Nestlé is a powerhouse of consumer brands spanning baby foods, bottled waters, powdered drinks, cereals, coffee, drinks, pet care, and more. The company made over 94 billion Swiss Francs in 2022 (over $100 billion), with high margins on its powdered and liquid beverages (coffee, cocoa, and malt beverages and tea categories).
While many people might not relate directly to Nestlé as a brand, billions of people across the world relate to the Brands it owns. You might be surprised by the portfolio of brands that Nestlé has, spanning from baby foods to pet care.
Nestlé origin story
Nestlé history dates back to the late 1860s when the Anglo-Swiss Condensed Milk Company was founded.
Henri Nestlé, the founder, worked out an instant formula powdered milk product, which would become the company’s core product.
By 1905 a merger with Anglo-Swiss would form the Nestlé Group ever.
Since the company has managed to pass two World-Wars and several economic crises successfully.
What brands does the company own?
A powerhouse of consumer brands
Although not many might relate directly to the Nestlé brand, in many countries worldwide, most people can relate to the portfolio of brands owned by the company, which spans from baby foods to pet care.
Baby foods brands
Nestlé Brand Website
Nestlé baby foods brands comprise:
- Cerelac.
- Gerber.
- Gerber Graduates.
- NaturNes.
- Nestum.
Bottled water brands
Nestlé Brand Website
Nestlé water brands comprise:
- Nestlé Pure Life.
- Perrier.
- Poland Spring.
- S.Pellegrino.
Cereals brands
Nestlé Brand Website
Nestlé cereal brands comprise:
- Chocapic.
- Cini Minis.
- Cookie Crisp.
- Estrelitas.
- Fitness.
- Nesquik Cereal.
Chocolate & confectionery brands
Nestlé Brand Website
Nestlé chocolate and confectionery brands comprise:
- Aero.
- Cailler.
- KitKat.
- Milkybar.
- Nestlé Les Recettes de l’Atelier.
- Orion.
- Quality Street.
- Smarties.
- Toll House.
Coffee brands
Nestlé Brand Website
Nestlé coffee brands comprise:
- Nescafé.
- Nescafé 3 in 1.
- Nescafé Cappuccino.
- Nescafé Classic.
- Nescafé Decaff.
- Nescafé Dolce Gusto.
- Nescafé Gold.
- Nespresso.
Culinary, chilled and frozen food
Nestlé culinary brands comprise:
- Buitoni.
- Herta.
- Hot Pockets.
- Lean Cuisine.
- Maggi.
- Stouffer’s.
- Thomy.
Dairy
Nestlé Brand Website
Diary brands comprise:
- Carnation.
- Coffee-Mate.
- La Laitière.
- Nido.
Drinks
Nestlé Brand Website
Drinks brands comprise:
- Milo.
- Nesquik.
- Nestea.
Food service
Nestlé Brand Website
Food service brands comprise:
- Chef.
- Chef-Mate.
- Maggi.
- Milo.
- Minor’s.
- Nescafé.
- Nestea.
- Sjora.
- Lean Cuisine.
- Stouffer’s.
Healthcare nutrition
Nestlé Brand Website
Healthcare brands comprise:
- Boost.
- Nutren Junior.
- Peptamen.
- Resource.
Ice cream
Nestlé Brand Website
Ice cream brands comprise:
- Dreyer’s.
- Extrême.
- Häagen-Dazs.
- Mövenpick.
- Nestlé Ice Cream.
Petcare
Nestlé Brand Website
Petcare brands comprise:
- Alpo.
- Bakers Complete.
- Beneful.
- Cat Chow.
- Chef Michael’s Canine Creations.
- Dog Chow.
- Fancy Feast.
- Felix.
- Friskies.
- Gourmet.
- Purina.
- Purina ONE.
- Pro Plan.
A business model still, in part, powered by powder
As highlighted in its financial statements:
Powdered and Liquid Beverages covers our coffee, cocoa and malt beverages and tea categories. This business features some of our most iconic brands, such as: Nescafé, the world’s favorite coffee brand; Nespresso, our premium coffee experience; and Milo, the world’s most popular chocolate malt drink
What’s next for Nestlé?
Nestlé business strategy
As the ‘Good Food, Good Life’ company, we enhance quality of life and contribute to a healthier future. Winning with consumers is the source of our sustainable financial performance and our way to earning trust and maintain our market leadership. Based on a compelling Nutrition, Health and Wellness strategy, our company delivers sustainable value over the short term and the long term.
That is how Nestlé highlights its strategy by emphasizing how it moves around three key points:
-
Increasing growth through innovation, differentiation and by being relevant to our consumers. We have committed to reach mid single-digit organic growth by 2020.
-
Improving operational efficiency with the goal to increase our underlying trading operating profit margin to between 17.5% and 18.5% (from 16.0% in 2016), and
-
Allocating our resources and capital with discipline and clear priorities, including through acquisitions and divestitures.
In short, Nestlé focuses on generating demand for its current brands while improving its operational efficiency and allocating massive amounts of capital to buy and sell relevant consumer brands, which helps the company to keep its dominance in the consumer food and beverage industry.
Key Highlights
- Diverse Brand Portfolio: Nestlé owns a wide range of consumer brands across various categories, including baby foods, bottled waters, cereals, coffee, confectionery, pet care, and more.
- Origin Story: Nestlé’s history dates back to the late 1860s when the Anglo-Swiss Condensed Milk Company was founded. Henri Nestlé’s instant formula powdered milk product became the core of the company.
- Brands Across Categories: Nestlé’s portfolio includes well-known brands in various categories:
- Baby Foods: Cerelac, Gerber, NaturNes, etc.
- Bottled Water: Nestlé Pure Life, Perrier, Poland Spring, etc.
- Cereals: Chocapic, Cookie Crisp, Nesquik Cereal, etc.
- Chocolate & Confectionery: KitKat, Milkybar, Smarties, etc.
- Coffee: Nescafé, Nespresso, Dolce Gusto, etc.
- Culinary & Frozen Food: Maggi, Lean Cuisine, Stouffer’s, etc.
- Dairy: Carnation, Coffee-Mate, Nido, etc.
- Drinks: Milo, Nesquik, Nestea, etc.
- Ice Cream: Häagen-Dazs, Mövenpick, Nestlé Ice Cream, etc.
- Petcare: Purina, Beneful, Fancy Feast, etc.
- Financial Performance: In 2022, Nestlé made over 94 billion Swiss Francs (over $100 billion) in revenue. The powdered and liquid beverages segment, including coffee, cocoa, malt beverages, and tea, contributed significantly to its revenue.
- Business Strategy: Nestlé’s strategy is centered around enhancing the quality of life and contributing to a healthier future. They focus on growth through innovation, operational efficiency, and allocating resources with discipline. Their aim is to reach mid single-digit organic growth by 2020 and improve their profit margin.
- Future Outlook: Nestlé aims to generate demand for its brands, improve operational efficiency, and strategically allocate capital for acquisitions and divestitures to maintain dominance in the consumer food and beverage industry.
Related Visual Stories
Who Owns Nestlé
Nestlé Revenue
Nestlé Profits
Nestlé Revenue Breakdown
Nestlé Cost Structure
Nestlé Employees
Nestlé Revenue Per Employee
Nespresso Revenue
Nespresso Profits
The post Nestlé Business Model Analysis appeared first on FourWeekMBA.
