One day in Switzerland, a pharmacist named Henry Nestlé decided to conduct some research in order to create a good mother's milk substitute for feeding infants. Such research formed the basis for the creation of such a production, which after some time grew into a fairly large corporation, Nestle.
From the milk ingredients used, wheat flour and sugar, Henry Nestle was able to develop a product that was later called Farine Lactee Henry Nestle. Translated it meant: “Henry Nestlé milk flour.” In 1867, Henry decided to produce and subsequently sell infant formula.
His main goal was to create the highest quality product (replacing breast milk) for newborns. The very first person to use the new product was a premature baby in the womb.
The baby’s body did not accept either mother’s milk or its substitutes that existed in those days. And the doctors could not help him.
Thanks to this product, the baby's life was saved. Within a couple of years, the successful corporation was recognized almost throughout Europe, and infant formula began to be sold with great success.
Competing company for the production of condensed milk
In 1886, the Anglo-Swiss Company for the Production and Sale of Condensed Milk, founded by two Americans - Charles and George Pages, significantly expanded its entire range and already in the 70s of the 19th century produced a breast milk substitute .
After Nestlé found out about this, it responded by producing and marketing its own brand of condensed milk.
These two companies were the main competitors in the dairy products market until they merged in 1905.
After the merger of two companies in 1905, vying for leadership in the production of dairy products, one was formed, which was called the Nestle and Anglo-Swiss Milk Company. By the beginning of the 20th century, several factories in Spain, the United States, Germany and Britain were under its management. And already in 1907, the company gradually began to conquer the entire Australian market, this allowed it to double its entire production volume.
Production logo
The logo was based on the family coat of arms, which depicted a nest with birds. When translated from German, the name of the corporation means “small nest.”
At that time, one of the sales agents suggested that Henry change the nest to a simple white cross found on the flag of the country of Switzerland, Henry refused with the words: “Unfortunately, I will not be able to accept this idea, since I cannot have different trademarks for each country. Anyone can use the cross, but no one can use my family crest.”
After the First World War, in order to satisfy all the needs of the population, factories needed to sell off almost all their supplies of fresh milk.
But there was also positive side for the company, the war began and there was a great demand for dry and condensed milk due to the fact that the government was ordering more and more of it.
In order to provide the entire government with the required amount of products, production was forced to purchase factories in the United States of America. By the end of the war, in comparison with 1914, the total production volume had doubled, there were already 40 factories.
Post-war time
The post-war crisis also affected the corporation. The entire government stopped making large orders as before. And people who had become accustomed to condensed and powdered milk during the war refused fresh milk.
In 1921, Nestlé suffered losses for the first time ever. The lull in the economy after the war, the depreciation of all currencies, as well as rising prices for necessary raw materials worsened the situation. Management had to respond as quickly as possible to this situation— Swiss banking expert Louis Duples was invited to reorganize them.
After bringing the general level of production and sales into line,
At the same time, having significantly reduced the resulting debt, he was able to take the situation into his own hands, and then establish excellent production operations.
In the twenties, chocolate production began, which later became the second most important activity. A little later, the assortment included such products as: powdered paste for children, instant drink “Milo”, Nescafe product, milk with malt.
This instant powder was able to create a worldwide sensation, successfully gaining unprecedented popularity among all coffee lovers.
Time of World War II
At the time when the second one began World War, its consequences could not but affect production activities. In 1938, all profits were able to decline sharply from twenty to six million dollars. Switzerland, being a neutral country, became increasingly isolated from Europe, and the production had to move most of its employees to Stanford, Connecticut.
At a time when all the soldiers and officers from the US Army entered the war, the Nescafe product became their main drink. And by the beginning of 1943, its sales volume reached more than a million packages.
Implementation successes
But by 1974, sales volumes of all products almost quadrupled. In the same year, all production positions began to undergo some changes. From the beginning of 1920, with the slowdown in the growth rates of the economies of industrialized countries and the increase in prices for “black gold”, the fall in exchange rates against Swiss money (francs), the economic situation of the corporation began to deteriorate.
As a result, from 75 to 77 of the twentieth century, prices for cocoa beans increased three times, and for coffee four times.
To maintain balance, I had to buy a controlling stake that had nothing to do with the food industry - Alcon Laboratories Inc., which was engaged in the production and sale of ophthalmic and pharmaceutical products.
Products in the modern world
Today it is difficult to imagine a product in the production of which this production would not participate - this is coffee, baby food, chocolate, culinary products and many other consumer products.
The world's first infant formula was created by Henry back in 1867, and since then, on the basis of fundamental and applied research, a large range of baby food has been developed in its research centers.
Video: The history of the world's largest food company
1905 – 1913
Belle Epoque
By 1905, after the merger of Nestlé and the Anglo-Swiss Company, the combined enterprise had more than 20 factories and began actively using foreign subsidiaries to establish a distribution network in Australia and countries in Africa, Asia and Latin America. Before the outbreak of World War I, the company became the largest international dairy producer and truly prospered, enjoying a period of prosperity known as the Belle Époque, or “Belle Epoque.”
1905
The Anglo-Swiss Company and Nestlé merge into one company, which is named Nestlé & Anglo-Swiss Milk Company and has two central offices - in the cities of Vevey and Cham. The company's third office will soon open in London, designed to increase export sales of dairy products. A few years later, the merged company expanded its product range to include sterilized milk as well as sweetened condensed milk.
