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Nestlé's Nutrition Strategy

Nestle linked its corporate strategies to the vision of "Nutrition, Health and Wellness" in several ways: 1) It created a new Division of Nutrition to focus on their core nutrition business and report directly to the CEO. 2) It acquired companies in specialty nutrition areas like Jenny Craig and Novartis Medical Nutrition to establish growth platforms. 3) It implemented the nutrition, health and wellness vision across all Nestle categories and business units by developing healthier products through reformulation and adding functional benefits.

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357 views2 pages

Nestlé's Nutrition Strategy

Nestle linked its corporate strategies to the vision of "Nutrition, Health and Wellness" in several ways: 1) It created a new Division of Nutrition to focus on their core nutrition business and report directly to the CEO. 2) It acquired companies in specialty nutrition areas like Jenny Craig and Novartis Medical Nutrition to establish growth platforms. 3) It implemented the nutrition, health and wellness vision across all Nestle categories and business units by developing healthier products through reformulation and adding functional benefits.

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Question 3:

How Nestle linked its corporate strategies to the vision of Nutrition, Health
and Wellness?

Nestls ultimate goal was to be recognized by consumers as the


nutrition, health, and Wellness Company and to deliver a competitive
return to its shareholders at the same time.
Nestle (Brabeck) Create a new Division of Nutrition in order to reinforce
the focus on their core nutrition business. This division is reported
directly to CEO.
Three major acquisitions were made in the specialty nutrition area to
establish a platform of growth:
Jenny Craig (2006), a U.S. chain of weight loss centers which allowed
Nestl to enter into the area of weight management
Novartis Medical Nutrition (2007), which reinforced Nestls position in
healthcare nutrition
Novartiss Gerber baby foods business (2007), which extended the
companys leadership across key areas of infant nutrition.
Nutrition, health and wellness vision was not limited to a single division
but the new strategy would be implemented in all Nestle categories,
different businesses and department were integrated to promote
wellbeing through new product development and through improving
the nutritional foundation of existing products.

Nestle believes that consumers are looking for healthier foods without
compromising on taste. Nestle constantly reviews its product range to
improve taste while enhancing nutritional value using a test called
60/40+ or the 60/40 benchmarking standard.

It is about taking out unhealthier things like salt-sugar-fat to give them


a healthier profile and then putting in other things like whole grains,
more calcium, Omega 3s to make products more nutritious. Nestle
succeeded in adjusting recipes to remove 34000MT of trans fatty acids,
5000MT of salt, 204000MT of sugar.

Nestle looked to add new functional benefits to its main product


platform labeled as Branded active benefits. For example, Nido
powered milk for children that were expanded by adding probiotics and
proprietary BABs which strengthened the childs defense against
harmful germs.

Nestle developed scientifically proven products for people with special


needs. For example, Nutren Balance Bars were formulated to provide
better glucose control for people with diabetes

As nutrition became more tailored to individual situations and


conditions, Nestle believed that services increasingly could
complement a science based product portfolio. For example, in the loss
weight area Nestles Jenny Craig Centers provided members with
weekly personal nutrition counseling sessions

Nestle invests on R&D which historically had focused on improvements


in raw materials or processing technology and now focusing on
nutrition, health and wellness.

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