Nestle S.a. · SIX:NESN
Nestle — Investor Day (November 2024)
27 slides from Nestle's investor day presentation, Nov 19, 2024
Slide 1: Leading the way in pet care
Leading the way in pet care Guillaume Le Cunff | CEO Zone Europe Nina Leigh Krueger | CEO, North America PetCare
Slide 2: Purina PetCare overview
Purina PetCare overview Performance Footprint Our position Where we sell 18.9 bn 2023 sales (CHF) North America Europe Greater #2 27% Global Share1 61% China 1% 20.7% 6 2023 UTOP margin Latin America AOA 8% 3% billionaire brands 13.1% 3-year average OG What we sell (2021-23) Dry dog Wet cat Dry cat
Slide 3: Global petcare is a large and attractive category
Global petcare is a large and attractive category CHF 120 bn category Nearly 1 bn dogs and Emotional category cats in the world 15% 39% 513 m dogs 17% 435 m cats 29% Super Premium Premium Economy Snacks Returning to historical growth over time 1 2 3 2/3 of category is premium & above >95% pet parent
Slide 4: Purina has grown value share through a turbulent environment
Purina has grown value share through a turbulent environment What happened What’s new Key learnings • Pet ownership accelerated • Pet ownership stabilizing • Category fundamentals strong • Pricing and supply challenges • Category coming off pricing • Strong portfolio of brands • Double-digit growth
Slide 5: Strong global #2 share, on way to #1 with clear opportunities in AOA
Strong global #2 share, on way to #1 with clear opportunities in AOA Strong global position Significant share opportunity in emerging markets Mars 21.7% Share Share rank growth North America #1 Purina 2021-2023 Europe #2 20.7% Share +48 bps LATAM #2 Others 35.6% Great China #3 Hill’s 5.4% Private La
Slide 6: Key opportunities in the category looking forward
Key opportunities in the category looking forward 1. Consumer expectations for Premiumization in mature markets 2. Pet ownership back to normal growth momentum 3. Calorific coverage to increase in emerging markets 6 November 19, 2024 Source: Euromonitor pet population 2024
Slide 7: 1. Consumer trends driving premiumization
1. Consumer trends driving premiumization Advanced Proactive & Elevated Ethical & Anytime, nutrition personalized experiences sustainable anywhere health consumption 7 November 19, 2024
Slide 8: 2. Pet population growth adds to category foundation
2. Pet population growth adds to category foundation USA Greater AOA Brazil Western E. Europe 200 m China x China Europe 150 m 100 m 50 m 0m 2019 2024 2029 2019 2024 2029 2019 2024 2029 2019 2024 2029 2019 2024 2029 2019 2024 2029 8 November 19, 2024 Source: Euromonitor pet population 2024
Slide 9: 3. Calorific coverage represents key emerging market opportunity
Calorific Coverage Advanced Nutrition Expandable Consumption Omni-Channel 3. Calorific coverage represents key emerging market opportunity Calorific Coverage by Region Calorific coverage of prepared 100% dog & cat food 50% 80% 40% 60% 40% 30% 20% 20% 0% 10% 0% 2019 2020 2010 2011 2012 2013 2014 2015
Slide 10: Three competitive advantages position Purina for the future
Three competitive advantages position Purina for the future Deep consumer insights Portfolio covers consumer World class R&D landscape Price per Kg 2 500+ annual consumer studies 4 of the top 10 global brands #1 in science-based pet food share 1 >300 m annual Purina digital sessions 6 billionaire br
Slide 11: Purina PetCare growth drivers to continue gaining market share
Purina PetCare growth drivers to continue gaining market share Expected category trend growth 2025-2027: 4-5% Category foundation Premiumization Omni-channel leadership Calorific coverage Advanced nutrition Expandable consumption Win with the winners Ambition: drive category and achieve #1 global sh
Slide 12: Calorific coverage drives market growth: Mexico example
Calorific coverage Advanced nutrition Expandable consumption Omni-channel Calorific coverage drives market growth : Mexico example Purina Mexico: calorific coverage & retail sales 66% 64% 62% Calorific coverage 60% 58% 56% 54% 52% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Purina retail sales
Slide 13: Portfolio approach drives calorific consumption growth
Calorific coverage Advanced nutrition Expandable consumption Omni-channel Portfolio approach drives calorific consumption growth Portfolio offers multiple entry Purina sales team works to Promoting calorific points expand distribution consumption NPP Mexico Distribution 76% 39% 2016 2023 13 November
Slide 14: Purina PetCare growth drivers to continue gaining market share
Purina PetCare growth drivers to continue gaining market share Expected category trend growth 2025-2027: 4-5% Category foundation Premiumization Omni-channel leadership Calorific coverage Advanced nutrition Expandable consumption Win with the winners Ambition: drive category and achieve #1 global sh
Slide 15: Pro Plan innovation driving premiumization across sub-segments
Calorific coverage Advanced nutrition Expandable consumption Omni-channel Pro Plan innovation driving premiumization across sub-segments ~3X sales CHF 3 bn global sales Continued innovation across across 67 Countries sub-segments Double-digit growth across all sub-segments CHF bn global sales 3.0 1.
