By: Abigail L. Ho
Philippine Daily Inquirer
Its origins may be Swiss and its current head honcho may be British, but Nestle Philippines Inc. is as Filipino as a local company can get.
In a recent interview, Nestle Philippines chair and chief executive John Martin Miller shares how the company has survived 100 years of doing business in the country, and how much it is looking forward to spending another 100 years, or more, here.
“We believe very strongly in the Philippines. It has a good talent pool and a lot of resources. It’s a good market for (fast moving consumer goods). We have what we call key markets, and the Philippines is one of them,” he says.
As proof of its commitment to the country, the company has invested a fresh P4.8 billion to put up a coffee creamer manufacturing facility in Tanauan, Batangas, which will enable Nestle Philippines to source all of its Coffee Mate locally instead of importing from Thailand.
“Our vision for the new P4.8-billion coffee creamer facility is to make it one of the most important manufacturing sites in the world. We have a total of more than 500 worldwide,” he relates.
“We have room to expand. We’re hoping to put a new coffee plant on that site, where we can make coffee mixes. Those are very popular here in the Philippines,” he adds.
In the coming years, he says Nestle hopes to “re-energize the agriculture sector, especially coffee, which is the second largest market we compete in.”
Investments will be made in “knowledge transfer,” where Nestle Philippines will provide coffee farmers with seedlings for the “ideal crop,” to encourage them to go back to coffee farming, he says.
Good people, supportive gov’t
John Martin Miller
Expanding its business in the Philippines is just one way of giving back to the country that has nurtured it and has provided it with a wide base of loyal customers over the past 100 years.
Miller attributes much of the company’s success to the Filipinos working at Nestle Philippines’ four plants in Lipa, Pulilan, Cabuyao, and Cagayan de Oro, as well as its predominantly Filipino management team.
“As a business, we’re the masters of our destiny. Our success here is a result of the hard work of our people here,” he relates.
Apart from the people, government support has also been instrumental to the company’s success in the country, he adds. Being a 100-year-old company, Nestle Philippines has gone through almost all presidents in the country’s history. So far, government policies have been fair enough and good enough to prompt the constant flow of investments into the country.
The Aquino administration’s firm stance against corruption and its crusade against poverty will serve as further impetus to continue Nestle’s growth in the Philippines.
“We’re very encouraged by the policies of the new government. We’re seeing all of the things that we’d like to see. This government has a strong emphasis on poverty alleviation, on fighting corruption. The business community applauds these efforts. The (public-private partnership) program is also there to upgrade infrastructure,” he relates. “We understand that these things don’t happen overnight. The direction (that the government is taking now) is very encouraging.”
“We welcome greater transparency. As a global company, we uphold good corporate governance. We want to see more of that. We want to see corruption stamped out,” he adds.
Investment-friendly environment
Nestlé Tanauan Factory
Even with past administrations, he says Nestle has always viewed the Philippines as a country that offers an environment conducive for doing business. It is a wonder not more companies are investing here.
“The Philippines has an investment-friendly environment. Why don’t more people invest here?” he says. “I’ve worked in other countries more volatile than the Philippines. The problem is more of perception. A lot of what is happening now—for example, corruption —is not unique to the Philippines,” he relates.
He relates that this year, as Nestle celebrates its 100th year in the country, it is a good time to reflect on how the company has gone through numerous peaks and valleys here, as well as what it has achieved in terms of its business and also in terms of its contribution to Philippine society.
As one of the largest producers of such staples as milk and coffee, he says Nestle has become more than a brand for many Filipinos. For the company’s loyal consumers, Nestle has become a way of life.
“It’s an auspicious time for us to be in the company, as we can reflect on past achievements. We’re one of the larger (fast moving consumer goods) businesses in the Philippines, but it’s not just about the size, but about our contribution to society,” he explains.
“We’ve increased nutrition health awareness, we’ve helped in nation building, and we’re one of the larger taxpayers in the country. Over the past 100 years, we’ve provided shared value, providing returns to our shareholders and relevant contributions to our stakeholders,” he adds.
