Comments on: Deconstructing… Nestle http://corpintel.wordpress.com/2007/09/17/deconstructing-nestle/ ... from the frontiers of business, politics and society Fri, 11 Dec 2009 06:53:43 +0000 http://wordpress.com/ hourly 1 By: Mitch Betts http://corpintel.wordpress.com/2007/09/17/deconstructing-nestle/#comment-277 Mitch Betts Wed, 19 Sep 2007 16:26:06 +0000 http://corpintel.wordpress.com/2007/09/17/deconstructing-nestle/#comment-277 Agreed! Nestle's move to a "health and wellness company" was evident when it scuttled merger talks with PepsiCo in late spring, in part because of concerns that Pepsi's soda & chips menu wouldn't fit Nestle's newfound interest in nutrition. See: "How Junk Food Spoiled Megadeal," <i>The Wall Street Journal</i> (19 July 2007). http://online.wsj.com/article/SB118480867961571146.html Agreed! Nestle’s move to a “health and wellness company” was evident when it scuttled merger talks with PepsiCo in late spring, in part because of concerns that Pepsi’s soda & chips menu wouldn’t fit Nestle’s newfound interest in nutrition.

See: “How Junk Food Spoiled Megadeal,” The Wall Street Journal (19 July 2007).
http://online.wsj.com/article/SB118480867961571146.html

]]> By: Angelo http://corpintel.wordpress.com/2007/09/17/deconstructing-nestle/#comment-275 Angelo Wed, 19 Sep 2007 14:20:26 +0000 http://corpintel.wordpress.com/2007/09/17/deconstructing-nestle/#comment-275 Nestlé's long-term goal is to move away from being the world's largest food and beverage company to the largest health and wellness company. This is part of the reason why Nestlé acquired Jenny Craig. Like you noted, Mitch, I believe that Polman does have a strong set of challenges in front of him, but most of these aren't unique to Nestlé; they are common to many large multinationals, albeit with better margins. =) Having noted Nestlé's financial sustainability, another challenge involves addressing environmental sustainability. It's a matter of time before the debacle surrounding bottled water sourced from natural reservoirs reaches its boiling point and before sustainable farming becomes more the norm than the exception. Regarding the acquisition / divestiture front, the company's stake in Alcon and L'Oréal offers the financial firepower necessary for another strategic acquisition. However, the question remains whether Nestlé will choose instead to hold on to these two firms or cash them in for a crack at more organic-focused brands and businesses. Yes, Nestlé appears quite average in its messy proactive / reactive approach to managing its businesses, but I'm betting that Polman can do as good a job as Brabeck, if not better. Nestlé’s long-term goal is to move away from being the world’s largest food and beverage company to the largest health and wellness company. This is part of the reason why Nestlé acquired Jenny Craig. Like you noted, Mitch, I believe that Polman does have a strong set of challenges in front of him, but most of these aren’t unique to Nestlé; they are common to many large multinationals, albeit with better margins. =) Having noted Nestlé’s financial sustainability, another challenge involves addressing environmental sustainability. It’s a matter of time before the debacle surrounding bottled water sourced from natural reservoirs reaches its boiling point and before sustainable farming becomes more the norm than the exception.

Regarding the acquisition / divestiture front, the company’s stake in Alcon and L’Oréal offers the financial firepower necessary for another strategic acquisition. However, the question remains whether Nestlé will choose instead to hold on to these two firms or cash them in for a crack at more organic-focused brands and businesses.

Yes, Nestlé appears quite average in its messy proactive / reactive approach to managing its businesses, but I’m betting that Polman can do as good a job as Brabeck, if not better.

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