Good Food, Good Life

Presented by: Susan Wang

Adam Hurlbert

Windy Wang
Catherine Ning
Text Your Chocolate IQ…
 1
The best way to store chocolate is:
A.In the fridge
B. In a cool, dry place
C. Next to the stove
D. It should never be stored
– just eaten right away
 2

The Aztec name for chocolate was ‘xocalatl’ (try

saying that 5 times fast), which means:
A. Medicine
B. Brown paste
C. Fruit of the gods
D. Bitter water
 3
White chocolate is:
A. Not really chocolate
B. Cocoa butter without the cocoa liquor
C. Sweetened milk
D. A disco group from the 70s
 4
Which country consumes the most chocolate
per capita?
A. The USA
B. France
C. Switzerland
D. United Arab Emirates
 5
• Finish the sentence: The higher the cocoa
level…
A.The darker the chocolate
B.The bigger the chocolate bar
C.The more romantic the date
D.The higher the price
 Overview
• Introduction
• History
• SWOT
• Global Market
• Industry Analysis
• Competitors
• Recommendations
 Introduction

• Type: Public
• Founded: 1866
• HQ: Vevey, Switzerland
• Key people: Henri Nestle (Founder)
• Products: Chocolate, water, dairy products
• Revenue: 88.6 billion USD
• Net Income: 4.9 billion USD
• Employees: 305,000
 ANCIENT HISTORY OF
CHOCOLATE

•Cocoa and Maya Civilisation(600 AD)

4 cocoa beans =a pumpkin
10 cocoa beans =a rabbit
100 cocoa beans =a slave
•The Aztec Empire
Food of the Gods
•First Chocolate For Eating (1847)

Created by Fry & Sons in Bristol, England.

Only plain dark chocolate

•First milk chocolate bar (1875)

Daniel Peters (1836-1919)

History of Nestlé

1866-1905
“Farine Lactée Henri Nestlé”
Merged with Anglo-Swiss Condensed Milk Company
1905-1918
By the early 1900s, the Company was operating factories in the
United States, Britain, Germany and Spain.
World War I
1918-1938
The end of World War I brought with it a crisis for Nestlé.
1938-1944

World War II : Nescafé became popular

1944-1975
Dozens of new products were added
Outside companies were acquired
In 1974, the Company became a
major shareholder in L'Oréal

1996+
 Nestlé USA
Come for the Opportunity. Stay for the People.

WE’RE LOOKING FOR

THE VERY BEST!
For
OPERATIONS MANAGEMENT
DEVELOPMENT PROGRAM

Business: Operations, Industrial, Manufacturing, Production,

food Industry and Supply Chain Management
Agriculture: Food Science, Food Processing, Food
Manufacturing
Engineering: Industrial, Mechanical, Chemical, Electrical,
Biosystems, and Agricultural Engineering
*Applicants must be US citizens or permanent residents

Nestlé Information Session

Thursday, Oct. 06 @ 6:00 p.m.-7:30 p.m.
MU 219 Navajo
Refreshments and Snacks

Deadline for resume submission is 10/10/2005.

All resumes must be submitted via the ASU Career Services
Website. Info Session for preselected applicants will take place on
Monday October 17th, with interviews the following day .

Please contact your Office of Career Services for

details on how to sign-up for interviews.
To learn more about Nestlé USA, please visit:
www.nestleusa.com

