Nestlé facts for kids
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Formerly
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List
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| Public (SA) | |
| Traded as | SIX: NESN |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=CH0038863350 CH0038863350] |
| Industry | Food processing |
| Founded | 1866 (for the Anglo-Swiss Condensed Milk Company branch) |
| Founder | Henri Nestlé (for the Farine Lactée Henri Nestlé branch) |
| Headquarters | Vevey, Switzerland |
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Area served
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Worldwide |
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Key people
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| Products |
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| Brands | List of Nestlé brands |
| Revenue |  CHF 92.998 billion (2023) |
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Operating income
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 CHF 14.520 billion (2023) |
| CHF 11.209 billion (2023) |
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| Total assets | CHF 126.550 billion (2023) |
| Total equity | CHF 36.387 billion (2023) |
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Number of employees
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270,000 (2023) |
| Subsidiaries | Cereal Partners Worldwide (50%) |
Nestlé S.A. is a huge food and drink company from Switzerland. Its main office is in Vevey, Switzerland. Since 2014, it has been the biggest food company in the world based on how much money it makes. In 2023, it was ranked 50th on the Forbes Global 2000 list.
Nestlé makes many different products. These include baby food, bottled water, breakfast cereals, coffee, tea, candy, dairy products, ice cream, frozen food, pet foods, and snacks. Many of Nestlé's brands sell over 1 billion Swiss francs (about $1.1 billion US dollars) each year. Some popular brands are Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, and Maggi.
Nestlé has 447 factories and works in 189 countries. It employs around 270,000 people. Nestlé is also a major owner of L'Oréal, which is the world's largest makeup company.
Nestlé started in 1905 when two Swiss companies joined together. One was the "Anglo-Swiss Milk Company," started in 1866 by brothers George and Charles Page. The other was "Farine Lactée Henri Nestlé," founded in 1867 by Henri Nestlé. The company grew a lot during World War I and World War II. It started selling more than just condensed milk and infant formula. Nestlé has bought many other companies over the years, like Crosse & Blackwell in 1960 and Gerber in 2007.
Sometimes, Nestlé has faced criticism. For example, some people have raised concerns about how Nestlé sells baby formula, especially in places where clean water is hard to find. There have also been discussions about how cocoa is sourced and the company's bottled water business. Nestlé has worked to address these concerns.
Contents
History
1866–1900: How it Started
Nestlé's story began in the 1860s with two separate Swiss companies. These companies later joined to form Nestlé. Over the next few decades, both companies grew their businesses across Europe and the United States.
Important Dates
- 1866: Brothers Charles and George Page started the Anglo-Swiss Condensed Milk Company in Cham, Switzerland.
- 1867: In Vevey, Switzerland, Henri Nestlé created a milk-based baby food. He soon began selling it.
- 1875: Henri Nestlé retired. The company kept his name, becoming Société Farine Lactée Henri Nestlé.
- 1877: Anglo-Swiss started selling milk-based baby foods.
- 1878: The Nestlé Company began selling condensed milk. This made the two companies direct competitors.
- 1879: Nestlé joined with Daniel Peter, who invented milk chocolate. Nestlé helped Peter solve a problem with removing water from milk in his chocolate.
- 1890: Henri Nestlé passed away.
1901–1989: Growing Bigger with Mergers
In the late 1800s and early 1900s, Henri Nestlé and those who followed him helped grow the Swiss chocolate industry. They worked with other chocolate makers like Peter, Kohler, and Cailler. In 1929, these chocolate companies finally joined the Nestlé group. This allowed them to make milk chocolate on a large scale.
In 1905, Nestlé and Anglo-Swiss officially merged. They became the Nestlé and Anglo-Swiss Condensed Milk Company. They kept this name until 1947. That year, they bought another company called Maggi, which made seasonings and soups. The company's name changed to 'Nestlé Alimentana SA'. In 1977, it became simply 'Nestlé SA'.
By the early 1900s, Nestlé had factories in the United States, the United Kingdom, Germany, and Spain. First World War created a high demand for dairy products. By the end of the war, Nestlé's production had more than doubled.