1914 – 1918
Through the difficult years of the First World War
Beginning of the First World War in 1914 led to an increase in demand for condensed milk and chocolate, however, the lack of raw materials and restrictions on international trade seriously disrupted the production activities of Nestlé & Anglo-Swiss. In order to solve this problem, the company acquired a number of production and technological facilities in the USA and Australia, and by the end of the war it already had 40 factories.
1914
The First World War begins, and all of Europe turns into a battlefield, which negatively affects the company's production activities. On the other hand, as a result of hostilities, demand for Nestlé dairy products is growing, which is reflected in large government orders for the purchase of these products.
1915
Condensed milk is an easy to transport product with a long shelf life, making it extremely popular in the military. In particular, in 1915, the leadership of the British army included canned milk produced by Nestlé as part of the emergency food supply for soldiers. Such an active growth in demand for this product leads to the fact that all the company’s dairy factories are working at maximum capacity.
1916
Nestlé & Anglo-Swiss acquires Norwegian dairy company Egron, which has patented a spray-drying process for producing milk powder, a product that the company's new owner immediately begins to actively market.
1917-1918
A shortage of milk in Switzerland leads Nestlé & Anglo-Swiss to help the local population and begin supplying its own supplies of fresh milk to cities and towns in Switzerland. In order to fully satisfy the demand of the worried population for condensed milk, the company acquires several dairy factories in the United States and signs a supply agreement with a number of Australian companies, which subsequently merge with Nestlé.
1919 – 1938
An era of crisis and a time of opportunity
After the end of the First World War, the demand for canned milk fell sharply, which led to a serious crisis for the Nestlé & Anglo-Swiss company, which erupted in 1921. Things improved in subsequent years, but the catastrophic fall in the price of securities on the New York Stock Exchange in 1929 and the associated deterioration in the purchasing power of the population led to a new aggravation of the company’s crisis. However, during this period, many positive things were achieved - in particular, the level of professionalism of the company's management staff increased significantly and research activities were centralized, and a number of new products were launched onto the market - for example, Nescafé coffee.
1921-1922
Falling prices, coupled with high levels of available food reserves, led in 1921 to the first and only financial losses in the company's history. To overcome the recession, banker Louis Dapples was appointed to the position of Anti-Crisis Manager, who realized his plan to attract professional managers to senior positions in the company. As a result, management was centralized, and all the company's research activities were concentrated in one laboratory located in the city of Vevey in Switzerland.
1929
Nestlé & Anglo-Swiss acquires the largest Swiss chocolate company Peter-Cailler-Kohler, founded in 1819 by Francois Louis Cailler, who, in addition, named the country's first chocolate brand, Cailler, after him. Thus, since 1929, chocolate production has become an essential integral part of the business of Nestlé & Anglo-Swiss Company.
1934
In 1934, the malt chocolate drink Milo was launched on the Australian market, the success of which led to the rapid export of this product to other markets. In addition, during the interwar period the company continued to develop food products for children and infants and in 1934 began the production of whole milk powder Pelargon, which was specially enriched with fermented lactic bacteria in order to be better absorbed by the children's stomach.
1936
The intense competition in the chocolate market in Switzerland prompted the merged company Nestlé-Peter-Cailler-Kohler to launch Galak white chocolate and then, a year later, honey-filled chocolate with air bubbles under the Rayon brand. In the 1930s Vitamins became the sales leader in the healthy products category, as a result of which in 1936 Nestlé, following the global trend, launched the Nestrovit vitamin supplement.
1938
In 1938, the legendary Nescafé instant coffee was launched - a product that retained the natural aroma of coffee and was very easy to prepare: all you had to do was simply add hot water. Instant coffee was invented by chemist Max Morgenthaler, who began his work in this direction back in 1929, when, at the request of the Brazilian government, Nestlé & Anglo-Swiss began developing new types of products that could solve the problem of marketing surplus coffee in Brazil.
1939 – 1947
Withstanding the onslaught of the storm
The outbreak of World War II in 1939 had a severe impact on almost every market, but Nestlé & Anglo-Swiss managed to continue its business even in such difficult conditions, supplying food not only to civilian consumers, but also to the armed forces. In 1947, Nestlé's range of products included Magg soups and seasonings, and the company itself received a new name - Nestlé Alimentana.
1939
Fearing that the Axis powers might occupy Switzerland, Nestlé & Anglo-Swiss moved some of its managers to its new office in Stamford in the US, which served as the company's second headquarters throughout the Second World War. Fighting In Europe, the possibility of exporting dairy products from this region was closed, as a result of which the company significantly expanded its own production in Latin America, and also organized the purchase of relevant resources in the USA and Australia and supplied them to Asia and Africa.
1942-1945
The Second World War initially led to a decline in Nescafé sales, but the situation gradually stabilized. After the United States entered the war, Nestlé brands quickly became extremely popular among American military personnel, and at the very end of the war, Nescafé was even included in the humanitarian aid provided by the CARE organization to citizens of European countries and Japan. In addition, at the end of the 1940s. A drink under the Nestea brand was launched on the market.
1947
Nestlé & Anglo Swiss merges with the Swiss company Alimentana, which produces Maggi soups, broths and seasonings, and after the merger the newly formed company is named Nestlé Alimentana. Alimentana's history dates back to 1884, when Julius Maggi developed a protein-rich powdered soup to help solve the problem of malnutrition.
