Nestle Case Study: The leading food and beverages Corporation across the Globe

Nestle is one of the biggest global organizations on the planet. Today, Nestle is among the world’s largest food and well being companies in 86 countries.

Nestle Case Study, Nestle, History of Nestle

Nestle case Study: The leading food and beverages Corporation across the Globe

Nestle Case Study. We live in the most plentiful times known to mankind. Whereas in the past our ancestors had to spend most of their time waking hours, tirelessly working for their food. Today, we’re only a call away with an unlimited amount of flavorful goodness. It would seem surprising, then, to explore that today, when the option of products could not have been greater, the food industry corporations never been so limited.

That’s why today we’ll be taking a look at the world’s largest food company, Nestle. Nestle is one of the biggest global organizations on the planet. Today, Nestle is among the world’s largest food and wellbeing companies in 86 countries.

History of Nestle

Nestle Case Study. The year is 1866, and two entrepreneurs on the opposite sides of Switzerland were getting ready to start their own companies. Charles Page, a former US diplomat who fell in love with Swiss green meadows and healthy cows. His dream was to build a condensed milk plant, aiming to replicate the success of the first such factory in the world that Gail Borden had founded in the USA ten years ago.

Charles had previously sent his brother George to that factory to try to learn more about Borden’s method, which involved evaporating the water in the milk and adding sugar. Together the brothers founded the Anglo-Swiss Condensed Milk Company, with the hope of becoming the British Empire’s primary supplier of canned milk.

At the very same era, Henri Nestle, a German refugee with an extremely ardent love for milk products, resided 100 miles southwest of the Page brothers. As being one of the 14 children in the Nestle household, Henri was deeply aware of the massive infant mortality rate throughout Europe. To help address the dilemma, Henri spent many years creating an inexpensive breast milk alternative, mixing milk with grain and sugar.

From 1867 on wards, Henri’s Farine Lactée became indispensable to Swiss society. By 1871, his baby formula had been distributed in Western Europe, with more than 1,000 cans pumping out everywhere in his factory. Henri sold over 2,000 just two years back.

In 1877, however, a new challenger rose to threaten Nestle. Although Henri had received pennies advertising his baby formula in Western Europe, the Page Brothers had made lots of money selling the condensed milk all over the globe. They had been the main supplier of the British Empire, as they initially planned, but by 1877 they had also expanded to the United States and Continental Europe.

Eager to grow their company, the Page Brothers began selling their own baby formula. To Henri, it was a declaration of war, and so he immediately launched Nestle-branded condensed milk in response, beginning an unwavering trade war which would continue for about 30 years. While both companies expanded during this time, rivalry affected their bottom line tremendously.

Henri and the Page brothers were proud men and were unwilling to concede, but by 1905, when all three of them were dead, the directors of the two companies agreed to a merger. The newly created company had a total of 20 factories and over the next decade Nestle would spread to every inhabited continent.

Phase of World War 1

Nestle Case Study. The advent of World War 1 seemed advantageous at first, since the world’s military knew how valuable canned milk would be. Eventually, however, Nestle discovered that they’d have no way to meet the additional supply: raw material scarcity and foreign economic sanctions left Nestle’s 20 plants vacant.

In reaction, Nestle began buying plants in the US, increasing their production rapidly and making Uncle Sam comfortable. By 1917, Nestle’s output had increased to 40 factories, and by 1921 this had increased to 80. World War I learned everyone a valuable life lesson: don’t hold your eggs in a jar.

In the thirties, Nestle opened manufacturing plants in Asia and Latin America, so that they would be prepared when the next war showed up. Coincidentally, this decentralization kept the Organization safe from the Great Depression and allowed them to develop one of their most renowned products: Nescafe. The inspiration for Nescafe goes to the government of Brazil, that required Nestle use its large surplus of coffee. The Brazilians proposed producing coffee balls, but Nestle ultimately chose to produce a dissolve powder instead.

Phase of World War 2

Nestle Case Study. In 1938, Nescafe reached the US stores with limited ads, but one year later it became the most successful coffee items in the world. In Nestle’s opinion, the beginning of World War 2 looked like a deja vu. At first demand grew rapidly, but the sheer scale of the global destruction left them with huge supply shortages.

Nestle’s saving grace came in 1941, when the US formally entered the war. Nescafe became a staple of the armed forces and government contracts propelled Nestle to record profits. World War 2 ended up being so profitable for the Organization, that they immediately started buying up the smaller European companies that weren’t so lucky. Their biggest investment arrived by very far 1947, when Maggi, the maker of numerous soups and spices, was purchased.

One year later, Nestle unveils two more genius product lines: Nestea and Nesquik, which soon hit Nescafe’s success level. Throughout the next decades they expanded mainly through acquisitions, entering various new markets, from frozen food to pharmaceuticals. One with their most profitable measures occurred in 1974 as they bought a 30 per cent interest in the French cosmetics group L’Oreal.

Even so, just three years later, Nestle was met with the first major dispute. US activists accused the Organization of using predatory marketing tactics to promote their breastfeeding substitutes in the developing world. The boycott quickly spread to Europe, and although this makes then eventually complied with the demands set forth by the World Health Organization, the boycott has been intermittently active to this day.

The Giant Expansion of Nestle – The Introduction of Kitkat

Nestle Case Study. The expansion continued throughout the 1980s, buying up brands like Friskies, KitKat and After Eight. During this time they also created Nespresso system. In 1992, Nestle wanted go all the way to mineral water, founding what would ultimately become the world’s biggest bottled water corporation. Ever since, their brand ownership has risen rapidly, but then so do several conflicts.

In 2002, Nestle demanded debt repayment from Ethiopia during one of the harshest famines in recent memory, eventually backing down after over 8,000 angry email complaints. In 2005 the CEO of Nestle claimed that people shouldn’t have a right to water, a claim that backfired so profusely that they’re having a Q&A web page dedicated to his apologies and backtracking.

Last but just not least, the cocoa industry, which would be the cornerstone of Nestle’s chocolate products, is indeed, interestingly, one of major centres of child labor, exploitation and trade in human beings. Despite the numerous lawsuits and calls for boycott, however, they’re only getting bigger than ever, owning over 2,000 different brands across the world. Since people are unlikely to give up on their delicious goodies any time soon, it’s safe to say that Nestle will continue expanding in the future.

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