Great chocolate, but only a 25% chance at Lindt that the palm oil came from certified supplies - a better than average chance, though
GENEVA, SWITZERLAND – Some of the largest retailers in Britain, Sweden and Switzerland are leading the pack when it comes to saving tropical forests by using sustainable palm oil, according to a new survey by Gland-based environmental organization the WWF.
Migros and Coop in Switzerland scored 9, the highest possible number on the Roundtable on Sustainable Palm Oil (RSPO) scorecard, as did Britain’s Boots, Walmart, Marks & Spencers, the Co-operative Group, the Body Shop and Waitroses, and Sweden’s Axfood, with the UK and Sweden having several companies that scored 8.
Palm oil is an issue because 80 percent of its comes from tropical forests in Indonesia and Malaysia, where huge growth in global demand is causing the destruction of irreplaceable forests as they are replaced by palm plantations, often planted in unsuitable areas, says the WWF. The issue is not palm oil itself, says the WWF, but rather “how and where palm oil is produced”.
“Palm oil is a major global commodity—a highly versatile vegetable oil derived from very productive oil palm trees grown only in the tropics. And it is here to stay—consumption is increasing globally and is set to grow from about 50 million tonnes in 2011 to at least 77 million tonnes in 2050.” It is used in foods such as chocolate, ice cream and margarine as well as in cosmetics. Progress is being made, says WWF Switzerland, but much remains to be done, with certified palm oil accounting for just over 8 percent of world palm oil consumption.
Swiss company Nestlé made a turnaround in the past two years, WWF Switzerland says, reaching 8 points on the scorecard after mediocre results two years ago (see GenevaLunch, May 2010 on protests at the company’s annual general meeting). It has since joined RSPO and its purchases of certified palm oil are now 25 to 50 percent of its total needs, “but much remains yet to be done”, says the Swiss arm of WWF.
Lindt & Sprüngli have also made progress, but reached only 7 points, with certified palm oil only 25 percent of total purchases by the chocolate maker, based near Zurich.
The RSPO has nearly 650 regular and affiliate members, with another 77 “supply chain associates”.
Companies were assessed for only the second time (first: 2009) by WWF for the scorecard based on “their commitments to, and use of sustainable palm oil. As with the 2009 Scorecard, we evaluated company performance based on publicly available data (including websites and corporate sustainability reports, as well as the annual reports required by the RSPO from its members) in relation to the following four questions:
- Is the company a member of the RSPO and is annual reporting up to date?
- Does the company have a policy on sustainable palm oil—specifically a commitment to source 100 per cent RSPO-certified palm oil by 2015 or earlier?
- Is the company disclosing total volumes of palm oil used/bought?
- Is the company using any certified sustainable palm oil or buying any Book and Claim certificates? What proportion of the company’s total palm oil use/sales are RSPO-certified palm oil in 2010-2011 (irrespective of which supply chain option the company is using), and is the company disclosing volumes used?
Lidl and Aldi, the large discounters, did not supply information, the WWF notes.
The Palm oil scorecard 2011, with details about companies’ commitments and progress, is available in pdf format.
LAUSANNE, SWITZERLAND – Nestlé says it is one of just a few brands to offer ice cream snacks for dogs in the US and it claims to be gathering new fans rapidly for its new Frosty Paws Bites frozen ice cream snacks for dogs.
The bites are specially formulated for dogs who are lactose intolerant and cannot digest dairy products such as regular ice cream properly, says the Vevey-based Swiss multinational.
The product contains protein, vitamins and minerals, but no milk, comes in vanilla and peanut butter flavours with a vanilla yogurt coating. The Frosty Paws brand already offers larger ice cream cups for dogs.
As the leading ice cream snacks range for dogs, Frosty Paws is one of the only brands in the United States to offer frozen products for people’s canine companions.
Nestle in Vevey says still competitive in spite of a strong Swiss franc
VEVEY, SWITZERLAND – Swiss-based, food and drink giant Nestlé SA says it has performed well in spite of a strong Swiss franc.
