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Nestlé Equatorial African Region
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Contents
Message from the Head of Region 3
Nestlé Global organization 5
Nestlé in Africa 17
Nestlé Equatorial African Region 25
People Development 42
Creating Shared Value 50
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Nestlé Equatorial African Region
I t i s w i th immense pr ide and pleasure that I address you through our first Nestlé Equatorial Afr ican Region corporate brochure. This newly born regional structure within the Nestlé organization regroups 21 African countries, w i t h i t s h e a d q u a r t e r s established in Nairobi, Kenya.
More than just a structural reorganisation, this move is further proof of the Company’s long lasting commitment to Africa, a commitment deeply rooted in the history of Nestlé during the last century. In a volatile world economy, we expect African markets to offer addit ional economic opportunities as we expand operations, introduce new products to increase our market share. This continued success translates growth and opportunity for people and communities across the
continent.
Our strategy refers to what we
feel are today the principles of
Message from the Head of Region
committed engagement in Africa:
Creating Shared Value for both
society and for our shareholders at
the same time, providing healthy,
tasty and nutritious products to
our consumers, participating in
sustainable rural development,
promoting health and nutrition
awareness, and last but not
least, ensuring that all our efforts
meet environmental preservation
requirements. Our determination to
apply those principles in our day-
by-day business demonstrates
that Nestlé EAR is looking far
beyond immediate returns: our
company has a strong confidence
in the region’s potential for long-term
growth and development.
As you turn the pages of this report,
you will see our strategy, our values
and our principles in practice. This
is the way to unlock economic
opportunity, promote sustainable
growth and improve the quality of life
for all Africans.
Pierre Trouilhat
Nestlé Equatorial African Region
Region Head and
Chief Executive Officer
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NESTLÉGLOBAL
ORGANISATION
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The history of Nestlé began in Vevey, Switzerland, in1867 when founder Henri Nestlé created one of the first infant foods in response to the need for a healthy and affordable product to serve as an alternative for mothers who could not breastfeed their babies. He called his product Farine Lactée Henri Nestlé.
Within a few years, the Farine
Lactée product was marketed in
Nestlé, a history across three centuries…
Europe. Nestlé called his company
Société Farine Lactée Henri Nestlé.
In 1874, Nestlé developed its condensed milk product, to contend with the Anglo-Swiss Condensed Milk Company, a competitor that was producing cheese, instant formulas and had opened Europe’s first sweetened condensed milk factory in Cham, Switzerland, to market the first
condensed milk, MILKMAID.
Henri Nestlé
Vevey CH, Nestlé Factory, before1897
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Nestlé Equatorial African Region
The two companies merged in
1905, the year after Nestlé added
chocolate to its line of foods. The
newly formed Nestlé and Anglo-
Swiss Milk Company had factories
in the United States, Britain, Spain
and Germany.
S o o n t h e c o m p a n y w a s
manufacturing in Australia with
warehouses i n S ingapore ,
Hong Kong and Bombay. Most
production however still took place
in Europe.
The start of World War I made
it difficult for Nestlé to buy raw
ingredients and distribute products.
Fresh milk was scarce in Europe,
and factories had to sell milk for
the public need instead of using it
as an ingredient in foods. Nestlé
purchased several factories in the
U.S. to keep up with the increasing
demand for condensed milk and
dairy products via government
con t rac ts . The company ’s
production doubled by the end of
the war. When fresh milk became
available again after the war, Nestlé
suffered and slipped into debt. The
price of ingredients had increased,
the economy had slowed and
exchange rates deteriorated
because of the war.
An expert banker helped Nestlé
find ways to reduce its debt. By
the 1920s Nestlé was creating new
chocolate and powdered beverage
products. Adding to the product
line once again, Nestlé developed
Nescafé in the 1930s and Nestea
followed. Nescafé, a soluble
powder, revolutionized coffee
drinking and became an instant hit.
With the onset of the Second
World War, profits plummeted.
Switzerland was neutral in the
war and became increasingly
isolated in Europe. Because of
distribution problems in Europe
and Asia, Nestlé opened factories
in developing countries in Latin
America. Production increased
dramatically after America entered
the war and Nescafé became a
main beverage for the American
soldiers in Europe and Asia. Total
sales increased by $125 million
from 1938 to 1945.
After 1945, Nestlé continued to
prosper, merging with Alimentana
S.A., a company that manufactured
soups and seasonings, in 1947. In
the coming years, Nestlé acquired
Cross & Blackwell, Findus frozen
foods, and Libby’s fruit juices.
Nescafé instant coffee sales
quadrupled from 1960 to 1974,
and the new technology of freeze-
drying allowed the company to
create a new kind of instant coffee,
which they named Taster’s Choice.
Expanding its product line outside
of the food market, Nestlé became
a major stockholder in L’Oréal
cosmetics in 1974. Soon after, the
company suffered with increasing
oil prices and the slowing growth
in industrialized countries. Foreign
exchange rates decreased, in
turn reducing the value of the
sterling pound, dollar and franc.
Prices of coffee beans and cocoa
rose radically, presenting further
problems for Nestlé.
Nestlé, a history across three centuries…
Broc CH, Cailler Arrival of Milk in the Courtyard, ca. 1910.
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By the 1980s, in one of the
largest takeovers at that time,
Nestlé bought Carnation for
$3 billion. International trade
barriers diminished in the
1990s, opening trade with
Eastern parts of Europe and China.
In the 1990s, Nestlé acquired San
Pellegrino, and Spillers Petfoods
of the UK. With the acquisition of
Ralston Purina in 2002, the Nestlé-
owned pet care businesses joined
to form the industry leader Nestlé
Purina PetCare.
In 2002, there were also two major
acquisitions in North America: in
July, Nestlé merged its U.S. ice
cream business into Dreyer’s, and
in August, a USD 2.6bn acquisition
was announced of Chef America,
Inc. The year 2003 started well with
the acquisition of Mövenpick Ice
Cream, enhancing Nestlé’s position
as one of the world market leaders
in this product category.
In 2006, Jenny Craig and Uncle
Toby’s were added to the Nestlé
portfolio. 2007 saw Novartis
Medical Nutrition, Gerber and
Henniez join the Company, and in
2010, Frozen Pizza of Kraft Foods
was integrated into the Nestlé
Group.
With a strong view of the company’s
mission in mind, focusing on long-
term potential over short-term
performance, Nestlé will continue
to grow, introduce new products
and renovate existing ones.
Nestlé, Orbe Factoriy in Switzerland
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Nestlé Equatorial African Region
Nestlé Story – all the way to Nutrition, Health and Wellness
1866 FoundationofAnglo-SwissCondensedMilkCo.
1867 HenriNestlé’sbabyfooddeveloped
1905 NestléandAnglo-SwissCondensedMilkCo.(newnameaftermerger)
1929 MergerwithPeter,Cailler,KohlerChocolatsSuissesS.A.
1934 LaunchofMilo
1938 LaunchofNescafé
1947 NestléAlimentanaS.A.(newnameaftermergerwithMaggi)
1948 LaunchofNesteaandNesquik
1969 Vittel(initiallyequityinterestonly)
1971 MergerwithUrsina-Franck
1973 Stouffer(withLeanCuisine)
1974 L’Oréal(associate)
1977 NestléS.A.(newCompanyname),Alcon(2002:partialIPO;2008:partialsale)
1981 Galderma(jointventurewithL’Oréal)
1985 Carnation(withCoffee-mateandFriskies)
1986 CreationofNestléNespressoS.A.
1988 Buitoni-Perugina,Rowntree(withKitKat)
1990 CerealPartnersWorldwide(jointventurewithGeneralMills)
1991 BeveragePartnersWorldwide(jointventurewithCoca-Cola)
1992 Perrier(withPolandSpring)
1993 CreationofNestléSourcesInternationales(2002:NestléWaters)
1997 CreationofNutritionStrategicBusinessDivision(2006:NestléNutrition)
1998 SanPellegrinoandSpillersPetfoods,launchofNestléPureLife
2000 PowerBar
2001 RalstonPurina
2002 SchöllerandChefAmerica,DairyPartnersAmericas(jointventurewithFonterra),
LaboratoiresInnéov(jointventurewithL’Oréal)
2003 MövenpickandDreyer’s
2005 Wagner,ProtéikaandMusashi
2006 CreationofFoodServicesStrategicBusinessDivision,LactalisNestléProduitsFrais
(associate),JennyCraig,UncleTobysandDeltaIceCream
2007 NovartisMedicalNutrition,Gerber,Henniez
2010 KraftFoods'frozenpizzabusiness
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Nestlé Equatorial African Region
From Food to Nutrition, Health and Wellness
In evolving from a respected,
trustworthy Food Company, to a
respected, trustworthy Nutrition,
Health and Wellness Company,
Nestlé draws strength from its
history of demonstrated know-how
and capability, as well as its product
portfolio, which serve as carriers of
nutrition benefits.
