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Nestlé and Starbucks continue innovation streak with launch of Starbucks premium instant (soluble) coffee

Starbucks

Context 

In February 2019, Nestlé launched the first range of Starbucks coffee products for at-home consumption globally, enabled via the Global Coffee Alliance established with Starbucks in late 2018. Since then, the alliance has continued to expand to new coffee platforms, new geographies and new channels in foodservice, under the ‘We proudly serve’ label.  Nestlé has the opportunity to tell a story about innovation, speed to market, coffee quality and collaboration in the context of the coffee alliance.  The press is eager to learn how this strategic agreement continues to expand and deliver growth.

In February 2020, Nestlé will introduce another compelling global platform with the launch of Starbucks premium Instant (Soluble) coffee, combining Nestlé’s deep knowledge and heritage in instant (soluble) coffee with the same high quality 100% arabica beans served in Starbucks coffee houses. 

ABOUT THE ALLIANCE

Why did Nestlé enter this collaboration with Starbucks?  

This collaboration is in line with our strategy to invest in the high-growth food and beverage categories of coffee, pet care, nutrition and water.

  • It strengthens and diversifies Nestlé’s coffee portfolio
  • It further solidifies Nestlé’s leadership position in coffee.
  • It offers a strong cultural fit on sustainable sourcing and corporate social responsibility.

It is another strategic transaction for Nestlé in the coffee category following Blue Bottle and Chameleon.

With Nescafé, Nespresso and Starbucks, Nestlé now has the best coffee portfolio.

How does the deal fit into Nestlé’s growth strategy?

It is in line with our strategy to invest in the high growth food and beverage categories of coffee, pet care, nutrition and water. It is another strategic transaction for Nestlé in the coffee business following Blue Bottle, Chameleon and Caravan Marketing Company in Egypt (owner of Bonjorno).

How does the deal work between the two companies? Can you please present a clear plan of action through the value chain?

Nestlé acquired the perpetual rights to market Starbucks Consumer Packaged goods and Foodservice coffee and tea products globally, outside of Starbucks coffee houses. The two companies worked closely together to bring the existing Starbucks range of roast & ground and whole bean coffee as well as instant (soluble) and portioned coffee to the markets. They are also capitalizing on the experience and capabilities of both companies to work on innovation with the goal of enhancing product offerings for coffee lovers globally.

Nestlé will accelerate growth in new geographies and existing segments and in driving the Premiumization of the coffee category in the retail market, as well as, in the out-of-home channels such as offices, hotels and restaurants.

What products are included in the deal?

The agreement covers Starbucks packaged coffee and tea brands, such as Starbucks®, Seattle’s Best Coffee®, TeavanaTM/MC, Starbucks VIA® Instant (Soluble), Torrefazione Italia® coffee and Starbucks-branded K-Cup® pods. It excludes Ready-to-Drink products.

How have the two companies worked after the deal closed?

In just six months, we have worked closely to develop new and exciting premium coffees, combining Nestlé’s coffee and system know-how with the Starbucks coffee, roasting and blending expertise. In February 2019, we launched the first products developed under the alliance. We expanded into 50 countries at the end of the year, bringing innovation into new platforms and new channels via foodservice.

Now we are launching Starbucks premium instant (soluble) coffee globally after we unveiled last month in the US, a new line-up of coffee including Cold Brew concentrate, Fresh Brew coffee, as well as blends of Starbucks coffee with essential vitamins and golden turmeric – among others.

Will Starbucks Consumer Packaged Goods operations move out of Seattle?

Approximately 500 Starbucks partners (employees) in the United States and Europe have joined the Nestlé family and the majority will continue to be based in Seattle and London. The international expansion of the business is led from Nestlé’s global headquarters in Vevey, Switzerland.

Any plans for other acquisitions in the coffee space?

We are always looking for opportunities that bring in strategic value but we have nothing to announce at this time. We continuously work to build our portfolio and capture new opportunities offered by changing consumer demand.