Nestlé Center
Moving forward to the next 100 years, he says Nestle is prepared to make more investments in the Philippines—not just to grow its revenue base but also to provide Filipinos with products that can improve their health and their lives.
“Our 100th anniversary is a good time for us to reflect on these things and the future. It’s not just about what we’ve done in the past, but how we can continue to nourish future generations,” he says.
By: Abigail L. Ho
Philippine Daily Inquirer
Consumer goods giant Nestlé Philippines Inc. will be investing more in the country in the coming years, in a bid to offer new products to more markets, particularly consumers on the extreme top and bottom of the economic pyramid.
In an interview with the Inquirer on Thursday, Nestlé Philippines chairman and chief executive John Martin Miller said the company, while already serving a wide spectrum of Filipino consumers, still had markets that were largely untapped.
“We’re looking for growth in many areas. Other business opportunities are being explored. We’re serving most of the consumers in the middle, or the C and D classes, but there’s a population on the top and bottom of the pyramid that we also hope to serve,” he said.
He said Swiss parent firm Nestlé SA remained committed to the Philippines, particularly as the country was considered one of the firm’s key markets.
“We’re bullish about the Philippines. There are a lot of opportunities for growth. We’re optimistic about our prospects,” he said. “We want to raise the level of our investments in the Philippines. This has been fully endorsed by our shareholders.”
One particular focus would be the coffee sector, he said, from which Nestlé Philippines was getting about a third of the raw materials for its second-biggest-selling brand, Nescafe. The bulk of its coffee supply came from Vietnam and Indonesia.
Moving forward, he said the company hoped to source up to 70 percent of its coffee requirements from local farmers.
“We want to breathe new life into the coffee-growing sector. During his recent visit here, (Nestlé SA chief operating officer Paul Bulcke) stressed our commitment to providing employment in the countryside. We want to encourage people to go back to agriculture, especially coffee farming,” he said.
By Bernie Cahiles-Magkilat
Manila Bulletin
MANILA, Philippines — Nestlé S.A. chief operating officer Paul Bulcke has re-affirmed NestléGroup’s long\term commitment to the Philippines as the world’s largest food and beverage company further gears up local sourcing of raw materials for local production, especially with the inclusion of the Philippines for its 500 million Swiss francs coffee program aimed at making its local coffee production self-sufficient.
Bulcke was here in the country for an update on Nestlé operations and to meet with public and private sector leaders. His visit coincided the company’s 100th year of operation in the Nestlé in the Philippines. He was accompanied by Nestle S.A. executive vice president Fritz van Dijk, zone director for Asia, Oceania, Africa and the Middle East.
“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,” Bulcke said in a roundtable discussion with journalists over the weekend.
Bulcke announced that the Philippines would be among developing countries that would benefit from its 500 million Swiss francs budget for coffee farming production.
He did not elaborate on how it would be allocated for the Philippines under that coffee budget, but said the coffee farming initiative of Nescafe is expected to revive coffee production in the country by linking up with coffee farmers in terms of support, technology, planting requirements and seedlings.
Doing so, he said, would make Nestlé less dependent on imported green coffee beans for Nescafe’s production.
At present, Nestlé buys 85 percent of local coffee beans and imports the rest from Vietnam and Indonesia because of insufficient local production.
“The Philippines should be part of this coffee production initiative because the conditions necessary are there like the right climate and environment to accelerate coffee production,” Bulcke said.
At present, Nestlé has an experimental coffee production in Davao.
Bulcke also said that while the growth of Nestlé in emerging markets could double in 10 years, the produce in these markets are not meant to supply the requirements of the developed economies.
Nestlé’s sales in these markets currently amount to CHF 39 billion or 35 percent of turnover, and projected to grow 45 percent by 2020.
“We have worldwide expansions depending on the capability and capacity of each market but the acceleration of growth is in the emerging markets,” Dijk said noting that Nestlé has 450 factories globally and most of these are very local. Dijk used to serve Nestlé Philippines.
