Nestlé’s ‘Nutritious’ Growth : Peter Brabeck’s Organisational Strategies


Code : LDS0015

Year :

Industry :Food, Diary and Agriculture Products

Region : US Europe

Teaching Note:Available

Structured Assignment :Available

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Food & Beverage Industry: Competitive Dynamics The global food industry is divided into fresh foods and processed foods. Fresh foods include fruits, vegetables,meat, eggs, dairy products, etc.With the growing concern for health and nutrition, there wasmore demand for fresh and natural foods. Easymethods of cultivation and other strides in agriculturemade fresh foods readily available and inexpensive for everyone. Processed foods are those foodswhose ingredients are specially treated tomake themeasier and tastier to eat. They are further classified into packaged foods and beverages. The processed food-maker saw tremendous increase in margins during the early to mid-1980s. This was due to reduction in the cost of ingredients...

Nestlé Nutrition: Peter Brabeck’s Growth Strategies HenriNestlé foundedNestlé in 1866 in Vevey, Switzerland.He was a pharmacistwho developed a food for babieswho were not being breast-fed.His first successwas a baby formula for a premature infantwho could not tolerate hismother’smilk or any other substitutes. The product was called ‘Farine Lactée Henri Nestlé’ and it became very popular, especially in Europe. During the early years,Nestlé fiercely competedwith theAnglo-Swiss CondensedMilkCompany, also amanufacturer of infant formula, until theirmerger in 1905. In the 20th Century, Nestlé grewrapidly by expanding its product portfolio, either by launching new products or by acquiring them throughmergers and takeovers...

Opportunities and Challenges In the global food and beverage industry, in the early 21st Century, the nutrition segment was growing fast. Fitch, the credit rating agency, predicts, “Products that have health and wellness attributes and attractive taste profiles will be in demand by consumers.[Companies] that are able to introduce such products will have a competitive advantage.”42 This insight – along with the rising numbers of the obese, the overweight and the aged (over 60 years) - provides bright chances for Nestlé’s future growth...

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