NESTLÉ GLOBAL CEO AFFIRMS COMMITMENT TO PHILIPPINES

In a meeting with President Benigno Aquino at Malacanang Palace, Nestlé S.A. CEO Paul Bulcke re-affirmed the Nestlé Group’s commitment to the Philippines as the company celebrates its 100th year of doing business in the country.

Accompanied by Nestlé S.A. EVP Frits van Dijk, Zone Director for Asia, Oceania, Africa and the Middle East, and Nestlé Philippines, Inc. Chairman and CEO John Miller, Mr. Bulcke is in the country for an update on Nestlé operations in the Philippines and to meet with public and private sector leaders.

“The global Nestlé family proudly congratulates Nestlé Philippines on its centennial. This is a remarkable milestone in its enduring mission to provide generations of Filipino families with tasty food and beverage products that promote nutrition, health, and wellness. We are deeply grateful for the trust that Filipinos have put in Nestlé brands through the years,” Mr. Bulcke said.

Mr. Bulcke said the Nestlé Group looks forward to the next 100 years of serving future generations of Filipinos with high-quality brands offering affordable nutrition. These brands are supported by Nestlé’s outstanding food and nutrition R & D capability, which is the largest in the world. “We will strive to continue to create shared value by working with leading stakeholders in society and by focusing upon nutrition, water management and rural development, all of which are areas that are particularly pertinent to our business. We take very seriously our corporate responsibility towards our shareholders, the local communities where we operate and the society that we serve. In this way we build long term sustainable businesses which benefit a wide range of stakeholders. This is the case both in the Philippines and globally,” he said.

Mr. van Dijk, who served Nestlé Philippines, Inc. for many years, said that the Philippines is a key market for Nestlé both in ASEAN and worldwide. Sales of Nestlé Philippines totaled PhP 92 billion in 2010, making it the 8th largest corporation locally. NPI currently has four factories manufacturing coffee, milks, chocolate energy drinks, cereals, infant nutrition products, ice cream and chilled dairy products.

A fifth Nestlé factory is under construction in Tanauan, Batangas, and will start operations in 2012. “As Nestlé Philippines marks its centennial, the ongoing construction of the Tanauan factory is a concrete re-affirmation of our commitment to the Philippines,” said Mr. van Dijk. Nestlé has invested over PhP 10 billion in the country in the past five years, with PhP 4.8 billion allocated for the Tanauan facility. The bulk of these investments have gone towards enhancing production capability to meet growing local market demand.

Mr. Bulcke said, “By opening a new factory, we are closer to our consumers and our valued customers. At the same time, we are able to enhance local economic activity by creating employment and business opportunities for partners and suppliers.”

Turning to global operations, Mr. Bulcke said that a significant portion of Nestlé’s growth has and will come from emerging markets, in which it is already strongly represented. Nestlé sales in these markets currently amount to CHF 39 billion or 35 percent of turnover, and are projected to grow to 45 percent by 2020.

“The Philippines continues to grow in importance to Nestlé. We believe that making long-term investments will help unlock the country’s great potential. The diversity and dynamism of Filipinos and the favorable demographic and economic growth trends mean that the country will continue to draw foreign investments which, I believe, will contribute significantly to its growth and development. Nestlé’s long-standing presence in the Philippines and our ongoing investments re-affirm our confidence in the country and our commitment to nurture future generations of Filipino families,” Mr Bulcke said.

Nestlé Cabuyao Factory Signs New CBA

Cabuyao Factory management and union formally signed a new collective bargaining agreement (CBA) on July 7 at Bellevue Hotel in Alabang, a significant move towards the manufacturing facility’s realization of its vision to become the lighthouse factory of Nestlé Philippines, Inc. (NPI).


NPI Chairman and CEO John Miller hailed the new CBA as one of the most important achievements of the Company this year. “The new CBA serves as a symbol of how industrial relations should be managed. My vision is that in years to come the relationship between the union and management will be seen as the ‘gold standard’ against which other companies measure their own industrial relations.”

John said he was impressed by the speed with which the agreement has been reached. “I believe this is truly a win-win for all stakeholders as it speaks of two parties keen to engage and find a common ground. But more than anything, I have been deeply struck by the spirit in which the negotiations have been conducted, which is one that has been characterized by mutual respect, trust and openness.”

