1. Good Food, Good Life Presented by: Susan Wang Adam Hurlbert Windy Wang Catherine Ning

2. Text Your Chocolate IQ…

3. The best way to store chocolate is: A.In the fridge B. In a cool, dry place C. Next to the stove D. It should never be stored – just eaten right away 1

4. The Aztec name for chocolate was ‘xocalatl’ (try saying that 5 times fast), which means: A. Medicine B. Brown paste C. Fruit of the gods D. Bitter water 2

5. White chocolate is: A. Not really chocolate B. Cocoa butter without the cocoa liquor C. Sweetened milk D. A disco group from the 70s 3

6. Which country consumes the most chocolate per capita? A. The USA B. France C. Switzerland D. United Arab Emirates 4

7. 5 Finish the sentence: The higher the cocoa level… A.The darker the chocolate B.The bigger the chocolate bar C.The more romantic the date D.The higher the price

8. Overview Introduction History SWOT Global Market Industry Analysis Competitors Recommendations

9. Introduction Type: Public Founded: 1866 HQ: Vevey, Switzerland Key people: Henri Nestle (Founder) Products: Chocolate, water, dairy products Revenue: 88.6 billion USD Net Income: 4.9 billion USD Employees: 305,000

10. ANCIENT HISTORY OF CHOCOLATE Cocoa and Maya Civilisation(600 AD) 4 cocoa beans =a pumpkin 10 cocoa beans =a rabbit 100 cocoa beans =a slave The Aztec Empire Food of the Gods

11. First Chocolate For Eating (1847) Created by Fry & Sons in Bristol, England. Only plain dark chocolate First milk chocolate bar (1875) Daniel Peters (1836-1919)

12. History of Nestlé 1866-1905 “Farine Lactée Henri Nestlé” Merged with Anglo-Swiss Condensed Milk Company 1905-1918 By the early 1900s, the Company was operating factories in the United States, Britain, Germany and Spain. World War I 1918-1938 The end of World War I brought with it a crisis for Nestlé.

13. 1938-1944 World War II : Nescafé became popular 1944-1975 Dozens of new products were added Outside companies were acquired In 1974, the Company became a major shareholder in L'Oréal 1996+

15. Industry Analysis Very strong globally Many different brands Compete in several markets Chocolate, dairy products, food, water, baby food and pet food

16. SWOT Analysis Strengths- –Many products with wide variety –Flexibility –Recognized world wide

17. SWOT Analysis Weaknesses- –Compete in many markets –Weak in US

18. SWOT Analysis Opportunities- –Healthy food market –Asian Market

19. SWOT Analysis Threats- –Chocolate interest decrease –Water

20. Global market Nestle leads the global milk market with a 3.2% share Leads the global ice cream market with a 17% share Leader of bottled water in North America, Europe, Middle East-Africa Ranks third in the soft drinks global market with 3.4 percent in total sales

21. Nestle in Europe In 1868, set up a sales office in London In 1901, opened first UK factory In 1913, chocolate production began at Hayes In 1988, bought the British confectionery company Rowntree Mackintosh In 2007, teamed up with Barry Callebaut In Nov.2007, acquired Russian chocolate factory

22. Nestle in USA In 1900, entered the US In 1984, acquisition of American food giant Carnation In 2002, merged with Dreyer’s of the US ice cream business In Aug. 2002, acquisition of Chef America In 2007, bought Gerber for 5.5 billion

23. Kit Kat Issue Produced worldwide by Nestle except USA In USA, made under licence by Hershey’s Number #1 brand in UK, the world’s #2 chocolate after snickers Japan pushed Kit Kat flavors the most

24. Nestle in China In 1908, opened sales office in Shanghai In 1987, established the first joint venture company In 1990, the first factory opened In 1999, bought famous food seasoning company - Happy Wife In 2004, set up milk factory in Inner Mongolia

25. Chinese market Most famous for Nescafe, Nesquick and Nestle baby mike formula Launched premium ice cream Ambitious to be leader in food-seasoning Condemned by consumers for its unqualified baby milk formula- too much iodine

26. Competitors (chocolate) Mars Inc. Type: Private Founded: Tacoma, Washington (1911) Headquarters: McLean, Virginia Key people: Frank C. Mars, Founder Industry: Confectionery manufacturing Products: M&M's, Snickers, Twix, and Skittles Revenue: US $21 billion (2006) Employees: 40,000 (2006)

27. Competitors (chocolate) The Hershey Company Inc. Type: Public Founded: 1894 Headquarters: Hershey, Pennsylvania, USA Key people: Milton S. Hershey, founder Industry: Chocolate and candy manufacturer Products: Hershey KISSES, etc. Revenue: $4.944 Billion USD (2006) Net income: 305.6 million Employees: 14,352 employees worldwide Slogan: "a palatable confection and a most nourishing food."

28. Competitors (food) Kraft Foods Inc. Type: Public Founded: 1903 Headquarters: Northfield, Illinois, USA Key people: Irene Rosenfeld, CEO Industry: Food Processing Products: Kraft, Nabisco Revenue: $34.356 billion USD (2006) Net income: $3.06 billion (2006) Employees: 90,000 (2006)

29. Nestle 3.4% Coca-Cola 25.6% PepsiCo 13.4% Danone 2.6% Other 55% soft drink global market (2006)

30. Competitors (water) The Coca-Cola Company Type: Public Founded: 1892 by Asa Griggs Candler Headquarters: Atlanta, Georgia, USA Key people: E. Neville Isdell, CEO & Chairman Industry: Beverage Products: Water and Non-alcoholic soda drinks Revenue: $24.088 billion USD (2006) Net income: $5.080 billion USD (2006) Employees: 55,000 (2006) Central promise: to refresh the world in mind, body, and inspirit; to inspire moments of optimism; to create value and make a difference

31. Competitors (water) Danone Group Type: public Founded: 1919 Headquarters: Paris, France Key people: Franck Riboud, Chairman & CEO Industry: Food Products: Dairy products (55%), Water, Biscuits (18%), Revenue: EUR 13,024 million (1.9 million US) (2005) Employees: 88,184

32. Recommendations Short-term –Local markets –Purchase Kit Kat license in U.S. –Health and Nutrition

33. Recommendations (cont.) Long-term –Continue to expand globally –Other markets and one brand –Quality of products

34. Thanks for watching! Any questions?