Nestle S.a. · SIX:NESN
Nestle — Investor Day (November 2024)
28 slides from Nestle's investor day presentation, Nov 19, 2024
Slide 1: Leading the world of coffee
Leading the world of coffee David Rennie Head of Nestlé Coffee Brands
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: Nestlé's #1 business. Market leader in all Zones, with the leading and iconic brands
Nestlé’s #1 business. Market leader in all Zones, with the 3 leading and iconic brands Performance Footprint Our Position 23.7 bn Where we sell What we sell #1 2023 sales (CHF) Coffee Portion coffee 36% company North Europe America 34% 31% ~20% #1 Instant coffee 32% Underlying Greater TOP margin Chi
Slide 4: Coffee: a dynamic and growing category
Coffee: a dynamic and growing category Retail ~ CHF 440 bn Out-of-home Consumer value Consumer value ~CHF 110 bn ~CHF 330 bn Whole beans 7 Other 75 Portion 23 Workplace 40 RTD 23 Hotels & Restaurants 65 Instant 26 Café & Bars R&G 32 6% value growth 2021-2023 150 3-5% expected value growth 2023 2025-
Slide 5: Growth will be driven by more premiumization, more occasions and more consumers
Growth will be driven by more premiumization, more occasions and more consumers More premiumization More consumption occasions More consumers From To • Expanded relevance to afternoon • New geographies and youth indulgence, driven by cold coffee Coffee cups per person per year, 2023 • Cold coffee is
Slide 6: Deep competitive advantage across the value chain
Deep competitive advantage across the value chain Top 3 iconic billionaire brands Proprietary technology Unique portfolio, unparallelled scale • Irresistible product superiority • Leading the most profitable segments at lower cost, via continuous improvement of coffee yields Coffee market: avg. esti
Slide 7: Strong performance and focus on continuous improvement
Strong performance and focus on continuous improvement Drove core in-home Accelerated out-of-home Faced strong headwinds Nescafé • Growing double digit, ahead of channel • Challenging green coffee prices • Highly relevant, strong mid-single digit growth • Strengthening portfolio of solutions • Tensi
Slide 8: …and we are well placed in 2025
…and we are well placed in 2025 Driving the virtuous circle …and continued investments to secure the long-term • Nestlé value creation is less dependent on green coffee: • Improving quality and yields, supporting farmers’ brand power, better portfolio, proprietary technology income • Accelerating tr
Slide 9: Driving value creation by delighting our Consumers and Customers
Driving value creation by delighting our Consumers and Customers ‘Coffee Shop at home’ New consumers Expand out-of-home experience penetration variety, cold coffee expansion Youth and new geographies via unparalleled capabilities and premiumization and channel expertise 9 November 19, 2024
Slide 10: Bringing the Coffee Shop menu at home
Bringing the Coffee Shop menu at home Launched creamers, rolling-out Capturing incremental premium Developing a compelling coffee cold and flavored innovations occasions via innovations menu via instant preparation: in functional coffee and beyond cold coffee, flavors and dessert editions 10 Novembe
Slide 11: Elevating the 'Coffee Shop at home' experience via the next generation of coffee systems
Elevating the 'Coffee Shop at home' experience via the next generation of coffee systems • Breakthrough technology, home compostable pods, eco-designed machine • Irresistible product superiority vs. generation 1 and competition • Connected machine ecosystem • 4 markets launched. 10+ markets planned
Slide 12: Expanding cold coffee across channels and platforms
Expanding cold coffee across channels and platforms Out-of-home In-home 1 out 3 occasions is cold 1 out 7 occasions is cold Freshly-dispensed Ready-to-drink Ready-to-prepare Home-brew 12 November 19, 2024
Slide 13: Rolling-out our Ready-To-Drink business in high growth potential geographies
Rolling-out our Ready-To-Drink business in high growth potential geographies • Accelerating in Asia: China, ASEAN, India, MENA • Building the category in LATAM 13 November 19, 2024
Slide 14: Nescafé launching Espresso Concentrate for Barista-style iced-coffee recipes at home
Nescafé launching Espresso Concentrate for Barista-style iced-coffee recipes at home • Youth recruiter + incremental consumption occasions1 • Value generator: x10 price per cup vs Nescafé Classic • Global roll-out 14 November 19, 2024 1. Cold represents 33% of coffee occasions for Youth, vs. average
Slide 15: Nescafé leading category penetration: the India case study