Nestlé also derives strength from
its huge research and development
network. Science and research
have a lways been at the
forefront of the Company’s
efforts to understand the needs
and desires of its consumers,
and to provide quality food
options for all ages and stages
of life.
Especially vital to the Company
is the development of products
that promote health and wellness
while at the same time adhering
to dietary cultures and taste
preferences of local consumers in
the various regions of the world.
Today, more than half of Nestlé’s
research projects are dedicated to
nutrition.
The corporate slogan, Good Food,
Good Life, is at the heart of the
Nestlé business. As the Company
enters into a new era in nutrition and
health, this simple phrase will guide
the Nestlé core business operations
in scientific research, product
development and marketing.
Nutrition was the cornerstone
on which Nestlé was founded.
Today, the company is evolving yet
remaining loyal to its heritage as it
develops from the world’s leading
Food company into the world’s
no. 1 Food, Nutrition, Health and
Wellness Company.
Major Areas of Focus
• Beverages Soluble coffee, chocolate milk beverages, ready-
to-drink and bottled water.
• Milk, Nutrition and Ice creams Powdered, condensed and evaporated milk,
infant nutrition, weaning products, performance & clinical nutrition, breakfast cereals, yogurts and ice creams.
• Chocolate & Confectionery Tablets, bars, biscuits, sugar confectionery and
present boxes
• Prepared Dishes & Cooking Aids Bouillons, soups, seasonings, sauces, pasta, frozen foods and Italian cuisine.
• Health Care Nutrition Personalized Health Science Nutrition to prevent
and treat health conditions such as diabetes, obesity, cardiovascular disease and Alzheimer's disease
• Professional Food Services Food products for the out-of-home industry
• Pet-care Products Pet food for cats and dogs
Nestlé products portfolio includes seven major areas
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Nestlé’s Main Brands
Today Nestlé is present in different markets with the following main brands:
Nescafé, Nespresso,
Taster’s Choice, Ricoré,
Ricoffy, Bonka, Zoégas,
Loumidis
COFFEE
Nestea, Nesquik, Nescau,
Milo, Carnation, Libby’s,
Caro, Nestomalt, Nestlé
OTHER BEVERAGES
Nestlé, Nido, Nespray, Ninho,
Carnation, Milkmaid, La Lechera,
Moça, Klim, Gloria, Svelty, Molico,
Nestlé Omega Plus, Bear Brand,
Coffee-Mate
DAIRY - SHELF STABLE
Nestlé, Nan, Lactogen,
Beba, Nestogen, Cerelac,
Nestum,
Neslac, Guigoz, Good Start
INFANT NuTRITION
Maggi, Buitoni, Thomy,
Winiary,Torchin, Osem,
Totole, Haoji
BOuILLONS, SOuPS, SEASONINGS, PASTA, SAuCES
Nestlé, Crunch, Cailler,
Galak/Milkybar, Kit Kat,
Smarties, Butterfinger,
Aero, Polo
CHOCOLATE, CONFECTIONERY & BISCuITS
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Nestlé Equatorial African Region
NESTLÉ PROFESSIONAL
Purina, Friskies, Fancy Feast,
Alpo, Gourmet,
Mon Petit, Felix, Dog Chow,
Cat Chow, Pro Plan, Purina
One, Beneful, Tidy Cats
WATER
Poland Spring, Nestlé Pure
Life, Arrowhead, Vittel,
Deer Park, Levissima, Perrier,
S.Pellegrino, Ozarka, Contrex,
Ice Mountain, Zephyrhills,
Nestlé Aquarel,
Hépar, Acqua Panna
Nestlé, Sveltesse,
La Laitière, La Lechera,
Ski, Yoco, Svelty,
Molico, LC1, Chiquitin
DAIRY - CHILLED
Nestlé, Antica Gelateria del Corso,
Dreyer’s/Edy’s, Drumstick/Extrême,
Maxibon/Tandem, Mega,
Mövenpick, Sin Parar/Sem Parar/
Non Stop, Delta
ICE CREAM
PowerBar, Pria, Musashi
PERFORMANCE NuTRITION
Nutren, Clinutren,
Peptamen, Modulen
HEALTHCARE NuTRITION
Frozen foods (prepared dishes, pizzas, small meals)
Stouffer’s, Lean
Cuisine, Hot
Pockets, Buitoni,
Maggi, Wagner,
La Cocinera
(cold meat products, dough, pasta,
pizzas, sauces, snacks) Nestlé,
Buitoni, Herta, Toll House, Sabra
REFRIGERATED PRODuCTS
Chef,
Davigel,
Minor’s
PETCARE
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Nestlé Structure todayNest lé is a decentral ized
o r g a n i z a t i o n w h e r e
responsibility for operating
decisions is delegated to local
units, which have a high degree
of autonomy concerning pricing,
distribution, marketing, etc.
As the company of the operating
units, Nestlé S.A. sets the broad
strategy l ines and contro ls
profitability. It is organized in three
geographical zones: Europe (EUR),
Americas (AMS) Asia-Oceanic-
Africa (AOA).
In DRC, for example, Nestlé had
to rethink its traditional distribution
methods (operating a central
warehouse), because of the
lack of adequate infrastructure.
Consequently, Nestlé built a
network of small warehouses
around the country. This example
shows that the company is able to
respond quickly to different local
conditions.
Another point supporting this
strategy is that Nestlé employs
a majority of local staff. Local
employees better know and
understand the local culture and
business procedures. This results
in a more efficient way to respond
adequately to local demand
conditions.
Furthermore, Nestlé can take
advantage of location economies.
Location economies arise from
performing a value creation activity
in the optimal location for that
activity, anywhere in the world.
The optimal location for a value
creating activity lowers the costs
of value creation, therefore helping
the company achieve a low-cost
position.
Nestlé is organized into seven
different worldwide strategic
business units. These have
responsibility for high-level strategic
decisions and engage in overall
strategic business development,
including acquisitions and market
entry strategy. The regional
organizations are responsible for
developing regional strategies
and assist in the overall strategy
development process.
In adddi t ion Research and
Development is essential for
the company. One of Nestlé's
distinctive competitive advantages,
Food & Beverage R&D benefits
from a yearly budget of CHF 2
billion. Throughout the world, 28
research and development centres
directly employ 5,000 scientists
and researchers.
Nestlé Headquarters in Vevey, Switzerland
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Nestlé Equatorial African Region
Nestlé is committed to the following Corporate Business Principles in all countries, taking into account local legislation, cultural and religious practices:
• Nutrition, Health and Wellness Our core aim is to enhance the quality of consumers' lives every day, everywhere by offering tastier
and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition Good Food, Good Life.
• Quality assurance and product safety Everywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe
and of high standard.• Consumer communication We are committed to responsible, reliable consumer communication that empowers consumers to
exercise their right to informed choice and promote healthier diets. We respect consumer privacy.• Human rights in our business activities We fully support the United Nations Global Compact's (UNGC) guiding principles on human rights
and labour and aim to provide an example of good human rights and labour practices throughout our business activities.
• Leadership and personal responsibility Our success is based on our people. We treat each other with respect and dignity and expect everyone
to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination
• Safety and health at work We are committed to preventing accidents, injuries and illness related to work, and to protect employees,
contractors and others involved along the value chain.• Supplier and customer relations We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity
and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed towards our own customers.
• Agriculture and rural development We contribute to improvements in agricultural production, the social and economic status of farmers,
rural communities and in production systems to make them more environmentally sustainable.• Environmental sustainability We commit ourselves to environmentally sustainable business practices. At all stages of the product life
cycle we strive to use natural resources efficiently, favour the use of sustainably-managed renewable resources, and target zero waste.
• Water We are committed to the sustainable use of water and continuous improvement in water management.