“Nestlé continued to make good progress in a period characterised by political and economic instability, natural disasters, rising raw material prices and, yes, a strong Swiss franc.”
Sales reached CHF40.9 billion, down from CHF47.1 billion the previous year, again reflecting the strength of the franc.
The announcement came during its mid-year Revenue and Operating Profit report.
Bloomberg news says today’s results “beat analyst expectations,” which sent Nestle shares up 1.3% to CHF47.31 on the Zurich exchange.
The maker of Nescafe, Jenny Craig and Haagen-Dazs said sales during the first six months grew 7.5% in constant currencies, excluding the impact of its sale of eye-care company Alcon.
The world’s biggest food company, says it foresees a difficult second half of the year.
“We expect continued challenging conditions including political and economic instability, volatile raw material prices and subdued consumer confidence in the developed world.”
The Swiss franc is at an all-time high affecting Swiss-based companies.
The Swiss Federal Council says it is closely watching the situation, studying options and is ready to act if necessary, but it cautions against knee-jerk reactions that provide only short-term solutions. Last week the franc rose despite the Swiss National Bank chairman attempting to talk down the “absurd overvaluation” of the Swiss franc.
Nestle in Chinese sweets deal, Lonza goes for American biochem
Update 15:25 GENEVA, SWITZERLAND – Vevey-based Nestlé has entered into an agreement with the founding family of Hsu Fu Chi, one of China’s main snack and sweets manufacturers, with four large plants and 16,000 employees. In the deal worth CHF1.4 billion, the Swiss company will ultimately control 40 percent of the company, which is listed in Singapore.
The deal will need government approval.
Nestlé intends to acquire 60 percent of Hsu Fu Chi while the Hsu family will own the remaining 40 percent, the Vevey multinational said in a press release Monday 11 July. Hsu Fu Chi’s chairman and chief executive officer, Hsu Chen, will continue to lead the company in the new partnership.
The Swiss company says of the deal that Hsu Fu Chi has a large range of “affordable products”, with a portfolio that “includes sugar confectionery, cereal-based snacks, packaged cakes and the traditional Chinese snack sachima. Hsu Fu Chi’s products are tailored to Chinese consumers’ needs and habits, and complement Nestlé’s existing product portfolio in China, which includes culinary products, soluble coffee, bottled water, milk powder and products for the foodservice industry.”
Bloomberg points out that the Chinese company’s growth rate in 2010 was three times that of Nestle’s worldwide, noting that “Nestle’s Bulcke, 56, has set a goal of getting 45 percent of revenue from developing countries by 2020, compared with about a third now.”
Basel company takeover of US firm to create world’s largest microbial control firm
Basel-based Lonza will become the world’s largest microbial control company in terms of sales, which are estimated at CHF1.6 billion, once its agreement to buy Arch Chemicals, a Connecticut-based US company, goes through. The deal to take over Arch’s outstanding shares of common stock at a price of $47.20 per share in cash will give Arch Chemicals an enterprise value of $1.4 billion (approximately CHF 1.25 billion), the two companies said in a statement released Monday 11 July.
Lonza Group Ltd is one of the world’s largest suppliers to the pharmaceutical, healthcare and life science industries. Arch Chemicals, Inc. is a global biocides company that provides “innovative solutions to destroy or to selectively inhibit the growth of harmful microorganisms”.
Microbial control is the process of inhibiting or preventing the growth of microorganisms, generally by using agents that either kill them or inhibit their growth. Agents that kill or called “cidals” and those that inhibit are “static agents”.
“Currency factors will help Lonza in the case of Arch,” reports the Financial Times. “The group will borrow to finance the deal, benefiting both from ultra low US interest rates and the strength of the franc.”
One of the breakfast cereals Nestle will produce in Malaysia
Geneva, Switzerland (GenevaLunch) – Two multinationals with strong ties to the Lake Geneva region, P&G and Nestlé, are investing heavily, the first in a major new product and sugarcane packaging, the other in new Asian markets, they announced 26 April.
