Nestlé reorganises infant nutrition business

20 Nov 2017

The Nestlé Board of Directors has decided to change the organization of the infant nutrition business at Nestlé to enhance further the company’s ability to win in this high-growth category.

Nestlé reorganises infant nutrition business

The Nestlé Board of Directors has decided to change the organization of the infant nutrition business at Nestlé to enhance further the company’s ability to win in this high-growth category. Effective January 1, 2018, infant nutrition will move from the globally-managed Nestlé Nutrition to a regionally-managed business. The change does not apply to other Nestlé businesses.

A dedicated Strategic Business Unit (SBU) will be created to retain the strengths of Nestlé’s globally-aligned nutrition strategy. The SBU will manage core global functions including science-based innovation, quality management, compliance, and global manufacturing capacity. A Nutrition Business Head will be appointed for each of Nestlé’s three zones, to implement the global strategy in local markets. The Nutrition Business Heads will have operational and financial responsibility, reporting to the respective Zone CEO.

The new organization will, the company said, allow Nestlé’s infant nutrition business to deliver accelerated organic growth and realize further efficiency gains, while the more agile and efficient structure will enable Nestlé to respond faster to rapidly changing local consumer preferences, evolving regulation, and customer and channel demand for tailor-made solutions.

Nestlé notes that it was founded more than 150 years ago with the development of a breakthrough infant food, and infant nutrition remains central to Nestlé’s strategy for sustainable value creation. The company is increasingly focusing capital spending on advancing its high-growth categories. In addition to infant nutrition these include coffee, petcare and bottled water.

Nestlé Nutrition was created in 2006 and has, the company says, strengthened Nestlé’s global leadership in infant nutrition. It is said to have delivered sustained growth and margin expansion, while successfully integrating and leveraging the Gerber and Wyeth acquisitions, and to have achieved recognized leadership in compliance with the WHO International Code of Marketing of Breast-Milk Substitutes (BMS). Nestlé says it is the first BMS manufacturer to have been included in the FTSE4Good Index.