We recognise that the world faces a growing water challenge and that responsible management of the world's resources by all water users is an absolute necessity.
Nestlé Corporate Business Principles
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NESTLÉIN AFRICA
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Nestlé has a long story in Africa.
The company always believed in
the potential of the continent. Its
presence dates back to the end
of the 19th century, when Nestlé
Sweet Condensed Milk travelled
the African continent in miner’s
Nestlé in Africa
rucksacks. As early as 1927,
Nestlé established its industrial
presence on the African soil,
opening a factory in South Africa.
Since then, Nestlé has steadily
b u i l t a c o m m e r c i a l a n d
manufacturing network in Africa.
Our company has a long-term commitment to rural development and the use of local raw materials rather than imports. We intend to significantly expand our business in Africa by developing local food resources for our factories.Paul Bulcke - Chief Executive Officer, Nestlé S.A.
Nestlé Kenya Laboratory.
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Nestlé Equatorial African Region
In 2011, this network includes
27 factories and dozens of other
warehouse and office facilities
serving all 54 African nations. The
Company employs approximately
15,500 people in Africa, and
around 50,000 additional jobs
have been indirectly created
t h r o u g h t h e s u p p l y a n d
distribution chain.
Nestlé has built this business by
following its primary business
pr inciple: Favour long-term
sustainable growth over short-
term transitory profit, establishing
national and regional companies
through consistent investments
over many decades, despite
often chal lenging economic
circumstances.
During the last 5 years, Nestlé’s
investment in the cont inent
exceeded USD 800 million. The
Company will invest even more
in the next 5 years, across a plan
to upgrade and expand 3 of the
existing factories and build not
less than 6 finishing factories
to manufacture products, with
a view to increase intra-Africa
trade instead of simply importing
products to the continent.
Th rough expend i t u re t ha t
includes taxes, salaries, social
security contr ibutions, rent,
procurement and purchase of
raw materials, among others,
Nest lé’s est imated f inancial
input to the African economy
as a who le s tands a t over
USD 1 billion. Nestlé’s greatest
contribution to Africa is through
the impact of our core business,
with responsible, sustainable
operat ions that create jobs
and catalyse entrepreneurship.
We make major investments in
infrastructure, industrialisation,
job creation and human capacity
building.
Nestlé Kenya Factory. Nestlé R&D Centre in Abidjan, Ivory Coast.
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Nestlé Equatorial African Region
Sub-Saharan Africa and hundreds
of ethnic groups account for 13%
of the global population, but bear
a disproportionate burden of the
world’s problems.
Despite these problems, Africa
shows steady economic growth
and business opportunity for
those able to have a long-
term vision and solid business
practices. Income levels and
consumer spending power are
increasing
Nestlé’s commitment to Africa
goes much beyond mere ly
a c h i e v i n g t h e C o m p a n y ’s
bus iness object ives. Be ing
the world’s largest Food and
Beverage Company, and the
world leader in Nutrition, Health
and Wel lness carr ies social
responsibilities, especially in such
a challenging environment as is
the case in Africa.
Through institutions as the Nestlé
Foundat ion and the Nest lé
Nutrition Institute of Africa, as
well as Creating Shared Value
initiatives, Nestlé supports a
number of major projects on the
continent, aimed at reducing
malnutrition.
Nest lé is committed to the
principles of Creating Shared
Va l u e , b a s e d o n t h e f i r m
conviction that only by creating
value for society as a whole can
we create long-term value for our
shareholders.
Creating Shared ValueNestlé is committed to the principles of Creating Shared Value, based on the firm conviction that only by creating value for society as a whole can we create long-term value for our shareholders.
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As part of its Creating Shared
Value approach to its basic
business, Nestlé focuses on
3 main areas of intervention:
Nut r i t ion , Water and Rura l
Development.
On a yea r l y bas i s , Nes t l é
p u r c h a s e s f r o m A f r i c a ,
millions USD worth of cocoa
providing for the l ivel ihoods
of thousands of farmers. To
meet the expectations of the
communities we serve, Nestlé
has launched in October 2009
The Cocoa Plan, with the vision
of helping the cocoa farmers
run profitable farms, respecting
the environment, having a good
quality of life and for their children
to benefit from an education
and see cocoa farming as a
respectable profession. Better
quality crops in West Africa will
allow Nestlé to replace imported
raw materials by local ones that,
in turn, will raise the income and
the quality of life of local farmers.
Creating Shared ValueNutrition, Water and Rural development
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Nestlé Equatorial African Region
To achieve this ambition, Nestlé
will invest USD 108 millions over
the next 10 years, building on the
USD 59 millions invested over the
last 15 years.
N e s t l é a l s o p u r c h a s e s a
considerable amount of coffee
f rom A f r i ca i n 2008 . He re
again, we are fully committed
to enhancing the qual i ty of
life of African coffee farmers.
Over the last 30 years, Nestlé
h a s d e v e l o p e d a d v a n c e d
technology enabling the mass
production of trees with desirable
characteristics.
This enables the propagation of
high-yielding, disease-resistant
p lants on a broad scale to
rejuvenate cocoa and coffee
plantations. This approach, which
tends to curtail deforestation as it
eliminates the need to expand
existing plantations, is already
successful ly implemented in
different parts of the world.
Research and Development is
at the core of Nestlé’s business
principles. In this respect, the
Company has inaugurated in
April 2009 a state-of-the-art R&D
Centre in Abidjan, Ivory Coast,
which will focus on improving
the quality of locally-sourced
raw materials, including cocoa,
coffee, cassava, sorghum, millet
and maize, among others, and
on adapting products to the
nutritional needs and tastes of
African consumers.
Creating Shared Value
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NESTLÉ EQUATORIAL
AFRICAN REGION
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B e f o r e 2 0 0 8 , N e s t l é ’s
organization in Africa was shaped
around four big regions: the
Maghreb Region, the Horn of
Africa Region, the Central and
West Africa Region, and the
Southern and Eastern African
Region.
However, within the different
regions, increasing gaps between
countries were appearing, in line
with differences between their
respective paces of economic
growth. It had become timely
for Nest lé to create a new
region regrouping countr ies
with roughly similar social and
economic development patterns,
and to consequently set up
for the new unit a long term
homogenous strategy harnessing
its development.
A New Organisation Structure
Thus, in Apr i l 2008, Nest lé
Equatorial African Region was
born , w i th i t s Head Off ice
established in Nairobi, Kenya.
The new reg ion covers 21
countries in total, all of them
reporting to the Nairobi HQ:
Angola, Burundi, the Union
Nestlé Equatorial African Region
Population: 400,000,000
Main economic resources: Agriculture, Oil, Mining, Tourism
GDP (uSD millions):
Lowest: 548,751,654 (Comoros)
Highest: 75,492,890,298 (Angola)
GNI (uSD) per capita per year:
Lowest: 150 (Burundi)
Highest: 8,480 (Seychelles)
Source: www.worldbank.org/afr
of Comoros, the Democratic
Republic of Congo, Dj ibouti
E r i t r e a , E t h i o p i a , K e n y a ,
Madagascar, Malawi, Mauritius,
Mozamb ique , Repub l i c o f
Congo, Rwanda, Seychelles,
Somalia, South Sudan. Tanzania,
Uganda, Zambia, and Zimbabwe.
“If there is a company that fully understands value chain approach in food systems, it is Nestlé. There is a lot for Africa to gain from this partnership. Through the shared value concept, we can promote public private partnerships that can fully confront the food and nutrition insecurities facing Africa today. Together we can create healthier communities” Hon. Prof. Ruth Oniang'o, a leading African nutritionist, and member of Nestlé Creating Shared Value Advisory Board
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Nestlé Equatorial African Region
Nestlé Equatorial African Region Map
South SudanJuba
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Overa l l , th is newly created
regional entity aims at taking full
advantage of the different regional
integration groups to reach one
objective: to produce in EAR
and supply to EAR markets. As
far as possible, Nestlé EAR will
adapt its development strategy
in the region to benefit from the
different business incentives
offered by COMESA, SADC,
EAC, and by bilateral agreements
as the Zimbabwe-Mozambique
duty-free trade accord, with
the ultimate goal of creating
economic prosper i ty in the
countries in which the Company
operates.
comesa countries in ear sadc countries in ear
eac countries in ear
The new State of South Sudan is currently negotiating
its addition to regional blocks.
