Nestlé under Fire over Unhealthy Product Portfolio: Will the Company Emerge Unscathed?
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Case Code: BSTR628 Case Length: 20 Pages Period: 1929 - 2021 Pub Date: 2021 Teaching Note: Available |
Price: Rs.400 Organization : Nestle Industry : Food & Beverage Countries : Australia, United States, India, United Kingdom Themes: Branding Strategy, Brand Revival, Crisis Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
On June 2, 2021, Nestlé, the Swiss food and drink processing conglomerate, came under fire over a leaked internal report that more than 60% of the food items and beverages in its mainstream portfolio did not meet the required health standards. According to the Financial Times, the leaked report was an internal presentation circulated among the company's top executives in early 2021. The document noted that only 37% of Nestlé's food products were able to achieve a rating above 3.5 under Australia's health star rating system. The report further stated that 99% of Nestlé's confectionery and ice cream portfolio did not meet health standards. Besides, 96% of its beverages, excluding pure coffee, failed to meet health criteria. The data, however, did not include pet food, baby food, and the health science division.
Nestlé was formed in 1905 through the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George and Charles Page, and Farine Lactée Henri Nestlé, founded in 1867 by Henri Nestlé. At the beginning, the company sold only infant cereal but it quickly diversified to include a variety of products including chocolate, coffee, soup, yogurt, water, and frozen foods in its portfolio. The company reached an impressive global audience both through its own efforts and through joint ventures with companies like Coca-Cola. Nestlé's success was driven by a combination of product innovation and business acquisition. It was the motivation for growth and diversity that had allowed Nestlé to become a key player in nutrition.
Nestlé owned more than 2,000 brands and they were being sold in over 197 countries around the world as of early 2021. It had a clear objective – to be the leader in health and wellness. The company did not limit itself to nutrition but moved into the beauty and health categories in order to create a truly diverse company. By mid-2021 Nestlé was the largest food and beverage company in the world...
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