Case ID 18-1094
Published 2018
Industry TEA AND COFFEE, EXCEPT SOFT DRINKS AND CARBONATED WATER
Industry Code 103
Subject General management


Abstract The nutrition industry is the new Eldorado for many food and beverage companies that are willing to follow the trends of health by changing their focus to adapt to the new consumers’ preferences. Besides it’s also a profitable industry with high growth and opportunities, which pleases and eyes the companies up. Nestl?’s shift to its initial roots is perceived for a few years but is more accurate than ever with the appointment of Schneider coming from the medical industry. With a vibrant purpose of improving life for its customers, it’s a clear path that Nestl? is drawing for its global strategy. Its confectionery business could have a bright future in terms of innovations and opportunities, especially in Asia, where the growth is increasing at a quick rate compare to the mature markets of Europe and the USA. But Nestl? seems to be tired of its confectionery business that is missing its target for years. The issue for Nestl? is to be consistent in its strategy. The point is to stay relevant and reliable in the portfolio and offerings, to retain customers who can be reluctant to buy nutritious or health products from a company that also sell confectionery. Should the company sell its confectionery business to be consistent with its new ambition and vision towards nutrition and health? Or should Nestl? keep its well-known business by trying to change its position and marketing? A third option could be to do a bit of both, by selling some unprofitable operations and adapt the others to follow the new company direction. Lastly, Nestl? could keep its confectionery business as it is today without any changes and focus on its health and nutrition segments.
Pages 28
Teaching Note Yes