Slide 1: Leading the Category, Driving Growth, Creating Value
• Leading the Category • Driving Growth • Creating Value Fiona KENDRICK Head of Coffee and Beverages Strategic Business Unit
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: 19th March 2012 CAGE
2 19th March 2012 CAGE
Slide 4: Nestlé – A Leader in Beverages
Nestlé – A Leader in Beverages 2011 2011 CHF 83.6 Bio CHF 24.7 Bio Confectionery Petcare 11% 12% 4.5 bio CHF Prepared 20% Powdered and dishes and Liquid cooking aids Beverages 13.7 bio CHF 17% 22% 54% 6.5 bio CHF 26% Nutrition 12% Waters Milk products 8% and Ice Cream 20% 3 19th March 2012 CAGE
Slide 5: With Coffee Driving Growth Year after Year
With Coffee Driving Growth Year after Year 2011 CHF 13.7 Bio 26% (+22%) 74% (+11%) CHF 14 bio business, growing 14%* *: in 2011, Organic Growth, Numbers rounded 4 19th March 2012 CAGE
Slide 6: …out-performing the market
…out-performing the market Portioned Coffee 11% (+24%)* Nestlé is the leader of R&G Coffee the two growth 49% (+5%)* Soluble Coffee segments, driving 40% (+8%)* dramatic changes in consumer behaviour The global leader in total coffee Source : Euromonitor, *CAGR (07-11) 5 19th March 2012 CAGE
Slide 7: Dramatic Change in Consumer Behaviour
Dramatic Change in Consumer Behaviour From “Coffee By the Pot” “What coffee To “Coffee By the Cup” shall I have today?’’ Consumers are becoming more demanding Coffee Connoisseurs 6 19th March 2012 CAGE
Slide 8: Coffee is a Huge Dynamic Market
Coffee is a Huge Dynamic Market 10% of all beverages Number 3 in value Consumed 70% in home, 30% OOH Nestlé is leading this change Individuality: My cup of coffee Increasing choice: Coffee is not just black Premiumisation Close to 1 trillion cups consumed per year 7 19th March 2012 CAGE
Slide 9: Providing Coffee for Every Occasion
Providing Coffee for Every Occasion Consumer 0.50 to 1.50 to 3.50 to Price 0.06 0.08 0.10 0.13 0.32 0.35 0.45 (CHF/cup) 1.50 3.50 12.00 830 to 2,500 to 5,800 to Index 100 135 170 220 535 580 750 2,500 5,800 20,000 8 19th March 2012 CAGE
Slide 10: Nespresso – A Global Iconic Brand
– A Global Iconic Brand Founded in 1986 o 2011 Sales: Over CHF 3.5 billion o 2011 FY Growth: 22% o Over 50 countries o Multi channel strategy o Online boutique and global retail network of 270 boutiques 9 19th March 2012 CAGE
Slide 11: Quality, Machine Innovation and Consumer Engagement at the Heart of Nespresso Success
Quality, Machine Innovation and Consumer Engagement are at the Heart of Nespresso Success Perfectly portioned Smart and Personalised highest quality Easy-to-use Exclusive Grand Cru coffees machines service 10 19th March 2012 CAGE
Slide 12: Nestlé – Pioneering the Coffee Market for 75 Years
Nestlé – Pioneering the Coffee Market for 75 Years Nestlé invented Nescafé in 1938 Sales over 9 Bio CHF, sold in over 180 countries 5th most valuable food & beverages brand in the world 56 bio cups sold in out of home sold in 58 countries 53% of Sales from emerging markets with 15%+ grow
Slide 13: Why Does Nestlé Believe this Market has so much Opportunity to Grow Further?