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Nestlé Equatorial African Region
This new region presently hosts three factories, one in Zimbabwe (Harare), one in DRC (Kinshasa) and the other one in Kenya (Nairobi). It also encompasses 9 operating companies, in Kenya,
Mauritius, Angola, Mozambique, Democratic Republic of Congo, Zimbabwe and Zambia. Four representative offices are based in Ethiopia, Tanzania, Uganda and Madagascar, and 9 distribution
centers, in Angola, Kenya, DRC, Mozambique, Mauritius and Zimbabwe. The Nestlé Equatorial African Region currently provides direct employment to some 990 people.
Operating Companies: 7 CountriesFactories: 3 CountriesRepresentative o�ces: 4 CountriesDistribution Centres: 7 Countries
Dar es Salaam
South SudanJuba
Two operating companies
Two operating companies
Nestlé Existing Infrastructure in EAR
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Nestlé Kenya Factory
Nestlé Zimbabwe Factory
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Nestlé Equatorial African Region
South SudanJuba
Nestlé’s Regional Strategy for GrowthTo l e v e r a g e t h e e x i s t i n g opportunities in the region, Nestlé will enhance its existing regional structure. Our redeployment scheme is ambitious. We are building new factories in Angola and Mozambique. We are also setting up a number of strategic d is t r ibu t ion cent res in the Equatorial African Region. This plan will obviously carry extensive employment opportunities in many countries of the region, a s p a r t o f o u r l o n g - t e r m commitment to Equatorial Africa.
Nestlé is also investing massively in training EAR employees. We firmly intend to enhance those programs in the near future, in line with both the company planned growth in EAR and our global technology transfer effort.
Popularly Positioned Products to address Micro-nutrient deficiencies A n i m p o r t a n t p a r t o f o u r reg iona l s t ra tegy re l i es on adapting our product portfolio to the commercial and social environment in Equatorial Africa. To succeed in making healthy and nutritious food available
to a l l , no matter the depth of their pockets, requires a profound understanding of the local situations and conditions, Made and packaged to meet local culture and taste, Nestlé products sold in Equator ia l Africa offer the same quality standards than in the rest of the world, but their nutritional content is adapted: the food is fortified to cope with the nutrient
deficiencies prevailing in this part of the world. Micro nutrient deficiencies, quite common in Africa, indeed carry serious risks of developing diseases, as shown in the following list.
Nestlé EAR Future Plans
32
Micro-nutrient deficiencies
Micronutrient Risks Prevalence examples
Iron Iron-deficiency anemia, Iron deficiency anemia
decreased work output, (children under 5)
reduced growth, increased Mozambique: 90%
health risk in pregnancy Angola: 72%
DRC: 79%
Vitamin A Blindness from chronic eye Children deaths
infections, poor growth precipitated by
vitamin deficiency
Malawi: 17 500
DRC: 76 000
Vitamin D Bowed legs, weakened bones Rickets in premature
bones deformities, osteoporosis, 6 months old infants
susceptibility to tuberculosis, Nairobi, Kenya:
rickets 58.8 %
Iodine Enlarged thyroid gland, poor Mentally impaired
growth in infancy and childhood, children due to iodine
possible mental retardation, deficiency
cretinism, goiter Congo: 59 000
Zimbabwe: 35 000
Angola: 235 000
Zinc Skin lesions, diarrhea, increased Children deaths
susceptibility to infections, precipitated by zinc
night blindness deficiency: whole
Africa: 260 502
sources: Econocom Foods, John Hopkins Bloomberg School of Public Health, united Nations university, Kenyatta Hospital, Nairobi
33
Nestlé Equatorial African Region
Popularly Positioned Products
Another pillar of our strategy for
growth in Equatorial Africa is on
our Popularly Positioned Products
(PPP) initiative.
Th rough i t s PPP s t ra tegy,
Nestlé EAR has the intention
of extending its offer to lower
income consumers, by bringing to
this sector of the market relevant
and good quality products at
price points that allow those
consumers to buy them.
PPP typically offer high nutritional
value food, at low prices, available
in smal ler, more affordable,
pack sizes. Our PPP strategy
is built on a low-cost business
mode l tha t re l i es on loca l
raw materials and packaging
sourcing, local manufacture and
local distribution, to take costs
out of all areas of the business.
Nestlé Popular ly Posit ioned
Products are distr ibuted by
a network of retailers ranging
from hypermarkets to street
vendors and kiosks, the small
neighborhood outlets belonging
to the traditional business sector.
Nestlé Marketing Initiatives
in EAR
Nest lé EAR undertakes to
develop its marketing initiatives
in a number of sectors: culinary
products, coffee and beverages,
dairy products and Nestlé nutrition
products, amongst others. In
February 2010, we also launched
Nestlé Professional, with a range
of products specifically designed
for the hotel, restaurant and
catering industry or out of home
industry.
Specific marketing actions will
target each segment of the broad
spectrum of potential customers
for those different products. From
brand activation in low-income
neighbourhood to attendance to
hospitality industry professional
gatherings, from cooking contests
to on-air promotion of healthcare
products benefits, Nestlé EAR
intends to explore all possible
ways to fulfill our mission: to be
the reference brand for Nutrition,
Health and Wellness, trusted by
all stakeholders.
34
MILO PARTNERSHIP WITH MINISTRY OF EDuCATION - KENYASince 2009, the Min ist ry of
Education (MOE) has endorsed
MILO® as the principal partner
of the annual Kenya Primary
Schools Ball Games (Football,
Basketball, Volleyball, Handball,
etc) and gymnastics. The games
are structured in a way that the
4,000+ schools work up their way
(like a pyramid) from the lowest
level (Zone) to the national level,
where 1 team eventually emerges
a winner in each game.
MILO® actively participated
from the provincial level to the
national level. In addition, we also
provided the uniforms for the
teams, coaches and referees.
NESCAFÉ GET CLOSER AND CAMPAIGN – KENYAWith the objective of encouraging
consumers to ignite their day
everyday, NESCAFÉ® embarked
on a nationwide communication
campaign that involved getting
consumers to explore thei r
senses through seeing, touching,
smelling and tasting NESCAFÉ®.
T h e N E S C A F É B r a n d
Ambassadors communicated the
advantages of NESCAFÉ® and
clearly brought out the brand’s
attributes in a positive, exciting
and stimulating manner that
ensured consumer purchase of
NESCAFÉ® upon their arrival.
Using “rocket men” mechanics,
we managed to weave through
c rowds o f consumers and
sample them with the Perfect
Cup of NESCAFÉ®. Consumers
were rewarded through a lucky
dip raffle.
The MOE Bal l Games is a
unique concept in the sense
that:
• It caters for both boys and
girls.
• It is ownable and
sustainable.
• Has credibility due to format
and endorsement by the
Ministry of Education.
• Gives parents/guardian an
opportunity to be involved
• Can extend to other “areas”
and other sports.
F o r M I L O ® t h e p r i m a r y
objectives were:
• To develop an experience
that actively engages 7 to 12
year old kids at grass root
level.
• To own and run a sustainable
sporting event in Kenya.
• To build MILO's role in Kenya
as the leader in sports &
sport development leading
to the expert in “healthy
nutrition & active lifestyle”.
The schools’ tournament
provides a perfect platform
to nurture talent and success
of the students.
35
Nestlé Equatorial African Region
NESCAFÉ SAMPLING – DRCNESCAFÉ® launched its mobile
sampling activity in Kinshasa,
DRC, conducted by trained
foot samplers who created a
live sampling activity in high
traffic areas. This allowed first-
time users to taste NESCAFÉ®
and immerse themselves in
its rich taste and aroma at the
same time create a unique and
memorable exper ience that
clearly differentiated NESCAFÉ®
to any other coffee beverage in
the market. The response was
very encouraging from walking
through the busy footpaths in
Gambela, Zigida and Marché
Central markets to the buzzing
youth-filled corridors of Kinshasa
Polytechnics and Campuses.
NESTEA LAuNCH - KENYANESTEA® was introduced into
the Kenyan market with three
variants under its belt; Tropical,
Lemon and Apple. The launch
was supported by a NESTEA®
Caravan activation, Door-2-
Door Home Visits and In-Store
activations. The response from
the market…OVERWHELMING!
Upon tr ial of the product, it
was quickly purchased and
became a common sighting in
the homes of many consumers.