After World War I, government orders for dairy products stopped. People started buying fresh milk again. Nestlé quickly changed its operations and reduced its debt. In the 1920s, Nestlé started making new products. Chocolate became its second most important business. White chocolate was created in the 1930s.
Nestlé felt the effects of World War II right away. Profits dropped a lot. However, factories were built in developing countries, especially in South America. The war also helped introduce Nestlé's new product, Nescafé (which means "Nestlé's Coffee"). It became a very popular drink for the US military. Nestlé's production and sales actually increased during the war.
After World War II, Nestlé grew very quickly. It bought many other companies. In 1947, Nestlé merged with Maggi, a company that made seasonings and soups. Then came Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, and Stouffer's in 1973. Nestlé also bought a share in L'Oréal in 1974 and Alcon Laboratories Inc. in 1977.
In the 1980s, Nestlé's improved finances allowed it to buy even more companies. It bought Carnation in 1984, which included brands like Coffee-Mate and Friskies. In 1986, the company started Nestlé Nespresso S.A.. In 1988, Nestlé bought the British candy company Rowntree Mackintosh. This added popular brands like Kit Kat, Rolo, Smarties, and Aero to Nestlé's products.
1990–2011: Growing Around the World
The early 1990s were good for Nestlé. Trade barriers between countries became less strict, and world markets became more connected. Since 1996, Nestlé has made many more purchases. These include San Pellegrino (1997), D'Onofrio (1997), Spillers Petfoods (1998), and Ralston Purina (2002).
In 2002, Nestlé made two big purchases in North America. In June, it combined its US ice cream business with Dreyer's. In August, it bought Chef America, the company that created Hot Pockets. Around the same time, Nestlé almost bought Hershey's, a big candy competitor, but the deal didn't happen.
In December 2005, Nestlé bought the Greek company Delta Ice Cream. In January 2006, it took full control of Dreyer's. This made Nestlé the world's largest ice cream maker. In June 2006, Nestlé bought the weight-loss company Jenny Craig. In July 2007, Nestlé bought the Medical Nutrition part of Novartis Pharmaceutical. This included brands like Ovaltine and "Boost."
In April 2007, Nestlé went back to its roots and bought the US baby-food maker Gerber. In December 2007, Nestlé started a partnership with Pierre Marcolini, a Belgian chocolate maker.
Nestlé sold its main share in Alcon to Novartis in 2010. In March 2010, Nestlé bought Kraft Foods's frozen pizza business in North America.
Since 2010, Nestlé has been working to become a company focused on nutrition, health, and wellness. This is to help with falling candy sales and new government rules about food. The Nestlé Institute of Health Sciences is leading this effort. It aims to create "a new industry between food and pharmaceuticals." This means making foods with health benefits that could help prevent or treat diseases. This health branch has already made products like drinks and protein shakes to help with malnutrition, diabetes, and other health issues.
In August 2010, Nestlé bought the British company Vitaflo. Vitaflo makes special nutritional products for people with genetic disorders. In July 2011, Nestlé agreed to buy 60 percent of Hsu Fu Chi International Ltd. In April 2012, Nestlé agreed to buy Pfizer Inc.'s infant-nutrition unit, formerly Wyeth Nutrition.
2012–Present: Latest Developments
In recent years, Nestlé Health Science has bought several companies. These include CM&D Pharma Ltd., which makes products for people with long-term conditions like kidney disease. It also bought Prometheus Laboratories, which focuses on treatments for stomach diseases and cancer.
Nestlé sold its Jenny Craig business in 2013. In February 2013, Nestlé Health Science bought Pamlab, which makes medical foods for depression, diabetes, and memory loss. In February 2014, Nestlé sold its PowerBar sports nutrition business.
In December 2014, Nestlé announced it would open 10 skin care research centers worldwide. This shows its growing interest in healthcare products. The first center, Nestlé Skin Health Investigation, Education and Longevity Development (SHIELD), opened in New York in 2015. Others followed in Asia and Europe.