Does Nestlé want to monopolize the premium coffee market?

No. Capitalizing on the strengths and coffee expertise of both companies, we will be able to accelerate innovation for better offerings and meet ever-changing consumer demands.

How does this partnership impact the single serve coffee capsule market?

The coffee alliance will help develop the single serve coffee capsules market bringing innovation and better offerings to a larger number of consumers.

[Licensee] manages Starbucks in [market]. What is their involvement?

As per the global agreement, the deal doesn’t cover activities in the coffee shop. All matters pertaining the [Licensee] operations and the Starbucks coffee shops in [Market] remain the sole responsibility of Starbucks and [Licensee].

STARBUCKS PREMIUM INSTANT (SOLUBLE) COFFEE PRODUCTS (ACTUAL RANGE AND EXPANSION)

Which products are you launching now?

We are launching a new range of Starbucks premium instant (soluble) coffee products that will be available in grocery stores and major online platforms, with the channels varying in different countries. [Please insert details for your market].

The new range consists of Medium Roast and Dark Roast coffees, as well as a variety of coffee beverages available in Cappuccino, Caffè Latte, Caffè Mocha, Caramel Latte, and Vanilla Latte, as well as a tea-based Matcha flavor.

What are the different Starbucks premium instant (soluble) coffees?

The Premium Instant/Soluble launch includes both a Medium coffee and a Dark roast coffee, as well as a variety of coffees beverages, including Cappuccino, Caffè Latte, Caffè Mocha, Caramel Latte, and Vanilla Latte, as well as tea-based Matcha Latte (Japan exclusive).  This new range will be available in multi-serve tins and single serve stick formats.

What is the difference between the Starbucks premium instant (soluble) coffee and Nescafé coffee?

This new line of Starbuck Premium Instant (soluble) Coffees bring the Starbucks signature taste to a group of consumers who are highly complementary to the NESCAFE brand.  These consumers, millennials willing to pay a premium for quality and looking to try new products, are looking for coffee shop inspired beverages to enjoy at home.  This new range from Starbucks will be instantly recognizable and appealing due to the coffees roasted according to the Roast Spectrum™ and the variety of Café inspired beverages, both of which communicate the super-premium experience they seek. 

Are the Starbucks premium instant (soluble) coffee and Nescafé similar? 

The profiles and specific coffee blends of Starbucks premium instant (soluble) coffees and Nescafé are different. All the Starbucks coffees are made with the same high quality 100% arabica beans served in Starbucks Coffee houses, which gives coffee lovers a wider choice. The technology is identical, taste and blends are unique for Starbucks.

Do you plan to expand your range of Starbucks premium instant (soluble) coffees?

This is possible. We will continue to move fast to deliver great Starbucks coffee experiences to our consumers around the world.

Is the product different from Starbucks Via instant (soluble) sold in the US?

Starbucks Premium Instant (soluble) is the global launch of the Starbucks brand into the Premium Instant (soluble) (soluble) segment of coffee, complementing the existing Starbucks VIA range available in the US.  Both product ranges include only 100% Arabica coffee, are ethically sourced under C.A.F.É. Practices and deliver a taste in cup inspired by the signature flavors consumers love in Starbucks coffeehouses each day, around the world.

MARKETS

Why was [Market] not part of Wave 1 Launch? How did you choose the countries in which to launch the capsules?

We are rolling the range of Starbucks premium instant (soluble) coffee out gradually. The countries were jointly identified with Starbucks.

[Market] is part of the Wave 2 market launches and is a priority for the alliance.

PRICING & SALES & CHANNELS

Where will the new range of products be available?

The range of Starbucks premium instant (soluble) coffee will be available in grocery stores and major online platforms, with the channels varying in different countries.

Will Starbucks premium instant (soluble) coffee products be available in Nestlé coffee shops or Nespresso boutiques?

