Nestle S.a. · SIX:NESN
Nestle — Investor Day (November 2024)
29 slides from Nestle's investor day presentation, Nov 19, 2024
Slide 1: Accelerating growth with fewer bigger better Innovation and Marketing excellence
Accelerating growth with fewer bigger better Innovation And Marketing excellence Stefan Palzer Bernard Meunier Aude Gandon
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.
Slide 3: What we will cover today
What we will cover today Our assets and What we will concretely do What we want to achieve our approach to innovation to increase financial returns through these improvements 3 19 November 2024 I CMD
Slide 4: We have a unique set of assets
We have a unique set of assets A unique 31 billionaire brands Industry-leading Access to large company loved by consumers science & technology consumer base heritage around the world leveraged across >1 billion products categories sold every day Our teams in 188 markets enable us to maintain close p
Slide 5: Over recent years, we have strengthened our innovation process
Over recent years, we have strengthened our innovation process Trends Exploration Development Deployment & Execution Opportunities Simplified innovation Clearer focus on most Stronger process & new impactful Science & pipelines & increased digital tools Technology platforms value per project 12 440
Slide 6: However, still more progress to be made
However, still more progress to be made Trends Exploration Development Deployment & Execution Opportunities Beside some big Top innovations Key launches projects, too many often rolled-out too lacking full small projects slow or not at scale marketing support Best practices not always leveraged acro
Slide 7: Our end-to-end approach: fewer, bigger, better innovations
Our end-to-end approach: “fewer, bigger, better” innovations for maximum financial impact Trends Exploration Development Deployment & Execution Opportunities FEWER BIGGER BETTER FocusFocus on on Multi-market Excellence in big bets big bets and and scaling with right execution and strategic strategic
Slide 8: Key consumer trends that are relevant for Nestlé
Key consumer trends that are relevant for Nestlé Smart Health shopping New and for life (affordable elevated and premium experiences winning) Eco-conscious Mindful consumers snacking and Always-on (good for the ready-to-eat digital planet and and drink communities) 8 19 November 2024 I CMD
Slide 9: High growth opportunity areas identified based on trends, consumer needs and capabilities
High growth opportunity areas identified based on trends, consumer needs and internal capabilities Nutrition across life-stages Coffee shop experience Mindful snacking, & for health concerns ready-to-eat and drink Affordable nutrition Excitement through flavors, Modern cooking textures, ethnic food
Slide 10: As applied to Modern cooking
As applied to Modern cooking Trends High growth Brand strategy opportunity areas Consumer needs Example Modern cooking New and elevated experiences “ Help everyone create delicious, wholesome food ” moments that meaningfully connect us Science and Health for life Technology platforms Flavor Cooking
Slide 11: As applied to Coffee shop experience
As applied to Coffee shop experience Trends High growth Brand strategy opportunity areas Consumer needs Example Coffee shop experience New and elevated experiences “ Bringing the excitement of coffee shop culture ” into every home Eco-conscious Science and consumers Technology platforms (good for th
Slide 12: Leveraging GenAI exploration and real-time social intelligence
Leveraging GenAI exploration and real-time social intelligence to fuel consumer-focused ideation Always-on access GenAI assistant Concept testing based to trends & insights for concept ideation on synthetic persona 70% time savings 50% time savings < 30 min for Marketing and R&D for Marketing to cre
Slide 13: Focus on big bets and strategic seeds
Focus on big bets and strategic seeds Prioritization of portfolio based on winning value propositions, technology capabilities, size-of-the-prize, while eliminating small projects Strategic seeds as future revenue areas Big bets as key contributor to growth Examples Clear end-to-end governance and a
Slide 14: Key consumer benefits are at the core of our value propositions
Key consumer benefits are at the core of our value propositions Examples of health benefits: Nutrition across life-stages Pre-natal health First 1’000 days Kids and teens Healthy longevity Health concerns Physical Weight Mobility & Fertility Energy management joint health development Maternal Cognit
Slide 15: Health benefits substantiated by an industry leading clinical research program
Health benefits substantiated by an industry leading clinical research program Example: One of the largest interventional clinical study in maternal nutrition Science-based Multi-center clinical Clinically proven benefits nutritional intervention trial in 3 geographies Endorsed by Health Care Practi
Slide 16: Cutting-edge technology platforms are the base of our pipelines
Cutting-edge technology platforms are the base of our Innovation and Renovation pipelines CROSS-CATEGORY CATEGORY-SPECIFIC Biotics Bioactives Proteins Cellulose Flavors Coffee Wet petfood Chocolate micro- engineering modulation roasting texturization aeration & precision & brewing depositing Digital
Slide 17: Examples of new digital capabilities for product and process development
Examples of new digital capabilities to support product and process development Big data AI assisted recipe GenAI & virtual reality Digital twins for foundations development for prototyping industrialisation Database with Proprietary recipe Virtual reality to Design of new lines 120’000 characterize
Slide 18: 2025: 100% of our big bets
Ensuring holistic superiority of our value propositions 5 key attributes Concept Taste Packaging Communication Incrementality 2025: 100% of our big bets will achieve holistic consumer preference 18 19 November 2024 I CMD
Slide 19: Excellence in execution
Excellence in execution Maximize Optimal and Accelerated roll-out omni-channel distribution sustained level of across more geographies and investment support in-store excellence 19 19 November 2024 I CMD
Slide 20: Bringing fewer, bigger, better to life: Purina Gourmet Revelations
Bringing “fewer, bigger, better” to life PURINA Gourmet Revelations 20 19 November 2024 I CMD
Slide 21: Growth through end-to-end innovation: a short case study
GROWTH THROUGH END-TO-END INNOVATION A SHORT CASE STUDY
Slide 22: Bringing fewer, bigger, better to life: Nescafé Espresso Concentrate
Bringing “fewer, bigger, better” to life NESCAFÉ Espresso Concentrate 22 19 November 2024 I CMD
Slide 23: Cold Coffee
Slide 24: Driving growth through Brand Building & Marketing Excellence
Driving growth through Brand Building & Marketing Excellence 24 19 November 2024 I CMD
Slide 25: Fewer, bigger, better applied to our brand investments
“Fewer, bigger, better” applied to our brand investments Re-investing in Brand Building With a focus on strategic brands 94% of paid media supports 9% our priority brands CHF 5 bn (22-24) 71% of media investment in digital, leveraging our +340 mn 1st party data records Reaching 20% of sales online 2
Slide 26: Raising the bar on creativity powered by a digital first content operating model
Raising the bar on creativity powered by a best-in-class, digital first content operating model A relentless focus A relentless 170’000+ focuson oncreativity assets Across our brands creativity localized and across ourmarkets in 2023 (+40% every year) brands and markets 45 Studios: serving global an
Slide 27: Transforming to be even more agile and efficient
Transforming to be even more agile and efficient v 27 19 November 2024 I CMD
Slide 28: Advanced analytics capabilities to boost ROI
Advanced analytics capabilities to boost ROI Advanced analytics solution Deployed in 22 key markets +1’000 models, refreshed quarterly through machine learning Marketing efficiency by up to 20% 28 19 November 2024 I CMD
Slide 29: We will accelerate growth by…
We will accelerate growth by… Leveraging our Implementing Stepping up unique set of assets fewer, bigger, better Marketing excellence Half of our growth To drive category growth (2024-2027) and market share gain should come from impactful Innovations and Renovations 29 19 November 2024 I CMD