Joao Paschoal’s Post

Unlocking Nestlé's Potential: Leveraging Market Insights for Strategic Growth Nestlé, a global leader in the food and beverage sector, has carved out a formidable presence with a diverse product portfolio and strategic initiatives. Here’s a breakdown of Nestlé's strengths, weaknesses, and a strategic idea for future growth: Strengths: - Diverse Product Portfolio:Nestlé’s extensive range from beverages to nutrition caters to diverse global tastes, ensuring resilience and broad market penetration. - Strong Brand Equity: Iconic brands like Nescafé and KitKat bolster consumer loyalty worldwide, anchoring stable revenue streams. - Global Distribution Network: Leveraging robust distribution channels ensures widespread availability, embracing both traditional retail and e-commerce platforms. - Innovation Leadership: Ongoing R&D fosters product innovation, aligning with evolving consumer trends and health preferences. - Strategic Acquisitions:Acquiring complementary businesses and forming strategic alliances (e.g., Atrium Innovations, Blue Bottle Coffee) bolsters market position and expands capabilities. - Commitment to Sustainability: Embedding sustainability in operations enhances brand reputation and meets growing consumer expectations. Weaknesses: - Market Dependency: Reliance on mature markets like Europe poses growth challenges amidst evolving consumer preferences. - Complex Organizational Structure: Managing a diverse portfolio demands streamlined decision-making and resource allocation. - Regulatory Compliance: Navigating varied global regulations affects operational flexibility and market agility. - Brand Perception Issues: Addressing occasional controversies ensures brand trust and consumer loyalty amid competitive pressures. - Digital Transformation: Further integrating digital technologies enhances operational efficiencies and consumer engagement. Strategic Idea: To optimize global strategy, Nestlé can focus on high-value products tailored to specific market demands. For instance, prioritizing coffee in high-growth regions like India can streamline operations, ensuring regulatory compliance and bolstering market competitiveness. By aligning product strategies with local market dynamics, Nestlé enhances agility, strengthens market foothold, and drives sustainable growth. #BusinessStrategy #SWOTAnalysis #GlobalExpansion #MarketInsights #Nestlé #Sustainability, Nestlé

company history. We'll begin in 1866 and finish in the present day. Along the way, we'll see why Henri Nestlé created infant cereal, how the company weathered downturns and two world wars. We'll follow the acquisitions and the move into chocolate,Nestle's business model is centered around its diverse portfolio of brands, focusing on nutrition, health, and wellness. The company's mission is to provide consumers with the best-tasting, most nutritious choices in a wide range of food and beverage categories, while promoting a healthy lifestyle ¹. *Key Components of Nestle's Business Model:* - *Diversified Product Portfolio*: Nestle offers a wide range of food and beverage products, including powdered and liquid beverages, dairy products, cereals, confectionery, and pet care ¹. - *Global Presence*: Nestle operates in over 190 countries worldwide, allowing it to reach a large customer base and tap into different markets ¹. - *Research and Development*: Nestle invests heavily in research and development to innovate and create new products, staying ahead of competitors and catering to changing consumer trends and preferences ¹. - *Strong Brand Portfolio*: Nestle has a wide range of well-known and reputable brands, such as Nescafe, KitKat, Maggi, and Nestea, giving it a competitive advantage ¹. - *Partnerships and Acquisitions*: Nestle explores strategic acquisitions and partnerships to expand its product offerings and enter new markets ¹. *Revenue Streams:* - Sales of food and beverages - Nespresso and coffee systems - Pet care products - Nutrition and health sciences - Professional services - Licensing and partnerships ¹ *Competitors:* Nestle faces intense competition from companies like Unilever, Coca-Cola, Mondelez International, PepsiCo, and Danone ¹. These competitors challenge Nestle's market position and profitability, making it essential for the company to constantly innovate and adapt its products. Overall, Nestle's business model is designed to provide consumers with high-quality products while promoting a healthy lifestyle, leveraging its global presence, research and development capabilities, and strong brand portfolio to maintain its market leadership. #snsinstutions# #snsdesignthinking# #snsdesignthinkers#