P&G’s mother company in Ohio, USA, says it is about to launch a new product, and Ad Age, hyping the marketing push it will receive, writes, “Procter & Gamble Co. is preparing to launch what it describes as its biggest laundry innovation in more than a quarter century with Tide Pods: a line of highly concentrated liquid detergent tablets, backed by a massive $150 million marketing budget.”
The news site Cincinnati describes the new product as “a tablet of highly concentrated liquid Tide. Each tablet will contain three chambers of liquid detergent surrounded by a film designed to dissolve in any temperature water. The detergent in the tablets will be twice as concentrated as liquid Tide, P&G says.”
Expect to hear more about the product, lots more, says Ad Age.
Before it shows up in Europe, another P&G innovation will arrive. Ecouterre, an environmental products-watcher site, says the company has just come out with its first sugarcane-based packaging for hair care products. “Pantene, the brand of haircare products run by Proctor and Gamble, will be shipping its first plant-based plastic containers to stores in Western Europe this month. Sourced mainly from sugarcane, the new packaging is expected not only to slash P&G’s fossil-fuel consumption by 70 percent but also to reduce greenhouse-gas emissions by 170 percent, according to Len Sauers, the company’s vice president of sustainability.
Joint venture for breakfast foods will get 80% of raw materials locally, in Malaysia
Ann Veneman (photo, Unicef ©2011, Toutounji)
Update 14 April Vevey, Switzerland (GenevaLunch) – Ann Veneman, the former executive director of Unicef, the UN Children’s Fund, was elected Thursday 14 April to the board of Nestlé, one of 14 directors and four women on the board of directors.
Her bid for the board seat has provoked outcries from nutrition campaign groups, Reuters reports Wednesday evening in a lengthy background story filed by Stephanie Nebehay in Geneva.
The news agency notes that Unicef is distancing itself from its former boss because of the company’s failure to fully respect the 1981 UN International Code of Marketing of Breastmilk Substitutes to encourage breastfeeding.
Nestlé’s compliance with code: views differ
Nestlé’s spokesperson Robin Tickle told Reuters that Veneman’s presence on the board would help ensure the company’s full compliance with the code. But Unicef spokesperson Marixie Mercado told the news agency that “I can confirm that UNICEF does not take funding from Nestle. I can also confirm that Nestle violates the code.”
Veneman was Bush appointment as Agriculture Secretary
Veneman, a 61-year-old American lawyer, led Unicef from 2005 to 2010, and for four years before that she was the Secretary for the US Department of Agriculture, appointed by George W Bush. She already serves as a member of the Nestle Creating Shared Value Advisory Board.
When she left Unicef last year she was overseeing a budget of $4 billion and an organization that had seen strong growth since 1965, when its budget was $35 million.
Nestlé has been a target of protesters since the 1970s over its infant formula products and several organizations continue to encourage a boycott of the company’s products. The World Public Health Nutrition Association, WPHNA, noted in March when the announcement about her likely role on Nestlé’s board was made that “This news has shocked some in our profession, and has confirmed the cynical opinion of others.”
Boycott groups send Veneman open letter urging her to say no
Officials from BabyMilkAction and Geneva-based Ibfan, two of the main organizations behind Nestlé boycotts over infant formula, will attend the company’s annual general meeting in Lausanne Thursday. They have published an open letter to Ann Veneman, asking her not to take the board position “or at the very least to make it conditional on Nestlé agreeing to the Four Point Plan which was drawn up by the International Nestlé Boycott Committee and aims to save infant lives and lead ultimately to the end of the 20-country Nestlé boycott.
The four-point plan requires Nestlé to bring its marketing policies and practice into line with the international standards that UNICEF and WHO have championed for decades.”