1948 – 1959
Everything for the convenience of the consumer
The post-war period saw a significant increase in prosperity, and consumers throughout Europe and the United States were happy to spend money on electrical appliances that made their lives easier and more comfortable, such as refrigerators and freezers. And, of course, that's all more people gave preference to semi-finished and instant food products - and that is why Nestlé Alimentana, meeting consumer preferences, was actively developing new products - for example, ready-made drinks and meals under the Nesquik and Maggi brands.
1948
In 1948, Nestlé Alimentana introduced Nestea instant tea to the US market, which is produced using the same technological method as Nescafé, and both drinks can be served either hot or cold. In addition, Nesquik cocoa, which easily dissolves even in cold milk, was released onto the US market, which very soon became a sales leader.
1954
Back in 1948, consumers were introduced to a new instant porridge for children, but in 1954 this product was rebranded and the porridge received a new name, under which it is still known - Cerelac. In the same year, a powdered seasoning was launched on the market under the Fondor brand, which was part of the Maggi product line and was previously produced exclusively in the form of a bouillon cube. Fondor seasoning, being packaged in an easy-to-use box with holes, could now be used not only during the preparation of a dish, but also directly during the meal.
1957
This year, a completely new product was launched in the market - canned ravioli under the Maggi brand. The stunning success of this product encouraged Nestlé to develop and launch more canned instant meals, which were soon spun off into a separate product category.
1960 – 1980
From frozen foods to pharmaceuticals
Acquisitions of new assets allowed Nestlé to expand its business into new, rapidly growing and dynamically developing market segments - for example, the frozen food category. In addition, during this period Nestlé significantly expanded its traditional coffee, dairy and canned food businesses. In the 1970s the company diversified its own activities by entering the market medicines and cosmetic products. At the same time, Nestlé's business began to attract increasing criticism from various community groups and civil activists who argued that marketing food products to children was inherently unethical. Subsequently, Nestlé will become one of the first companies to fully guarantee, across all of its businesses, that its activities comply with the requirements of the World Health Organization (WHO) Code for the Marketing of Breast-milk Substitutes.
1960
As the number of consumers purchasing refrigerators increased, the demand for ice cream also grew rapidly. In order to profit commercially from this trend, Nestlé acquired the German company Jopa and the French company Heudebert-Gervais, which specialized in the production of ice cream, and in 1962 it merged the acquired assets with Swiss brand Frisco. In addition, in 1960, Nestlé bought the British canned food company Crosse & Blackwell.
1962
Nestlé acquires the Findus frozen food brand, previously owned by the Swedish company Marabou, and also significantly expands the scope of sales of products under this brand to a number of international markets. This asset turns out to be a very successful acquisition, since since 1945 Findus has been one of the most successful frozen food businesses in Europe.
1968
Refrigerated dairy products are becoming increasingly popular around the world, and Nestlé, in an effort to meet the preferences of its own consumers, acquires the French company Chambourcy, which specializes in the production of yoghurts. In the early 1970s. Nestlé is launching a new line of yoghurts under the Sveltesse brand, the target audience of which is consumers who care about their health, weight and proper nutrition.
1969
Nestlé expands its activities into the mineral water business and buys out an equity stake in the French company Vittel.
1973
In pursuit of strengthening its own line of frozen and canned products in the Anglo-Saxon markets, Nestlé acquired the American frozen food company Stouffer Corporation, and three years later, in 1976, the canned food business Libby, McNeill & Libby.
1974
For the first time in its history, Nestlé, diversifying its own activities, goes beyond its traditional sphere - the production of food and beverages - and becomes a minority shareholder of L’Oréal, the global leader in the world market of cosmetics and perfumes.
1977
Renamed Nestlé S.A, the company continues its long-term strategy to diversify its activities and acquires the American manufacturer of pharmaceuticals and ophthalmic products Alcon Laboratories. During the same period, the decline in the popularity of breastfeeding prompted a number of public figures and civil activists to criticize the marketing strategy of many companies involved in the production of baby food products, including Nestlé. As a result, in 1977, civil activists called on consumers to boycott Nestlé products.
1981 – 2005
On the way to achieving your goal
Become a leader in food production and an expert in the field proper nutrition and healthy lifestyle
Years of high results and confident growth allowed Nestlé to make a difficult decision and, having gotten rid of non-profitable brands, begin to actively promote those products that were designed for target audience companies - consumers who care about their health. The promoted brands must fully comply with Nestlé's global ambitions - to be a leader in food production and an expert in the field of proper nutrition and a healthy lifestyle. During this period, the company significantly expanded its own activities in the USA, Eastern Europe and Asia, and also set itself an ambitious goal - to take leadership positions in the categories of ice cream, mineral water and pet products.
1981
In 1981, Nestlé launched the Stouffer's Lean Cuisine brand, low-calorie, low-fat frozen foods. It doesn't take long for the new brand to achieve truly outstanding sales figures. In the same year, Nestlé and L’Oreal created a new joint venture - the dermatological company Galderma. In addition, in 1981, the World Health Organization (WHO) adopted the Code of Marketing of Breast-Milk Substitutes, and Nestlé became one of the first companies to make adjustments to its activities and fully adapt them to the requirements of this document.
1985
Nestlé is investing $3 billion in the acquisition of the American company Carnation, thereby expanding its own product line and complementing it with two new brands - Carnation and Coffee-Mate. In addition, Nestlé is expanding its business activities into a new market segment - the production of pet products - and acquiring the world famous Friskies brand.
1986
In 1986, the history of the Nespresso brand began - and it began with a simple and wonderful idea: to give every consumer the opportunity, like a real barista, to make himself a cup of excellent aromatic coffee.
