Slide 1: Foodservices USA
Foodservices USA Allan Lutz 1 Nestlé Investor Seminar Nestlé Investor Seminar: Allan Lutz
Slide 2: Forward looking statements
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. Potential
Slide 3: Nestlé Investor Seminar: Allan Lutz
3 Nestlé Investor Seminar: Allan Lutz
Slide 4: Agenda
Agenda • The consumer • The industry • Nestlé FoodServices • Objectives and strategy 4 Nestlé Investor Seminar: Allan Lutz
Slide 5: Consumer overview
Consumer overview Consumer spending on food out of home Over the past four decades, Americans have continued to increase the share of meals consumed out of home. 53% 44% 25% 1955 1996 2010 Projected FoodService growth 2% vs. 1.3% for retail. More options, better value, and greater convenience have d
Slide 6: Consumer insight
Consumer insight Changing U.S. consumer demographics is fueling growth in out of home food consumption. • Aging population – upscale and casual dining • Increased diversity – “authentic” ethnic foods • Disposable income increasing – convenience vs. cost • Lifestyle changes - dual income households 6
Slide 7: The consumer and the food industry
The consumer and the food industry Traditional Today ¾ Breakfast ¾ All Day Snacking ¾ Lunch ¾ Immediate Consumption ¾ Dinner ¾ Impulse Opportunities Retail Out of Home Retail Out of Home • Grocery • Hotels • C-stores • QSR • Drug • Restaurants • Gas Stations • Leisure/Recreation • Mass Merch. • Cafe
Slide 8: Customer / channel development
Customer / channel development Channel growth will mirror demographic shifts through 2010 Foodservice Consumer = $88B Growth Spending $37 42% $12 $9 $10 $8 $4 $5 $3 Commercial Commercial Business & Convenience Quick Service Full Service Vend Recreation Lodging & Restaurant Other Non- Restaurant Indu
Slide 9: The Foodservice supply chain
The Foodservice supply chain Food Foodservice Foodservice Manufacturers Distributors Operators 1,000 >3,000 812,000 $128B $170B $408B z Kraft z Sysco z Marriott z ConAgra z U.S. Foodservice z McDonald’s z Nestlé z McLane z Olive Garden Source: Technomics; Dollar figures estimated based on 2001 indus
Slide 10: Changing industry dynamics present challenges and opportunities
Changing industry dynamics present challenges and opportunities: • Industry consolidation • Private label products • Competition for operators Industry changes favor manufacturers that can provide: • Proven consumer brands • Superior products / services • Comprehensive systems / solutions approach 1
Slide 11: Beverages, Flavors / Sauces, Culinary
Beverages Flavors / Sauces Culinary Frozen Shelf Stable Nestlé Investor Seminar: Allan Lutz
Slide 12: Dedicated, focused foodservice organization within Nestlé in the USA
Dedicated, focused foodservice organization within Nestlé in the USA as part of a worldwide $4 billion USD Nestlé FoodServices business * 2001 results; Swiss Francs U.S. Dollar exchange rate = 1.68 12 Nestlé Investor Seminar: Allan Lutz
Slide 13: Objectives
Objectives Achieve leadership in targeted value-added foodservice channels to drive superior growth and profitability. • Leverage and build brand equity with consumers utilizing Nestlé brands and proprietary systems. • Execute operator strategies employing innovative, value-added products and servic
Slide 14: Key strategic pillars
Key strategic pillars Products Solutions Brands Services Systems 14 Nestlé Investor Seminar: Allan Lutz
Slide 15: Consumer and business to business brand strength
Consumer and business to business brand strength Consumer B to B 15 Nestlé Investor Seminar: Allan Lutz
Slide 16: Solution driven products leveraging Nestlé brands / expertise
Solution driven products leveraging Nestlé brands / expertise 2001 Business Beverage World wide soluble coffee 16% expertise Quality, safety, culinary Culinary expertise 69% Flavors / Sauce Product development, Solutions flavor solutions 15% 100% 16 Nestlé Investor Seminar: Allan Lutz
Slide 17: Services designed to meet customer needs
Services designed to meet customer needs • Culinary services • Product development • Menu development • Value engineering • Customization • Equipment specialists • R&D • Quality assurance • Sales / Marketing 17 Nestlé Investor Seminar: Allan Lutz
Slide 18: Systems compatible to virtually all foodservice channels
Systems compatible to virtually all foodservice channels Hotels C-stores Healthcare QSR Recreation Colleges/Universities Casinos Business & Industry Conventions Vending Office Coffee Supply 18 Nestlé Investor Seminar: Allan Lutz
Slide 19: Branded systems drive sales
Branded systems drive sales System Placements 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1998 2002 2005 19 Nestlé Investor Seminar: Allan Lutz
Slide 20: Total solution: Nescafé / McDonald's
Total solution Nescafé / McDonald’s 20 Nestlé Investor Seminar: Allan Lutz
Slide 21: Total solution: Toll House Café by Chip
Total solution Toll House Café by Chip 21 Nestlé Investor Seminar: Allan Lutz
Slide 22: Strategic pillars drive channel strategy
Strategic pillars drive channel strategy Nestlé FoodServices strategic channels Quick Service Full Service Business & Recreation Health Convenience Restaurant Restaurant Industry & Leisure Care Education Store Vending Brands Products Services Systems Solutions 22 Nestlé Investor Seminar: Allan Lutz
Slide 23: Summary
Summary Industry changes favor manufacturers that can provide: – Proven consumer brands – Superior products / services – Comprehensive systems / solutions approach Brings… • Strong consumer brands and operator solutions delivering trust, quality and safety. • Focus on leadership in key growth channe
Slide 24: Creating competitive advantage
Creating competitive advantage Brands Products Services Systems Solutions 24 Nestlé Investor Seminar: Allan Lutz
Slide 25: Foodservices USA
Foodservices USA 25 Nestlé Investor Seminar Nestlé Investor Seminar: Allan Lutz