Nestle to focus on food, consumer health to meet commercial targets

Consumer Healthcare News

Nestle has presented its strategy for sustainable value creation at an investor seminar, outlining its plans to achieve its mid-single-digit organic growth target.

An underlying trading operating profit margin target of 17.5 percent to 18.5 percent has been set for 2020, up from 16 percent in 2016. This will be achieved by accelerating organic sales growth through capitalisation on key consumer trends.

“Nestle has highlighted its plans to continue investing in the food and consumer health sectors as it seeks to meet its commercial growth targets.“

The firm has pledged to increasingly focus capital spending on advancing the high-growth food and beverage categories of coffee, petcare, infant nutrition and bottled water, but it will also be looking to pursue new opportunities in consumer healthcare and build on its strong position in emerging markets.

The recent investments in Blue Bottle Coffee, Sweet Earth and Freshly underline its interest in reorganising its product portfolio, as does its decision to view its strategic options for the Nestle US confectionery business.

Mark Schneider, Nestle's chief executive officer, said: "We will grow by remaining at the forefront of consumer trends and offering the brands and products to meet people's changing needs, especially their demand for a better, healthier life."

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