Noting the atmosphere that prevailed in Cabuyao in the recent past, John added, “Ultimately it is the goodwill that men hold in their hearts that will determine the strength of any agreement. I believe that the foundations that we are laying today are solid and built upon a wealth of goodwill. We all have an important role to play in ensuring that our great Company goes from strength to strength, so that we can deliver on our commitment to our consumers and our customers, namely the delivery of affordable, healthy, nutritious quality products, wherever, whenever and however they choose to consume them.”

Nestlé Cabuyao Workers Union (NCWU) President Jojo Agustin thanked his fellow officers and colleagues for tirelessly working towards improving the welfare of the members, which eventually led to the CBA signing. “I would like to thank management for granting us the new CBA benefits, and more importantly, for recognizing the existence of the newly formed union and for the respect and trust that it has bestowed on us. Rest assured that we, the union officers, will work hard to represent our constituents and raise their concerns to management. In the course of working together, we know that there will be difficult conversations and differing points of view from various stakeholders, but you have our commitment that all these will be done within the context of principled dialogue, trust, and respect.”

Earlier, after signing the Memorandum of Agreement (MOA) on May 14, 2010, NCWU Vice President Rico Magat, representing the union officers, wrote to Zone AOA Managing Director Frits van Dijk to express the union’s gratitude to Nestlé management for the “successful and historical CBA event.”

“Being part of the CBA union panel, I would say that the Management panel brings a lot of understanding and insight of what a CBA should and should not be all about,” Rico wrote. “We hope that the next CBA will be repeated as it has been concluded, with a lot of listening, a lot of talking, a lot of discussion, laughing, shaking hands, eating, and peaceful and principled ending. With this, we have inspired not only Nestlé Philippines but also the whole world that anything can be achieved through peaceful dialogue and with common minds for a better Nestlé Cabuyao Factory! The Company has displayed once again the genuine concern for its employees. Rest assured that better performance and utmost quality to our work will be done. The Associates of Cabuyao Factory are grateful!”

In his response, Mr. van Dijk cited the union and NPI as a whole for a job well done. “You can well understand that I was particularly pleased to receive this e-mail. Having been very much part of Cabuyao’s history since the mid-80s, this is a very rewarding message.”

Mr. van Dijk also acknowledged the efforts of HR Director Gid Manuel and Cabuyao Factory Manager Craig Thomas. “My thanks to both of you, who I know have been instrumental in getting to this stage, and to all others members of the Nestlé family who were involved. Let us not forget to learn from the past and avoid a build-up of negative elements over time. I wish you success in bringing Nestlé Cabuyao to new heights in the years to come.”

In his message during the CBA signing, Factory Manager Craig Thomas shared how pleased he was that both the union and management panels did not only have the conclusion of the CBA as their goal during the negotiation; rather, both panels were mindful of preserving the harmonious working relationships and the spirit of respect for each other. “The way forward is to honor the contract, but more importantly, to continue collaborating to make Cabuyao Factory a lighthouse factory. While concluding the CBA is indeed a milestone, this also signals the beginning of a new challenge and the unfolding of a new chapter, which will require greater effort and collaboration as we gear for our future success.”

Cabuyao Site HR Head Jun Corpus, who welcomed both panels during the formal CBA signing, cited the highlights of the factory’s transformation journey and acknowledged the role of the Samahang Ugnayan, an association made up of employees who raised concerns during communication meetings and helped execute employee relations programs in the days prior to the certification of the new union as the exclusive bargaining representative. The NCWU was unanimously elected as the sole and exclusive bargaining unit in Cabuyao Factory during the certification election held on January 29, 2010. This led to the CBA negotiations that started in March 2010.

“At the heart of the richness of goodwill that characterizes the new industrial relations climate is a very principled and professional union that believes in dialogue and proactive cooperation as well as in taking care of its constituents,” Jun said.

Led by its president Jojo Agustin, the union panel was composed of vice-president Rico Magat, secretary Angel Solano, treasurer Edgardo Austria, auditor Ed Guevarra, and board members Dexter Castillo, Patrick de Guzman and Resty Conde. The management panel, on the other hand, was headed by its chairman, QA Head Rico Opena, with members composed of Site HR Head Jun Corpus as spokesperson, and line managers and supervisors who acted as resource on shop floor concerns namely, Frank Reyes, Mar Atienza, Manny Alzona, Toto Demonteverde, Dave Velez, and Archie Valencia.