The new range of Starbucks premium instant (soluble) coffee will be available in grocery stores and major online platforms. They will not be available in Nescafé coffee shops and Nespresso boutiques.

Will Nespresso channels sell Starbucks premium instant (soluble) coffee?

No. Nespresso’s dedicated sales channels will continue to sell only Nespresso products. 

Will Starbucks premium instant (soluble) coffee be sold in Starbucks coffeehouse?

There are no plans for Starbucks coffeehouses to sell Starbucks Premium Instant Coffee. If pressed: Starbucks coffeehouses will continue to sell Starbucks VIA instant coffee

Are the Starbucks premium instant (soluble) coffee also going to be available for out of home?

While we are developing the Starbucks range, we will look at expanding the Starbucks experience into new channels, via foodservice. But it is too early to confirm so for the Starbucks premium instant (soluble) coffee.

Who is the consumer you are targeting for the Starbucks premium instant (soluble) coffee and how does that differentiate from the Nescafé consumer?

Our consumers will be people who enjoy the Starbucks signature taste and want to enjoy it in premium instant (soluble) coffee platform at home or at work.

What are your expectations in terms of sales?

Although we saw excitement with the innovation we brought to markets last year, it is too early to talk about sales. We hope consumers will continue to enjoy their Starbucks coffee they love at home.

With so many varieties of coffee capsules (Nespresso, Starbucks, Starbucks by Nespresso, Starbucks by Nescafe Dolce Gusto and Starbucks Premium Instant (soluble) coffee, Nescafé) don’t you think all these brands will compete with each other?

Through the global coffee alliance, Nestlé and Starbucks are accelerating innovation to bring new offerings and alternatives according to the different consumer tastes and preferences.

Are you planning to launch a plant-based variant?

We are always looking at bringing innovation into our coffee offerings, including using plant-based ingredients. But it is too early to say.

PRODUCTION

Where are the Starbucks premium instant (soluble) coffee manufactured? 

The Starbucks premium instant (soluble) coffee are manufactured in Europe in several factories in France, the UK, Spain and Turkey.

Are you using existing production lines or did you invest in a specific line for Starbucks?

Starbucks premium instant (soluble) coffee will be produced using existing production lines in Nestlé coffee factories.

Is this taking away from the capacity production of Nescafé or did you have extra capacity that you’re not using?

We are able to produce the Starbucks premium instant (soluble) coffee within our current capacity, without compromising production of either brand.

Did you hire more people to support the Starbucks premium instant (soluble) production? If yes, how many? If no, what’s the impact on the employee’s current working schedule?

We are able to produce the Starbucks premium instant (soluble) coffee within our current capacity and employee.

Which volume of Starbucks premium instant (soluble) coffee will be produced? How does that compare to Nespresso volumes?

For competitive reasons, we cannot communicate the volume.

ORIGINS OF BEANS

Are you using Starbucks coffee beans to produce Starbucks premium instant (soluble) coffee?

Yes. All Starbucks coffee is 100% premium grade Arabica coffee purchased from ethical sources verified accordingly in accordance with Starbucks C.A.F.E practices.

Which origins are you using for the Starbucks premium instant (soluble) coffee?

You will enjoy 100% arabica coffees from all three coffee growing regions across Latin America, Indonesia and Africa all verified thru agreed ethical sourcing programs. These programs ensures the highest quality coffee alongside environmentally responsible growing methods, guarantees minimum wages and fair working conditions, and full economic transparency from farm to cup.

How much are you paying farmers for the Starbucks coffee?

Nestlé is committed to ensuring full economic transparency from farm to cup, environmentally responsible growing methods, ensures minimum wages and fair working conditions.

PACKAGING

Are the tin and stick packaging recyclable ?

The multi-serve tin is designed to be 100% recyclable (local infrastructure need to be checked if it can be recycled).

