Nestle
Ghana
Limited
Company Profile and History
In
the
1860s
Henri
Nestlé,
a
pharmacist,
developed
a
food
for
babies
who
were
unable
to
breastfeed.
His
first
success
was
a
premature
infant
who
could
not
tolerate
his
mother's
milk
or
any
of
the
usual
substitutes.
People
quickly
recognized
the
value
of
the
new
product,
after
Nestlé's
new
formula
saved
the
child's
life,
and
soon,
Farine
Lactée
Henri
Nestlé
was
being
sold
in
much
of
Europe.
In
1905
Nestlé
merged
with
the
Anglo-Swiss
Condensed
Milk
Company.
By
the
early
1900s,
the
company
was
operating
factories
in
the
United
States,
Britain,
Germany
and
Spain.
World
War
I
created
new
demand
for
dairy
products
in
the
form
of
government
contracts.
By
the
end
of
the
war,
Nestlé's
production
had
more
than
doubled.
The
1920s
saw
Nestlé's
first
expansion
into
new
products,
with
chocolate
the
Company's
second
most
important
activity.
The
end
of
World
War
II
was
the
beginning
of
a
dynamic
phase
for
Nestlé.
Growth
accelerated
and
companies
were
acquired.
In
1947
came
the
merger
with
Maggi
seasonings
and
soups.
Crosse
&
Blackwell
followed
in
1960,
as
did
Findus
(1963),
Libby's
(1971)
and
Stouffer's
(1973).
Diversification
came
with
a
shareholding
in
L'Oréal
in
1974.
Nestlé
divested
a
number
of
businesses1980/1984.
In
1984,
Nestlé's
improved
bottom
line
allowed
the
Company
to
launch
a
new
round
of
acquisitions,
the
most
important
being
American
food
giant
Carnation.
Since
1996
there
has
been
other
acquisitions
including
San
Pellegrino
(1997),
Spillers
Petfoods
(1998)
and
Ralston
Purina
(2002).
There
were
two
major
acquisitions
in
North
America,
both
in
2002:
in
July,
Nestlé
merged
its
U.S.
ice
cream
business
into
Dreyer's
and
in
August,
a
US$
2.6bn
acquisition
was
announced
of
Chef
America,
Inc.
In
2003
Mövenpick
Ice
Cream
was
acquired,
enhancing
Nestlé's
position
as
one
of
the
world
market
leaders
in
this
product
category.
In
2006,
Jenny
Craig
and
Uncle
Toby's
were
added
to
the
Nestlé
portfolio
and
2007
saw
Novartis
Medical
Nutrition,
Gerber
and
Henniez
join
the
Company.
Nestlé
Ghana
Limited
started
business
in
Ghana
in
1957
under
the
trading
name
of
Nestlé
Products
(Gh)
Limited
with
the
importation
of
Nestlé
products
such
as
milk
and
chocolates.
In
1968,
it
was
incorporated
as
Food
Specialties
(Gh)
Limited
to
manufacture
and
market
locally
well
known
Nestlé
brands.
The
company
became
Nestlé
Ghana
Limited
in
1987.
In
1971
the
production
of
the
IDEAL
Milk
and
MILO
started
at
the
Tema
Factory.
The
factory
has
since
been
further
developed
and
now
also
produces
CARNATION
milks,
CHOCOLIM,
CHOCOMILO
CEREVITA,
CERELAC
and
NESCAFÉ
3
in
1.
These
products
are
not
only
produced
for
Ghana
but
also
exported
across
West
Africa.
In
2003,
Nestlé
Ghana
Ltd
invested
in
a
new
warehouse,
the
Central
Distribution
centre,
located
next
to
the
factory
in
Tema.
The
company
also
runs
sales
offices
with
warehouses
in
Kumasi,
Takoradi,
Koforidua
and
Tamale.
The
Company
has
invested
some
130
billion
cedis
in
2004
and
2005
to
increase
its
production
capacity,
particularly
in
the
area
of
cocoa-based
beverages,
and
to
construct
modern
and
efficient
distribution
facilities
next
to
the
factory
in
Tema.
