Summary

• History: Henri Nestlé started an infant food namely ‘farine lactée’ in 1867 in Vevey, Switzerland. Another company Anglo-Swiss Condensed Milk Company is started in 1866 by the US brothers Charles and George Page, which in 1905 merged with Nestlé to become Nestlé Group. Thus, history of Nestlé starts in 1866.
• Headquarters: The company is headquartered at Vevey, Vaud, Switzerland.
• Management: Currently (June, 2022), Chairman of the Board of the company is Paul Bulcke and Chief Executive Officer is Mark Schneider.
• Industry & Products: The company belongs to fast moving consumer goods industry (FMCG). Products include baby food, coffee, dairy products, breakfast cereals, bottled water, PetCare products, ice cream and so on.
• Brands and company size (2021): The company currently operates 2,000+ brands in more than 186 countries in the world. It has around 270,000 employees all over the world. The company has established 354 factories in 79 countries as of 2021.
• Financial results (2021): The company has reported sales of CHF 87,088 million, operating income CHF 11,679 million, net income CHF 17,196 million, EPS CHF 6.06, ROE 32%, ROIC 17%, D/E 0.84, current ratio 0.98.

Company Overview

Nestlé SA is a Swiss-based food manufacturing conglomerate headquartered in Vevey, Vaud, Switzerland. It is the largest food manufacturing company in the world according to Forbes in 2020 measured by composite score of revenue, profit, assets, and market value.¹

According to the branding of the company, Nestlé is a Good food, Good life company. Purpose of the company is “Unlocking the power of food to enhance quality of life for everyone, today and for generations to come. That is our purpose.”

More than 150 years ago, Henri Nestlé has started what is today, Nestlé. The company currently operates 2,000+ brands in more than 186 countries in the world. It has around 270,000 employees all over the world. The company has established 354 factories in 79 countries as of 2021. Portfolio of the company covers almost every food and beverage category – offering products and services for all stages of like, every moment of the day, helping people care for themselves and their families.

The company is headed by Mark Scheider as the CEO (Chief Executive Officer). Paul Bulcke is the Chairman of the Board of the company in 2022.

Group Structure and Shareholders

Nestlé Group is listed on the stock markets of countries worldwide as the company itself or the subsidiaries.² Nestlé S.A. shares are listed on the SIX Swiss Exchange in Switzerland. On December 31, 2021, the market capitalization of the company was CHF 351,682,442,600.

Major shareholders of the company include BlackRock Inc., New York, who holds 4.998% of Nestlé S.A.’s share capital. The capital Group Companies, Inc., Los Angeles, directly or indirectly holds 3.55% of the company’s share. All the other shareholders, as per the best knowledge of Nestlé S.A., hold less than 3% of the company’s stake.

History of Nestlé

Henri Nestlé, a trained pharmacist, develops a breakthrough infant food in 1867 namely ‘farine lactée’ (‘flour with milk’) and launches it in Vevey, Switzerland. The product combines cow’s milk, wheat flour and sugar, and Nestlé develops it for the infants who cannot be breastfed. The ‘Nest’ logo of the group came into being around this time.

However, the history starts 1 year back in 1866 when US brothers Charles and George Page had established Anglo-Swiss Condensed Milk Company, which would merge with Nestlé to become Nestlé Group in 1905. They established their first condensed milk production facility in Cham and they ran the Milkmaid brand.

1. ^ https://www.forbes.com/sites/chloesorvino/2020/05/13/the-worlds-largest-food-and-restaurant-companies-in-2020/?sh=1494cd33262d
2. ^ See Financial Statements 2021, p.154 for complete list. Available at: https://www.nestle.com/sites/default/files/2022-03/2021-corp-governance-compensation-financial-statements-en.pdf