Why does Nestlé Believe this Market has so much Opportunity to Grow Further? In home Out-of-home 12 19th March 2012 CAGE
Slide 14: The Growth Opportunities are Different from One Market to Another
The Growth Opportunities are Different from One Market to Another 2 cups / year 3 cups / day 13 19th March 2012 CAGE
Slide 15: NESCAFÉ, Creating a Coffee Culture in China
NESCAFÉ, Creating a Coffee Culture in China 14 19th March 2012 CAGE
Slide 16: NESCAFÉ – Driving Sustained Category Growth in Mexico
NESCAFÉ – Driving Sustained Category Growth by Increasing Consumption Frequency in Mexico 234 coffee cups per capita • Leader in the category with 90% Market Share Annual Coffee Consumption 235 • Presence across all product 217 segments 2007 2008 2009 2010 15 19th March 2012 CAGE
Slide 17: Coffee – A Dynamic Category in the Developed European Markets
Coffee – A Dynamic Category in the Developed European Markets Coffee was the fastest growing of the top 20 retail categories in Europe in 2011 – Nielsen 16 19th March 2012 CAGE
Slide 18: France – A Mature Coffee Market with a Traditional Coffee Culture
France – A Mature Coffee Market with a Traditional Coffee Culture French consumers are big Coffee Lovers 5th Largest coffee market 37 Billion cups 572 Cups per capita 94% Household penetration Coffee Lovers drink 3 cups per day 17 19th March 2012 CAGE
Slide 19: Nestlé Leads the Market with a Winning Portfolio
Nestlé Leads the Market with a Winning Portfolio Soluble Coffee Portioned Coffee 20% 21% 59% Roast & Ground Coffee 18 19th March 2012 CAGE
Slide 20: NESCAFÉ – Reinventing Soluble Coffee for Years…
NESCAFÉ – Reinventing Soluble Coffee for 75 Years… Gold Blend relaunch in award winning jar 7x Enhanced crema espresso 6x Coffee-house style cappuccino Green Blend 5x First espresso technology New in-jar aroma and Volume extraction technology 4x Gold Blend; 3-in-1 mixes Foaming cappuccino 3x Cappucc
Slide 21: …for Increasingly Demanding Consumers
…for Increasingly Demanding Consumers NESCAFÉ Milano Gold Blend relaunch in award winning jar 7x NESCAFÉ Enhanced crema espresso Dolce Gusto 6x Coffee-house style cappuccino Green Blend 5x First espresso technology New in-jar aroma and Volume extraction technology 4x Gold Blend; 3-in-1 mixes Foaming
Slide 22: Nestlé Professional – Creating Value & Meeting Customer Needs
Nestlé Professional – Creating Value & Meeting Customer Needs 21 19th March 2012 CAGE
Slide 23: NESCAFÉ Out-of-Home – Meeting Customer Needs Across Channels
NESCAFÉ Out-of-Home – Meeting Customer Needs Across Channels 22 19th March 2012 CAGE
Slide 24: NESCAFÉ Dolce Gusto – En Route to be a Billionaire Brand
NESCAFÉ Dolce Gusto – En Route to be a Billionaire Brand CHF ~600 mio 2006 2007 2008 2009 2010 2011 23 19th March 2012 CAGE
Slide 25: Nestlé Leads the Machine Market in Europe
Nestlé Leads the Machine Market in Europe 2011 43% +390 bps 30% 25% +140 bps 18% +250 bps 9% 2007 2008 2009 2010 2011 Source: GfK 24 19th March 2012 CAGE
Slide 26: Why Nestlé will Continue to Win in Coffee
Why Nestlé will Continue to Win in Coffee The Leading Brand and Product Portfolio Unmatched Global Presence Biggest player in Emerging Markets Unrivalled R&D and Innovation Capabilities CHF 500 mio sustainability program – Farm to cup Consistently driving category value Unrivalled inve
Slide 27: Coffee – Aligned with the Nestlé Roadmap
Coffee – Aligned with the Nestlé Roadmap Creating value for years to come Competitive Advantages Operational Pillars Growth Drivers 26 19th March 2012 CAGE
Slide 28: Discussion
DISCUSSION 27 19th March 2012 CAGE
Slide 29: Cups of NESCAFÉ Have Been Consumed!
During the time we have been discussing coffee... ‘ ‘ 1 5000000 Cups of NESCAFÉ Have Been Consumed! 28 19th March 2012 CAGE