“The future looks very bright for Cabuyao Factory,” beamed Technical Director Campo van Beek. “Over the past few years, Nestlé has kept full trust and confidence in the capabilities of the Cabuyao factory and its people, and we have continued to invest heavily in equipment, infrastructure, and last but not least, in the people of Cabuyao. Even as I speak today, we are engaged in three multi-million dollar projects to upgrade the facilities of Cabuyao Factory, and we are hiring new employees to cope with the increasing volume that we need to produce. We are ready for the future, and Cabuyao is on its way to become one of the top factories in the world.”

SOURCE: Nestle Family Balita (July 30, 2010)

NIDO Gets Gold in Innovation Awards

The regional rollout of NIDO Nutrition System’s Project Addition in AOA won the Gold in the recently concluded Nestlé Innovation Awards, a global competition among Nestlé markets aimed at stimulating ideas for innovation and renovation. Zone AOA markets who have implemented Project Addition include the Philippines, Indonesia, Thailand, the Middle East, and Malaysia, among others. 

Zone AOA Managing Director Frits van Dijk, who received the award for the Zone at the Market Managers’ Conference held on April 16, 2008 in Switzerland, congratulated Zone AOA markets for the much coveted award. “The successful multi-market introduction of NIDO ‘Addition’ in all your markets is a good example that when we have a BIG idea, we get the markets’ commitment to go all out. All of us in Zone AOA can be proud of this achievement, because it shows Best Practice in action,” Mr. van Dijk said in a communication to Zone AOA market heads, who also each received a trophy during the Conference. NPI Chairman and CEO Nandu Nandkishore received the award for Nestlé Philippines. 

An annual recognition program, the Nestlé Innovation Awards 2008 encourages innovation and renovation among Nestlé markets to drive growth and to incorporate Nutrition, Health and Wellness (NHW) in the Company’s products and brands. 

Project Addition, launched in Nestlé Philippines in 2006, involved adding Probiotics (Lactobacillus PROTECTUS®) to the NIDO Nutrition System (Growing Up Milks range) to provide more protection as it strengthens the immune system. 

“This SBU initiative, which drew from the Nestlé extensive research on and knowledge of Probiotics, solidified the NIDO positioning of ‘protection’, allowing the brand unique differentiation in the markets,” explained NIDO Consumer Marketing Manager Leslie Go-Alcantara. It was the SBU who requested the Philippines to launch Project Addition. The resulting campaign of the Philippines was rolled out to other Nestlé markets in Zone AOA in 2007. 

“This Gold Award is something that we can be truly proud of,” shared DHNS Business Executive Manager Eugene David. “Like the 10 Signs of Good Nutrition, which we also started in the Philippines and eventually rolled out to other markets, the Philippine campaign was borrowed with pride by other markets. This showcases our way forward, that we can truly collaborate and leverage the strength of Research & Development with fewer, bigger and bolder initiatives.” Last year, NIDO Fortified’s 10 Signs of Good Nutrition won the 2nd prize in the 60/40 Hit Parade. 

Innovation Award winners were judged based on four major criteria: focus on NHW opportunities; leveraging our major brands; premiumization; and profitable growth through bigger, bolder and better innovations. This year’s distinguished panel of judges include EVP and Head of Technology, Research & Development Werner Bauer; Head of Zone AOA Frits van Dijk; Head of Zone Americas Paul Polman; Head of Zone Europe Luis Cantarell; F&C Group Control Head Kevin Berryman; Head of Corporate Wellness Unit Christianne Kuehne; Head of Nestlé Professional SBU Marc Caira; Nestlé Nutrition CEO Richard Laube; Nestlé Waters CEO John Harris; CO-Supply Chain Head Tony Borg; Nestlé Research Center Head Peter van Bladeren; EVP for SBUs, Marketing and Sales Lars Olofsson; and Head of IMD Peter Lorange. 

Other Innovation Awards winners were: CEO Awardee NESCAFÉ Dolce Gusto for Zone Europe and Japan; Silver Awardees NAN/GOOD START/NIDINA/NIDAL/BEBA premium infant formula (worldwide); MILO Relaunch (Malaysia); and BENEFUL prepared meals (North America). Bronze awardees were PURINA Veterinary Diets Fortiflora (North America); NIDO Rindes Diario affordable milk (Mexico); MAGGI Taste Bhi Health Bhi (India); MAGGI/Winiary Recipe Mixes (Russia and Poland); and NESPRESSO Boutiques (worldwide).

SOURCE: Nestle Family Balita (May 30, 2008)