Both children and adults loved
NESTEA®. It was the perfect
drink for those hot sunny days
when you need a nice, cold drink
to quench your thirst and keep
you refreshed.
36
CEREVITA® DOOR-2-DOOR ACTIVATIONS – KENYA and MOZAMBIQuEIn an effort to ensure that families start their day in a nutritious and filling way, CEREVITA® launched a 3 month Door-2-Door activation in Kenya and Mozambique whereby households visited were given a free sachet of CEREVITA® to sample and be educated on the nutritional benefits of the brand.
This was received well given the fact
that the Brand Ambassadors managed
to interact with the home owners and
to some extent, showed some of them
how to properly prepare CEREVITA®.
MAGGI IN-STORE ACTIVATION - ZIMBABWEThe in-store activation for MAGGI in Zimbabwe was launched with a road show incorporating sampling, demonstration and promotion. The activation agency has been trained on the brand, product port fo l io , the promotional offer and sampling techniques with a focus on quality assurance requirements. The objective of this activation was to encourage trial through sampling and drive sales with the promotional offer.
37
Nestlé Equatorial African Region
To b r ing to the Equato r i a l
African Region the benefits of its
experience as the world leader
in Health, Nutrition and Wellness,
Nestlé EAR will take advantage
of the expertise developed by
scient ists of the company’s
Research and Development
Centres.
Today, ou r sc i en t i s t s and
researchers are leading thinkers
in nutrition science who pioneer
advances, contribute to global
scientific debate and illuminate
the future direction of nutrition and
health.
Nestlé employs more than 5,000
people from 50 countries in its
integrated network of research,
development and product testing
cen t res . Th i s commi tment
demonstrates the extent to which
science underpins our core
business.
In April 2009, Nestlé inaugurated
a new Research & Development
Centre in Abidjan, Ivory Coast.
The new centre focuses on
improving the quality of locally-
sourced raw materials, including
cocoa, coffee and cassava.
Better quality crops in Africa will
allow Nestlé to source more raw
materials locally, which in turn will
raise the income of local farmers.
Indeed, Nestlé’s fundamental,
long-term business principle
is to create value both for the
company and the communities in
which it operates.
Nestlé’s first African R&D Centre
will help the company address
the problem of disease and
ageing plantations affecting the
West African cocoa harvest every
year by helping to promote the
propagation of millions of high-
yielding, disease-resistant cocoa
trees across the region over the
coming years.
This centre will also focus on
the study of indigenous foods in
Africa and their nutritional values.
Nestlé: At the forefront of Research in Nutrition
38
Nestlé Foundation
The Nestlé Foundation is yet
another organisation promoting
research on health and nutrition.
Based in Lausanne, Switzerland,
the Nestlé Foundation for the
Study of Problems of Nutrition
in the World was established in
1966 by a donation by the Nestlé
Company on the occasion of its
centenary.
The Foundation is independent
and self-constitut ing and is
managed by a Council consisting
of at least 5 internationally well-
known scientists as Council
Members. The Foundation is
and has been financially and
operationally independent of
the Nestlé Company since its
inception.
The results of the research provide
a basis for implementation and
action, what leads to sustainable
effects generally applicable to
the population at large. They
should also enable institution
strengthening and capacity
building in a sustainable manner
in the host country and further
cooperation and collaboration
between institutions in developed
and developing countries.
Many Afr ican projects have
b e e n b e n e f i c i a r i e s o f t h e
Nestlé Foundation. In Kenya,
the Foundation is working in
collaboration with the University
of Nairobi on improving the
Nutritional Status of Children
between 6-18 months in semi-
ar id areas. In Uganda, the
Makerere University is studying
the potential of amaranth grain
seeds to improve the nutrition and
health status of school children.
In Malawi, the Foundation is
sponsoring the University of
Malawi, College of Medicine,
to conduct a Mangochi Child
Nutrition Intervention Study.
Nestlé Nutrition Institute
In Africa, the Nestlé Nutrition
Institute will be of considerable
help to Nestlé EAR in fulfilling its
commitment to the advancement
of nutrition in the region.
The NNI is a multidisciplinary,
e d u c a t i o n a l o r g a n i s a t i o n
dedicated to the science of
nutrition for people of all ages.
The institute provides information,
guidance and support to use
the latest scientific discoveries
and their application to achieving
optimal nutrition.
It is the vision of the NNI to
provide continuous access to
the latest nutrition information to
health care providers to empower
them with knowledge, access
and motivation necessary to
promote good nutr it ion and
healthy lifestyles, throughout
the lifecycle of the populations
they are serving. The Institute
provides support in the following
areas: scholarships, medical and
scientific meetings, continuing
pro fess iona l deve lopment ,
c o n c e p t i o n o f e d u c a t i o n
materials, nutrit ion research
awards.
39
Nestlé Equatorial African Region
Nutrition, Health and Wellness
Food Fortification
To address malnutrition in the
region, Nestlé EAR builds on
food fortification – a long term,
la rge-sca le so lu t ion . Food
fortif ication, or nutrif ication,
consists in adding micronutrients
to food products to deal with the
most prevalent deficiencies. This
solution has the dual advantage
of being able to deliver nutrients to
large segments of the population
without requiring radical changes
in food consumption patterns.
To achieve this, Nestlé works
with local health and regulatory
experts, analysing local nutrition
landscapes – the nutrit ional
status, nutrient intake and dietary
habits of the population. The
company is then in a position to
add micronutrients to its Popular
Positioned Products to address
deficiencies with affordably priced
products.
Branded Active Benefits
Nestlé offers consumers a variety
of products with Branded Active
Benefits (BABs). These physi-
ologically active food components
are incorporated into a selection
of food and beverages categories
to provide scientifically proven
complementary health benefits
that go beyond the taste and
natura l nut r ient content o f
the product themselves. So
far, 15 individual BABs have
b e e n d e v e l o p e d a n d a r e
being used in many products
to improve digestive health,
increase immunity, aid weight
management, boost physical and
mental development, and support
healthy ageing amongst others.
60/40+ concept
The 60/40+ concept is the
tangible expression of the Nestlé
vision. Increasingly the consumer
is looking to food to provide
nutritional and health benefits,
although not at the expense of
taste but in addition to it. 60/40+
means that in rigorous market
testing 6 out of 10 consumers
prefer the Nestlé product to a
competitor’s equivalent. It also
means that we always thoroughly
search for ways to add that
nutritional 'plus'. This result is
achieved through an in-depth
search for the perfect balance
between taste and nutritional
content.
Key to th is p rocess i s the
nutritional assessment of Nestlé
products. Nutritional assessment
is carried out by R&D nutritionists
who assess the levels of nutrients
and the intrinsic value of key
ingredients in our products.
— an everyday reality at Nestlé
40
The potential contribution of the
product makes to daily needs for
a healthy balanced diet can then
be determined.
The assessment identifies
nutritional strengths and
weaknesses, and provides
d i rect ion for product
improvement leading to
nutritional superiority.
Ultimately, the consumer
i s t he w inne r w i t h a
tested process in place
to continuously improve
the nutritional value of foods they
prefer.
Nutritional Compass
The Nestlé Nutritional Compass
was introduced by the company in
2005. It is an on-pack information
panel that provides consumers
with relevant, easy-to-understand
nutrition information, empowering
them to make informed decisions
about the food they eat.
We bel ieve that by provid ing
transparent and easy to understand
nutrition information on all our
p ro d u c t s , w e c a n h e l p o u r
consumers achieve a balanced
diet. This information is given in a
standardised format that will allow
the consumer to easily compare
the amount of energy, protein,
carbohydrate, fat, sugars or salt,
in different products per typical
serving. It also includes tips on how
to insert the food in a balanced diet.
Ultimately, the consumer is the winner with a tested process in place to continuously improve the nutritional value of foods they prefer.
41
Nestlé Equatorial African Region
42
PEOPLE DEVELOPMENT
43
Nestlé Equatorial African Region
People are Nestlé’s greatest asset
Perhaps it’s because food is
such a fundamental human need.
Perhaps it’s because we have
to be extraordinarily close to our
consumers and understand their
physical and emotional desires.
Whatever the reason, Nestlé is a
very human company. We care
about our people. We encourage
and bring out the best in them.
We work hard to ensure that they
benefit as much as they can from
their work at Nestlé.