History of the Nestlé boycott, wikipedia page and Nestlé page
Swedish home furnishings giant Ikea is continuing its June 2009 decision to put a freeze on opening new stores in Russia, outside Moscow, reports the Moscow Times. The newspaper argues that the company’s firm and very public anti-corruption policy is causing headaches for President Dmitry Medvedev’s push to abolish corruption.
Ikea has been waiting for permits for its Samara and Ufa stores. “‘The reason the stores aren’t opening is that Ikea is refusing to pay bribes to safety inspectors,’ said Kirill Kabanov, head of the nongovernmental National Anti-Corruption Committee.”
Medvedev is keen to reduce the foreign perception that Russia has too much corruption, says the Moscow newspaper, in order to increase foreign investment. “At stake is President Dmitry Medvedev’s goal to match the economic growth rates of other Bric nations. With barely more than one-tenth the population of China and India, Russia needs to attract non-energy investors to grow and diversify. Corruption has ‘penetrated all branches of power,’ Medvedev said in a recent interview.”
Among a number of companies threatened, says the Moscow Times, is Swiss-based Nestlé, which was told in 2010 and again this year that it is not meeting Russia’s safety standards.
Meanwhile, peelable ice cream ready for market
Peelable ice cream, inspired by bananas, expected to boost 2011 Nestlé sales
Vevey, Switzerland (GenevaLunch) – Food multinational Nestlé saw its profits jump to CHF34.2 billion in 2010, thanks to continuing strong growth boosted by exceptional revenues from the sale of Alcon, an eyecare company. Profits in 2009 were CHF10.2b.
The Vevey firm had sales in 2010 of CHF109.7b, up from CHF108b in 2009.
“We are starting 2011 with continued momentum, well placed to face uncertainties ahead, including volatile raw material prices,” says chief executive Paul Bulcke.
In separate news, the company says it is now ready to market peelable ice cream, which you eat like a banana, with a jelly outer skin and ice cream inside. Test marketing in Thailand was successful, Nestlé says, and the product will now be rolled out in other markets.
“Hundreds of millions” to be invested in new research venture that will be housed at EPFL in Lausanne
Luis Cantarell, president and CEO of new Nestlé Health Science SA
Vevey, Switzerland (GenevaLunch) – Multinational Nestlé announced Monday morning 27 September that it is creating “Nestlé Health Science SA and the Nestlé Institute of Health Sciences to pioneer a new industry between food and pharma.”
The two separate units will focus on prevention and treatment of health conditions, including diabetes, obesity, cardiovascular disease and Alzheimer’s disease, says the company. It has not said how many jobs will be created by the new businesses, one of which will be in or near Vevey, it appears, with the other in Lausanne at EPFL.
The move is a significant step beyond the company’s core food business. Nestlé entered the healthcare nutrition business in 1986. In recent years it has made a number of acquisitions in the field, notably in buying Novartis Medical Nutrition.
The Financial Times writes that “many analysts expect Nestlé to make significant further takeovers, with Abbott Laboratories, a leading US health nutrition group, widely tipped as a target.”
Nestlé Chairman Peter Brabeck-Letmathes says that “the combination of health economics, changing demographics and advances in health science show that our existing healthcare systems, which focus on treating sick people, are not sustainable and need redesigning. Nestlé has the expertise, the science, the resources and the organization to play a major role in seeking alternative solutions. Personalized health science nutrition is about finding efficient and cost effective ways to prevent and treat acute and chronic diseases in the 21st century.”
Luis Cantarell, currently chief executive office of the Americas division of Nestlé, its largest region, will be president and CEO of the new wholly owned subsidiary, Nestlé Health Science SA. It becomes operational 1 January 2011 and will incorporate the existing Nestlé HealthCare Nutrition business, with a 2009 turnover of CHF1.6 billion. It will have access to “a number of venture capital funds” in which the parent has an interest. Peter Brabeck-Letmathe will chair the new company’s board.
