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 formulatoo 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?