Danone: 𝘀𝘁𝗲𝗮𝗱𝘆 𝗽𝗿𝗼𝗴𝗿𝗲𝘀𝘀 𝗼𝗻 𝗶𝘁𝘀 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 & 𝘁𝘂𝗿𝗻𝗮𝗿𝗼𝘂𝗻𝗱 What Antoine de Saint-Affrique, Pablo Perversi & their teams have been delivering may well be 𝘁𝗵𝗲 𝗯𝗲𝗴𝗶𝗻𝗻𝗶𝗻𝗴 𝗼𝗳 𝗮 𝗺𝗮𝘀𝘁𝗲𝗿𝗰𝗹𝗮𝘀𝘀 𝗶𝗻 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 & 𝘁𝘂𝗿𝗻𝗮𝗿𝗼𝘂𝗻𝗱 management Danone is made of businesses (essential dairy, mineral water, infant milk & specialized nutrition) with very different market positions for Danone, category sizes, historic growth, long-term potential, profitability/ ROCE & exposure to water/ co2 true costing 𝗔 𝗳𝗲𝘄 𝗿𝗲𝗰𝗮𝗽 𝗼𝗳 𝘁𝗵𝗲 𝗸𝗲𝘆 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗺𝗼𝘃𝗲𝘀 𝘂𝗻𝗱𝗲𝗿𝘁𝗮𝗸𝗲𝗻 𝗼𝘃𝗲𝗿 the last year: ⚫ 𝗧𝗵𝗲 𝗱𝗶𝘃𝗲𝘀𝘁𝘂𝗿𝗲 𝗼𝗳 𝗴𝗿𝗼𝘄𝘁𝗵/ 𝗽𝗿𝗼𝗳𝗶𝘁 𝗱𝗶𝗹𝘂𝘁𝗶𝘃𝗲/ 𝗽𝗿𝗼𝗯𝗹𝗲𝗺𝗮𝘁𝗶𝗰 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 (the Michel & Augustin biscuit business; the US organic milk business with Horizon Organic, Wallaby; EDP Russia…) ⚫ 𝗧𝗵𝗲 𝗱𝗿𝗮𝗺𝗮𝘁𝗶𝗰 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗿𝗲𝗹𝗲𝘃𝗮𝗻𝘁 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻𝘀 (both within the brands’ heartlands & addressing consumer trends) on its core (Actimel, Activia, Volvic...) ⚫ 𝗧𝗵𝗲 𝗮𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗶𝗻 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝘆 𝘁𝗼 𝗮𝗿𝗲𝗮𝘀 𝘁𝗵𝗮𝘁 𝗱𝗶𝘀𝗽𝗹𝗮𝘆 𝘁𝗵𝗲 𝗵𝗶𝗴𝗵𝗲𝘀𝘁 𝗥𝗢𝗖𝗘 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 (higher growth, higher margin & sometimes also lower CAPEX intensity as % of revenue), ie. Specialized Nutrition with: => A first acquisition in April 2023 - 𝗣𝗿𝗼𝗺𝗲𝗱𝗶𝗰𝗮, 𝗮 𝗣𝗼𝗹𝗶𝘀𝗵 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘀𝗶𝗻𝗴 𝗶𝗻 𝗰𝗮𝗿𝗲 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗳𝗼𝗿 𝗽𝗮𝘁𝗶𝗲𝗻𝘁𝘀 𝗮𝘁 𝗵𝗼𝗺𝗲 offering go-to-market optionalities across some key markets incl. UK => A second acquisition announced in May 2024 - 𝗙𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗙𝗼𝗿𝗺𝘂𝗹𝗮𝗿𝗶𝗲𝘀, 𝗮 𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝗽𝗿𝗼𝘃𝗶𝗱𝗲𝗿 𝗼𝗳 𝗼𝗿𝗴𝗮𝗻𝗶𝗰, 𝘄𝗵𝗼𝗹𝗲-𝗳𝗼𝗼𝗱 𝗲𝗻𝘁𝗲𝗿𝗮𝗹 𝗳𝗲𝗲𝗱𝗶𝗻𝗴 𝗳𝗼𝗿𝗺𝘂𝗹𝗮𝘀 – oral meal replacement - providing a new platform of innovative products in the highly strategic & regulated US market => Last week, the €𝟲𝟬𝗺 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗳𝗼𝗿 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗲𝗱 𝗡𝘂𝘁𝗿𝗶𝘁𝗶𝗼𝗻 𝗶𝗻 𝗙𝗿𝗮𝗻𝗰𝗲 (another €50m was announced last year in a Polish plant) 𝗗𝗮𝗻𝗼𝗻𝗲 𝗻𝗼𝘄 𝗵𝗮𝘀 𝗯𝗲𝗮𝘁 𝘁𝗼𝗽/𝗯𝗼𝘁𝘁𝗼𝗺-𝗹𝗶𝗻𝗲 𝗰𝗼𝗻𝘀𝗲𝗻𝘀𝘂𝘀 𝗳𝗼𝗿 𝘁𝘄𝗼 𝗾𝘂𝗮𝗿𝘁𝗲𝗿𝘀 𝗶𝗻 𝗮 𝗿𝗼𝘄 𝗮𝗻𝗱 𝘄𝗮𝘀 𝘁𝗵𝗲 𝗼𝗻𝗹𝘆 𝗙&𝗕 𝗙𝗠𝗖𝗚 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝘁𝗼 𝗽𝗼𝘀𝘁 𝘃𝗼𝗹𝘂𝗺𝗲 𝗴𝗿𝗼𝘄𝘁𝗵 𝗶𝗻 𝗤𝟭 𝟮𝟬𝟮𝟰 (out of 12 we cover): unexpected for many... With a debt ratio approaching now the x3 EBIT & increasing trust from the financial community, planets start to align for an acceleration in M&A Still a 𝗹𝗼𝘁 𝗼𝗳 𝘄𝗼𝗿𝗸 𝗮𝗵𝗲𝗮𝗱 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗶𝗻𝗴 𝘄𝗵𝗲𝗿𝗲 𝘁𝗵𝗶𝘀 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗰𝗼𝗺𝗲𝘀 𝗳𝗿𝗼𝗺 𝗯𝘂𝘁 𝗱𝗲𝗳𝗶𝗻𝗶𝘁𝗲𝗹𝘆 𝗲𝘅𝗰𝗶𝘁𝗶𝗻𝗴 𝘁𝗶𝗺𝗲𝘀 for Danone 𝗧𝗼 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #cpg Nestlé

