nestl© equatorial african region

Nestlé Equatorial African Region

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Contents

Message from the Head of Region 3

Nestlé Global organization 5

Nestlé in Africa 17

Nestlé Equatorial African Region 25

People Development 42

Creating Shared Value 50

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I t i s w i th immense pr ide and pleasure that I address you through our first Nestlé Equatorial Afr ican Region corporate brochure. This newly born regional structure within the Nestlé organization regroups 21 African countries, w i t h i t s h e a d q u a r t e r s established in Nairobi, Kenya.

More than just a structural reorganisation, this move is further proof of the Company’s long lasting commitment to Africa, a commitment deeply rooted in the history of Nestlé during the last century. In a volatile world economy, we expect African markets to offer addit ional economic opportunities as we expand operations, introduce new products to increase our market share. This continued success translates growth and opportunity for people and communities across the

continent.

Our strategy refers to what we

feel are today the principles of

Message from the Head of Region

committed engagement in Africa:

Creating Shared Value for both

society and for our shareholders at

the same time, providing healthy,

tasty and nutritious products to

our consumers, participating in

sustainable rural development,

promoting health and nutrition

awareness, and last but not

least, ensuring that all our efforts

meet environmental preservation

requirements. Our determination to

apply those principles in our day-

by-day business demonstrates

that Nestlé EAR is looking far

beyond immediate returns: our

company has a strong confidence

in the region’s potential for long-term

growth and development.

As you turn the pages of this report,

you will see our strategy, our values

and our principles in practice. This

is the way to unlock economic

opportunity, promote sustainable

growth and improve the quality of life

for all Africans.

Pierre Trouilhat


Region Head and

Chief Executive Officer

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NESTLÉGLOBAL

ORGANISATION

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The history of Nestlé began in Vevey, Switzerland, in1867 when founder Henri Nestlé created one of the first infant foods in response to the need for a healthy and affordable product to serve as an alternative for mothers who could not breastfeed their babies. He called his product Farine Lactée Henri Nestlé.

Within a few years, the Farine

Lactée product was marketed in

Nestlé, a history across three centuries…

Europe. Nestlé called his company

Société Farine Lactée Henri Nestlé.

In 1874, Nestlé developed its condensed milk product, to contend with the Anglo-Swiss Condensed Milk Company, a competitor that was producing cheese, instant formulas and had opened Europe’s first sweetened condensed milk factory in Cham, Switzerland, to market the first

condensed milk, MILKMAID.

Henri Nestlé

Vevey CH, Nestlé Factory, before1897

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The two companies merged in

1905, the year after Nestlé added

chocolate to its line of foods. The

newly formed Nestlé and Anglo-

Swiss Milk Company had factories

in the United States, Britain, Spain

and Germany.

S o o n t h e c o m p a n y w a s

manufacturing in Australia with

warehouses i n S ingapore ,

Hong Kong and Bombay. Most

production however still took place

in Europe.

The start of World War I made

it difficult for Nestlé to buy raw

ingredients and distribute products.

Fresh milk was scarce in Europe,

and factories had to sell milk for

the public need instead of using it

as an ingredient in foods. Nestlé

purchased several factories in the

U.S. to keep up with the increasing

demand for condensed milk and

dairy products via government

con t rac ts . The company ’s

production doubled by the end of

the war. When fresh milk became

available again after the war, Nestlé

suffered and slipped into debt. The

price of ingredients had increased,

the economy had slowed and

exchange rates deteriorated

because of the war.

An expert banker helped Nestlé

find ways to reduce its debt. By

the 1920s Nestlé was creating new

chocolate and powdered beverage

products. Adding to the product

line once again, Nestlé developed

Nescafé in the 1930s and Nestea

followed. Nescafé, a soluble

powder, revolutionized coffee

drinking and became an instant hit.

With the onset of the Second

World War, profits plummeted.

Switzerland was neutral in the

war and became increasingly

isolated in Europe. Because of

distribution problems in Europe

and Asia, Nestlé opened factories

in developing countries in Latin

America. Production increased

dramatically after America entered

the war and Nescafé became a

main beverage for the American

soldiers in Europe and Asia. Total

sales increased by $125 million

from 1938 to 1945.