ASU – OMT – F05

 Industry Analysis
• Very strong globally
• Many different brands
• Compete in several markets
• Chocolate, dairy products, food, water,
baby food and pet food
 SWOT Analysis
• Strengths-
– Many products with wide variety
– Flexibility
– Recognized world wide
 SWOT Analysis
• Weaknesses-
– Compete in many markets
– Weak in US
 SWOT Analysis
• Opportunities-
– Healthy food market
– Asian Market
 SWOT Analysis
• Threats-
– Chocolate interest decrease
– Water
 Global market
• Nestle leads the global milk market with a 3.2%
share
• Leads the global ice cream market with a 17%
share
• Leader of bottled water in North America, Europe,
Middle East-Africa
• Ranks third in the soft drinks global market with
3.4 percent in total sales
 Nestle in Europe
• In 1868, set up a sales office in London
• In 1901, opened first UK factory
• In 1913, chocolate production began at Hayes
• In 1988, bought the British confectionery
company Rowntree Mackintosh
• In 2007, teamed up with Barry Callebaut
• In Nov.2007, acquired Russian chocolate factory
 Nestle in USA
• In 1900, entered the US
• In 1984, acquisition of American food giant
Carnation
• In 2002, merged with Dreyer’s of the US ice
cream business
• In Aug. 2002, acquisition of Chef America
• In 2007, bought Gerber for 5.5 billion
 Kit Kat Issue
• Produced worldwide by Nestle except USA
• In USA, made under licence by Hershey’s
• Number #1 brand in UK, the world’s
#2 chocolate after snickers
• Japan pushed Kit Kat flavors the most
 Nestle in China
• In 1908, opened sales office in Shanghai
• In 1987, established the first joint venture
company
• In 1990, the first factory opened
• In 1999, bought famous food seasoning company -
Happy Wife
• In 2004, set up milk factory in Inner Mongolia
 Chinese market
• Most famous for Nescafe, Nesquick and Nestle baby
mike formula
• Launched premium ice cream
• Ambitious to be leader in food-seasoning
• Condemned by consumers for
its unqualified baby milk formula-
too much iodine
 Competitors (chocolate)
Mars Inc.
• Type: Private
• Founded: Tacoma, Washington (1911)
• Headquarters: McLean, Virginia
• Key people: Frank C. Mars, Founder
• Industry: Confectionery manufacturing
• Products: M&M's, Snickers, Twix, and Skittles
• Revenue: US $21 billion (2006)
• Employees: 40,000 (2006)
 Competitors (chocolate)
The Hershey Company Inc.
• Type: Public
• Founded: 1894
• Headquarters: Hershey, Pennsylvania, USA
• Key people: Milton S. Hershey, founder
• Industry: Chocolate and candy manufacturer
• Products: Hershey KISSES, etc.
• Revenue: $4.944 Billion USD (2006)
• Net income: 305.6 million
• Employees: 14,352 employees worldwide
• Slogan: "a palatable confection and a most nourishing
food."
 Competitors (food)
Kraft Foods Inc.
• Type: Public
• Founded: 1903
• Headquarters: Northfield, Illinois, USA
• Key people: Irene Rosenfeld, CEO
• Industry: Food Processing
• Products: Kraft, Nabisco
• Revenue: $34.356 billion USD (2006)
• Net income: $3.06 billion (2006)
• Employees: 90,000 (2006)
soft drink global market (2006)

Coca-Cola 25.6%
PepsiCo 13.4%

Nestle 3.4%
Danone 2.6%

Other 55%
 Competitors (water)
The Coca-Cola Company
• Type: Public
• Founded: 1892 by Asa Griggs Candler
• Headquarters: Atlanta, Georgia, USA
• Key people: E. Neville Isdell, CEO & Chairman
• Industry: Beverage
• Products: Water and Non-alcoholic soda drinks
• Revenue: $24.088 billion USD (2006)
• Net income: $5.080 billion USD (2006)
• Employees: 55,000 (2006)
• Central promise: to refresh the world in mind, body, and inspirit; to inspire
moments of optimism; to create value and make a difference
 Competitors (water)
Danone Group
• Type: public
• Founded: 1919
• Headquarters: Paris, France
• Key people: Franck Riboud, Chairman & CEO
• Industry: Food
• Products: Dairy products (55%), Water, Biscuits (18%),
• Revenue: EUR 13,024 million (1.9 million US) (2005)
• Employees: 88,184
 Recommendations
• Short-term
– Local markets
– Purchase Kit Kat license in U.S.
– Health and Nutrition
 Recommendations (cont.)
• Long-term
– Continue to expand globally
– Other markets and one brand
– Quality of products
Thanks for watching!

Any questions?