In January 2017, Nestlé announced it was moving its US headquarters from Glendale, California, to Rosslyn, Virginia.
In March 2017, Nestlé said it would lower the sugar content in Kit Kat, Yorkie, and Aero chocolate bars by 10% by 2018. In July, they announced similar sugar reductions for breakfast cereals in the UK.
In June 2017, Nestlé announced a large share buyback. This came after an investor suggested the company should change its business structure. As a result, Nestlé decided to focus more on coffee and pet care. They also plan to buy more companies in the consumer health-care industry.
In 2016, Nestlé and PAI Partners created a joint company called Froneri. This company combines their ice cream businesses in Europe and other countries.
In July 2017, Nestlé introduced a new type of infant formula in Spain. It contains two special ingredients found in breast milk, called human milk oligosaccharides. These ingredients have health benefits and were not in infant formula before.
In September 2017, Nestlé S.A. bought most of Blue Bottle Coffee. Also in September 2017, Nestlé USA agreed to buy Sweet Earth, a company that makes plant-based foods.
In January 2018, Nestlé USA announced it was selling its US candy business to Ferrara Candy Company. The sale was for about $2.8 billion.
In May 2018, Nestlé and Starbucks made a $7.15 billion deal. This allows Nestlé to sell and distribute Starbucks coffee globally. It also lets Nestlé use Starbucks coffee in its single-serve coffee machines. This helps both companies grow in new markets.
In September 2018, Nestlé announced it would sell Gerber Life Insurance.
In 2019, the company said it would put Nutri-Score labels on its products in European countries that use this nutrition label.
In 2020, Nestlé USA's and Nestlé Canada's ice cream businesses were bought by Froneri. Also in 2020, Nestlé announced it would invest in plant-based foods. They started with a "tuna salad" and meat-free products to reach younger and vegan customers.
Nestlé is expanding its factories in India. The company plans to invest between ₹60-65 billion (about $723-783 million US dollars) from 2020 to 2025.
In February 2021, Nestlé announced it would sell its water brands in the US and Canada. This included spring water, purified water, and delivery services. However, it did not include brands like Perrier, S.Pellegrino, and Acqua Panna. The sale was completed in April 2021.
The COVID-19 pandemic did not hurt Nestlé. Because of lockdowns, people bought more packaged foods, coffee, dairy products, and pet products. This increased the company's sales. Nestlé had its strongest quarterly sales growth in 10 years.
In April 2021, Nestlé agreed to buy the vitamin company Bountiful Company for $5.75 billion. This was because vitamins, minerals, and supplements were selling very well. Bountiful's brands include Nature's Bounty and Solgar.
In July 2021, Vitaflo International Ltd. (a Nestlé Health Science company) bought the Dr. Schär brands Mevalia and ComidaMed. These brands are used for special diets.
In January 2022, Nestlé announced it would pay cocoa farmers cash if they send their children to school.
In May 2022, Nestlé's Health Science unit bought Puravida, a Brazilian company that makes organic, natural, plant-based foods.
In May 2022, Nestlé sent baby formula from Europe to the U.S. to help with the 2022 United States infant formula shortage. These shipments included Gerber baby formula from the Netherlands and Alfamino baby formula from Switzerland.
In September 2023, Nestlé announced it had bought most of Grupo CRM, a premium chocolate maker in Brazil.
After the Russian invasion of Ukraine in 2022, Nestlé continued to do business in Russia. Because of this, Ukraine's National Agency on Corruption Prevention listed Nestlé as an "International Sponsor of War" in November 2023. Nestlé stated that it had already "halted all non-essential imports and exports to and from Russia."
How Nestlé is Run
Where Nestlé's ownership comes from (2014): Switzerland (35.28%) United States (28.53%) All others (36.19%)
Nestlé is the largest food company in the world. In May 2015, it was worth about 231 billion Swiss francs (more than $247 billion US dollars). Nestlé's shares are mainly traded on the SIX Swiss Exchange. It is also part of the Swiss Market Index.
In 2014, Nestlé's total sales were 91.61 billion Swiss francs. Its net profit was 14.46 billion Swiss francs. The company spent 1.63 billion Swiss francs on research and development.
