Milling & Baking News Corporate Profiles - 2019 - 102

COMPANY OVERVIEW

Nestle S.A.
Accelerating innovation to compete with start-ups
estle S.A. has accelerated product development to match the pace of innovation from emerging brands, said Ulf
Mark Schneider, chief executive officer of the
Vevey, Switzerland-based company.
"I think the biggest surprise to everyone,
whether you're new to the industry or whether
you're an old hand, is simply for the last three
years the amount of change that has occurred
in this industry and in particular the amount of
innovation that has been brought to the market
by small and mid-sized focused companies," Mr.
Schneider said during a July 26 earnings call.
"And the challenge was very clear. We had to
rise to this level and basically meet that rate
of innovation; hence, the changes we've done
to our research and development organization."
Plant-based foods represents a significant
opportunity for Nestle. In October, the company
unveiled plant-based alternatives to cheese
and bacon for restaurant and food service operators. Nestle previously launched plant-based
burger patties in the U.S. and European markets. The Sweet Earth Awesome Burger is made
with yellow pea protein and has 26 grams of
protein and 6 grams of fiber. The product was
developed by the culinary team of Sweet Earth
Foods, Moss Landing, Calif., with the support

of Nestle's research and development. Nestle
acquired Sweet Earth Foods in 2017.
Nestle's soy- and wheat-based Garden Gourmet Incredible Burger is available in Europe.
The company also introduced a minced meat
alternative in European markets made with a
blend of soy, beetroot, carrot, bell pepper and
vegetable fats.
"This plant-based arena is ideal to showcase
the speed and the depth of our research and
development organization," Mr. Schneider said.
"I understand that there's a lot of media buzz
in this space right now, and at times, it is hard
to put all the details in the proper context. I just
wanted you to know that we have the ambition
and the perseverance to be a major player in
this area. Initial results and growth rates are
very encouraging, and we see all the elements
of a significant long-term trend in the market."
Another focus of accelerated product development is in the coffee category. Through

its partnership with Starbucks Corp., Nestle
has introduced nearly 30 products, including whole bean, roast and ground coffee and
coffee creamers, within a year of finalizing
the agreement.
"It's a constant flow of new products coming
to the markets, and this will be no different in
approach from what any start-up would do," Mr.
Schneider said. "And I think this is where we
had to up our game, and we did successfully."
Nestle flexed its entrepreneurial muscle
at Natural Products Expo West in March. The
company highlighted new products and concepts, including GoodBe, a refrigerated bar
formulated with granola, yogurt and probiotics, and Goodnight clusters, which are formulated with magnesium, L-theanine and
casein protein to help consumers sleep better. The company also is pursuing innovation
through relationships with entrepreneurs and
business accelerators.
"We realized that the natural and organic industry is booming, and instead of not showcasing the work we are doing we are very proud of
it, and we want to really talk about the great
things we are doing," said Doug Munk, director of new business ventures for Nestle USA,
Arlington, Va. CP

Chief executive officer -
Ulf Mark Schneider

Nestle S.A. net profit

Nestle S.A. net sales

Nestle S.A. share price

per share in Swiss francs

8,531

2016

102 \ November 2019

7,156

2017

10,135

2018

in millions of Swiss francs

115
105
95

89,469

89,590

91,439
85

2016

2017

2018

75
Oct.
2018

Dec.

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Milling & Baking News Corporate Profiles - 2019

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