Nestlé locally manufactures 90 percent of the products sold in the Philippine market.
“Food is very local,” Bulcke said thus the strategy is to increase local sourcing for local production.
Nestlé Philippines has four factories manufacturing coffee, milk, 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.
Nestlé has invested over P10 billion in the country in the past five years, with P4.8 billion allocated for the Tanauan facility.
The bulk of these investments have gone towards enhancing production capability to meet growing local demand.
On pressure on food prices, Bulcke said Nestlé has been in the forefront to increase investments in R & D in agriculture noting that only a meager one-fifth of R &D expenses are spent on this sector.
“The world owes so much to agriculture,” he said.
While he acknowledged the upward trend in prices of food products, Bulcke said they are trying to cope through various efficiency measures in their operations. He cited its efficient procurement processes, product innovation on packaging and sourcing.
He said that price increase is only resorted to once all other measures have been exhausted.
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http://nestlephilsevents.blogspot.com/
http://nestlephilippineschoosewellness.blogspot.com/
By: Abigail L. Ho
Philippine Daily Inquirer
Consumer goods giant Nestlé Philippines Inc. will be investing more in the country in the coming years, in a bid to offer new products to more markets, particularly consumers on the extreme top and bottom of the economic pyramid.
In an interview with the Inquirer on Thursday, Nestlé Philippines chairman and chief executive John Martin Miller said the company, while already serving a wide spectrum of Filipino consumers, still had markets that were largely untapped.
“We’re looking for growth in many areas. Other business opportunities are being explored. We’re serving most of the consumers in the middle, or the C and D classes, but there’s a population on the top and bottom of the pyramid that we also hope to serve,” he said.
He said Swiss parent firm Nestlé SA remained committed to the Philippines, particularly as the country was considered one of the firm’s key markets.
“We’re bullish about the Philippines. There are a lot of opportunities for growth. We’re optimistic about our prospects,” he said. “We want to raise the level of our investments in the Philippines. This has been fully endorsed by our shareholders.”
One particular focus would be the coffee sector, he said, from which Nestlé Philippines was getting about a third of the raw materials for its second-biggest-selling brand, Nescafe. The bulk of its coffee supply came from Vietnam and Indonesia.
Moving forward, he said the company hoped to source up to 70 percent of its coffee requirements from local farmers.
“We want to breathe new life into the coffee-growing sector. During his recent visit here, (Nestlé SA chief operating officer Paul Bulcke) stressed our commitment to providing employment in the countryside. We want to encourage people to go back to agriculture, especially coffee farming,” he said.
http://nestle.com.ph/
http://nestlephilsevents.blogspot.com/
http://nestlephilippineschoosewellness.blogspot.com/
His Excellency, President Benigno S. Aquino III, Nestlé Philippines Chairman and CEO John Miller, Swiss Ambassador to the Philippines Ivo Sieber, DTI Secretary Gregory Domingo, Batangas Vice-Governor Mark Leviste, Tanauan City Mayor Sonia Torres Aquino, and Sto. Tomas Mayor Renato Federico today led the groundbreaking ceremony for Nestlé Philippines’ new factory in Tanauan, Batangas in which investments totaling PhP 4.3 billion will be made over the coming two years.
The factory, which is expected to be completed in March 2012, is situated on a 27-hectare site and will produce COFFEE-MATE Non-Dairy Creamer and BEAR BRAND Powdered Milk Drink. Mr. Miller said that with continued growth in demand for the two brands, both of which are market category leaders, the factory will increase much-needed manufacturing capability. The domestic market demand in 2010 for BEAR BRAND and COFFEE-MATE is projected to grow by 19% and 8%, respectively, with BEAR BRAND exports under the brand name EVERYDAY seen to grow by 38%.