The Institute of Health Sciences, to be based at the Swiss federal polytechnic institute, EPFL, in Lausanne, will receive investments of “hundreds of millions of Swiss francs over the next decade to build a world-class Institute of Health Sciences, which will conduct research in relevant areas of biomedical science to translate this knowledge into nutritional strategies to improve health and longevity,” Nestlé says. It will be led by Emmanuel Baetge, former chief scientific officer of ViaCyte, a biotech company based in San Diego, California in the US, who will report to Nestlé chief technology officer Werner Bauer and a steering committee composed of Nestlé people and other members from outside the company.
Nestle goes full speed in 2010
Vevey, Switzerland (GenevaLunch) - Net profit at multinational Nestle saw a 7.5% increase and a sales increase of 6.1% during the first half of 2010.
The Vevey-based company – the world’s biggest food and beverage group, is set to eclipse rivals Unilever and Kraft.
Organic growth for all Food and Beverages operations was 5.3% in the Americas, 3.6% in Europe and 10.4% in Asia, Oceania and Africa.
The Group’s emerging markets continued to achieve over 10% organic growth.
Full report: Nestle.
Vevey, Switzerland (GenevaLunch.com) - Swiss food multinational Nestlé’s research arm is joining forces with a major US hospital research centre to study the the effects of a diet rich in whole grains on body composition and energy metabolism.
A $500,000 gift by Nestlé to the Lerner Research Institute at the Cleveland Clinic in Ohio, USA, will fund the largest-ever such controlled study.
The Nestlé Research Center near Lausanne will work closely with the Cleveland Clinic centre, with the latter using its MRI (magnetic resonance imaging) experience and the Swiss centre running metabolic analyses on the 40 to 50 people who will participate in the 26-week study.
They will be given meals from the Nestlé Prepared Food Company in Ohio.
In related food news, Migros, Switzerland’s largest supermarket, announced 23 July that it will increase by one-third its purchase of Integrated Production (IP) near-organic grains in 2011.
The IP grains bear the TerreSuisse label used by growers whose farming methods include efforts to aid biodiversity. Details, GenevaLunch food blog, Savouring Switzerland
Links to other sites: Nestlé Research, Nestle announcement of joint study
Lausanne, Switzerland (GenevaLunch) - Nestlé is recalling its Nescafé Espresso 100g jars of due to the possibility they were damaged during transport and there might be broken glass that is difficult to see.
The company has not received any complaints but has voluntarily recalled the product over safety concerns. Consumers should check the product’s bar code then either call the hotline, 0800 860 080 in Switzerland, or fill out a form to receive their money back.
Greenpeace protesters dressed as orangutans swing into action for Nestle annual meeting
Vevey, Switzerland (GenevaLunch) - Food giant Nestlé has become the first global consumer goods company to become a partner of TFT, The Forest Trust, “to build responsible supply chains”, starting with palm oil.
The company’s sourcing policy for palm oil came under attack at its April 2010 annual general meeting, when Greenpeace protesters arrived dressed as orangutans to draw attention to the problem of deforestation from palm oil suppliers.
The Vevey group says it is also studying pulp and paper sourcing.
Greenpeace credits its campaign to get KitKat fans to pressure the manufacturer, as does TFT, with Greenpeace noting that the decision will affect another multinational, Cargill.
Greenpeace protesters dressed as orangutans swing into action for Nestle annual meeting (photo: ©2010 Herbi Ditl on flick: http://www.flickr.com/photos/herbivore/)
Lausanne, Switzerland (GenevaLunch) – The Nestlé annual general meeting held at the Palais Beaulieu in Lausanne promised to be a relatively dull business session, compared to the UBS one the previous day. But that was before Greenpeace protesters dressed as orangutangs crowded the area outside the meeting and two of them were spotted by an AFP reporter abseiling into it and dangling above the discussions.
Greenpeace and the company have been at odds over the Vevey group’s use of palm oil, which the environmental group says is playing a significant role in destroying forests and the habitat for orangutans.