After 1945, Nestlé continued to

prosper, merging with Alimentana

S.A., a company that manufactured

soups and seasonings, in 1947. In

the coming years, Nestlé acquired

Cross & Blackwell, Findus frozen

foods, and Libby’s fruit juices.

Nescafé instant coffee sales

quadrupled from 1960 to 1974,

and the new technology of freeze-

drying allowed the company to

create a new kind of instant coffee,

which they named Taster’s Choice.

Expanding its product line outside

of the food market, Nestlé became

a major stockholder in L’Oréal

cosmetics in 1974. Soon after, the

company suffered with increasing

oil prices and the slowing growth

in industrialized countries. Foreign

exchange rates decreased, in

turn reducing the value of the

sterling pound, dollar and franc.

Prices of coffee beans and cocoa

rose radically, presenting further

problems for Nestlé.

Nestlé, a history across three centuries…

Broc CH, Cailler Arrival of Milk in the Courtyard, ca. 1910.

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By the 1980s, in one of the

largest takeovers at that time,

Nestlé bought Carnation for

$3 billion. International trade

barriers diminished in the

1990s, opening trade with

Eastern parts of Europe and China.

In the 1990s, Nestlé acquired San

Pellegrino, and Spillers Petfoods

of the UK. With the acquisition of

Ralston Purina in 2002, the Nestlé-

owned pet care businesses joined

to form the industry leader Nestlé

Purina PetCare.

In 2002, there were also two major

acquisitions in North America: in

July, Nestlé merged its U.S. ice

cream business into Dreyer’s, and

in August, a USD 2.6bn acquisition

was announced of Chef America,

Inc. The year 2003 started well with

the acquisition of Mövenpick Ice

Cream, enhancing Nestlé’s position

as one of the world market leaders

in this product category.

In 2006, Jenny Craig and Uncle

Toby’s were added to the Nestlé

portfolio. 2007 saw Novartis

Medical Nutrition, Gerber and

Henniez join the Company, and in

2010, Frozen Pizza of Kraft Foods

was integrated into the Nestlé

Group.

With a strong view of the company’s

mission in mind, focusing on long-

term potential over short-term

performance, Nestlé will continue

to grow, introduce new products

and renovate existing ones.

Nestlé, Orbe Factoriy in Switzerland

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Nestlé Story – all the way to Nutrition, Health and Wellness

1866 FoundationofAnglo-SwissCondensedMilkCo.

1867 HenriNestlé’sbabyfooddeveloped

1905 NestléandAnglo-SwissCondensedMilkCo.(newnameaftermerger)

1929 MergerwithPeter,Cailler,KohlerChocolatsSuissesS.A.

1934 LaunchofMilo

1938 LaunchofNescafé

1947 NestléAlimentanaS.A.(newnameaftermergerwithMaggi)

1948 LaunchofNesteaandNesquik

1969 Vittel(initiallyequityinterestonly)

1971 MergerwithUrsina-Franck

1973 Stouffer(withLeanCuisine)

1974 L’Oréal(associate)

1977 NestléS.A.(newCompanyname),Alcon(2002:partialIPO;2008:partialsale)

1981 Galderma(jointventurewithL’Oréal)

1985 Carnation(withCoffee-mateandFriskies)

1986 CreationofNestléNespressoS.A.

1988 Buitoni-Perugina,Rowntree(withKitKat)

1990 CerealPartnersWorldwide(jointventurewithGeneralMills)

1991 BeveragePartnersWorldwide(jointventurewithCoca-Cola)

1992 Perrier(withPolandSpring)

1993 CreationofNestléSourcesInternationales(2002:NestléWaters)

1997 CreationofNutritionStrategicBusinessDivision(2006:NestléNutrition)

1998 SanPellegrinoandSpillersPetfoods,launchofNestléPureLife

2000 PowerBar

2001 RalstonPurina

2002 SchöllerandChefAmerica,DairyPartnersAmericas(jointventurewithFonterra),

LaboratoiresInnéov(jointventurewithL’Oréal)