1988
Nestlé acquires the British confectionery company Rowntree Mackintosh and thereby significantly expands its own product line, complementing it with the KitKat, After Eight and Smarties brands. In the same year, Nestlé buys Buitoni-Perugina, an Italian group of companies specializing in the production of pasta, seasonings and confectionery.
1991
Nestlé and General Mills are establishing a new joint venture, Cereal Partners Worldwide, to produce and market breakfast cereals worldwide. Another joint venture, Beverage Partners Worldwide, is being established with the Coca-Cola Company. The newly formed company is being created to develop, produce and market a range of brands, including Nestea.
1992
Nestlé strengthens its position in the mineral water category and acquires France's Perrier Group. In addition, in 1993, the Nestlé Sources Internationales business was established as a separate division of the company, which would subsequently be renamed Nestlé Waters in 2002.
1997
Nestlé's new Chief Executive Officer, Peter Brabeck-Letmathe, sees huge growth potential in the development of personalized nutrition products. It was he who, on the threshold of the millennium, at the turn of the millennium, voiced the global task of Nestlé - to constantly maintain its position as a leader in food production and an expert in the field of proper nutrition and a healthy lifestyle.
1998
Nestlé acquires the Italian mineral water business Sanpellegrino Group. A new brand of drinking water, Nestlé Pure Life, is launched in developing countries, and two years later another brand, Aquarel, is launched in Europe.
2000
In 2000, the Nestlé Sustainable Agricultural Initiative (SAIN) was launched and began to be implemented, designed to establish close and fruitful cooperation between the company and local farmers. The goal of this initiative is to help rural producers improve their quality of life, as well as ensure a continuous and environmentally sound supply of key agricultural inputs.
2001
Nestlé is acquiring the US pet food business of Ralston Purina and merging it with its Nestlé Friskies Petcare division, creating a new market leader in pet products - Nestlé Purina Petcare.
2002
Having made an expansion own business production of ice cream in the 1990s, Nestlé took a break and only some time later, at the beginning of the new millennium, bought the license rights to produce premium ice cream Hä agen-Dazs in the USA and Canada. Somewhat later, in 2003, Nestlé acquired other companies from this business area - Mövenpick and Dreyer’s Grand Ice Cream. In addition, Nestlé is investing US$2.6 billion to acquire Chef America's frozen food business.
2006 – Present
Creating Shared Value
During this period, Nestlé for the first time officially announced an innovative approach to doing business, which was called “Creating Shared Values.” In addition, two other Nestlé programs were launched at the same time - Nestlé Cocoa Plan and Nescafé Plan, designed to promote the creation and effective functioning of sustainable and environmentally friendly coffee and cocoa supply chains. Over the past decade, Nestlé has continued to strengthen its position in traditional segments of its activities - in particular, in the infant formula and frozen food businesses, and is also paying increasing attention to the medical nutrition category.
2006
Nestlé announces the adoption of a new, socially oriented approach to doing business, which is called “Creating Shared Value”. The basis of this approach is the belief that every company action that brings profit to shareholders must, at the same time, benefit the local communities in which Nestlé operates and society as a whole. In the same year, Nestlé acquired Jenny Craig, a business developing and creating weight control products, as well as the Australian company Uncle Toby’s, specializing in the production of breakfast cereals.
2007
Nestlé is paying increasing attention to the medical nutrition product category and, to strengthen its focus on this market segment, is acquiring the Novartis Medical Nutrition business. In addition, in 2007, Nestlé acquired the baby food company Gerber, as well as the Swiss concern Sources Minérales Henniez, specializing in the production of mineral water.
2009
Nestlé is organizing the First Creating Shared Value Forum in New York. Leading experts from many countries of the world actively participate in this event, discussing global challenges in the field of nutrition, conservation of water resources and development of agricultural regions, as well as the role of business in solving these problems. Subsequently, this Forum becomes an annual event. In the same year, Nestlé created a separate business in the field Catering, which, like the whole company, is called Nestlé.
2010
Nestlé is acquiring Kraft Foods' frozen pizza business. This same year, Nestlé is launching two new initiatives - the Nestlé Cocoa Plan and the Nescafé Plan, which are designed to contribute to the creation of sustainable and environmentally friendly coffee and cocoa supply chains, as well as contribute to improving the quality of life and improving the social conditions of farming communities, ensuring profitability of their production activities.
2011
In 2011, new divisions of the company were created - Nestlé Health Science and Nestlé Institute of Health Sciences, whose task is to develop based on advanced scientific achievements food products, the use of which will contribute to the prevention and treatment of various chronic diseases. Additionally, in 2011, Nestlé became the first food company to work closely with the Fair Labor Association (FLA) to address illegal child labor in cocoa supply chains.
2012
In order to strengthen its position in the baby food segment, Nestlé is acquiring the business of Wyeth Nutrition (formerly Pfizer Nutrition) for an amount of $11.9 billion.
2013
The Nestlé Health Science business acquires the American company Pamlab, which specializes in the production of therapeutic nutrition products for patients suffering from various chronic diseases, in particular mild cognitive impairment and depressive disorders. The same year, Nestlé sold its American and Australian weight management products business to Jenny Craig.
2014
Nestlé establishes new business- Nestlé Skin Health - and completely buys out from its partner, L'Oréal, the share in the joint dermatological venture Galderma, which was created back in 1981. In addition, both companies - Nestlé and L'Oréal - are closing another joint Innéov business, established in 2002, was engaged in the production of cosmetic food additives. In turn, part of the assets of this enterprise is acquired by Galderma.