For the single serve packaging, the skillet (cardboard box) is designed to be 100% recyclable (local infrastructure need to be checked if it can be recycled), the individual sticks are not recyclable for the moment but we are working on it

Why do you use aluminum and plastic for Starbucks premium instant (soluble) coffee? 

Regardless of the material used to produce the premium instant (soluble) coffee, Nestlé is committed to ensure that none of its packaging including those from the Starbucks products, ends up in landfill or as litter and that we minimize the impact of our packaging on the environment. We committed to make all our packaging recyclable or reusable by 2025. Through our institute of packaging sciences, we continue to develop new solutions to meet our goal.

What is your packaging strategy for the new Starbucks premium instant (soluble) coffee? You already have issues with Nespresso aluminum capsules, and plastic packaging?

Nestlé is committed to ensuring that none of its packaging ends up in landfill or as litter and we minimize the impact of our packaging on the environment. We evaluate and develop various sustainable packaging materials across our global product portfolio including coffee products and we collaborate with industrial partners to develop new packaging materials and solutions.

If pushed: Nespresso and Starbucks by Nespresso aluminum capsules are fully recyclable – including the coffee grounds. Nespresso opened its first recycling scheme in Switzerland in 1991 and the company currently invests 40 million CHF per year in capsule recycling, because the public recycling system in many countries is unable to process small or light aluminum items. Today the scheme is available in more than 53 countries and gives a range of options for convenient recycling of their used capsules, from a network of more than 100,000 drop-off points to door-step collections and mail-back schemes.

In addition to its own recycling system, the company also invests to support the upgrade of public recycling infrastructure to the level found in Germany, Sweden and Finland so coffee capsules can be recycled in household recycling bins and curbside collection schemes. So far, Nespresso has successfully supported upgrades to the public recycling systems in a number of cities in Austria, France, and the USA through a combination of funding and lobbying. It hopes that higher recycling targets and a growing global movement towards a circular economy will encourage more authorities to follow.

How are you improving the recyclability of your products?

Nestlé is committed to ensuring that none of its packaging ends up in landfill or as litter and we minimize the impact of our packaging on the environment. We evaluate and develop various sustainable packaging materials across our global product portfolio including coffee products and we collaborate with industrial partners to develop new packaging materials and solutions. Our new institute of packaging sciences will help develop new pacakaging solution. Furthermore, recently we announced we will invest up to CHF 2 billion to lead the shift from virgin plastics to food-grade recycled plastics and to accelerate the development of innovative sustainable packaging solutions.

Are you planning to change Starbucks premium instant (soluble) coffee to non aluminum or non plastic stick in the near future?

We will continue to develop new packaging solutions and distribution models to meet our 2025 commitment.

What are the key advantages of aluminum tin versus plastic stick?

With every material we use to produce the capsules, we are committed to ensure that none of our packaging ends up in landfill or as litter and we minimize the impact of our packaging on the environment. This includes advocating for adequate recycling infrastructure for coffee capsules regardless of the material used. In addition, aluminum can be re-melted and re-used infinitely, giving waste a second life.

Given existing criticism, why are we launching a new assortment of aluminum tin with Starbucks premium instant (soluble) coffee?

Regardless of the material use to produce the packaging, we are committed to ensuring that none of our packaging ends up in landfill or as litter and we minimize the impact of our packaging on the environment. Aluminum can also be re-melted and re-used infinitely, giving waste a second life.

CONSUMER SERVICE

Who can I contact if I have any questions or complaints about Starbucks, Starbucks by Nescafe Dolce Gusto or Starbucks Nespresso products?

