Headquartered in Switzerland and present in over 194 countries, this company is famous for its brands like Nescafe, Maggie, KitKat etc.
Even though it operates mainly in its food and confectionary business leaving the personal care segment empty it is the biggest FMCG Company in terms of revenues. Its tag line “Good food good life” indicates how it has approached its business.
Nestle was considered to be the most profitable company by Fortune Magazine in the year 2011. Nestle in its present form has its origins in 1866 where two separate entities for baby food and milk chocolates were founded. Later series of mergers added more products to its portfolio. The two world wars had a huge role to play in Nestlé’s innovations in milk segment like milk powder, Nescafe etc. and it cashed heavily in terms of war contracts.
Nestle is owner of flagship brand Maggie which it acquired in 1947 which has helped to increase its revenues significantly in recent years. Nestlé has 8,000 brands with a wide range of products across a number of markets, including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food.In 2014 it recorded revenues of $91 billion and profit of around $10 billion. Nestle’s lack of diversification has been reflected in its results which see changes as per the growth of food segment. Interestingly Nestle has a significant stake in L’Oréal group which itself a mammoth in beauty segment. Being away from the segment an acquisition of L’Oréal can make Nestle much larger in compare to its competitors in FMCG segment and can also help Nestle diversify in Cosmetics segment.