The result is a very close-knit
company – even though some
278,165 people are spread
around the globe. What binds
them together is a common culture
and a high degree of loyalty – to
the Company and to each other.
The Nestlé culture or Nestlé spirit
is difficult to describe. It’s partly
to do with openness to ideas
and thoughts and a willingness
to learn from one another. It’s
also to do with giving individuals
Nestlé Kenya Factory.
44
the opportunity to add value in
whatever way they can.
While Nestlé expects a lot from
its people, it gives a lot back.
There is a sense of fairness and
consistency that is reflected in a
straight and honest, pragmatic
hardworking ethos.
Among univers i ty and MBA
students and graduates from
many backgrounds – for example
in the sciences, economics
or marketing – Nestlé is often
cited as one of the top favourite
companies to work for.
One reason is that wherever you
start work at Nestlé, the whole
world is opened up for you. It’s
not uncommon to work in as
many as four or five different
countries during the course of a
career at Nestlé. In some ways
there’s no such thing as a single
career. The diversity of disciplines
gives people the chance to
pursue many different careers.
To name a few among dozens:
research chemist, cook in the
test ing ki tchens, consumer
s e r v i c e s m a n a g e r, b r a n d
manager, manager in investor
relations or human resources,
auditor, productivity consultant,
and many more.
People not only move from country
to country, but also between
disciplines. That’s one reason why
so many people make a career for
life at Nestlé. Another is that we
make a point of “home-growing”
our own management, thereby
providing more opportunities for
advancement.
Human Resources is present in our
Operating Companies, with the
objective of actively contributing
to people performance in order
to increase the competitiveness
of the Company, preserve and
evolve the Nestlé cultural identity,
and listen & reflect the employee
view to the business.
The Centre of Expertise based
in Nairobi, provides support to
the HR Business Partners in the
areas of Training, Management
Development, Recrui tment,
Compensation & Benefits and
Manpower Planning & Legal
Compliance.
Nestlé EAR Head Office.
45
Nestlé Equatorial African Region
One-on-one with John Godfrey WanyamaCorporate Safety Health and Environment (SHE) Manager, Nestlé Equatorial African Region
John graduated with a Bachelor
of Science degree in Chemistry
from Moi University in Eldoret
(Kenya) in 2000. He later did an
MBA in Strategic Management
at the United States International
University (USIU-Kenya) and
an Internat ional Diploma in
Occupational Safety and Health at
the British Safety Council, London
(UK). He joined Nestlé Equatorial
African Region in May 2010 in
his current capacity and has just
completed one year with the
company. Prior to joining Nestlé,
he worked in various capacities
in both Unilever in Kenya and
Coca-Cola South African Bottling
Company.
My exper ience so far at
Nestlé…
When I heard about Nestlé’s
plan to create a new region in
Equatorial Africa (comprising of 20
countries), two things immediately
struck my mind. Having previously
worked in a regional office (albeit
with a fewer number of countries),
the first thing that struck me
was the different dynamics and
complexities of the countries
involved. The second th ing
was the opportunity to create
something new just like a painter
would do on a canvas. Therefore,
being someone that is motivated
by new challenges, I couldn’t let
the opportunity pass when I got
the chance to be part of the EAR
team.
I t has been an in te res t ing
experience so far, learning about
the company, its values, the
culture and the dynamics within
it. Some things were immediately
apparent after I joined the region:
the diversity in terms of people
and the number of years people
had been with Nestlé (I was a
few hours old then). Living in an
era where the lifespan of talent
in organizations is increasingly
declining, the impression was that
there must be something being
done right about talent retention.
The amount of experience could
not go unnoticed. As I read more
about the company, talked to
people who had been around
for a while and learnt what the
business stood for, the focus on
creation of shared value stood
out.
46
I realized Nestlé is not a company
that is out to make a quick buck
but one that will consistently strive
to add value to the community
in everything it does. It felt good
to be involved with a company
tha t be l i eved in long te rm
sustainability and was willing to
invest even in the most complex
of circumstances.
However, my biggest surprise
was to discover just how much
Nestlé globally invests in research,
the technologies Nestlé keeps
discovering, the expanse of
the product lines, the efforts in
consumer research, its fortification
programmes and the many
initiatives being run in various
countries. I had heard that Nestlé
was the largest food company in
the world but this only hit home
after realizing just how much
is being done and how many
resources are being invested in
the different areas of the business.
In view of this, I believe there
is opportunity to communicate
more about the good things we
are doing as a company and
make ourselves and our products
visible in our market.
What I enjoy most in my role...
As an Environmental, Health
and Safety professional, I am an
ardent believer in the International
Labour Organization’s principle
that “Decent work must be
safe work”. I see my role as an
opportunity not only to make sure
that the working environment
everyone is working in is safe and
decent, but that everyone goes
back home to their loved ones in
the same condition they came to
work in if not better, but probably
just a little bit tired because they
worked hard. It is challenging but
the fulfilment of preserving life and
uplifting humanity at the same
time while making an effort to
preserve our planet is immensely
enjoyable.
I am also a f irm bel iever on
environmental ly sustainable
profits and the moral responsibility
that companies have to ensure
this is the case. It is therefore
fulfilling to work with a company
that shares this belief and strives
for environmental sustainability
in its investments, its long term
choices and the openness to
share with the world the efforts it
is making to ensure environmental
sustainability.
My greatest ambition within the
company...
Martin Luther King Jr. once said that
all labour that uplifts humanity has
dignity and importance and should
be undertaken with painstaking
excellence. From the very onset,
Henri Nestlé created a company
geared towards uplifting humanity
by providing healthy solutions. I
believe what I do is geared towards
uplifting humanity by preserving
life. My greatest ambition within the
company would be to make my
mark and one day retire without a
single loss of human life through
work related causes that are clearly
predictable and preventable.
My advice to new recruits...
Take time to learn and understand
the company then leave your
footprint. As someone once said,
never be afraid to try, remember….
Amateurs built the Ark, professionals
built the Titanic.
"I realized Nestlé is not a company that is out to make
a quick buck but one that will consistently strive to
add value to the community in everything it does. It
felt good to be involved with a company that believed
in long term sustainability and was willing to invest
even in the most complex of circumstances."
47
Nestlé Equatorial African Region
48
CREATING SHARED VALUE IN EAR
49
Nestlé Equatorial African Region
“Creating Shared Value is a basic principle of business strategy and fundamental to our overall success as a company. By Creating Share Value, we mean that that in order to create long-term business success, we have to create value for our shareholders and value for the society at the same time. Creating Shared Value is not philanthropy or an add-on. We have been integrating the improvement of the lives of workers, families and communities into our core business strategy since the Company’s creation in 1866.”Peter Brabeck-Letmathe, Chairman, Nestlé S.A.
Appl ied as a da i ly work ing
principle, this definition of our
strategy has led Nestlé EAR
to develop strong operating
companies that fully integrate into
the social, cultural, and economic
lives of the countries in which they
operate.
Thus, as is the case throughout
the world, Nestlé EAR is involved
in programmes and projects
designed to improve the lives of
communities in those countries.
These programmes focus on
points essential to quality of
l ife improvement: education
to nu t r i t i on requ i remen ts ,
health issues awareness, water
sanitation and supply, nutrition
research and development, rural
development through agricultural
assistance.
CSV actions in Nestlé EAR go
beyond the mere concept of
social corporate responsibility.
They proactively meet pressing
societal needs, and aim at
bringing a long-term improvement
of the quality of life.
50
Taking place s ince 2007 in
Kenya, Uganda and Rwanda, the
project is a ten-year plan aiming
at improving the lives of around
179,000 dairy farming families,
representing approximately one
million people overall In financial
terms, the project target is to
bring in year 10 an average 240%
increase in net dairy income ($
per day) per household. The
East Africa Dairy Development is
funded by the Bill and Melinda
Gates Foundation. It gathers
Heifer International, the lead
partner, ABS, for breeding and
genetics, ICRAF, for feed and
fodder, TechnoServe, for business
and marketing, ILRI, for research,
and private sector partners,
including Nestlé and Tetrapak.
Nestlé Equatorial African Region
participates in this project with
two objectives in mind: to put
our expertise at the service of
the dairy community, and to
establish a sustainable long-term
procurement line of milk powder.