Each market will have a local customer care number which will be printed on the capsules’ sleeves and shown on the Starbucks at Home website www.starbucksathome.com

NESCAFÉ PLAN FACTSHEET

Status

  • +300 agronomists and field staff working with farmers
  • 100,000 farmers trained/receiving assistance per year
  • +180 million coffee plantlets distributed by end of 2018, since the Plan was launched in 2010
  • 55% responsibly sourced coffee

Objectives

  • By 2020: 70% of total NESCAFÉ coffee supplies to be Responsibly Sourced
  • By 2020: NESCAFÉ to distribute 220 million coffee plantlets
  • By 2020: NESCAFÉ to improve coffee farm economics in at least four coffee sourcing countries
  • By 2020: NESCAFÉ to improve labor rights in at least two coffee sourcing locations

In terms of results, we achieved all previous NESCAFÉ Plan objectives.

NESPRESSO AAA SUSTAINABLE QUALITY PROGRAM FACTSHEET

Status

  • +450 agronomists and field staff working with farmers
  • 100,000 farmers in the network
  • 94% coffee sourced responsibly
  • 5 million coffee trees distributed since 2014

Objectives

  • By 2020: 100% of total Nespresso permanent coffee supplies to be AAA
  • By 2020: Nespresso 5 million coffee trees distributed

C.A.F.É PRACTICES FACTSHEET

Status

  • + 30 million coffee trees donated
  • +1000 agronomists in the network
  • 99% ethically sourced
  • +400,000 coffee farmers in the network
  • 99% coffee verified as ethically and sustainably sourced

Objectives

  • Throughout 2019, $20 million in Emergency Relief Fund payments are being distributed to smallholder farmers in Guatemala, El Salvador, Nicaragua and Mexico
  • By 2025, 100 million coffee trees to be donated to coffee farmers
  • By 2020, Invest $50 Million in the Global Farmer Fund
  • By 2020, invest $50 million in farmer loans
  • Committed to 100% ethically sourced coffee
  • By 2020, train 200,000 coffee farmers to improve the long-term sustainability of their crops and their livelihoods through Starbucks Farmer Support Centers and other efforts
  • Empower 250,000 women within coffee and tea communities by 2025

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What are Nestlé investment policies in the Middle East?

In response to various enquiries on Nestlé Group corporate policy with regard to the conflict in the Middle East, Nestlé states that as a truly global company it operates in almost all countries in the world, employing some 280 000 people of more than 100 nationalities and of many creeds. We provide for consumers worldwide without regard to religious, political, racial or cultural differences.This is a core company value enshrined in the Nestlé Business Principles.

Nestlé has consistently emphasized the importance of mutual respect and tolerance. Guided by these principles, the Group's investment decisions have always been based only on commercial and industrial viability, excluding political considerations. This is how we have invested, among other countries elsewhere in the world, in Saudi Arabia, Egypt, Syria, Tunisia, Morocco, Israel and further in Pakistan, Malaysia and Indonesia, demonstrating all the time respect for cultural, ethnic and religious diversity.

In each and everyone of these countries the Company serves the needs of its consumers, as well as the interests of its local staff. Nestlé employs more than 30 000 people in the Muslim world, and has invested CHF 2 billion (2007). Nestlé contributes to the prosperity and wellness of people in those countries.  

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Fake Nestlé Aid Organization and Nestlé Foundation websites

We have received a number of emails alerting us to fake websites called the Nestlé Aid Organization or the Nestlé Foundation or similar. The emails, claiming to be from Nestlé or a related organization,  usually announce that the recipient has won some money or a grant and only needs to fill in their details or pay a small sum of money to release this.  In some cases the 'award' has been the offer of a job interview. The email is usually sent from a different domain than the site quoted, often a web-based email domain.

Nestlé does not operate in this way. You are advised to forward any such mails to us at [email protected] to allow us to forward them to the relevant law-enforcement authorities. Please ignore any such instructions to send money or your personal details. You can always contact your local Nestlé office to confirm whether you have won a promotional prize or other offer - just use the 'contact us' form at the top of this page. Nestlé will never ask you for money as a condition of winning anything.