In Country Location
33
Motorway
Extension,
North
Dzorwulu,
Accra,
Greater
Accra
Region;
Telephone:
+233
(0)21
500701
Telefax:
+233
(0)21
501195
/501196
Services and Products
Marketing
well-known
brands
such
as:
IDEAL
Full
Cream
Evaporated
Milk,
CARNATION
Filled
Milk,
Carnation
Tea
Creamer,
MILO,
CHOCOMILO,
CHOCOLIM,
CEREVITA
Porridges,
CERELAC
Maize/Milk
and
CERELAC
Wheat/Milk.
Nestlé
Ghana
also
imports
and
distributes
brands
such
as:
NIDO
Milk
Powder,
LACTOGEN
Infant
Formula,
NAN
Infant
Formula,
NESCAFE
Soluble
Coffee,
and
MAGGI
Bouillon's
and
Cold
Sauces
and
under
the
brand
MAGGI
Bouillons,
Seasoning
Powders
such
as
NKRAKRA
PA
and
Cold
Sauces
like
KETCHUP,
AROME
and
MAYONNAISE.
Number of Employees
Nestlé
employs
283,000
people
worldwide,
of
whom
approximately
half
are
in
developing
countries.
In
Ghana
the
company
employs
1,000
people.
Financial Information
Market Share
Nestlé
is
not
only
Switzerland's
largest
industrial
company,
but
also
the
world's
largest
food
company.
With
products
like
Perrier
and
Nescafé,
it
is
the
market
leader
worldwide
in
coffee
and
mineral
water,
the
largest
manufacturer
of
pet
food,
and
is
fast
increasing
its
share
of
the
ice
cream
market.
Nestlé
Ghana
is
ranked
437
in
the
“Top
500
Companies
in
Africa
2009”
and
as
one
of
the
top
ten
companies
in
Ghana
for
2009
(6th
position
overall
and
it
is
the
only
company
in
the
food
industry
category
on
the
list
of
top
10).
Business Objective
Nestlé's
business
objective
is
to
manufacture
and
market
the
Company's
products
in
such
a
way
as
to
create
value
that
can
be
sustained
over
the
long
term
for
shareholders,
employees,
consumers,
and
business
partners.
In
Ghana
its
objective
is
to
be
“the
number
one
company
not
only
in
business
terms
and
the
highest
profit
making
business
but
also
the
best
employer,
the
most
socially
responsible
citizen
and
ethically
sound
company.”
Business Model
The
company’s
business
model
is
based
on
the
4
x
4
x
4
roadmap
to
deliver
growth
and
enhance
performance.
The
roadmap
entails
the
following:
Strategic pillars:
Innovation
&
renovation;
Operational
efficiency;
whenever,
wherever,
however;
Consumer
communication.
“The
priority
is
to
excel
in
four
core
competences.
Innovation
&
renovation
drives
nutrition,
health
and
wellness
and
places
our
brands
ahead
of
the
competition.
Operational
efficiency
creates
gaps
with
our
competitors
through
our
focus
on
excellence
in
operational
performance.
Whenever,
wherever,
however
ensures
our
products
are
always
available,
whilst
Consumer
communication
keeps
consumers
abreast
of
the
innovation
and
renovation
and
builds
our
brands’
reputations.
But
Consumer
communication
is
two-way:
it
also
informs
our
innovation
and
renovation
and
thus
the
cycle
begins
again,
with
consumer-relevant
innovation
and
research.”
Competitive advantages:
unmatched product and brand portfolio; Unmatched R&D capability; unmatched geographic presence; People, culture, values and attitude.