2015
Nestlé launches its first super-premium chocolate on the international market under the Cailler brand, a brand that is historically the oldest brand of Swiss chocolate. Additionally, in 2015, Nestlé is selling its French frozen food business, Davigel.
The Nestle company is now a huge corporation that produces a wide variety of products - chocolate, coffee, mineral water, ice cream, baby food, yoghurt, animal food, cosmetics, etc. The production volumes are so large that, perhaps, every average person has purchased products from Nestle at least several times. This company rightfully deserves to be included in the list of the largest and most successful food manufacturers on the world market.
Birth of Nestlé
Henry Nestle was a pharmacist by profession. In the 1860s, he became concerned about the lack of alternative feeding for infants, and began conducting experiments using milk, sugar and flour. Many babies, for one reason or another, cannot be fed with their mother's breast milk, and Henry Nestlé wanted to help them by creating a different way of feeding. In addition, at that time, many mothers did not know how and did not know how to properly care for themselves so that their breast milk was healthy. As a result, their kids did not receive sufficient quantity necessary substances and just died. Henry Nestlé solved this problem by creating the first infant formula called Nestlé Milk Flour.
Interesting fact: Before his epoch-making invention, Henry Nestle was engaged in more trivial things - he sold mustard, vinegar and gas for lanterns.
Nestlé's infant formula gained universal recognition after this product saved the life of one baby. He was born very weak and his body did not accept mother's milk or any other substitutes. He simply could have died if it had not been for Nestlé Milk Flour, which was literally a saving formula for him. This case became known in many European cities, and Nestlé's milk formula became extremely popular.
History of the logo
Henry Nestlé understood that for a brand to succeed, it needed a corporate logo that would distinguish it from others. For this logo, Henry chose the image of his family's family coat of arms - a nest with chicks. This image became the symbol of the family, since “nestle” in the Swiss dialect is translated as “small nest”. And although his consultants insisted that the logo be a different image - a white cross, Henry was adamant on this issue. “The image of the cross is everywhere. And many people use it. But only I can use my family symbol, and no one else.”
Interesting fact: the Nestle logo originally featured a nest with three chicks and a mother bird. In the late 1980s, one chick was removed from the image. The company's managers made this decision based on the fact that in those years in most European countries the average number of children in families became two, and not three, as it was before.
Competition
Founded almost 10 years before Henry's company, Charles and George Page's business, the Anglo-Swiss Condensed Milk Company, became a major competitor to Nestlé. In the 1970s, this organization began active efforts to increase its range, adding more and more new dairy products to it. On that moment Nestle company already belonged to Jules Monera and he was not going to give up before his opponent. In response, they launched the production of condensed milk under the Nestle brand, which was a level higher in quality than what Pages offered.
In addition to competitors, Nestle also had friends. For example, milk chocolate, beloved by many sweet tooths, was invented by Henry Nestlé’s friend and neighbor, Daniel Peter. Having implemented a seemingly simple idea - adding milk to cocoa powder - Peter founded a successful company that broke all records for chocolate sales. Subsequently, this company became part of the Nestle corporation.
Conquering the world market
The Nestle company entered the twentieth century already having its production branches in Germany, Spain, Great Britain and America. And after 5 years, Nestle merged with its aforementioned competitor - the Anglo-Swiss Condensed Milk Company. Active construction of Nestle branches began in many of the world's largest cities; product exports grew along with increased consumer loyalty. Already in 1907, the markets of Australia, Singapore, and Hong Kong were developed.
World War I
The First World War did not have the best impact on Nestle's activities. The company was forced to sell almost all of its milk reserves to the public, as there was a sharp shortage of food products. However, in those years, Nestle made good money from the production of condensed and powdered milk, as the country's government placed large orders of these products, which were then sent to soldiers and other people in need. Because of such a stir around condensed milk, Nestle had to open additional factories to satisfy the need for this product. By the end of the war, Nestle already had about 40 production points.
However, the end of the war was not entirely a happy event for Nestle commercially. Large orders from the government stopped. Although fresh milk was on sale, the population was in no particular hurry to buy it, since during the war years they had already become accustomed to powdered and condensed milk and did not want to return to fresh milk again. In order to somehow stabilize the situation in the company, Nestle management invited an expert from Switzerland, Louis Dulles, to cooperate. Thanks to his talent and management skills, Nestle was able to achieve an optimal ratio of production and sales, and pay off all accumulated debts without any problems.
New products
In the 1920s, Nestle began actively introducing new products into its product range. A big bet was made on chocolate and chocolate products. These products have become Nestlé's second most important products, of course, after dairy products.
Products aimed at children have also appeared. For example, powdered pasta and a drink called “Milo”. The year 1938 became especially legendary - then the world saw the Nescafe product. Nescafe instant coffee began to conquer the world market at cosmic speed, thanks to its low price, pleasant taste and competent marketing campaign.
The Second World War
The war again brings losses to Nestle. In just a year, the company's income decreased from 20 million to 6 million. Due to the fact that Switzerland became increasingly isolated from the rest of the world, the supply of products to other countries was difficult. Part of the production and specialists had to be transferred to the United States of America. American soldiers adopted Nescafe as their daily staple drink, and by mid-war sales were astonishing.
By the year the war ended, Nestle's profits reached $225 million. The company has become the absolute leader in the production of coffee, chocolate and other products.
