Strategy at Nestlé CWAR
Through enhancing quality of life and contributing to a healthier future, we aim to deliver sustainable, industry-leading financial performance and earn trust.
For over 150 years, we have built a successful business through understanding and anticipating consumer needs, and adapting to succeed in an evolving marketplace. Based on a compelling strategy, our company delivers dependable value over the short term and long term.
Nestlé has many enduring strengths that keep us at the top of our industry. We have great brands that people love. We have a unique global footprint, a size and scale that we use to our advantage, and the capacity to invest for the long term. In 2017, we reconfirmed our value creation model. Through the right balance of sustainable growth and efficiency, as well as capital efficiency, we will continue to create long‑term value for our shareholders and for society as a whole.
Nestlé’s strategic priorities
Nestlé’s success is built on its Nutrition, Health and Wellness strategy. Our founder, Henri Nestlé, believed that good nutrition was the key to a healthy life. Today, food and beverages remain core to our strategy.
Nestlé’s portfolio is well‑positioned for growth. The key to our long‑term success continues to be understanding and serving the consumer. By identifying consumer trends early and acting quickly to capture them, we remain at the forefront of the fast‑moving consumer goods industry.
At Nestlé, we believe that long‑term value creation is the result of both growth and operating efficiency. We achieve sustainable top‑line growth by investing selectively in high‑growth categories and geographies. The target, set in 2017, is mid‑single digit organic growth by 2020.
Nestlé is committed to margin expansion. We have set an underlying trading operating profit margin target of 17.5% to 18.5% by 2020, up from 16% in 2016.
Our primary driver is to reduce structural costs in non‑consumer facing areas.
Nestlé has a strong portfolio, with profitable growth platforms and leading market positions in many categories. We take a prudent and focused approach to capital allocation to ensure solid long‑term growth.
We constantly review our brand portfolio and are selective in evaluating merger and acquisition opportunities.
Creating Shared Value (CSV) is the fundamental principle of how Nestlé does business. It is our way of creating value for both shareholders and for society at the same time.
We understand that the prospects of our business are linked to the health and resilience of the society and world in which we operate.