Growth drivers:
Emerging markets and popularly positioned products; Nutrition, Health and Wellness; Out-of-home leadership; Premiumisation
Emerging markets and popularly positioned products:
“We are well placed to benefit from the projected population increase in the developing world (estimated to grow by 3.3 billion between 2000 and 2050) as well as rising incomes. We are also successfully targeting CHF 1.3 trillion of sales made in the traditional grocery trade in the ten largest emerging countries. Indeed we expect at least to double our sales in emerging markets in the next ten years (in constant currencies). Our Popularly Positioned Products (PPP) appeal to the lower income segment (the world has 2.8 billion consumers earning less than US$ 10 a day) by offering relevant and good quality nutritious products, particularly beverages, dairy, culinary and confectionery, at price points that enable these consumers to buy them on a daily basis. In so doing, they help deliver a balanced nutritional diet for consumers, profitable growth for Nestlé, and contribute to the economies of emerging countries and their people. PPP accounted for about 6% of our food and beverage sales and achieved organic growth of 27.4% in 2008. Our PPP strategy is built on a low-cost business model that relies on local sourcing, local manufacture and local distribution to take cost out of all areas of the business. We train micro-distributors, often financed by our micro-loans, and provide vending carts that can reach market stalls and small shops that account for much of the retail space in emerging countries. In this way, PPP are a source of income for street traders and individual distributors.”
Ownership of Business
Nestle
Ghana
Ltd
Accra:
76%
and
Government
acting
through
the
National
Investment
Bank
(24%)
Benefits Offered and Relations with Government
The
business
activity
of
Nestlé
Ghana
Ltd
is
regarded
as
a
direct
contribution
to
the
Ghanaian
economy.
As
a
result
Nestlé
Ghana
Ltd
has
been
recognized
by
Government
and
as
a
“responsible
citizen.”
The
company
also
takes
an
important
role
in
the
social
life
of
Ghana
by
promoting
medical
students
in
health
sciences,
supporting
child
education
and
social
events
as
well
as
sports.
It
is
the
largest
corporate
sponsor
of
sport
events.
Any
donation
made
during
a
year
of
assessment
for
the
purpose
of
sports
development
or
sports
promotion
and
approved
by
the
Government
may
be
deducted
in
calculating
the
chargeable
income
for
the
year.
Product Development
Nestlé’s
factory
in
Southeast
Ghana
is
located
in
Tema,
a
city
built
in
the
1960s
as
a
man-made
harbour
that
became
Ghana’s
leading
seaport
and
an
industrial
centre.
Nestlé’s
factory
is
part
of
an
industrial
zone
with
a
waste
water
treatment
plant.
An
investigation
by
Nestlé
revealed
that
the
local
treatment
plant
was
of
insufficient
quality,
so
a
monitoring
programme
was
installed
in
October
2005
to
calculate
parameters
for
a
custom
built
waste
water
treatment
plant.
Nestlé
engineers
are
now
supporting
the
construction
of
a
treatment
plant
in
Tema
plant.
Nestle
Ghana
will
invest
a
total
of
GH¢
9.91
million
in
2009
in
additional
plant
and
equipment
to
improve
its
factory
capacity
and
productivity.
The
company
will
also
start
works
on
the
construction
of
a
new
cereal
plant,
which
is
expected
to
be
commissioned
next
year,
while
it
hopes
to
install
a
new
duplex
filling
machine
to
replace
the
current
machine
for
two
of
its
products,
the
200
grammes
milo
and
chocolim.
The
company
would
improve
its
factory
capacity
to
supply
more
products
to
the
Ghanaian
market
and
also
for
export
to
other
Central
and
West
African
countries.
Nestle
had
also
included
in
its
processes,
a
24-hour
ordering
and
delivery
cycle
customer
service
plan,
direct
delivery
and
minimum
order
quantity
on
its
supply
chain
to
enable
the
company
to
deliver
efficient
services
to
its
valued
customers.
Some
of
the
measures
taken
to
improve
service
delivery
include
the
purchase
of
a
dozen
of
3-wheel
mopeds
to
improve
their
distribution
in
the
smaller
food
services.
Vending
machines
would
increase
by
350
more
pieces
this
year.