Nestlé Creates Zones North America and Greater China
October 13, 2021 at 02:30 am EDT
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The Nestlé Board of Directors has approved the creation of new geographic Zones, as of January 1, 2022. The new architecture will strengthen the company's market-led approach and further Nestlé's ability to win in a rapidly changing environment. The structure also underscores the company's deep commitment to succeeding in all parts of the world, including its two top markets North America and Greater China. The company will be organized into five Zones as follows: Zone North America (NA) is comprised of the United States, the Group's largest market, and Canada. Together they represent CHF 24.7 billion in annual sales. Zone Latin America (LATAM) includes Brazil and Mexico, which are among Nestlé's leading markets by sales. Zone LATAM also includes the Caribbean region and represents CHF 9.2 billion in annual sales. Zone Europe (EUR) continues to develop its category-focused operating model, which has led to broad-based market share gains. With CHF 17.7 billion in annual sales, Zone Europe continues to show strong momentum and innovation capabilities. Zone Asia, Oceania and Africa (AOA) will now include the Middle East and North Africa (MENA) Region. Zone AOA represents CHF 17.5 billion in annual sales. Zone Greater China (GC) is one of the fastest-moving food and beverage markets in the world and offers significant growth potential for Nestlé. Zone GC represents CHF 5.7 billion in annual sales. The above sales figures exclude Nestlé's globally managed businesses Nespresso and Nestlé Health Science, which represented CHF 9.2 billion in annual sales in 2020. Nestlé will report the sales and growth numbers of the new Zone structure for the first time on April 21, 2022.
Nestlé S.A. is the world's leading agri-food group. Net sales break down by category of products as follows:
- powdered and liquid beverages (26.7%): soluble coffees (Nescafé and Starbucks brands), coffee in capsules (Nespresso), chocolate drinks (Nesquik, Milo, etc.), tea drinks (Nestea), etc.;
- pet food (20.3%): brands such as Purina, Friskies, Felix, etc.;
- pharmaceutical, nutrition and well-being products (16.4%): nutritional supplements (Resource, Boost, Nutren, Optifast, Peptamen brands, etc.), infant and maternal nutrition products (NAN, illuma, Cerelac, Nido, Gerber), ketogenic beverages (BrainXpert), (Nesquick, Fitness, Cheerios, Lion, etc.), etc.;
- ready meals and seasoning products (12.5%): frozen and chilled dishes (Lean Cuisine, Hot Pockets and Stouffer's brands), soups (Maggi), etc.;
- dairy products and ice cream (11.8%): powdered milk, sweetened condensed milk, yoghurt and cream desserts, ice cream (Nido, Nesvita, Carnation, La Laitière, Coffee Mate, Nestlé Ice Cream, Dreyers, Häagen-Dazs, Extrême brands, etc.);
- chocolates, sweets and biscuits (8.7%): Kit Kat, Smarties, Cailler, Terrafertil, etc. brands;
- bottled waters (3.6%): Nestlé Pure Life, Vittel, Perrier, S. Pellegrino, etc. brands.
Net sales are distributed geographically as follows: Switzerland (1.2%), France (3.8%), the United Kingdom (3.8%), Germany (2.4%), Europe (12.8%), the United States and Canada (35%), China (5.9%), Asia and Oceania (21.4%) and Latin America (13.7%).