Nescafé leading category penetration: the India case study Strong category growth Irresistible product superiority Bringing Nescafé trajectory to recruit consumers to every household Total coffee category size in India (m CHF)1 % Household penetration in India3 Instant Coffee 58% Nescafé 52% CAGR 10
Slide 16: Capturing out-of-home opportunities via powerful portfolio of brands and solutions
Capturing out-of-home opportunities via powerful portfolio of brands and solutions Accelerating in key channels Increasing customer lifetime value Innovating machines & menu Stronger value proposition Services and digitalization Improved consumers experience • Leading brand portfolio, capabilities f
Slide 17: Leading the world of coffee in North America
Leading the world of coffee in North America Steven Presley CEO Zone Americas
Slide 18: Nestlé Coffee business in North America: leadership position and strong track record
Nestlé Coffee business in North America: leadership position and strong track record Performance Footprint Our position Iconic brands, capturing value across price points Winning in all key formats 7.6 bn $ per cup #1 2023 sales, CHF Portioned Creamer Prem. R&G Instant in 3/5 10.7% Cups of Coffee in
Slide 19: North America represents the largest coffee market in the world
North America represents the largest coffee market in the world $120+ bn growing via premiumization, new occasions and recruitment More premiumization More consumption occasions More consumers VARIETY REFRESHMENT FUNCTIONALITY Gen Z entering 25% of households coffee 4yrs using 2+ brew methods earlie
Slide 20: Driving value creation by delighting our Consumers and Customers
Driving value creation by delighting our Consumers and Customers Elevate the Coffee Shop Capture the Gen Z Expand out-of-home experience at-home opportunity penetration via variety, One Cup expansion via Cold, experimentation via unparalleled capabilities and premiumization and new Occasions and cha
Slide 21: Capture new households and elevate the coffee experience through Nespresso Vertuo
Capture new households and elevate the coffee experience through Nespresso Vertuo DEEPLY ON-TREND Double-digit growth, increasing household penetration, strengthening brand equity and growing market share ROBUST INNOVATION Superior coffee menu via flavors, recipes, cup sizes, limited editions, in ho
Slide 22: Drive premiumization across key brands and segments
Drive premiumization across key brands and segments Redefining the role of Instant Delivering first-ever OMNI Accelerating Starbucks launch with Starbucks Sunsera by Nespresso Powder = Premium in the eyes of Gen Z …from Cafés to shelves …with emphasis on Iced 22 November 19, 2024
Slide 23: Unleash the power of 'One Cup'
Unleash the power of ‘One Cup’ While > 60% consumers use Elevate consumers’ cups with Executing commercial & category coffee & creamer… consumer-driven brand pairings leadership across path to purchase …only 30% are pairing their …only Nestlé combines leading purchases Coffee and Creamer brands 24%
Slide 24: Reignite creamers to re-set pace as the category leader
Reignite creamers to re-set pace as the category leader Capacity & price key drivers of Next-level capacity & capability Accelerate pace of innovation, recent challenges shelf presence and price/promo Capacity Constrained Doubling sales from Reduced innovation in 20251 innovation & shelf space Distr
Slide 25: Capture Gen Z and bring the 4th wave of coffee at home
th Capture Gen Z and bring the 4 wave of coffee at home Innovating in Iced Driving experimentation Entering new occasions 25 November 19, 2024
Slide 26: Unlock creativity & experimentation with Cold Foam
Unlock creativity & experimentation with Cold Foam DEEPLY ON-TREND > 30% of consumers seek added texture SUPERIOR PRODUCT Superior taste & texture 25% less sugar, 25% more servings UNPARALLELED SUPPORT Fueled by 360° communication plan, including National Super Bowl 26 November 19, 2024
Slide 27: Leverage unique capabilities and brands across key channels & customers
Leverage unique capabilities and brands across key channels & customers Example of a holistic approach at Lodging Example of a holistic approach at Lodging LEADING BRAND PORFOLIO • Starbucks: #1 Super Premium F/S Coffee • Nespresso: top-growing OOH Coffee system1 • Coffee mate: America’s #1 Creamer
Slide 28: Key takeaways
Key takeaways 1. The world’s leading coffee company with the world’s most iconic brands 2. Obsessed with delighting customers & consumers. 4 big priorities: Nescafé Dolce Gusto NEO, ready-to-drink, espresso concentrate, out-of-home 3. Unique ability to lead growth opportunities in established and em