Carefully planned, the EADD
project articulates on several
objectives and operational steps
Improving Food Security in East Africa
East Africa Dairy Development Project: Kenya, Uganda, Rwanda
PROJECT OBJECTIVE 1: To generate information for decision-making on the dairy value chain, and to develop innovative solutions for use of resources that increase income.a). Establish and maintain a knowledge-based project b). Generate necessary research
to inform project analysis and decision-making
PROJECT OBJECTIVE 2: To expand dairy markets and increase market access for smallholder farmersa). Organize smallholder dairy
farmers to effectively bulk and market dairy products
b). Ensure steady, cost-effective supply of goods and services to farmers and farmer groups
c). Expand dairy markets
PROJECT OBJECTIVE 3: To increase dairy productivity, efficiency and sustainability a). Organize and strengthen
dairy farmers to manage dairy businesses with efficiency.
b). Increase on-farm milk production through the adoption of productivity
enhancement technologiesc). Sustain production and
quality of milk through improved animal healthcare and nutrition
EADD OBJECTIVES AND OPERATIONAL STEPS
51
Nestlé Equatorial African Region
that will progressively improve the
production capacity and quality
standards in the sector, at all
levels.
Nestlé EAR is contributing to the
project by ensuring that quality
standards are properly set up
and that stringent quality
control processes are enacted
across the entire value chain.
Amongst other serv ices,
Nestlé shares its expertise
on specific fields, such as
the elaboration of fresh milk
quality management system
processes, and equ ipment
specifications for fresh milk quality
analysis.
This aims at addressing an issue
well known by stakeholders in
the dairy industry, when bad milk
mixes with safe supply, resulting
in an entire bulk rejected at the
factory gate, with corresponding
losses for the farming families.
To apply this expert ise in a
concrete manner, Nestlé EAR is
offering assistance to develop
a model milk village in Kabiyet
(Western Kenya), an experience to
be duplicated by several farming
communities in Kenya, Uganda
and Rwanda with the assistance
of EADD staff.
Based on the Nestlé Milk District
Model, already successful in
India and Pakistan, the Kabiyet
Milk Village project involves all
• 27+ new farmer-owned chilling plants set up and staffed
• 19 new farmer-owned micro-finance institutions established at hubs
• 179,000 families with access to a cross section of micro-finance products
• 12 commercial banks whose loan officers are trained on dairy business and information flows from dairy businesses
• 14 traditional traders organizations trained to increase milk handling capacity and milk-quality management of their members
• 90% reduction in milk loss due to spoilage
• 415 community-based animal healthcare providers
trained and equipped as accredited artificial insemination technicians
• 110,000 improved animal houses
• 169,000 farmers trained in basic animal record keeping and traceability
• 169,000 farmers with access to Business Development Services
• 162 women in leadership positions
• 81 youth in leadership positions
• 1482% increase in sale of processed milk from farmer milk
• 1,591% increase in sale of other processed milk products from farmer milk
Turned into reality over a period of ten years, the EADD project will bear fruits for the whole dairy farming community, amongst others:
Nestlé Global Chairman visiting Kabiyet Dairies Limited.
52
actors in the dairy chain: small,
medium and large dairy farms,
milk collection points, chilling
p lan ts , p rocess ing p lan ts .
Nestlé is intervening in waste
water management and general
housekeeping at the chilling plant,
essential for the environment
and for an optimal milk quality
respectively. In order to optimise
processes Nestlé is proposing
an evening milk collection as well
as more effective transportation
methods focussed on cost-
optimisation.
At farm level, Nestlé specialists
are conducting both on-farm
and in classroom training, on
animal welfare, breeding, fodder
management and mycotoxin
management for dairy feeds. And
further along the supply chain,
Nestlé EAR is involved in quality
improvement and food safety
management at the processing
plant level.
The location of this Nestlé model
milk village in East Africa was
selected due to its impressive
potential for growth. Kabiyet
Dairies chilling plant was set
up in June 2009, when 6,000
farmers came together to form
Kabiyet Dair ies Limited and
started supplying milk. The daily
supply of milk was 1,600 litres.
With better payment terms and
a sophisticated milk reception
method, the supply started rising
sharply, to reach 35,000 litres
per day by June 2010. There are
currently 16,000 commercial milk
farmers in the Kabiyet area, who,
for the majority, used their milk for
their own consumption, or sold
to hawkers at a discounted price.
Their milk never entered into the
supply chain.
Through this effort towards
ensuring milk quality and food
safety across the dairy value
chain, Nestlé EAR shows how
our Creating Shared Value policy
really works. Nestlé EAR will
soon obtain more and better milk
powder from within the region,
hence decreasing its dependency
on imports, while the dairy value
chain stakeholders acquire new
skills and see an increase of their
revenue at the end of the chain,
the customer, the end-user,
benefits from safe and improved
quality food products.
53
Nestlé Equatorial African Region
Coffee research scholarships: Tanzania, Uganda
“At a time when farmers are hungry for more clones of improved diseases resistant coffee hybrids, while the efforts made by TaCRI (Tanzania Coffee Research Insititute) to meet this demand in vain, a good friend appeared to assist at a very critical point. The options of conventional vegetative propagation are time consuming and limited in capacity of seedlings that can be produced. It is true that somatic embryogenesis is the fastest and most efficient way to produce clones, but it is also initially expensive. Here is where we received the much needed assistance. Thank you, Nestlé.” Damian Mtenga, Tanzanian Coffee Research Institute
It is a wel l-known fact that
the Equatorial African Region
produces one of the best coffees
in the world. Quite logically, Nestlé
is playing a key role in assisting
coffee farming communit ies
to enhance the quality of their
production and, as a result, to
elevate their living standards.
As a sign of this commitment,
Nest lé has sponsored two
scientists from the Tanzania Coffee
Research Institute (TaCRI) and the
Uganda Coffee Development
Authority (UCDA) for a one-year
scholarship to study somatic
embryogenes is in Nest lé ’s
Research and Development
centre in Tours, France.
Somatic Embryogenesis (SE) is not
genetic modification, but instead
a highly efficient propagation
techn ique . Us ing embryos
that are exact copies of a tree
selected for its characteristics, SE
is a substitute to the traditional
vegetative propagation method.
Applying the SE technique will
help Uganda and Tanzania to
propagate improved Robusta
and Arabica varieties respectively,
more resistant to diseases and of
better cup quality profile. The plan
aims at assisting the Ugandan
and Tanzanian coffee farming
communit ies achieve better
quality beans within a shorter
growing period, thus also allowing
higher yearly overall crop output,
with related revenue increase.
54
Developing Women Entrepreneurship
This pro jec t i s par t o f our
s u s t a i n a b l e d e v e l o p m e n t
initiatives supporting the first
Millennium Development Goal,
which is to eradicate extreme
poverty and hunger. Run in the
Democratic Republic of Congo
in Kinshasa, it aims at providing
perennial revenues to a group of
unemployed women through a
unique micro-retailing model. The
New Hope project targets women
from the lower level of urban and
suburban populations who have
no other means of earning a living,
and who are yet often expected to
cater for the needs of the family.
Those women receive a seed
capital, in the form of a stock
of Nestlé products and related
marketing tools, such as branded
tables, kiosks, marketing materials
such as leaflets, and posters,
adapted to the informal channels
in which their sales activity is
taking place. The beneficiaries
are expected to generate revenue
through sales, which would enable
them to replenish their stock.
Nestlé’s implementing partner
in this project, works in close
collaboration with the Nestlé DRC
team to secure a regular supply of
products and to train the women
in micro business management.
The project a lso includes a
partnership with micro-finance
institutions, where dedicated fund
managers assist the beneficiaries
in re-investing their capital to
sustain their earnings.
New Hope Project: Democratic Republic of Congo
55
Nestlé Equatorial African Region
Mauritius is a country suffering from numerous and serious health issues. National statistics are indeed painting a gloomy picture:
• 38% of the population are
obese or overweight
• 20% of the population
aged 30 years and over
suffer from diabetes
• 30% of the population
suffer from hypertension
• 45% of the population have
a high cholesterol level
• 75% of the male population
and 90% of the female
population do not practice
physical exercises
(Source: Mauritius Ministry
of Health survey, 2004)
Over the past 20 years, there has been significant increase in the number of non-communicable diseases in Mauritius. The main causes are a sedentary lifestyle spread across the Maurit ian society, and poor eating habits coming right from childhood.