In 2011, Nestlé will celebrate one hundred years in the Philippines. One hundred years of service to the Filipino consumer is a great source of pride within our company and it is fitting that most of the Tanauan factory’s construction will take place during Nestlé Philippines’ centennial, signifying our continuing commitment to the country. Our investments, in line with our corporate thrust of Creating Shared Value (CSV) for all stakeholders in society, give us the confidence to look forward to the next 100 years of nurturing Filipino families by offering Nutritious, Health and Wellness products, Mr. Miller said.
The Tanauan factory, which will contribute to the growth of the domestic economy, will initially provide direct employment for a new work force of 170, while creating many other jobs in businesses supplying the facility with raw materials and services.
Apart from the new factory’s construction, Nestlé is also continuing to invest in its four existing facilities in Cagayan de Oro, Cabuyao, Lipa and Pulilan, especially in technology and equipment to enable the company to meet increasing demand for its products. Nestlé’s local investments in the past five years have totaled close to PhP 10 billion, with about 80% allocated for existing facilities to generate higher efficiencies and to protect the environment, while the balance 20% was deployed into sales infrastructure, distribution, and IT systems.
In 2009, Nestlé Philippines produced almost half a million metric tons of coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream, chilled dairy, and breakfast cereals.
The Nestlé business in the Philippines has grown in the last five years by an average of PhP4.6 billion annually. With sales of almost PhP 86 billion in 2009, the company paid some PhP10.6 billion in taxes, a 20% increase over 2008. Nestlé is the largest corporate taxpayer in the Philippines for 2009 and is among the top eight largest corporations in the country.
By MA.ELISA P. OSORIO
Source: Philippine Star
MANILA, Philippines - The local cassava industry was given a boost after Nestle Philippines announced plans to invest P4.35 billion for a non-dairy coffee creamer project in Batangas, the Board of Investments (BOI) said.
In a statement, the BOI said Nestlé is expected to locally source glucose syrup, one of the main ingredients of the coffee creamer and is usually processed from corn or tapioca coming from cassava roots.
“Growing demand for cassava will bring more opportunities for farmers,” said BOI managing head Cristino L. Panlilio. Multinational firms along with small and medium buyers are ready to buy their production as long as their harvest meet their quality and quantity standards, he pointed out.
The project involves the construction of a greenfield factory on a 270,000-square meter land. Nestle will process glucose syrup and hydrogenated palm kernel oil (HPKO) to produce non-dairy coffee creamer. Commercial operation is slated to begin in June 2012, involving a manpower requirement of 478 personnel.
Based on Department of Agriculture data, demand for cassava production is expected to be within the five million metric ton range this year, rising up to 10 million MT by 2014. Various uses of cassava products are already gaining ground. It is also now used in livestock feeds, starch, noodles, native pastries and as sweeteners and confectioners and food seasoning. It is also an ingredient in some medicinal products and is also added material for glue, plywood, paper, textile and biodegradable products. It is even an essential component for bioethanol power plants.
Cassava starch, popularly known as tapioca flour, has an even wider multitude of uses in various industries. Extracted from the root, it is used in food, medicine, paper, adhesives, mining, textile, mining, biodegradable and other manufacturing industries. In the food sector alone, tapioca flour use is in abundance in a number of ways. It is an excellent alternative for wheat flour in baked products and it is also employed as a thickener for soups, sauces, baby food and even gravies. It is also utilized as a filler to complement the solid contents of ice cream and is a reliable binder for hotdogs, sausages and other processed meat products to minimize dryness while cooking it.
Twenty-five business reporters from print, TV, and radio came to a press briefing held at the Nestlé Center on July 2, where Chairman and CEO John Miller, together with Finance & Control Director Peter Noszek, Technical Director Campo van Beek, and DHNS Business Executive Manager Eugene David, announced the Company’s new factory in Tanauan, Batangas.
Following the press briefing, reports on the new Nestlé investment landed on the leading broadsheets, tabloids, online news sites, forums, and blogsites. The Nestlé investment in Tanauan was also featured in ANC’s Business Nightly, TV5’s Aksyon, IBC 13’s Express Balita, and DZBB’s radio news.
Source: Nestle Family Balita (July 15, 2010)
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