Vevey, Switzerland (GenevaLunch) – Nestlé’s financial results for 2009 were broadly positive in a difficult year, prompting its CEO, Paul Bulcke, to say “we were able to grow substantially faster than our industry.” The giant food company increased profit margins, reduced costs, and invested more in marketing and research & development in 2009. Group sales reached CHF107.6 billion, while net profit profit was CHF10.4bn. Bulcke warned that net profits could not be directly compared to 2008 because of the one-off sale of almost one quarter of Alcon to Novartis, which netted an exceptional CHF9.2bn in 2008.
Earnings per share were CHF2.92 this past year, and the company proposes a dividend of CHF1.60 per share, up 14.3 percent. The company also announced that Jean-Pierre Roth, formerly chairman of the Swiss National Bank, would join the board of directors.
Links to other sites: Nestlé press release, NZZ, Le Temps
Vevey, Switzerland (GenevaLunch) – Food multinational Nestlé says its profits fell by more than 40 percent in 2009 compared to the previous year largely because of a hefty profit in 2008 from the sale of Alcon eye-care company. Net profit in 2009 was CHF10.4 billion, down from CHF18b in 2008.
Sales slipped from CHF109.9b to CHF107.6b but the company says that new markets, particularly in Africa and Asia, are growing well. CEO Paul Bulcke, Nestlé chief executive struck a positive note: “With organic growth of 4.1 percent achieved in last year’s challenging environment, we were able to grow substantially faster than our industry.”
Nestlé's varied products. © 2010 Nestlé
Vevey, Switzerland (GenevaLunch) – Swiss food giant Nestlé has identified the nutritional deficits of older people as a potential source of concern, and proposes a newly developed food supplement to combat the problem. The company will roll out Resource® SeniorActiv in Switzerland in the summer of 2010 and follow it up later in other European countries.
Some older people have serious protein and vitamin deficiencies that can lead to weight loss and fatigue, which reduce their independence. The new product is designed to combat these deficiencies by supplementing older adults’ intake of calcium, vitamin D and protein. Nestlé has also developed a new nutritional assessment form to help determine the nutritional requirements of the elderly.
Update 6 January 09:40 Vevey, Switzerland (GenevaLunch) - Swiss food multinational Nestlé’s Zimbabwe operations have begun to process milk again, two weeks after suspending production because of government pressure. Government-run newspaper The Herald says workers were back in place and milk was being processed normally after a “misunderstanding” that closed the plant 23 December. The Nestlé operation is one of Zimbabwe’s largest suppliers of milk and has been running for more than 50 years.
Nestlé’s Swiss head office provided GenevaLunch with the following statement Tuesday 6 January, confirming that processing has begun again: “On 19 December 2009, Nestlé suspended the activities at its Harare factory (Zimbabwe) as normal business was no longer possible and the safety of its employees could not be guaranteed. Since then, the local Nestlé management has been in regular contact with the Zimbabwean authorities to find a solution.
Vevey, Switzerland (GenevaLunch) – The ongoing guessing game about who will own Cadbury is expected to end Wednesday 6 January when Kraft unveils shareholder response to its hostile takeover bid for Cadbury, but Nestlé won’t be one of the owners. The Swiss-based Nestlé says it is not bidding on Cadbury, ending speculation that it would fight Kraft for the UK-based Cadbury sweets company. Nestlé has instead offered to buy Kraft’s pizza division, the leader in the US and Canada in the frozen pizza market.
Nestlé’s $3.7 billion offer for the pizza business is allowing Kraft to increase its cash offer for Cadbury.
The pizza deal covers a number of brands, including DiGiorno, Tombstone, California Pizza Kitchen, Jack’s and Delissio.
Basel, Switzerland (GenevaLunch) – Basel-based healthcare products Novartis has agreed to buy out the majority shareholding in Alcon, eyecare specialists, from Vevey-based Nestlé, for CHF28.1 billion. Novartis paid $10.4 in 2008 for a 25 percent share and it has offered to buy the remaining 23 percent share for an additional $11.2b, bringing the total price for the company to CHF49.7b. The news was greeted with enthusiasm by markets, reports the Financial Times, with a 0.4 percent jump in the FTSE at opening Monday, normally a dismal post-holiday trading session.