2003 MövenpickandDreyer’s

2005 Wagner,ProtéikaandMusashi

2006 CreationofFoodServicesStrategicBusinessDivision,LactalisNestléProduitsFrais

(associate),JennyCraig,UncleTobysandDeltaIceCream

2007 NovartisMedicalNutrition,Gerber,Henniez

2010 KraftFoods'frozenpizzabusiness

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From Food to Nutrition, Health and Wellness

In evolving from a respected,

trustworthy Food Company, to a

respected, trustworthy Nutrition,

Health and Wellness Company,

Nestlé draws strength from its

history of demonstrated know-how

and capability, as well as its product

portfolio, which serve as carriers of

nutrition benefits.

Nestlé also derives strength from

its huge research and development

network. Science and research

have a lways been at the

forefront of the Company’s

efforts to understand the needs

and desires of its consumers,

and to provide quality food

options for all ages and stages

of life.

Especially vital to the Company

is the development of products

that promote health and wellness

while at the same time adhering

to dietary cultures and taste

preferences of local consumers in

the various regions of the world.

Today, more than half of Nestlé’s

research projects are dedicated to

nutrition.

The corporate slogan, Good Food,

Good Life, is at the heart of the

Nestlé business. As the Company

enters into a new era in nutrition and

health, this simple phrase will guide

the Nestlé core business operations

in scientific research, product

development and marketing.

Nutrition was the cornerstone

on which Nestlé was founded.

Today, the company is evolving yet

remaining loyal to its heritage as it

develops from the world’s leading

Food company into the world’s

no. 1 Food, Nutrition, Health and

Wellness Company.

Major Areas of Focus

• Beverages Soluble coffee, chocolate milk beverages, ready-

to-drink and bottled water.

• Milk, Nutrition and Ice creams Powdered, condensed and evaporated milk,

infant nutrition, weaning products, performance & clinical nutrition, breakfast cereals, yogurts and ice creams.

• Chocolate & Confectionery Tablets, bars, biscuits, sugar confectionery and

present boxes

• Prepared Dishes & Cooking Aids Bouillons, soups, seasonings, sauces, pasta, frozen foods and Italian cuisine.

• Health Care Nutrition Personalized Health Science Nutrition to prevent

and treat health conditions such as diabetes, obesity, cardiovascular disease and Alzheimer's disease

• Professional Food Services Food products for the out-of-home industry

• Pet-care Products Pet food for cats and dogs

Nestlé products portfolio includes seven major areas

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Nestlé’s Main Brands

Today Nestlé is present in different markets with the following main brands:

Nescafé, Nespresso,

Taster’s Choice, Ricoré,

Ricoffy, Bonka, Zoégas,

Loumidis

COFFEE

Nestea, Nesquik, Nescau,

Milo, Carnation, Libby’s,

Caro, Nestomalt, Nestlé

OTHER BEVERAGES

Nestlé, Nido, Nespray, Ninho,

Carnation, Milkmaid, La Lechera,

Moça, Klim, Gloria, Svelty, Molico,

Nestlé Omega Plus, Bear Brand,

Coffee-Mate

DAIRY - SHELF STABLE

Nestlé, Nan, Lactogen,

Beba, Nestogen, Cerelac,

Nestum,

Neslac, Guigoz, Good Start

INFANT NuTRITION

Maggi, Buitoni, Thomy,

Winiary,Torchin, Osem,

Totole, Haoji

BOuILLONS, SOuPS, SEASONINGS, PASTA, SAuCES

Nestlé, Crunch, Cailler,

Galak/Milkybar, Kit Kat,

Smarties, Butterfinger,

Aero, Polo

CHOCOLATE, CONFECTIONERY & BISCuITS

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NESTLÉ PROFESSIONAL

Purina, Friskies, Fancy Feast,

Alpo, Gourmet,

Mon Petit, Felix, Dog Chow,

Cat Chow, Pro Plan, Purina

One, Beneful, