Chocolate and Confectionary |
7-Länder, Aero , All Stars, After Eight*, Anticool, Baby Ruth#, Baci, Baerenmarke, Bit-o-Honey#, Blue Riband, Butterfinger*, Cailler, Caramac, Choclait Chips, Chokito, Chunky#, Crunch#, Frigor, Frutios, Galak, Garoto, Goobers#, KitKat*, Lion*, Mackintosh's, Maverick , MilkyBar, Minties, Munchies, Nestle*, Nips#, Nuts, Oh Henry#, Perugina*, Polo, Quality Street*, Raisinets#, Rolo*, Rowntree, Sarotti, Smarties*, Sno-Caps#, Spree#, Sunmark, Sweetarts#, Toffee Crisp, Treasures#, Turtles#, Walnut Whip, Wille Wonka, Wonderball, Wonka , Yes, Yorkie |
| Pet care |
Alpo#, Bakers Complete, Bonzo, Chef's Blend, Clun Buke, Come 'n Get It#, Digestion+, Doko, Fancy Feast#, Felix, Fido, Friskies*, Go Cat, Gourmet, Mac'ani, Matzinger, Mighty Dog#, Purina#, Spillers, Tidy Cats#, Vital Balance, Winalot |
| Baby care |
Al110, Alete, Alfare, Alsoy, Aponti, Arobon, Beba, Buebchen, Carnation*, Cerelac, Chamyto, Guigoz, Lactogen, Latte Mio, Mio, Nan, Nativita, Nestargel, Nestle Babymilk*, Nestum, Nido, Nidal, Nidex, Nidina, Nolak, Pelargon, Primipassi, Smild |
| Daity Products |
Bärenmarke, Carnation*, Chambourcy (yogurt), Coffee-Mate (cream substitute)*, Dairy Farm, Fruit Joy (yogurt), Fruttolo (yogurt), Fussells Condensed Milk, Galak (yogurt), Gervais (cheese), Gloria (cream substitute). Glücksklee, Jopa, Kremly (yogurt), La Laitiere (yogurt), La Lechera (yogurt), LC1 (yogurt), Lunebest (yogurt), Mio (yogurt), Munch Bunch (yogurt), Nespray (powdered milk), Omega (powdered milk), Owntree (yogurt), Ski (yogurt), Tip Top (canned cream), Yoco (yogurt) |
| Ice cream |
Antica Gelateria del Corso, Camy, Cornetto, Dreyers#, Drumstick, Edy's#, Eskimo Pie (Europe) , Extreme, Frisco, Fruit Joy, Gervais, Haagen Dasz* (US only), Magnolia, Maxibon , Melba, Motta, Nestle*, Warnke |
| Beverages |
Azul Kaffee (coffee), Belte (tea), Bluna (soft drink), Bonka (Coffee), Caro (coffee substitute), Chino, Dallmayer (coffee), Deit (coffee), Ecco Franck (milk additive), Heimbs (coffee), Juicy Juice# (juice drink), Kern's Nectars# (juice), Kathreiner(coffee), Kneipp (coffee) , Libby's# (juice), Linde's (coffee substitute). Loumidis (coffee), Milo# (energy drink). Nescafe* (coffee), Nescau (chocolate drink), Nespresso* (coffee), Nesquik* (drink mix), Nestea* (tea), Orzoro (drink), Ricoffy (coffee), Ricore (coffee substitute), San Bitter (sodas), Santa Rica (coffee), Taster's Choice* (coffee), Vorlo (soft drinks), Zoegas (coffee) |
| Bottled water |
Abatille, Aberfoyle#, Acqua Panna*, Agua Catello, Al-Manhal, Aqua Cool, Aqua Spring, Aquarel, Arrowhead#, Ashbourne, Baraka, Bernardo, Buxton, Blaue Quellen, Calistoga#, Campilho, Carola, Charmoise, Ciego Montiero, Claudia, Contrex*, Contrexville, Dar Natury, Deer Park#, Eco. Furst Bismark Quelle, Giara, Glaciar, Ghadeer, Giulia, Great Bear#, Gustrower Schlossquell, Harzer Grauhof Brunnen, Hepar, Hidden Spring, Hirschquelle, Hutchison, Ice Mountain#, Imperial, Kekkuti, Konkon Yusui, Korpi, Krumbach, La Vie, Levissima, Limpia, Lora Recoaro, Los Portales, Mazowszanska, Minere. Montclair, Naleczowianka. Nestle, Neuselters, Ozarka#, Pejo, Penaclara, Perrier*. Petropolis, Plancoet, Point d'Eau, Poland Spring#, PowWow, Pracastello, Pschitt, Pure Life, Quezac, Remstaler, Rhenser, Rietenauer, Saint Lambert, Saint Springs, Sainte Alix, San Bernardo, San Dalia, San Narciso, San Pellegrino*, Sao Lourenco, Sanya Maria, Schoonspruit, Sohat, Sparkling Mineral Water#, Staatl,. Fachingen, Sandalia, Teinacher, Terra, Theodora Quelle, Tione, Ueberkinger, Ulmeta, Valvert, Valvita, Vera, Viladrau, Vittel*, Zephyrhills# |
| Breakfast cereals |
General Mills cereals (outside US) Cereal Partners (50%) brands include Shredded Wheat, Nesquick Cereal,Clusters, Fruitful, Shreddies, Golden Grahams, Cheerios, Fibre, Force Flakes, Trio, Fibre1, Fitness, etc. |
| Prepared foods |
Berni (sauces, fruits, vegetables), Bolino, Bonne cuisine (meals), Buitoni* (pasta, cheese, and sauces), Carnation Instant Breakfast#, Chef (sauces), Chef America# (frozen foods), Chef Benedict, Condipasta (sauces), Contadina# (sauces, pasta), Davifrais (meals, delicatessen), Davigel (frozen foods), Doerffler, Engelfrost (frozen foods), Fricongel (frozen foods), Herta (delicatessen), Hot Pockets# (microwaveable andwiches), La Cocinera (frozen food), La Valle degli Orti), Lean Cuisine, Libby's Pumpkin#, Maggi* (soup, sauces), Mare Fresco (frozen foods), Ortega's# (Mexican specialties, Pezzullo (pasta), Stouffer's#(frozen meals), Thorny, Wintory |
| Other groceries |
Albers (corn meal, grits)#, Crosse & Blackwell * (sauces, condiments, jams, etc.) , European Style (dessert mix)#, Jung (baking products), Mosline (instant mashed potatos), PowerBar (energy bar)#, Saaso (olive oil), Sassonaise (mayonnaise), Toll House (baking products)#, Totole Group (flavorings), Vismara (delicatessen) |
| Nutritional supplements |
Clinutren, Nutren Fibre, Modulen IBD, Nesvital, Nutren, Peptamen, Prebio, Sondalis |
| Pharmaceuticals |
Alcon (eye care) , Differin (anti-acne), Galderma (50%) (skin care), Loceryl (skin care), Metrogel/Rozex (skin care), Patanol (etye care), Summit Autonomous (laser surgery) |
| Cosmetics |
Biotherm, Claudel, Galderma (50%), Garnier, Lancome*, L'Oreal * (almost 50%), Locerel, Manasan, Plentitude, Vichy Warner Cosmetics |
| Food service |
Chef, Davigel, Minor's, Nestle FodoServices*, Tino |
* World brands
# U.S. brands
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