Formation of the holding
After the war, events in the life of the Nestle company brought it only positive results. There was an active expansion of production, increasing sales and popularity of the brand. Nestle, Alimentana S.A. and Maggi Company announced their merger. This is how a holding company called Nestle Alimentana Company appeared.
But this was not the end of Nestle’s merger with other companies. Exactly in the middle of the century, the Crosse & Blackwell company, which produced canned food, became part of Nestle. Then the Findus company joined, producing and selling frozen vegetables and fruits.
Already in the 1970s, Nestle acquired the production of Libby fruit juices and Stouffer frozen foods.
Going beyond food
Despite the fact that Nestle has always been engaged in the production and sale of food products exclusively, and has done this very successfully, it still decided to expand globally. In the mid-1970s, Nestle became the owner of a large stake in L'Oreal, the undisputed leader in cosmetics products.
All in the same 1970s Nestle stories bad times began again. Slowdown economic development many countries, a fall in exchange rates, an increase in oil prices - all this marked a deterioration financial situation Nestle. In order to somehow improve the situation, Nestle had to again take a responsible step - to acquire shares of Alcon Laboratories Inc., a company that worked in the field of ophthalmology and pharmaceuticals. Why was this move risky? Because Nestle did not yet have a relationship with these industries, and it was quite difficult to predict how this would affect future activities. However, Nestle coped well with cosmetics, pharmaceuticals, and ophthalmology.
In the early 1990s, Nestle began its most favorable period in its activities. All barriers to export and trade that had been present until this time were removed. The successful development of new markets in Europe and Asia began, which gave Nestle endless opportunities and prospects for development.
What do we have now? When you go to any grocery store, you are sure to find products on the shelves that are somehow related to the Nestle company. Coffee, chocolate, baby food, canned food, drinks, seasonings, and other culinary products - Nestle has produced and continues to produce all of this. Nestle products are supplied to more than 60 countries around the world, and in many of them they are the best sellers among competitors.
Nestle is the world's largest company that produces food, animal feed, and cosmetics. The company's motto is “Quality of products, quality of life.” Nestlé invites consumers to healthy image life, purchasing only high-quality and proven products. Where did the history of the most famous brand today begin?
A pharmacist from Switzerland named Henri Nestlé in late XIX century was puzzled by the creation of a formula for baby food that would exactly replicate mother's milk. He is driven to research by his wife Clementine, the daughter of a doctor. She often helped her father and saw many child deaths. Clementine knew that nutritional problems were one of the common causes of infant death. She asks her husband to help. And he succeeds! Henri produces Farine Lactee Henry Nestle, consisting of milk, flour and sugar.
Inspired by the success, the pharmacist decides to open his own small company that would produce milk. He manages to do this already in 1867. Henri Nestlé transfers the family coat of arms (a nest with three chicks) to the company logo.
One sales agent suggested that the pharmacist change the sign to the cross found on the Swiss flag, but he firmly refused. In 1988, the coat of arms underwent a change - instead of three chicks, there were two on it. This is a simple association with families of that time. Europeans and Americans of the late 20th century most often had two children.
First client. The company's first client was a baby with an allergy to breast milk. The poor baby couldn't stand cow's milk either. The doctors shrugged their shoulders. Henri Nestlé offered the child dry formula own production, and it did not cause allergies! The child was saved thanks to Nestle. The case caused a stir in the country and the pharmacist’s mixtures began to quickly sell out not only in Switzerland, but throughout Europe. Henri's pocket gradually became fuller.
Competitors Charles and George Pagedie were also not sitting idle. Since the 70s of the 19th century, their condensed milk plant has been producing formula for baby food. The Nestle plant could not stand it and started producing condensed milk in response. Before 1905, the two companies were fierce competitors in the dairy market. At this time, Nestlé had already opened factories in Spain, Germany, the USA and the UK. In 1905, the two companies merged to form the Nestle and Anglo-Swiss Milk Company. From this time on, the owners began active work to expand the sales market, beginning to capture Australia.
Useful video: corporate film about history.
What did the World Wars bring with them?
The First World War brought with it serious problems. The entire production power of the company was located in the territory of the “Old World”, but the path there was practically closed. Almost all supplies of fresh milk have come to an end. But the population needed a large amount of powdered and condensed milk - this saved the company in difficult times. Thanks to a government order for the army, Nestle is confidently staying afloat in the remaining war time. The company even buys several factories in the USA. When the war ends, Nestlé has almost 40 factories - double what it was in 1914.
Interesting fact. Many people associate the company with chocolate, but it makes up only three percent of total sales.
The post-war period hits production quite hard. Raw materials are becoming more expensive, exchange rates are falling... The economy has calmed down. At this difficult time, Louis Duples appears, a banking expert who saved the company from collapse. Having reformed production, he established trade again. At the same time, Nestle is expanding its product range. Chocolate, malted milk, baby powdered pasta and the well-known Nescafe coffee, which created a real sensation, are on sale!
During World War II, Nestle again expanded its sales. Coffee, condensed milk and chocolate are literally flying off the shelves. If in 1943 the income was equal to 100 million dollars, then by 1945 it was 245 million, and precisely Nescafe brings this success to the company.
New mergers
In the post-war years, Nestle actively replenishes its production and expands its range. The merger with Alimentana S.A and Maggi provides an opportunity to sell instant soups and seasonings. In 1950, Crosse & Blackwell joined Nestlé, and in 1963, Findus. The company now sells canned soups and frozen foods. In 1971, after merging with the Libby brand, Nestlé established the production and sale of fruit juices. By 1974, the company's sales soared by 50%.