- Sales by Product Type (in Swiss francs):
- 20.3 billion from powdered and liquid drinks
- 16.7 billion from milk products and ice cream
- 13.5 billion from prepared dishes and cooking aids
- 13.1 billion from nutrition and health science products
- 11.3 billion from pet care products
- 9.6 billion from candy
- 6.9 billion from water
- Sales by Region:
- 43% from the Americas
- 28% from Europe
- 29% from Asia, Oceania, and Africa
In 2015, a survey showed that Nestlé had a good reputation score of 74.5 out of 100.
Financial Information
| Year | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 83.642 | 92.186 | 92.158 | 91.612 | 88.785 | 89.469 | 89.791 | 91.439 | 92.568 | 84.343 | 87.088 |
| Net income | 9.487 | 10.611 | 10.015 | 14.456 | 9.066 | 8.531 | 7.183 | 10.135 | 12.609 | 12.232 | 17.196 |
| Assets | 114.091 | 126.229 | 120.442 | 133.450 | 123.992 | 131.901 | 130.380 | 137.015 | 127.940 | 124.028 | 139.142 |
| Employees | 328,000 | 339,000 | 333,000 | 339,000 | 335,000 | 328,000 | 323,000 | 308,000 | 291,000 | 273,000 | 276,000 |
Joint Companies
Nestlé works with other companies in joint ventures. These include:
- Cereal Partners Worldwide with General Mills (50%/50%)
- Froneri with PAI Partners (50%/50%)
- Lactalis Nestlé Produits Frais with Lactalis (40%/60%)
- Nestlé Colgate-Palmolive with Colgate-Palmolive (50%/50%)
- Nestlé Indofood Citarasa Indonesia with Indofood (50%/50%)
- Nestlé Snow with Snow Brand Milk Products (50%/50%)
- Dairy Partners America Brasil with Fonterra (51%/49%)
Board of Directors
As of 2017, the board of directors includes:
- Paul Bulcke, chairman and former CEO of Nestlé
- Andreas Koopmann, former CEO of Bobst
- Beat Hess, former legal director for ABB and Shell
- Renato Fassbind, former CEO of DKSH and former CFO of Credit Suisse
- Steven George Hoch, founder of Highmount Capital
- Naina Lal Kidwai, former CEO of HSBC Bank India
- Jean-Pierre Roth, former chairman of the Swiss National Bank
- Ann Veneman, former United States Secretary of Agriculture and director of UNICEF
- Henri de Castries, former CEO and chairman of Axa
- Eva Cheng, former executive vice president for China and Southeast Asia for Amway
- Ruth Khasaya Oniang’o, former member of the Parliament of Kenya
- Patrick Aebischer, former president of École Polytechnique Fédérale de Lausanne
Lobbying
Nestlé works with special firms to talk to governments and lawmakers. For example, in the US, Nestlé spends money to influence decisions in Washington, D.C. From 2015 to 2020, they spent about $1.95 million each year on lobbying.
Products
Nestlé has over 2,000 brands and a huge variety of products. These include coffee, bottled water, milkshakes, breakfast cereals, infant foods, sports and healthcare nutrition, seasonings, soups, sauces, frozen and refrigerated foods, and pet food. In 2019, the company started making plant-based foods like its Incredible and Awesome Burgers. In 2020, Nestlé announced more plant-based products, such as soy-based sausages.
Sponsorships
Music and Entertainment
In 1993, Nestlé became a sponsor of The Land pavilion at Walt Disney's EPCOT Center. Nestlé helped pay for updates to the pavilion. Nestlé renewed its sponsorship in 2003 and oversaw more improvements. Nestlé stopped sponsoring The Land in 2009.
On August 5, 2010, Nestlé and the Beijing Music Festival agreed to extend Nestlé's sponsorship for three more years. Nestlé had been a sponsor of this international music festival since 2000.
Nestlé has also partnered with the Salzburg Festival in Austria for 20 years. In 2011, Nestlé extended its sponsorship until 2015. Together, they created the "Nestlé and Salzburg Festival Young Conductors Award." This award helps find young conductors from around the world and supports their careers.