We have had some success in closing these fake operations down, thanks to the alertness of Nestlé consumers around the world, and will continue to pursue fraudulent operators as soon as we are aware of them, and to the limits of the law.

Nestlé does have a bona fide website run by the Nestlé Foundation at http://www.nestlefoundation.org/. This is devoted to the study of problems of nutrition in the world.

 

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What is Nestlé's response to scam emails?

There have been cases of emails sent to individuals or organizations falsely purporting to be from Nestlé or a partner organization of Nestlé. These are scam emails, and will sometimes ask you for information such as a password or user ID and even sums of money in return for more money or other benefits, such as winning a Nestlé competition or promotion in return.

These emails sometimes look quite convincing, with a Nestlé or Nestlé brand logo, or coming from an email address that looks as if it could be from Nestlé.

In any case, these emails are false and are not at all associated with Nestlé itself or any partner organizations; therefore we strongly suggest that you make sure of the authenticity of such mails (or any other communication) before sending any reply. Nestlé further strongly suggests that you do not send money or any other information; it is simply not Nestlé policy to ask for money or other information in return for winnings, prizes, job interviews or any sort of registration.

If you are worried about an email that you have received, please mail us at [email protected] to help us to become aware of those incidents and take action against these people. You may also inform or ask your internet service provider for advice or help.

Update September 2019 - Fake Nestlé job interview letter

A fake letter is circulating online claiming to be from Nestlé’s Head of Human Resources. It invites people to attend interviews for positions at Nestlé in the United States and requests that candidates share personal details and pay money to secure the right to an interview.

The information is false, and we encourage anyone who reads the letter to disregard it. Nestlé is working to identify the source of this letter and to remove it. Nestlé will never request payment to secure a job interview.

If you have received or are aware of this type of communication and have concerns, please report it to us via [email protected].

 

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What does Nestlé's commitment to nutrition health and wellness mean?

Food has entered a new phase. Once upon a time it was simply fuel to survive. Today's consumer is looking for something more - an improved nutritional value. We aim to be able to give consumers the products they need for a healthy lifestyle. We encourage a balanced, healthy diet and make products that fit into this; we are committed to increasing the nutritional value of our products while improving taste and pleasure. We inform fully about the ingredients of our products to allow you to take the decisions necessary to live a wellness lifestyle as you wish.   

 

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What is Nestlé's position on palm oil?

Nestlé shares the concern about the serious environmental threat to rainforests and peat fields in Southeast Asia caused by the planting of palm oil plantations. As an environmentally responsible company we want to do whatever we can to help solve this problem.  We have a long-standing commitment to environmental protection which began decades ago.

Palm oil is not a major raw material for us. We only buy processed palm oil, and processed oil mixes, which often comes from multiple sources. We do not use crude palm oil, and thus have no direct link to the palm oil plantations. This complicates our ability to trace our palm oil back to source.  In addition there is very little palm oil available that comes from sources independently certified as sustainable and traceable.

Nevertheless, we are committed to living up to the high environmental standards set out in our Corporate Business Principles and ensuring that our suppliers also do so. The majority of our supplies come from members of the Round Table on Sustainable Palm Oil which is developing an independent certification system for sustainable and traceable palm oil. We are working with our suppliers to improve and document traceability.

It is also worth pointing out that palm oil is also used as a material from which bio-fuels are produced and Nestlé has repeatedly spoken out against the production of such fuels from materials used to feed people.

Nestlé is deeply concerned about the destruction of the rainforests, peat fields , air quality and animal life and is prepared to play a full part in finding an effective multi-stakeholder solution to this complex problem.

 

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What is Nestlé's position on biofuels?

Nestlé supports sustainable energy use: over the last five years, Nestlé has reduced its energy consumption per tonne of product by 28% and its greenhouse gas emissions by 32%. Nestlé believes that any decision on the use of energy sources must be based on a systematic cost benefit and life cycle analysis, taking into consideration the social and environmental impact, including the effects on food prices and water.

