nestlé’s successful entry into asia - swisscham entry into asia_thomas... · nestlé’s...
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Nestlé: Good Food, Good Life
The world’s leading nutrition, health
and wellness company
T Schelling, May 2010
Nestlé at a glance: Key figures
T Schelling, May 2010
• CHF 108bn sales in 2009
• EBIT CHF 15.7bn
• Over 280,000 employees
• 449 factories
• Operations in 83 countries
T Schelling, May 2010
•Americas
•44.3%
•Asia, Oceania, Africa
•19.9%
•Europe
•35.8%
Sales by RegionPercentage of Total F&B Sales in 2009
The Nestlé story – how it all began1867 1866
1929
1938
1947
1960s
1970s
1980s
1990s
2000s
Henri Nestlé
1866
T Schelling, May 2010
2 continents 47 countries 57 Factories
13 time zones Innumerable languages 55% of World’s population
All major religions Variety of cuisines/tastes Tremendous GDP growth
The Diversity of Asia
T Schelling, May 2010
T Schelling, May 2010
Thailand
1924
Japan
1913
India
1912
Philippines
1911
China 1908
Indonesia
1919
Hong Kong 1911
Malaysia
1905
Commercial presence in Asia –trading period 1905-1979
Pakistan
1979
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Thailand
1968
Japan 1933
India
1959
Philippines 1962
China 1990
Malaysia
1962Indonesia
1972
Korea
1979
Vietnam 1997
Local Industrialisation in Asia from 1960’s
55% of the World's Population in Asia
Pakistan4 factories
More than 2400 employees
IndochinaThailand: 6 factories, Vietnam: 3 factories
More than 3,500 employees
Malaysia6 factories, Around 5,000 employees
Indonesia3 factories, more than 2,300 employees
Philippines4 factories, more than 3,000 employees
Singapore1 factory, around 350 employees
Korea2 factories, around 540 employees
South Asia Region7 factories
More than 6,200 employees
Japan3 factories, around 2,000 employees
China18 factories, around 14,000 employees
T Schelling, May 2010
Vision for Asia:
We will become the recognized leading NHW
Company by establishing leadership positions
in those categories most relevant to our
consumers
We will become the recognized leading NHW
Company by establishing leadership positions
in those categories most relevant to our
consumers
T Schelling, May 2010
Asia is Nestlé’s Future Growth Driver
In 2010 Asia represents:
• 55% of the world’s Population
•56% of the world’s Babies
Huge growth potential for Asia
Source: Population Division of the Department of Economic and Social Affairs of the United Nations
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PremiumPremium
MainstreamMainstream
PPPPPP
Which feeds into our Multi-Tier Strategy
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PPP
growth driver
Meeting the needs of the emerging consumer is a 20bio CHF opportunity
• Population Growth
• Consumer Needs
• Micro-Nutrient Deficiencies
• ‘Wealth-Creation’ – Migration to higher Income
Classes
• GDP/capita growth
• Urbanization
• Economical Challenge (financial crisis)
• Political Stability (in developing countries)
T Schelling, May 2010
PPP Success Factors
The Emerging Consumer
The Emerging Consumer
Product & Packaging
Development
Product & Packaging
Development
PricingPricing
PPP Financial Models
PPP Financial Models
Route to Market / Route to
Consumer
Route to Market / Route to
ConsumerManufacturing
& Sourcing
Manufacturing &
Sourcing
OrganisationSetup
OrganisationSetup
Partnerships &
Cooperation
Partnerships &
Cooperation
CommunicationCommunication
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Strong support from the R&D Network with focus on Asia (Singapore, Beijing, Shanghai, Tokyo)
Singapore
Beijing
Shanghai
Tokyo
Abidjan
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Opportunity to target the most
Prevalent Micronutrient DeficienciesMicronutrient Main Function ImportanceMicronutrient Main Function Importance
Iron Energy Metabolism30% of world's population
(2 billion people) are anaemic
(WHO)
Vitamin A Sight & Immunity500 thousand children per year
go blind due to vitamin A
deficiency (FAO)
Iodine Brain Development35 % of world's population has
insufficient iodine in their diet
(WHO)
Zinc Growth & ImmunityGlobal prevalence not well
documented but children are
most at risk.
T Schelling, May 2010
Creating Shared Value (CSV)
Acceleration of the CSV Strategy with focus on Nutrition, Water and Rural
Development
Creating value both for Shareholders and Local Communities
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Contributing to broader local prosperity
through business opportunities
‘Business on Wheels’, Philippines
T Schelling, May 2010
Key Success Factors:
T Schelling, May 2010
• Early Presence and Sequenced Market Entry
• Understanding of history, culture and values of host countries
• Deep Consumer Insight
• Long term vision and staying power even through local crisis
• Investment in People
• Agricultural Assistance
• Longstanding relationship with trade
• PPP Strategy
• Build and support strong Brands
• Decentralised and Empowered Management
T Schelling, May 2010
Business Principles & Drivers
North America Europe Asia
Law Logic Relationship
Logic Relationship Logic
Relationship Law Law
Key Success Factors:
T Schelling, May 2010
• Early Presence and Sequenced Market Entry
• Understanding of history, culture and values of host countries
• Deep Consumer Insight
• Long term vision and staying power even through local crisis
• Investment in People
• Agricultural Assistance
• Longstanding relationship with trade
• PPP Strategy
• Build and support strong Brands
• Decentralised and Empowered Management
Key Success Factors:
T Schelling, May 2010
• Early Presence and Sequenced Market Entry
• Understanding of history, culture and values of host countries
• Deep Consumer Insight
• Long term vision and staying power even through local crisis
• Investment in People
• Agricultural Assistance
• Longstanding relationship with trade
• PPP Strategy
• Build and support strong Brands
• Decentralised and Empowered Management
Outlook for 2010 and beyond
We are well positioned to
further grow our brands
with consumers
in Asia
T Schelling, May 2010
Future Capital Investments
We are strongly committed to Asia
RIBBON CUTTING: Nestlé CEO Paul Bulcke and Mr VoVanMot, Chairman of Dong Nai People Committee
officially open a new production facility in Vietnam, June 2009.
T Schelling, May 2010