NESTLE INDIA

Background

➢ Nestle India was promoted by Nestle Alimentana, Switzerland, a wholly owned

subsidiary of Nestle Holdings Ltd., Nassau, Bahama Islands.
➢ Nestle is one of the oldest food MNC operating in India, with a presence of over a
century Nestle has a presence in 83 countries worldwide.
➢ It has a total number of 509 factories out of which 220 are located in Europe, 153 in
America and 136 in Africa, Asia and Oceania
➢ The Swiss food giant has been in India for 90 years, with six manufacturing plants,
➢ 3,500 employees and almost $500 million in sales in 2002.
Business

➢ Nestle has a presence in the following categories - Baby Food, Milk products,
Beverages (Coffee, malted beverage), Chocolates & confectionery and other
processed food products.

Chocolates & Confectionery

➢ Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth
share of the chocolate market in the country.
➢ Chocolates contribute 14% to Nestle’s turnover. It has expanded its products range to
all segments of the market.
➢ In fact, Nestle is the fastest growing company in chocolates in India.
➢ The Kitkat brand is the largest selling chocolate brand in the world.
➢ Other brands include Milky Bar, Marbles, Crunch, Nestle Rich Dark, Bar-One,
Munch etc.
➢ New launches such as Nestle Choco Stick and Milky Bar Choo were made at attractive
price points to woo new consumers.
➢ The company introduced two new brands, Charge and Crunch, in 1998. The company
has discontinued products Chocostick, as it did not add value to the its portfolio.
➢ Nestle achieved roaring success by grabbing the Rs 5 price point. From Jan – Sep ’05,
Nestle chocolates witnessed a growth of 14.8 per cent.

New Product Introduction & Innovations

➢ The Company sustained momentum during the year by driving distribution through
innovative consumer promotions and trade offerings and supporting key price points.
➢ High temperatures are a typical characteristic of Indian subcontinent. Chocolate starts
melting at such high temperatures thus making chocolate unfit for consumption.
Hence, Nestle introduced an innovative LIQUID CHOCOLATE – CHOCO STICK at
a price tag of Rs. 2/- which was in instant hit.
➢ NESTLE MUNCH, which is the largest selling unit in the wafer segment and the
most widely distributed, continued to gain in volumes. NESTLE CHOTU MUNCH,
which was launched at Rs. 2/- price point, was well received.
➢ A range of other innovative and renovated products were launched which included
NESTLE Milk Chocolate, NESTLE Fruit & Nut, NESTLE Krunchy, NESTLE
MILKYBAR STARZ, NESTLE CHOO, NESTLE Chocolate Eclairs, NESTLE
Coffee Eclairs and various flavours for CHOCOSTICK,