Nestlé plots fast-growth market push

28 September 2012

VEVEY: Swiss food manufacturer Nestlé is targeting the emerging world as part of its long-term growth strategy, and aims to increase annual sales in these markets by 200% over the next decade.

Figures unveiled by the brand owner suggest that it aims to generate $53bn per year in sales in Asia, Oceania and Africa (AOA) by 2020, the Financial Times reports.

Analysis from investment bank Canaccord Genuity indicates that Nestlé is therefore aiming for annual sales growth of 11% in the AOA markets over the next few years.

Further, the AOA bloc is forecast to contribute 28% of Nestlé's overall sales in 2012, up from around 25% in 2011.

Nestlé sales in these markets were up 13% in 2011, and rose by a further 12.6% across the first half of 2012, according to data cited by Livemint.

In August 2012, Wan Ling Martello, chief financial officer of the food group, announced that it was targeting "emerging consumers" across the world with low-cost products as part of a general shift in strategy.

Sales of these "popularly positioned products" (PPP) were up 6.6% for Nestlé over the first six months of the year, accounting for around 12% of the firm's total sales, according to figures cited by Martello.

"One of the great strengths, one of the capabilities of an organisation that like Nestlé is ability to operate on ... both ends of the spectrum to be able to be successful in PPP and to be successful in ... the high end," he added.

Data sourced from Financial Times/Livemint/Warc; additional content by Warc staff