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Nestlé has its sights set on new growth concepts

Nestlé has its sights set on new growth concepts

In 2008, the Nestlé Group achieved above target organic growth of 8.3 percent and consolidated sales of 109.9 billion Swiss francs (CHF), an increase of 2.2 percent over the previous year. In 2009 Nestlé aims to seize further growth opportunities with the ability to take advantage of a wide variety of market conditions around the world. To this end, nutrition, health and wellness as well as “Popularly Positioned Products” are to be highlighted as growth platforms and programs to increase efficiency are to be accelerated.

“We believe that in line with Nestlé’s long-term model, in 2009 the group will once again be one of the fastest growing companies in the industry,” said Paul Bulcke, Nestlé CEO. In addition, the company is determined to achieve organic growth at least close to five percent.

The main drivers of Nestlé’s growth are the continued innovation and renovation of its products and brands, with innovation being driven by increased investment in research and development of food and beverages by 15 percent. In addition, the company’s determination to grow its brands is reflected in a 7.5 percent increase in marketing spending at constant exchange rates. In 2008, Nestlé brands with annual sales of more than CHF 1 billion accounted for more than 70 percent of the food and beverages sales of CHF 102.4 billion.

A specific business model aimed at lower-income consumers, for example, is represented by “Popularly Positioned Products”. These should include high-quality products with balanced nutritional values ​​at affordable prices every day.