REDvolution: Repositioning the Nescafé Brand

Nestlé S.A. (Nestlé) was formed through the merger of two major food companies in Europe, SocieteFarineLactee Henri Nestlé and Anglo-Swiss Condensed Milk Company in the year 1905. Initially, the merged entity was called Nestlé and Anglo-Swiss Condensed Milk Company. The company specialized in making milk-based baby foods and condensed milk. It was renamed as Nestlé Alimentana SA when it acquired Fabrique de Produits Maggi SA, which was a major manufacturer of soup mixes and other related food items.

The company was named as Nestlé S.A. in the year 1977 as part of a major restructuring exercise. Nestlé expanded into the global markets in the early 1900s and set up factories in markets like the UK, Germany, Spain, and USA. The huge demand for dairy products during World War I helped Nestlé double its production. During the 1920s, Nestlé started making chocolates which went on to become its second biggest business after dairy. The company’s fortunes took a hit during World War II, leading to a fall in its profits from US$ 20 million in the year 1938 to US$ 6 million in 1939.......