The current production of biofuel relies on the extensive use of crops such as maize and wheat. This has already led to significant price increases and will, in the long term, create food shortages for millions of consumers from lower-income groups for whom basic foodstuffs need to be affordable.

The large scale expansion of these agricultural raw materials for biofuel production will aggravate the problem of water scarcity, as every litre of biofuel made from irrigated maize or soybeans requires between 500 and 5,000 litres of water. Agriculture already uses 70% of available water sources. Furthermore, depending on crop type and geography, CO2 savings compared to fossil fuel can be very small, in some cases only 10%.

 

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Is it right that Nestlé profits from selling bottled water?

Many people consider bottled water to be an example of companies making profits on what should be public property.

First, Nestlé Waters may be the world's largest bottled water company, but it still uses only 0.0009 percent (less than one millionth) of total fresh water consumed worldwide, while Nestlé as a whole - including food manufacturing - uses only 0.005 percent. Nestlé is therefore not a significant factor in the global access-to-water debate: agriculture uses 70 percent of total available fresh water, industry 20 percent and domestic users 10 percent.

The price of bottled water is closer to that of other bottled drinks than to tap water because it includes the same expenses incurred by all bottled drinks producers: the actual cost of the water, ensuring water purity, providing sterile bottles, ensuring a clean bottling process and, finally, all logistical costs.

For more information on how Nestlé husbands water, please visit our water section.

 

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What are trans-fatty acids?

Trans fatty acids (TFA) are a specific form of fat formed when liquid oils are turned into solids such as shortening and hard margarine in a process known as partial hydrogenation. According to Western European dietary data, half of TFA consumed occur naturally in foods such as milk and meat products. The rest comes principally from oil and fats (19 percent), or prepared foods such as bakery goods (13 percent), chips, French fries, pizzas and other savory pies.

Why are they bad?

Eating TFA can result in undesirable effects on blood cholesterol (raising LDL, or 'bad' cholesterol; lowering HDL, or 'good' cholesterol) and thus could potentially have a bad impact on heart health.

What is Nestlé doing about TFA?

Nestlé considers that the reduction of TFA in prepared food products is important and has been committed since 1993 to reduce TFA in prepared food products. In a normal consumption pattern, TFA intake would not exceed 3% of the total fat in foods, or 1% of the daily total energy intake as recommended by the World Health Organization.

Priority was given to reduce TFA in products which are consumed by children and to products containing higher levels of TFA such as soups, snacks, pizzas, ready-made meals and certain confectionery items. (Nestlé has relatively few products such as oils, meat products, cheese, bakery goods, and butter which are principal sources of TFA). Since 2002, Nestlé has reduced the use of trans fatty acids in its product portfolio by more than 25,000 tonnes.

Compliance with the TFA reduction policy is audited in our businesses globally. By end 2006, 95% of Nestlé's product range complied with the policy.

 

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What are Nestlé's infant formula business practices in the Developing World?

Nestlé conforms to the spirit and the letter of the WHOCode on marketing breast milk substitutes. Please visit our Marketing of breast milk substitutes commitment page site  for a comprehensive discussion of this topic.

 

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How can I get a copy of your Annual Report?

Click here to go to the Management Report for Nestlé S.A.(S.A. = Société Anonyme) which you can download or order a hard copy. Nestlé USAis owned by Nestlé S.A.of Vevey, Switzerland. There is no annual report for Nestlé in the US.

 

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Where can I get all contacts?

Please go to Nestlé Addresses for a full list of all our worldwide sites.

 

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What is the Nestlé policy on genetically modified organisms (GMO)?

From its inception more than 130 years ago, Nestlé has built its business on successfully applying scientific breakthroughs and technological innovations while taking full responsibility for the quality and the safety of its products. Throughout these years Nestlé has been manufacturing and marketing products tailored to meet the diverse needs and preferences of consumers all over the world. This broad experience has provided Nestlé with thorough insight into and understanding of consumer demands, both in developing and developed countries. Clearly, consumers' perceptions and opinions differ in the various regions of the world. Hence Nestlé has always strived to respect these differences and to take them into account in its activities.

