Milling & Baking News Corporate Profiles - October 2011 - (Page 106)

Company Overview Nestle S.A. Food, beverage business remains strong amid volatility estle S.A. has quickly positioned itself as a rising force in nutrition and health science since forming Nestle Health Science S.A. and the Nestle Institute of Health Science in September 2010. In its earnings report, Vevey, Switzerland-based Nestle said there are significant opportunities to advance the company’s growth strategy organically and through acquisitions in the area of science-based nutrition. “In 2011, we have already committed to significant levels of capital expenditure weighted to the high-growth emerging markets and we have announced several strategic bolt-on acquisitions in different parts of the world,” according to the report. “In view of these significant financial commitments, and taking into consideration the difficult economic environment which has prevailed for some time now, we will continue to maintain an appropriate level of financial flexibility to pursue with confidence our strategic growth agenda.” The company agreed to acquire Prometheus Laboratories Inc. in May. The San Diego-based company specializes in specialty pharmaceuticals in gastroenterology and oncology with a focus on inflammatory bowel diseases such as Crohn’s Disease and ulcerative colitis. Prometheus Laboratories will join Nestle Institute of Health Sciences, and sales are projected at $250 million. N Before the Prometheus Laboratories acquisition, Nestle acquired CM&D Pharma Ltd. in London. CM&D Pharma specializes in nutrition for medical purposes. The company’s primary product is Fostrap, a chewing gum for kidney patients with elevated phosphate levels in their blood. In July, Nestle acquired a minority stake in New Zealand-based Vital Foods. The acquisition will give Nestle a seat on the company’s board and the opportunity to have input in future product development and commercial strategy. Vital Foods produces kiwi-based products that help gastrointestinal conditions. Research is also part of Nestle’s ambitions to develop science-based nutrition strategies. In March, Nestle Research Center Beijing began a partnership with Xi’an Jiatong’s School of Life Sciences and Technology in which the two entities will develop solutions for metabolic health issues such as diabetes. Additionally, Nestle Research Center Switzerland announced in June its participation in a study of the relationship between food and genes. The project, slated to last six months, will study how human genes and their proteins determine bodily functions such as metabolism and detoxification. The company leadership hasn’t allowed its food and beverage concerns to fall by the wayside. First-half earnings and sales for Nestle were strong despite volatility in com- Paul Bulcke modity markets and a strong Swiss franc. For the first half of 2011, Nestle reported an operating profit of 6.2 billion Swiss francs and sales of 41 billion Swiss francs. Earnings per share rose 5.2%, according to the company. The company is forecasting organic growth of 5% to 6% for the full year. “Nestle continued to make good progress in a period characterized by political and economic instability, natural disasters, rising raw material prices and, yes, a strong Swiss franc,” said Paul Bulcke, chief executive officer. “But by leveraging our competitive advantages, investing behind our growth drivers and excelling in operational efficiency and effectiveness, we managed to drive growth not only in emerging markets but also in developed countries, especially in Europe.” CP F ast acts The company agreed to acquire Prometheus Laboratories Inc. in May. In July, Nestle acquired a minority stake in New Zealand-based Vital Foods, a producer of kiwi-based products that help gastrointestinal conditions. Nestle Research Center Beijing began a partnership with Xi’an Jiatong’s School of Life Sciences and Technology designed to develop solutions for metabolic health issues such as diabetes. 106 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011