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Nestle in Russia: 10 Years of Growth

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Presentation on theme: "Nestle in Russia: 10 Years of Growth"— Presentation transcript:

1 Nestle in Russia: 10 Years of Growth
Russian Economic and Financial Forum in Switzerland Fifth Session 13 March 2006 Zurich, Switzerland Bernard Meunier CEO, Nestlé Food LLC

2 To all 3 questions the answer is - RUSSIA
DO YOU KNOW? Which country has the largest consumption of soluble coffee in the world? Which is the second largest consumption market of chocolate and confectionery after USA To all 3 questions the answer is - RUSSIA Which country has experienced the fastest growth in premium positioned food and beverages in the last 5 years? Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

3 2006 IS A MILESTONE YEAR FOR NESTLE RUSSIA
Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

4 10 YEARS ANNIVERSARY OF OUR OPERATING COMPANY NESTLÉ FOOD LLC
12 Production Facilities 9.500 Employees 12 Regional Offices 1996 2006 FUTURE Foundation of Nestlé Food LLC 1.4 billion CHF Sales 600 billion CHF investments Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

5 LIFECYCLES OF NESTLE RUSSIA
Opening years: Nestlé starts export of Nuts and Nescafe to Russia 1992 Nestlé opens first representative office in Moscow 1994 Acquisition of Rossia factory in Samara 1995 1996 Foundation of Nestlé Food LLC Acquisition of Kamskaya and Altay confectionery factories Economical crisis in Russia 1998 Nestlé in Russia turnover – 1 billion CHF 2002 Infant cereals factory In Vologda was acquired 2003

6 LIFECYCLES OF NESTLE RUSSIA
OTHER IMPORTANT STEPS In 2001, Cereal Partners Worldwide, Nestlé’s joint venture with General Mills, acquired a breakfast cereal plant in Perm. In 2002 Nestlé Waters acquired the Kostroma based “Saint Springs” bottled water company And shortly after (in February 2003), “Clear Water”, a leader in home and office water delivery.

7 Bernard Meunier, Russian Economic and Financial Forum in Switzerland
NOVEMBER 2005: NESTLÉ OPENS THE 1ST FULL CYCLE COFFEE FACTORY IN SOUTH RUSSIA $120 million investment Only 18 months of construction works 12,000 tons of NESCAFE Classic production plan for ,000 for 2007 Increase of market share from the current 40% to a target of 50%. Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

8 OUR OPERATIONS COVER MOST REGIONS OF RUSSIA
Nestlé in Russia Lviv St.Peterburg Vologda Moscow Zhukovsky Perm Voronezh N. Novgorod Samara Rostov - Don Timashevsk Ekaterinburg Kemerovo Irkutsk Novosibirsk Factory + DC + Sales Office Factory + DC Factory Regional Sales Offices Barnaul Vladivostok DC 10,000 km

9 NESTLÉ IS NOW IN RUSSIA:
#1 in soluble coffee market with #1 in chocolate market with and #1 in infant nutrition with #1 in culinary aids with #1 in breakfast cereals with #1 in mineral water with #2 in ice Cream with #2 in pet food with                              

10 TASTE, BRAND AND HEALTH ARE MOST IMPORTANT FOR RUSSIAN CONSUMERS
20 40 60 80 Taste 67,3% Product Brand 59% Health 54% Price 52% Labels/Packaging 39% Convenience 27% Other 6% Health becomes a major factor in product choice.... Source: Nestlé Consumer Services Survey of nearly 3,000 consumers

11 Bernard Meunier, Russian Economic and Financial Forum in Switzerland
CONSUMER AT THE CENTER OF OUR ATTENTIONS Nestlé strives to meet consumers needs in all 3 factors Brands: by building strong brands relevant for the Russian consumer Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

12 CONSUMER AT THE CENTER OF OUR ATTENTIONS
Nestlé strives to meet consumers needs in all 3 factors Taste: by developing the best tasting products with a preference over our competitors Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

13 CONSUMER AT THE CENTER OF OUR ATTENTIONS
Nestlé strives to meet consumers needs in all 3 factors Health: by developing healthier and more nutritious recipes Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

14 Bernard Meunier, Russian Economic and Financial Forum in Switzerland
NESTLE AND THE COMMUNITY “To us, Corporate Social Responsibility is not something that is imposed from the outside, but is an inherent part of the Nestlé business strategy and Nestlé business principles, which guide the way we operate”. P.Brabeck-Letmathe CEO Nestlé S.A. Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

15 Bernard Meunier, Russian Economic and Financial Forum in Switzerland
NESTLE AND THE COMMUNITY Since 1996 Nestlé is the main sponsor of the Russian version of Sesame Street Since 2000 together with Russian Institute of Nutrition Nestlé develops and publishes “Good Nutrition Program” 27 Russian regions, 5.000 schools $2 million investment in next 4 years 1.2 million children Since 5 years Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

16 Bernard Meunier, Russian Economic and Financial Forum in Switzerland
NESTLÉ IS A RELIABLE PARTNER FOR THE AUTHORITIES In a nutshell, our constructive dialogue with the Russian Government and Russian society has clear and undisputable benefits for both sides. Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

17 Bernard Meunier, Russian Economic and Financial Forum in Switzerland
OUR VISION To be the best and most admired Food, Beverage, Nutrition, Health and Wellness company in Russia Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006

18 Thank you for your attention!
Bernard Meunier, Russian Economic and Financial Forum in Switzerland March 13, 2006


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