Gene technology in food production
With this vast experience, Nestlé recognizes the potential gene technology has in the longer term to improve the quality, availability and nutritional value of food. Gene technology has the potential to increase food production and to support sustainable agricultural practices. In some instances, positive health effects have been confirmed. For those reasons, Nestlé supports a responsible application of gene technology for food production based on sound scientific research.

Safety
The safety of our products and the integrity of the ingredients from which they are manufactured are paramount to Nestlé. Genetically modified crops, as all raw materials used by Nestlé, comply to strict regulatory and safety evaluations. WHO, FAO, OECDand numerous independent scientific bodies have concluded that genetically modified crops, including ingredients derived from them, that have passed food safety evaluation procedures, can be registered as safe for use in food production. Nestlé concurs with their shared opinion that such crops are as safe as their traditional counterparts.

Consumer information and labeling
Consumers' confidence in the food they are buying is supported by having access to information. Nestlé's Consumer Services are well equipped to provide this access and thus are the first source of information, including the use of ingredients, derived from genetically modified crops, in Nestlé products. Many governments now have implemented or are considering regulations for the use and labeling of these ingredients. In the absence of a global agreement on the labeling of ingredients, derived from genetically modified crops, and recognising governments responsibility for the regulatory process, Nestlé strictly adheres to national laws and regulations regarding their labeling.

Consumer perceptions and the future needs of society
As a global food manufacturer and marketer, Nestlé takes into consideration local needs, cultural differences and consumer preferences as well as attitudes concerning the use of ingredients derived from genetically modified crops. In some regions of the world, governments have expressed a keen interest in this technology as a potential tool to address their country's future food requirements. Nestlé's long term experience in food production can be a valuable resource in finding the right balance between these elements. This may well result in different solutions in various regions of the world, without jeopardizing in any way the safety and quality of its products. Provided their safety is proven, as required for all ingredients, Nestlé will continue to use ingredients derived from genetically modified crops wherever appropriate.

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What is our response to COVID-19?

People are at the heart of our Nestlé business. We are working hard to keep our employees, customers and the communities where we operate safe. These contributions are part of Nestlé’s purpose, which is to enhance quality of life and contribute to a healthier future.

Below are the amounts of donations and beneficiaries:

  • R5 million to South Africa’s Solidarity Fund.
  • 1 million Mauritian Rupee to Mauritius’ Solidarity Fund.
  • Over R10 million to the International Federation of Red Cross Societies in South Africa,Ethiopia, Kenya, Mauritius, Mozambique, Zimbabwe, Zambia and Tanzania on COVID-19 relief interventions at country level.
  • An additional half a million Rands to National Disaster Funds in Zimbabwe and Ethiopia.
  • Nestlé Kenya has stepped in to support the Kenya Red Cross Society and International Federation of Red Cross and Red Crescent Societies’ efforts to respond to the pandemic. With a donation of KSh17.99million in cash to bolster sensitization, food relief, water, sanitation and hygiene initiatives by the two organizations.
  • Nestlé South Africa donated over 200 000 litres of clean water for COVID-19 relief efforts in Mossel Bay. The donation will not only assist the community with clean drinking water but will further assist with preventative hygiene measures such as regular washing of hands, as part of the interventions to mitigate the spread of the coronavirus pandemic.
  •  Nestlé donated Personal Protective Equipment (PPE) worth ETB 346 thousand to the Ministry of Health to aid health workers in the fight against COVID – 19 in Ethiopia. The donation included 500 scrubs and 500 rubber boots, were distributed to two Corona treatment centers in the country to help contribute to the personal safety and well- being of health care workers and physicians combating COVID 19.    


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