Slide 16: Purina ONE driving premiumization at scale
Calorific coverage Advanced nutrition Expandable consumption Omni-channel Purina ONE driving premiumization at scale #1 Mega brand in U.S. 1 Growth accelerator Market entrant CHF 3 bn global sales 3 in Europe Now sold in 64 countries Game-changing innovation to Purina ONE 11.4% #1 cat science 2 bran
Slide 17: Expandable consumption creates opportunity for premiumization
Calorific coverage Advanced nutrition Expandable consumption Omni-channel Expandable consumption creates opportunity for premiumization 400 380 index 300 210 Index in Price 153 133 2023 launch 100 index 2021 launch 100 17 November 19, 2024 Source: internal Nestlé data
Slide 18: Expandable consumption creates opportunity for premiumization
Calorific coverage Advanced nutrition Expandable consumption Omni-channel Expandable consumption creates opportunity for premiumization 200 186 index 153 126 Index in Price 109 100 index 100 18 November 19, 2024 Source: internal Nestlé data
Slide 19: Winning in e-commerce
Calorific coverage Advanced nutrition Expandable consumption Omni-channel Winning in e-commerce E-commerce acceleration: ~3X since 2019 Global best practices and regional playbooks 25.0% 22.1% 4.2 20.0% CHF bn global sales 15.0% 10.3% 10.0% 1.4 5.0% 3.3% 0.4 0.0% 2016 2017 2018 2019 2020 2021 2022 2
Slide 20: Growth opportunities in under-developed markets and segments
Growth opportunities in under-developed markets and segments Invest to grow in Zone Asia, Enhance treats performance Accelerate share growth in vet Oceania and Africa AOA 4% 20 November 19, 2024 Source: internal Nestlé data
Slide 21: AOA is an opportunity for growth by executing Purina playbook
AOA is an opportunity for growth by executing Purina playbook Purina distant #2 in a Regain leadership in Accelerate advanced nutrition fragmented market single-serve wet cat Mon Petit renovation in Japan Accelerate growth of Pro Plan Mars 21.9% Purina Others 57.6% 6.3% Inaba 3.7% Colgate- Felix inn
Slide 22: Key strategies to enhance treats performance
Key strategies to enhance treats performance Lead in Accelerate global Expand into new Execute playbook meaty treats brand in functional cat treat forms outside NA & Europe treats Liquid snack sticks 9% Europe AOA 91% NA & EUR Others 22 November 19, 2024 Source: internal Nestlé data
Slide 23: Accelerate share growth in vet business
Accelerate share growth in vet business Unlocking the power of Advancing science to provide Expanding capabilities to win nutrition science more tailored solutions in vet channel Only 22% of vets are discussing nutrition Supports GI health in dogs Empowering vets to talk nutrition with adverse food
Slide 24: Petivity – smarter products for better pet care
Petivity – smarter products for better pet care Giving pets a voice Empowering pet owners Delivering personalized recommendations 21 million activities or changes recorded in last 18 months 4+ million personalized notifications to consumers 53 % of consumers likely to purchase Purina product 24 Nove
Slide 25: Solving consumer pain points to drive lifetime loyalty
Solving consumer pain points to drive lifetime loyalty Purina ecosystem Petcare is an Win Gain direct access Deliver value and emotional category consumers early to consumers drive loyalty Requiring on-going engagement to reduce friction throughout consumer journey Smart Litter Monitor 25 November 1
Slide 26: Key messages
Key messages • Purina successfully navigated turbulent environment • PetCare in an attractive category with strong fundamentals • Portfolio of leading brands, built on deep consumer insights • Deep knowledge of pet nutrition to drive world–class innovation • Well-positioned to continue growing marke
Slide 27: Creating richer lives for pets and the people who love them
Creating richer lives for pets and ~ the people who love them eee ee eee one