Pharmacist from Switzerland Henry Nestle once decided to find an artificial substitute for breast milk for infants. These researches formed the basis for the emergence of a new company, which eventually developed into a major Nestle brand. With the help of milk, sugar and wheat flour Nestle created a product called “Farine Lactee Henry Nestle” (Flour Milk Henry Nestle). The find was successful and in 1867 the pharmacist switched to the creation and sale of this mixture, creating a company for these purposes.
The logo of the company was chosen a nest with birds, the very name of it was translated as a “small nest”. When a sales agent suggested Henry Nestle to add a red Swiss cross to the emblem, he refused. You can not have your own brand for every country, and anyone can use a cross. But the family coat of arms of Nestle, the very nest, no one will dare take.
One of the first consumers of the new product was the premature baby. He refused milk from his mother and from existing substitutes. The doctors did not know what to do. Only the revolutionary product “Nestle” saved the crumb of life. Soon, milk flour was recognized throughout Europe and was successfully sold. In parallel, the “Anglo-Swiss company for the production and sale of condensed milk” in 1886, began to produce its own breast milk substitute. This was learned in the company “Nestle”, she began to produce condensed milk as a reciprocal step. Charter to fight with each other, two competitors decided to unite, which happened in 1905.
The new company was named Nestle and Anglo-Swiss Milk Company. At that time, she owned factories in the US, England, Germany and Spain. And in 1907, “Nestle” came to Australia, which allowed to double production. To meet the needs in the growing Asian market, the company opened its warehouses in Hong Kong, Singapore and Bombay. The First World War greatly influenced business, because the main production was located in Europe.
As a result, Nestle was forced to sell almost all its fresh milk supplies to the population, but the advantage was that the condensed and dried milk began to enjoy unprecedented demand. To satisfy large government orders, even factories in the United States were acquired. As a result, during the war years the production volumes of Nestle doubled, and the company owned 40 factories.
зака After the war, orders began to decline, in 1921 Nestle suffered losses for the first time. At that time, the company decided to expand its traditional range and start producing chocolate. This became the second most important activity of the Swiss company. Soon she began to offer instant drinks, milk with malt, powder paste. Appeared in 1938 Nescafe in general became a sensation. This instant coffee quickly became popular all over the world. With the outbreak of World War II, profits again sharply declined. If in 1938 the company earned $ 20 million, then in 1939 only 6. Neutral Switzerland was isolated, so Nestle
When the Second World War began, this could not but have a negative impact on the activities of Nestle. In 1938, the profits of Nestle fell sharply from twenty million to six million dollars in 1939. Switzerland, which was a neutral country increasingly isolated from Europe, and Nestle had to transfer a significant portion of its employees to Connecticut, Stamford. When the US Army joined the fighting, Nescafe became the main drink of the soldiers. And again the war enriched the digging. By the end of hostilities, sales amounted to $ 225 million. The company unexpectedly discovered that it is also a leader in the production of instant coffee.
The post-war years became very dynamic for Nestle. She further expanded the range of her goods.After merging with the producer of seasonings and soups Maggi, the company Alimentana, a new holding company Nestle Alimentana Company was formed. In 1950, the company bought canned products, Crosse & Blackwell, and in 1963 Nestle joined Findus, which produced frozen products. Then the company for the production and sale of fruit juices was bought.
Meanwhile, the popularity of instant coffee grew. With the invention of the low-temperature drying technology, in 1966 a new brand appeared – Taster’s Choice. By 1974, the company had reached such a level that it went beyond the food industry. Nestle acquired a significant stake in the world’s cosmetic leader, L’Oreal. Since that time, the situation of the company has deteriorated slightly. Contributed to this and rising oil prices, falling Swiss franc rate, rising prices for cocoa beans.P
time to react to the crisis, as it already happened in the history of the company. Nestle compensated for the downturn in major markets by coming to developing countries, which was a risk. To maintain the balance of business, a controlling interest in Alcon Laboratories Inc, a pharmaceutical and ophthalmic company, was acquired. In the early 90’s, the world economy experienced a period of integration and the fall of trade barriers. At this time, Nestle comes to new promising markets in Central and Eastern Europe, China.
By the end of the twentieth century, Nestle was the recognized leader of the world food industry, its five hundred factories worked in seventy countries around the world. The company’s annual profit exceeded 70 billion dollars. True, do not consider the image of a large brand so irreproachable. Back in the 1970s and 1980s, Nestle was accused of aggressively promoting its products in developing countries. So, mothers were dependent on artificial milk. The company was accused of the death of thousands of newborns, there were loud trials.
In 1997, the Board of Directors decided to acquire the Italian company San Pellegrino, which sold mineral water. Even earlier, the company through mergers entered the pet food market. In 1999, Nestle closed several factories in America to produce ground coffee, focusing on a new elite line.
Today it is almost impossible to find a product that would not be associated with a multinational brand – it’s baby food, chocolate, coffee, culinary products. The brand’s products are delivered to more than 60 countries. And it all began with the world’s first infant formula. Since then, on the basis of numerous experiments and experiments, the company has created a wide range of products for the youngest.
All products for children from Nestle are created exclusively from natural raw materials. Switzerland, Germany and Holland produce milk substitutes, Belgium and Spain – porridges, and Germany and Finland – juices and purees. Today the company’s turnover is about 70 billion euros, with a net profit of 7.7 billion. At the company’s plants, 330,000 people work.