Beginning changes
In 1974, Nestlé expanded beyond the food trade and acquired shares of the famous cosmetics brand L’Oreal. This is done to maintain balance. After all, prices for cocoa beans are doubling, and prices for coffee are tripling. For the same purpose, the company is buying shares of the pharmaceutical company Alcon Laboratories Inc. Nestlé remains afloat and, since the 90s of the 20th century, has eliminated trade barriers. New European and Chinese markets are opening up...
Work in the 90s of the last century
In 1997, the board of directors decided to purchase an Italian brand of drinking water San Pellegrino. In the same year, the company was headed by Peter Brabeck-Letman, who preferred to invest money in the most profitable areas of the market. A little later the stamp was bought Spiller Petfoods. But the company's biggest deal was the merger with the company Carnation. Her brand Friskies, which Nestlé acquired for $3 billion, brings the company unprecedented revenue and firmly positions it in the pet food trade market. Brabeck is considered one of the most active directors of the company, who almost completely rebuilt it.
Nestle today
Today it is difficult to meet a person who has not heard about the Nestle company and has not tried its products. In any store you can find baby food, coffee, quick breakfasts and other products from Nestle. The company owns a huge amount factories around the world, including in Russia. More than 60 countries around the world love and respect this brand!
This is interesting. Nestlé owns 461 factories around the world, 83 countries and 330 thousand workers are engaged in the production of goods.
Nestle in Russia
Nestlé began its business relations with Russia back in the 19th century. Alexander Wenzel signs a contract for the supply of dairy products to our lands, thereby opening cooperation with the brand for many years.
A new round of relations occurred only in the 20th century. In the 90s, the distribution network was actively developing, offering the population mainly coffee. Already in 1996, Nestlé became a full-fledged company in Russia, having established a sales and import system. In 2007, the company received a new name in our country, “Nestlé-Russia”.
Competitors. The company's main competitors are PepsiCo, Mars, Unilever.
Today Nestle is the largest food and beverage company. Long-term success is not a simple coincidence. This is the result of hard work and diligence of the board of directors, which did not give up in the most difficult times. Active promotion of brands, constant mergers with smaller companies, endless expansion of the sales market - all this has led Nestle to stunning success!
Useful video: corporate film about activities in Russia.
Difficult in modern world find a person who would not be familiar with Nestle products and would not pay attention to its logo - a nest on a branch with a bird that brought food for two chicks who stretched out their small beaks towards her.
But few people know that the history of this company goes back 150 years, and the first product it released was infant formula for feeding babies - a breast milk substitute.
Nowadays, Nestle is a huge corporation producing food, pet food, cosmetics and medicines with its main office in the Swiss city of Vevey.
Origins
The founder of the company is Swiss entrepreneur Henri (Henry) Nestlé, who, having graduated as a pharmacist, borrowed money from a wealthy relative, bought a small production facility and started making liqueurs, absinthes, vinegar, lamp oil, etc. Marriage and the birth of a child gave him the idea to experiment with the creation of baby food through different combinations of cow's milk, sugar and wheat flour.
His efforts were rewarded: the infant formula saved the life of a neighbor's newborn child, whose body did not accept either mother's, cow's, or goat's milk. This served as motivation to continue working in this direction, especially since at that time - in the second half of the 19th century - many newborns died due to insufficient or improper nutrition.
So in 1866, the innovative product Farine Lactee Henri Nestle, or “Henri Nestle's Milk Flour,” was created, and then the company for its production, named after the creator of baby food. The unique formula provided the body of newborns with all the necessary vitamins and microelements. As a trademark, which is now well known to everyone, the family coat of arms was chosen - a nest with birds (“nestle” in the Swiss dialect of German means “small nest”).
Within a few years, Nestle baby formulas literally conquered Europe, saving babies or simply making life easier for their mothers.
First merger of two companies
At the same time, two brothers - Americans Charles and George Page founded a company called the Anglo-Swiss Condensed Milk Company and opened the first factory in the Swiss town of Cham: Switzerland is famous for its mountain pastures where cows that produce the famous Swiss milk graze. The brothers began supplying their product under the Milkmaid brand to European stores. They positioned it as an excellent alternative to fresh milk, especially since condensed milk had the great advantage of a long shelf life.
Nestle perceived this company as their competitors and, in order not to lose their position in the market, took a counter-move - they introduced condensed milk to the market under their own brand.
The two companies begin to compete with each other in the production of infant formula and condensed milk, increasing production and sales. Nestle's competitors enter the American market, but one of the brothers dies, and the second decides to merge with Nestle, which happened in 1905. New company became known as Nestle and Anglo-Swiss Milk Company (“Nestle and the Anglo-Swiss Dairy Company”).
New markets and war
But before that, several other important events happened at Nestle. In 1875, Henry Nestlé sold the company to three businessmen, a move that allowed it to hire more skilled workers and increase sales. That same year, Henry Nestlé's friend Daniel Peter developed a milk chocolate recipe by mixing cocoa powder with condensed milk, which Henry supplied him, and founded Peter & Kohler. Nestle acquired the right to export its chocolate products, which conquered the world market. Later, Peter & Kohler would also become part of Nestlé.