Business Week reports that the sale leaves Nestlé in good shape for a major acquisition.
Vevey, Switzerland (GenevaLunch) – Food multinational Nestlé says it has closed its milk production plant in Zimbabwe after the government pressured it to take milk from a non-contracted supplier 19 December during a surprise visit from government officials. Two days later, Monday, two of the plant’s managers were called into the Harare police station for questioning, then released. President Robert Mugabe and his unity government partner Morgan Tsvangirai have both reacted with dismay to the closing, and observers in southern Africa are calling it a setback for the unity government, which has been working to convince foreign investors and aid groups to return to the country.
Barry Callebaut supplies chocolate-makers: Salon du Chocolat, Paris, October 2009
Barry Callebaut's chocolate supply samples, Paris Salon du Chocolat, 2009
Zurich / Vevey, Switzerland (GenevaLunch) – The global economic crisis may have served up stress and more stress to many people, but the Swiss chocolate industry appears to be sailing happily through it: Barry Callebaut sales in 2008-2009 rose 4.1 percent in a world market that contracted by 2 percent last year. The Zurich-based company is the world’s largest supplier of top-quality cocoa and chocolate products. Profits also rose, 18.5 percent for net profits in local currencies, but the strong Swiss franc had a negative impact.The company reported 11 November on its fiscal year, which closed 31 August 2009.
Nestle at the same time has offered chocolate lovers good news from its research laboratory near Vevey: 40 grams of dark chocolate a day, one small square, has been shown in tests to reduce stress levels. The research is published in the Journal of Proteome Research.
Harare, Zimbabwe / Vevey, Switzerland (GenevaLunch) – The government in Zimbabwe Sunday 11 October announced that it may have found two “irregular” transactions in the accounts of Nestlé, which has a Zimbabwe subsidiary. The company’s five bank accounts were blocked Sunday, Zimbabwe’s finance minister told the Associated Press. The Zimbabwe Independent reports that the accounts have since been unfrozen.
A week early, 4 October, the company stopped buying milk from a farm owned by Grace Mugabe, the wife of President Robert Mugabe.
Vevey, Switzerland (GenevaLunch) - Nestlé SA in Vevey says its subsidiary in Zimbabwe will stop buying milk Sunday 4 October from Gushunga Dairy, reportedly owned by Grace Mugabe, wife of Zimbabwe President Robert Mugabe. The Mugabes are both on Swiss and European sanctions lists which forbid financial transactions with over 200 individuals and some 40 companies in Zimbabwe, but the sanctions do not apply to transactions within Zimbabwe. The multinational in Vevey has been under pressure this week, particularly from British and South African media, for buying the milk.
The Vevey office issued a statement Friday morning 2 October: “The Dairy Board of Zimbabwe today informed the Gushungo Dairy Estate, and the seven other farms with whom Nestlé began working on a temporary basis in February 2009, that it is now in a position to resume purchasing their milk. Nestlé Zimbabwe therefore will no longer be receiving milk from these eight farms from Sunday 4 October.”
GenevaLunch asked Nestlé about the timing of the announcement from the board, coming right on the heels of public criticism of Nestlé.
Vevey, Switzerland (GenevaLunch) – The Nestlé subsidiary in Zimbabwe buys milk produced on Gushunga Dairy Estate farms seized from their owners between 2002 and 2004, the UK’s Sunday Telegraph reports 26 September.
The dairy farms are part of an estimated 4,800 hectares of prime agricultural land reportedly owned by Robert and Grace Mugabe. Both are on what the EU has labeled “targeted sanctions” lists, with visa and some trade restrictions set for more than 20o individuals and some 40 countries. These were first imposed in 2002 in the wake of the seizures of lands owned by white farmers, part of Mugabe’s land reform. They were extended following the disputed presidential elections in June 2008.