It appears that the current valuation of Nestlé shares may be overpriced, considering various factors such as market conditions, company performance, and industry trends. Investors should exercise caution and conduct thorough analysis before making investment decisions. Nestlé faces challenges within its global portfolio, including brands like Nestlé Carnation, milk powder, Milo/Nesquik cocoa drinks, Maggi snacks, , Purina pet food, KitKat, Nescafé, Nespresso and its joint ventures with Cereal Partners Worldwide and Froneri icecrean. Recent price escalations have raised concerns about future growth. This assessment highlights weaknesses and suggests strategic priorities. 1. **Market Saturation:** Competitors in saturated markets threaten Nestlé's market share. Differentiation is vital in segments like milk powder and cocoa drinks. 2. **Erosion of Brand Loyalty:** Aggressive price increases may erode consumer trust. Price-sensitive consumers could turn to alternatives, impacting market share. 3. **Commoditization:** Traditional products risk commoditization, limiting differentiation. Innovation is key to offering unique value beyond price. 4. **Environmental and Ethical Concerns:** Consumer awareness of environmental issues poses reputational risks. Prioritizing sustainable sourcing and transparent communication is crucial. 5. **Shifting Preferences:** Changing consumer preferences toward healthier options challenge brands like Maggi snacks. Nestlé must adapt offerings accordingly. **Strategic Priorities:** 1. **Innovation and Diversification:** Invest in R&D for innovation and diversification. Develop healthier and premium alternatives to capture emerging markets. 2. **Sustainability:** Prioritize sustainable sourcing to mitigate environmental risks. Transparent communication enhances consumer trust. 3. **Brand Reinforcement:** Focus on rebuilding trust through strategic marketing and transparent pricing communication. 4. **Digital Transformation:** Leverage digital technologies for consumer engagement and operational efficiency. Data analytics inform marketing strategies. 5. **Partnerships and Acquisitions:** Explore strategic partnerships and acquisitions to expand into high-growth segments. **Conclusion:** Nestlé's strategic priorities are crucial for addressing weaknesses and driving sustainable growth. Embracing innovation, sustainability, and strategic partnerships will navigate challenges and create value for investors in the consumer goods landscape. #StockMarket #Investing #Nestlé #askthinkactshare