At the beginning of the 20th century, Nestle factories opened in Great Britain, Germany, Italy, Spain and the USA, and in 1907 in Australia. To supply the Asian market with its products, Nestle is building warehouses in Bombay, Hong Kong and Singapore.
The First World War made significant adjustments to the plans of the company, whose main production facilities were located in Europe. As the population's demand for powdered and condensed milk increased during the war and, in addition, government orders began to arrive in large quantities, there was a shortage of fresh milk in Europe. To improve the situation, management decides to buy several factories in America.
By the end of the war, Nestle had 40 factories, and sales doubled.
Crisis and expansion of assortment
The war ended, and an economic crisis began in the company - it began to incur losses. The market no longer needed such quantities of condensed and powdered milk. In addition, commodity prices have risen and exchange rates have fallen sharply.
To get out of a difficult situation, management invited the famous banking expert Louis Duples, who turned the situation around. One of his decisions was to expand the range of products: in the 20s it was chocolate, which became as popular as condensed milk and Nestle baby food, and in 1934 the company began producing a signature malt drink under the Milo brand, powdered paste for children and milk with malt.
In 1938, Nestle launched a product that became truly revolutionary - the world's first instant coffee, Nescafe.
His background is as follows: in the 30s of the 19th century, the Coffee Institute in Brazil was trying to solve the problem of creating new products from surplus coffee stocks and turned to Nestle for help. For eight years, the company's employees worked on the formula for instant coffee and developed the technology for its production, as a result of which the famous drink appeared, which quickly gained popularity.
A significant role in this was played by the fact that the drink is easy to prepare - you just need to dissolve it in either hot or cold water. It has a long shelf life and to prepare it you do not need to purchase a coffee grinder, a coffee maker, or a Turk.
War again...
At the end of the 1930s, Europe was again on the offensive Hard times- World War II begins. Like many other companies, Nestle is again suffering losses: in the 39th year alone, its profit decreased more than three times - from 20 to 6 million dollars. Its management is taking the same steps to save the business as during the First World War - opening new factories in developing countries.
And again, like condensed milk once did, instant coffee saves the situation - it is purchased in large quantities for the American army, due to which production and sales volumes increase, and the company becomes a leader in the global coffee business.
New strategies
The post-war years were marked by rapid development of the company. This is facilitated by a significant expansion of the product range, including through mergers with other companies. For example, in 1947 - with the company Alimentana S.A., which produces dry soups and Maggi food seasonings.
In 1950, Nestle acquired the British canned food company Grosse & Blackwell, in 1963 the Findus company for the production and sale of frozen foods, in 1971 the Libby company for the production and sale of fruit juices, and in 1973 it bought out controlling interest in the Stouffer company, which produces and sells frozen foods.
Earlier, in 1948, Nestlé began producing Nestea bottled iced tea. And in 1966, its employees developed a technology for low-temperature drying of coffee beans and began producing instant coffee under the Taster’s Choice brand.
Thus, Nestle's product diversification policy contributed to the fact that its sales volumes increased 4 times in 1974.
But Nestle management was not going to rest on its laurels: it decided to develop other markets and bought shares of L’Oreal, a leader in the cosmetics market.
However, despite the success domestic policy, Nestle's economic situation is deteriorating. It is affected by the price of oil and the fall in exchange rates against the Swiss franc. Nestle management quickly responds to new conditions and takes risks, increasing sales in the markets of China, Central and Eastern Europe and developing countries, where at that time there was a rather unstable political and economic situation. In addition, Nestle acquires a controlling stake in the American company Alcon Laboratories, Inc, a manufacturer of pharmaceutical and ophthalmological products.
Company strategy in 1980–1984 consisted mainly of getting rid of unprofitable enterprises, and when its economic situation stabilized, it began to acquire strategically profitable ones. Thus, in 1985, an agreement was signed to purchase the largest American food company Carnation and its Friskies brand for $3 billion.
Purchased in 1988 British company Rowntree Mackintosh, specializing in confectionery. In '97 - the Italian mineral water company San Pellegrino, in '98 - the British pet food manufacturer Spiller Petfoods and the American Ralston Purina, also involved in the production of animal food. The Findus trademark was sold in 1999. At the same time, Nestle is closing a number of production enterprises ground coffee in the USA, and focuses on the production of the luxury Nescafe line.
Thanks to the purchase of the Greek company Delta Ice Cream in 2005, and the American Dreyer’s in 2006, Nestle becomes the world leader in ice cream production, controlling almost 20% of the market for this product.
The following year, the company buys Medical Nutricia, a division for the production of artificial feeding products, from the transnational pharmaceutical company Novartis International, and in 2007, Gerber, which produces baby food.
Company today
To date, Nestle Corporation products have captured 1.5% of the world market. Its assortment includes over two thousand trademarks. These are dairy products and baby food, instant coffee and chocolate, broths, mineral water and animal feed, pharmaceutical products and cosmetics. It is hardly possible to find a person who has not at least once purchased any product under the Nesquik, Maggi, KitKat, Nescafe, etc. brand, owned by Nestle.
The company owns more than 400 factories in almost a hundred countries around the world, and annual sales in 2014 amounted to more than 90 billion Swiss francs. The company's capitalization is 230 billion Swiss francs, and its net profit is almost 15 billion. The number of employees is approaching 350 thousand.
Nestle entered the Russian market in 1995, and, in addition to international brands, it is represented by local ones: Zolotaya Marka chocolate, Russia is a generous soul, Bystrov porridge, 48 kopecks ice cream, Holy Spring water and etc.
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