Switzerland also adopted targeted sanctions, in line with those of the European Union [ed. note: UK media have incorrectly reported that Switzerland does not have sanctions because it is not part of the EU], but the Gushunga Dairy is not on the identical EU and Swiss government list of blacklisted businesses. A spokesperson at the finance ministry in Bern told GenevaLunch Monday that the ministry contacted Nestlé when it became aware of the milk sales and it has been assured that the sales are entirely the business of its Zimbabwe subsidiary. “Nestlé confirmed that no individuals or companies in Switzerland were in any way involved in the relevant transactions. Therefore, no further investigations are planned at the moment.” The Bern office noted that the “Swiss legislation on international sanctions, including the sanctions against Zimbabwe, deploys its effects only in the territory of Switzerland. Foreign subsidiaries of Swiss companies are not subject to the Swiss legislation. The dealings of Nestlé Zimbabwe (Private) Ltd are therefore not in violation of the Swiss sanctions regulation against Zimbabwe.”
Swiss and EU sanctions involve only transfers of money or transactions with companies outside Zimbabwe: Even if Gushunga Dairy were on the list, the sanctions would not apply.
Peter Brabeck, chairman, Nestle
Vevey, Switzerland (GenevaLunch) - Peter Brabeck, chairman of Vevey-based multinational, says the company could reconsider Switzerland as its home base if the government responds to pressure to cap executive salaries.
Minister Doris Leuthard samples chocolates in Broc
Nestle master chocolate maker at work in Broc
Vevey/Broc, Switzerland (GenevaLunch) – Nestlé Monday 7 September opened its CHF25 million Chocolate Centre of Excellence in Broc, in the hills above the company’s home office in Vevey. A slew of dignitaries, including Switzerland’s minister for economic affairs, Doris Leuthard, and top company officials were present to underscore the unit’s importance.
The new centre is a research and production operation for Nestlé’s premium and luxury chocolate segment, but it “will influence the company’s entire chocolate range,” the company noted in its press release for the event.
Nestlé says that of its CHF9.8 billion in chocolate sales in 2008, some 70 percent came from local sales rather than the global brands for which it is well-known, which had sales of CHF1 billion.
Ghana: local chief holds out cocoa used in Cadbury chocolate (photo: Cadbury)
Geneva/Lausanne, Switzerland (GenevaLunch) – US-based Kraft Foods went public with an offer for Cadbury, UK confectioner, after the British company refused its proposal. Kraft is offering £10.2 billion for Cadbury, which formally turned down the proposal Monday 7 September, noting in a statement that “the board is confident in Cadbury’s standalone strategy and growth prospects as a result of its strong brands, unique category and geographic scope and the continued successful delivery of its ‘Vision into Action’ plan. The board believes that the proposal fundamentally undervalues the group and its prospects.” Shares in the company rose strongly Monday.
Vevey and Bern, Switzerland (GenevaLunch) – Food and drink giant Nestlé 12 August announced results down 1.5 percent in the first half of 2009 to CHF 52.3 billion in group sales worldwide, compared to the first-half 2008. The Vevey-based company reported that organic growth was up 3.5 percent in the period, with a positive real internal growth rate of just 0.5 percent. Citing a “challenging business environment” worldwide, including a strong Swiss franc, the company nevertheless said it had significantly improved cash flow and reduced debts, improving over-all capital efficiency.
Swisscom announced a drop in revenue of 1.2 percent to CHF 5.9 billion in the first half of 2009, 12 August.
Vevey, Switzerland (GenevaLunch) - Sales at multinational Nestlé, based in Vevey, slipped by 2.1 percent to CHF25.2 billion and organic growth was 3.8 percent, down from 10 percent in 2008. The company says the results are in line with forecasts and confirm expected full-year results for 2009. Sales were pulled down by acquisitions, -0.7 percent, and the strength of the Swiss franc, with a negative 5.7 percent impact.