Community Call: Whole Foods Market - Updates for Local and Emerging Brands Kristin Sherman, Principal Local Forager at Whole Foods Market, and Casey Gaston, Executive Leader of Local and Emerging Brands, join Community Call to share essential updates and strategies for local and emerging brands who want to get their products on shelf including: *Changes to how the local and emerging team operates *Current differentiation and innovation the team is looking for *Inside tips for submissions and pitching *Distribution recommendations *Pricing strategies *Special diets and macro trends of note

This Thursday, I'll send a letter to Nestlé SA in Vevey, Switzerland, with a formal offer to acquire the iconic KitKat brand. See attached. Due to the consolidated financials of the Nestlé Group, it isn't easy to extrapolate the key financial metrics of the KitKat brand. Therefore, I need your help and insight. The goal is to set a reasonable offering price that Nestlé could potentially agree to. Nestlé sells approximately 5 billion KitKat bars annually, using roughly 25 million kilograms of animal-based milk, resulting in about 50 million kilograms of CO2 emissions. By leveraging advancements in animal-free technologies, we can achieve the same product quality while transitioning to animal-free milk substitutes. Not only would this approach contribute to a healthier product offering, but it would also significantly reduce the carbon footprint associated with KitKat production. To provide context, 50 million kilograms of CO2 emissions are equivalent to the annual emissions from approximately 20,000 passenger cars. If Nestlé doesn't want to sell, there are the following brands I would have a closer look at next: - Cheetos (owned by PepsiCo) - Walkers (owned by PepsiCo) - M&M's (owned by Mars) - Nutella (owned by Ferrero) I'm convinced all these products could be turned secretly vegan without compromising product quality. Are there any others that come to mind? #TheSprezzaturaCompany

Community Call: Whole Foods Market - Updates for Local and Emerging Brands Kristin Sherman, Principal Local Forager at Whole Foods Market, and Casey Gaston, Executive Leader of Local and Emerging Brands, join Community Call to share essential updates and strategies for local and emerging brands who want to get their products on shelf including: *Changes to how the local and emerging team operates *Current differentiation and innovation the team is looking for *Inside tips for submissions and pitching *Distribution recommendations *Pricing strategies *Special diets and macro trends of note

Nestlé is set to cut its annual innovations and product renovations in half, shifting to a more targeted approach. - More here 🔽 https://ow.ly/43wI50UcP5a #foodindustry #foodmanufacturing #foodandbeverage

🚀 Major News: Nestlé Unveils $2.8 Billion Cost-Cutting Plan Today, Nestlé made a significant announcement, revealing a $2.8 billion cost-cutting initiative aimed at reshaping the company's future. This move is set to streamline operations and drive efficiency across various sectors, including packaging, processing, and manufacturing. Nestlé's plan, which will unfold over the next three years, comes at a crucial time when the FMCG sector is facing mounting pressures from inflation and shifting consumer behaviours. By focusing on sustainable practices and innovation, Nestlé aims to optimise its resources and better meet the evolving demands of its customers. This strategic pivot not only promises to boost profitability but also reinforces the company's commitment to sustainable growth. The initiative underscores the importance of agility and proactive management in our industry. How do you think this cost-cutting plan will impact the broader FMCG landscape? 💬🔍 #FMCG #Nestlé #Sustainability