Change Management at Nestle

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Introduction

Nestlé S.A., based in Vevey, Switzerland is the world’s largest food company with sales of $65.5 billion in the last fiscal year. Nestlé S.A. provides quality brands and products that bring flavour to life every day. From nutritious meals with to baking traditions to advancing life for pets, Nestlé S.A. makes delicious, convenient, and nutritious food and beverage products that enrich the very experience of life itself. That’s what “Nestlé, Good Food, Good Life” is all about. Hence, it is rightfully named one of “America's Most Admired Food Companies” in Fortune magazine for the seventh consecutive year.

The Company was founded in 1866 by Henri Nestlé in Vevey, Switzerland. Nestlé came from the surname of Henry Nestlé himself which means ‘little nest’. The nest symbolizes security, family and nourishment, and plays a central role in delivered the message of the Nestlé products which emphasized healthy life for people in every stage of life.

Nestlé is more than just the largest food and Beverage Company in the world. Increasingly, Nestlé is becoming the world’s leader in nutrition, health and wellness. From the start, nutrition has been at the core of their business. However, today the company places far greater emphasis on it – and on health and wellness. The Corporate Wellness Unit and the individual business units are driving forces in bringing Good Food, Good Life to all the consumers.

Nestlé: Good Food, Good Life

Nestlé uses four simple words to describe what they believe in and what they offer consumers around the world: “Good Food, Good Life“. The company has simple and direct ways of influencing the customer’s lives. Personal health, nutrition, constant quality, safety, value for money and convenience, all play a part. Above all, taste has always been the prime motto of the company so that the customers appreciate the good food.

Nestlé: Over the years

1866-1905: In the mid-1860s Nestlé, a trained pharmacist began experimenting with various combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. He called the new product Farine Lactée Henri Nestlé.

The Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles and George Page, broadened its product line in the mid-1870s to include cheese and infant formulas. The Nestlé Company, which had been purchased from Henri Nestlé by Jules Monneret in 1875, responded by launching a condensed milk product of its own. The two companies remained fierce competitors until their merger in 1905.

In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. Peter, a friend and neighbour of Henri Nestlé, started a company that quickly became the world's leading maker of chocolate and later merged with Nestlé.

In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest. His instant pea and bean soups helped launch Maggi & Company.

1905-1918

As mentioned above, in 1905 Nestlé merged with one of its primary competitors Anglo- Swiss Condensed Milk Company and came to be known as Nestlé and Anglo-Swiss Milk Company.

In 1907, the Company began full-scale manufacturing in Australia, its second-largest export market. Warehouses were built in Singapore, Hong Kong, and Bombay to supply the rapidly growing Asian markets.

The World War I created tremendous new demand for dairy products, largely in the form of government contracts. To keep up, Nestlé purchased several existing factories in the United States.

1918-1938

The end of World War I brought with it a crisis for Nestlé. Government contracts dried up following the cessation of hostilities, and civilian consumers who had grown accustomed to condensed and powdered milk...
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