Promoting Nutrition, Health and Wellness in Equatorial African RegionBetter Food for Better Life: A Nutrition and Wellness awareness campaign in Mauritius
Nestlé Maurit ius launched a national campaign using its experience and expert ise in nutrition, health and wellness to help reduce the enormous health complications associated with non-communicable diseases.
This campaign articulates several key actions, all of them promoting an increased awareness of nutrition and associated health issues.
Through different init iat ives, Nest lé a ims at reaching a l l relevant stakeholders: local authorities, NGOs, hospitals and health centres, social welfare associat ions and above al l , consumers and society at large.The campaign used a huge range of channels to disseminate the relevant information:
• internal training: nutrition
Sampling and information dissemination by Nestlé Mauritius to consumers.
56
Kudyarawanza is a rural school
located about 45km from Harare,
the capital city of Zimbabwe. The
school has an enrolment of 470
pupils housed in 15 classrooms.
The school was adopted by
Nestlé Zimbabwe in 2002 as
part of the then corporate social
responsibility. Back then, around
50% of the pupils were orphans
whilst others were brought up by
single parents and grandparents
who faced economic challenges
to educate these children. Nestlé
came in to compliment efforts by
the community to educate their
children by paying for school fees
and purchasing of uniforms for 50
children .
Kudyarawanza Primary School Kudyarawanza School has since
then been adopted as the Nestlé
Village. A borehole has been
sunk to provide clean and safe
water for both, the school and the
community. A nutrition garden
has been set up to maximize use
of the donated borehole. School
children will compliment their
nutrition studies with hands on
projects in the garden. Surplus
produce wi l l be sold to the
community and proceeds will go
towards the school development.
In addition to all this, Nestlé
Zimbabwe has reserved every
Labour Day for staff to offer their
services voluntarily and give any
form of donations towards the
school development. Nestlé staff
have donated clothes, furniture,
books and their time to offer
their skills in order to improve the
welfare of these disadvantaged
children. This has seen the
school being painted, re-flooring
of classrooms and renovation of
the Early Childhood Development
classroom which was in a bad
state. Through Creating Shared
Value, it is Nestlé’s desire to create
lasting value for the communities
in which it operates.
Creating Shared Value -
training amongst Nestlé
staff in order to ensure that
the latter has the proper
nutrition knowledge.
• point of sales events:
road shows in shopping
malls and supermarkets,
quizzes, cooking contests
• media: daily radio talk
shows, with Nestlé’s
nutritionist supplying nutrition
tips to consumers
• professional information:
publications from Nestlé
Nutrition Institute of Africa
(NNIA) delivered to community
health care professionals.
• scientific events: nutrition
lectures, scientific meetings
on diabetes and
cardio-vascular diseases.
• sports events in schools:
MILO sports awards, which
in December 2008 earned
Nestlé the recognition from
the country’s Minister of
Sports "the Sports-friendly
Company Award".
• blood donation by Nestlé
Mauritius employees
57
Nestlé Equatorial African Region
“By combining Peace and Sports across such a tremendous array of tribes and communities currently involved in conflict, and by offering their youth the only opportunity to interact, the Laikipia Highlands Games are crucial to the development of a peace process in the area” Kuki Gallmann, writer (I dreamed of Africa), founder of the Laikipia Highlands Games
The Laikipia Highlands, in Kenya’s
North Rift Valley region, where
several pastoralist tribes used to
coexist peacefully for ages, has
in recent years been the theatre
of cattle rustling, tribal fights,
retaliation raids…
Local communities have been
severely affected, with hundreds
of people, including women and
children, killed in the clashes,
and thousands others being
displaced.
In addition, the most severe
drought experienced over two
generations has exacerbated the
tension.
The Laikipia Highlands Games in Kenya
Access to water and pasture have
thus become an added bone of
contention.
Tw o N G O s , t h e G a l l m a n n
Memorial Foundation (GMF)
and the Great Rift Valley Trust
(GRVT), involved for many years
in communi ty serv ices and
reconciliation efforts in the region,
have launched from the beginning
of 2009 a food relief operation.
Joining forces with the two NGOs,
Nestlé Kenya has provided NIDO
powdered milk to the people of
Western Laikipia.
An estimated 28,000 women,
children and elderly have been
fed since, and the programme is
ongoing.
Later in 2009, GMF and GMVT
went beyond the simple relief
action, and created the Laikipia
Highlands Games, a unique
sports event dedicated to bring
together youths from the warring
communit ies and to br idge
divisions through peaceful athletic
competitions. Nestlé Kenya was
again supportive of the Highlands
Games, with MILO products
distributed to all participants.
58
N e s t l é s u p p o r t s n u t r i t i o n
education programmes that
currently reach children in 30
countries worldwide.
To rationalise all its nutrition
education programmes Nestle
had Launched in 2009 the Nestlé
Healthy Kids Global Programme.
Designed in collaboration with a
partner (either a NGO or a national
authority), and with child nutrition
experts, Healthy Kids builds on
Nestlé’s existing base of 30 health
programmes.
The Nestlé Healthy Kids Global Programme
It aims at addressing one of the
world’s most complex health
challenges today – increasing
malnutrition and obesity rates
among school-age children
Through nutrition education, the
health and nutrition messages
are specifically designed to bring
beneficial changes in children's
eating habits, and to combat the
issues of malnutrition and obesity.
In the Equatorial African Region,
in its first year of implementation,
the Healthy Kids Programme
targets around 10,000 children in
different countries including Kenya
where the programme focuses on
malnutrition and micro-nutrient
deficiencies, and Mauritius and
Mozambique, where combating
child obesity and unhealthy eating
habits are the main focus.
59
Nestlé Equatorial African Region
Nestlé EAR Countries ContactsNestlé Angola LdaTensai Business CenterTalatona - Luanda -SulTel: +244 934 764604 / 934 764605Email: [email protected]
Nestlé CONGO SPRL,Coin des avenues LUKUSA et NGONGO LUTETE2ème Niveau Immeuble Citigroup BP 9192Kinshasa/GombeTél.: +243 81 555 4773E-mail: [email protected]
Nestlé in EthiopiaRepresentative OfficeWorké’s Promise BuildingAlexander Pushkin StreetP.O. Box 3203 Code 1250Ethiopia, Addis AbabaOffice: +251 911507908Mobile: +251 118500542E-mail:[email protected]* : [email protected]* : [email protected] Nestlé Kenya LimitedPate Road, Industrial AreaP.O. Box 30265-00100Nairobi, KenyaTel: +254 020 3990000Fax: +254 020 532572E-mail: [email protected]
Nestlé Sea Trading MadagascarMG-Antanarivo 101Zone Industrielle ZitalBatiment SDS 1st. FloorAnkorondranoTel: +261 2022 23927Fax +261 2022 250 30E-mail: [email protected], Antanarivo
Nestlé Zimbabwe (Pvt) Limited38, Samora Machel AvenueP.O. Box 1668Zimbabwe, HarareOffice:+263 4 702393-7 Mobile :+263 912 895931Fax :+263 4 250401Email: [email protected]
Nestlé Zambia Trading LimitedPlot 7403, building "C"Mungwi Road,P.O. Box 310101Lusaka, Zambia,Office:+260 965 038 000E-mail: [email protected]
Nestlé Equatorial African Region LimitedThe Atrium, Chaka RoadP.O. Box 50813-00200Nairobi, KenyaTel: +254 020 4984000Fax: +254 020 2533861E-mail: [email protected]
Nestlé Products (Mauritius) LimitedNorth Motorway Riche TerreP.O. Box 366Port Louis, MauritiusTel: +230 249 3535Fax: +230248 9595E-mail: [email protected]
Nestlé Mocambique LDACaixa Potal 792Mozambique, MaputoTel: +258 21 360 379/387Fax: +258 21 360 403E-mail: [email protected]
Nestlé SEA Trading Limited – Tanzania BranchNestlé SEA Trading LimitedPlot 565, Old Bagamoyo Road, Kawe BeachInfotech PlaceP.O. Box 105665Tanzania, Dar Es SalaamOffice: +255 222 78354Fax : +255 222 781359E-mail: [email protected]
Nestlé Equatorial African Region(EPZ) LimitedUganda BranchPlot 1, Bandali RiseLuthuli Avenue, Bugolobi,P.O. Box 2984Kampala, UgandaOffice: 256 41 423 5070Fax : +256 414 222496E-mail: [email protected]
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of the Nestlé Group