Sports
Nestlé started sponsoring the Tour de France in 2001. This partnership continued until 2013. The sponsorship helped promote Nestlé brands like Vittel, Powerbar, Nesquik, and Ricore.
On January 27, 2012, the International Association of Athletics Federations announced that Nestlé would be the main sponsor for its Kids' Athletics Programme. This program helps children get involved in sports. The five-year sponsorship began in January 2012. However, on February 11, 2016, Nestlé decided to stop sponsoring the program. This was due to concerns about doping and corruption allegations against the IAAF.
In 2014, Nestlé Waters sponsored the UK part of the Tour de France through its Buxton Natural Mineral Water brand. In 2002, Nestlé was the main sponsor for the Great Britain Lionesses Women's rugby league team's tour of Australia. They used their Munchies candy brand for this.
Nestlé also supports the Australian Institute of Sport (AIS). It helps fund nutrition and fitness programs, research, and educational materials for athletes.
Company Responsibility and Awards
Helping the Environment
In May 2006, Nestlé decided to make sure all its factories followed international standards for environmental management (ISO 14001) and worker safety (OHSAS 18001) by 2010.
In October 2009, Nestlé announced "The Cocoa Plan." This plan aims for 100 percent of its chocolate to use sustainably certified cocoa. Nestlé works with UTZ Certified for this. Many of Nestlé's efforts are in the Ivory Coast, where 40 percent of the world's cocoa comes from. The company has developed cocoa trees that produce more and are stronger against drought and disease. They have given millions of these trees to farmers. They also train farmers in better and more sustainable farming methods. These methods include pruning trees, controlling pests, and caring for the environment. Nestlé has also built new schools in cocoa-growing areas to help address child labor.
In 2020, Nestlé Waters joined a group to help improve the recycling of PET plastic.
Economy and Development
Nestlé also created the Creating Shared Value Prize. This award is given every two years to companies that show the best examples of "Creating Shared Value" (CSV). CSV means finding business solutions that also help society, especially in areas like nutrition, water, or rural development. The winner can receive up to 500,000 Swiss francs. Nestlé also hosts a global forum to discuss Creating Shared Value.
Rural Development Framework program: In 2012, Nestlé started a program to support farmers and cocoa-growing communities. This program invests in improving roads and buildings, increasing access to clean water, helping with money and market access, and making working conditions better.
Public Health
Health care and nutrition product development: In September 2010, Nestlé announced it would invest over $500 million between 2011 and 2020. This money is for developing health and wellness products. These products aim to help prevent and treat major health problems like diabetes, obesity, and Alzheimer's. Nestlé created a special company called Nestlé Health Science and a research center called the Nestlé Institute of Health Sciences for this purpose.
Awards
| Year | Brand | Award | Result |
|---|---|---|---|
| 2010 | Nestlé Purina | Malcolm Baldrige National Quality Award | Won |
| 2010 | N/A | IUoFST Gold Food Industry Award | Won |
| 2011 | N/A | World Environment Center Gold Medal Award | Won |
| 2014 | N/A | Henry Spira Corporate Progress Award | Won |
Images for kids
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A 1915 advertisement for "Nestlés Food," an early infant formula.
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A certificate for 100 shares of the Nestlé and Anglo-Swiss Condensed Milk Co., from 1918.
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An old Nestlé building in Aleppo, Syria, from the 1920s.
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The Nestlé logo used from 1938 to 1966.
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The Brazilian president, Lula da Silva, at a Nestlé factory in Feira de Santana, Brazil, in February 2007.
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Samples of Nestlé Toll House Cafe items in 2012.
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Nestlé Japan headquarters in Kobe, Japan.
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Nestlé USA headquarters in Arlington, Virginia.
See also
In Spanish: Nestlé para niños
- Big Chocolate
- Cerelac
- Farfel the Dog
- Nestlé Smarties Book Prize
- Nestlé Tower
- Ultra-processed food
Other Big Food Companies
