Innovation key to Nestlé long-term growth
Published: 2011/05/22
Most Malaysians are familiar with MAGGI instant noodle, MILO ice and "NESCAFÉ tarik".
Their popularity is such that they are available in most Indian Muslim restaurants and on the shelves of sundry shops and hypermarkets.
It is not easy to maintain this position as the consumers’ tastes change and new products emerge, but MAGGI, MILO and NESCAFÉ are still popular and are the top products of Malaysia's leading food and beverage company, Nestlé.
The company started in Malaysia in 1912 as the Anglo Swiss Condensed Milk Co in Penang, and over the years has continued to ensure that Malaysians go for its products.
In an interview with Bernama, Nestlé Malaysia managing director, Peter R. Vogt, attributed this preference for Nestlé products to innovation and the fact that the company always understood what the locals wanted.
"When you analyse our products, like NESCAFÉ instant coffee, there are about 100 different variants worldwide," he said, pointing out that this was because Nestlé understood that taste was different between one market and another.
"You cannot sell the same products in different markets.
"Customers’ needs continue to change. For this reason, every few years, Nestlé reviews and improves the taste of its products," he said.
Vogt said innovation was the key strategy for Nestlé to achieve long-term profitable growth.
He said the company managed to sustain its brand here as it emphasised on sustainable sourcing of raw materials, cleanliness and high quality in production in order to have the winning taste.
On Nestle's innovation plans, he said: "We have different product categories like NESCAFÉ, MILO, MAGGI, yogurt drink and breakfast cereals and each has its own innovation plan. We have recently launched the new MILO Sejuk and NESTEA Iced Lemon Tea.”
He said although Nestlé was already looking at the next five years and would continuously work on innovation plans to give its consumers the best.
"Nestlé has spent a substantial amount on research and development (R&D) via its 29 R&D centres around the world.
"Innovation is a continuous effort. At the moment, we have around 50 ongoing innovation projects in different areas and categories. For each category, we have different plans. So, it is an on-going process," he said.
With its continuous innovation effort, Vogt said, the company was confident of sustaining its brand name in the market and remain profitable in the long term.
Vogt said another important area to maintain its market position was nutrition.
"People want to have good quality and nutritious food that tastes great," he said.
He said Nestlé was upbeat on its performance for this year, projecting a positive trend for the company based on strong sales both domestic and overseas.
It registered a higher pre-tax profit of RM191.1 million for the first quarter ended March 31, 2011, from the RM170.62 million in the same quarter last year. Revenue jumped 16.1 per cent to RM1.2 billion from the RM1.02 billion recorded previously.
For 2010, Nestlé posted a turnover of RM4 billion, 7.5 per cent higher than the year before, while pre-tax profit stood at RM465.7 million, a 5.8 per cent increase versus the previous year, driven by positive developments in the local and global economies.
"Based on the first-quarter performance, we are confident of achieving better growth driven by the positive economic development in the country with the spearheading of Economic Transformation Programme," he said.
This, he said, would support the export activity in the country as well as for the company to achieve better growth. -- Bernama
Read more: Innovation key to Nestlé long-term growth http://www.btimes.com.my/Current_News/BTIMES/articles/20110522131040/Article/index_html#ixzz1N5aiTukq
Published: 2011/05/22
Most Malaysians are familiar with MAGGI instant noodle, MILO ice and "NESCAFÉ tarik".
Their popularity is such that they are available in most Indian Muslim restaurants and on the shelves of sundry shops and hypermarkets.
It is not easy to maintain this position as the consumers’ tastes change and new products emerge, but MAGGI, MILO and NESCAFÉ are still popular and are the top products of Malaysia's leading food and beverage company, Nestlé.
The company started in Malaysia in 1912 as the Anglo Swiss Condensed Milk Co in Penang, and over the years has continued to ensure that Malaysians go for its products.
In an interview with Bernama, Nestlé Malaysia managing director, Peter R. Vogt, attributed this preference for Nestlé products to innovation and the fact that the company always understood what the locals wanted.
"When you analyse our products, like NESCAFÉ instant coffee, there are about 100 different variants worldwide," he said, pointing out that this was because Nestlé understood that taste was different between one market and another.
"You cannot sell the same products in different markets.
"Customers’ needs continue to change. For this reason, every few years, Nestlé reviews and improves the taste of its products," he said.
Vogt said innovation was the key strategy for Nestlé to achieve long-term profitable growth.
He said the company managed to sustain its brand here as it emphasised on sustainable sourcing of raw materials, cleanliness and high quality in production in order to have the winning taste.
On Nestle's innovation plans, he said: "We have different product categories like NESCAFÉ, MILO, MAGGI, yogurt drink and breakfast cereals and each has its own innovation plan. We have recently launched the new MILO Sejuk and NESTEA Iced Lemon Tea.”
He said although Nestlé was already looking at the next five years and would continuously work on innovation plans to give its consumers the best.
"Nestlé has spent a substantial amount on research and development (R&D) via its 29 R&D centres around the world.
"Innovation is a continuous effort. At the moment, we have around 50 ongoing innovation projects in different areas and categories. For each category, we have different plans. So, it is an on-going process," he said.
With its continuous innovation effort, Vogt said, the company was confident of sustaining its brand name in the market and remain profitable in the long term.
Vogt said another important area to maintain its market position was nutrition.
"People want to have good quality and nutritious food that tastes great," he said.
He said Nestlé was upbeat on its performance for this year, projecting a positive trend for the company based on strong sales both domestic and overseas.
It registered a higher pre-tax profit of RM191.1 million for the first quarter ended March 31, 2011, from the RM170.62 million in the same quarter last year. Revenue jumped 16.1 per cent to RM1.2 billion from the RM1.02 billion recorded previously.
For 2010, Nestlé posted a turnover of RM4 billion, 7.5 per cent higher than the year before, while pre-tax profit stood at RM465.7 million, a 5.8 per cent increase versus the previous year, driven by positive developments in the local and global economies.
"Based on the first-quarter performance, we are confident of achieving better growth driven by the positive economic development in the country with the spearheading of Economic Transformation Programme," he said.
This, he said, would support the export activity in the country as well as for the company to achieve better growth. -- Bernama
Read more: Innovation key to Nestlé long-term growth http://www.btimes.com.my/Current_News/BTIMES/articles/20110522131040/Article/index_html#ixzz1N5aiTukq
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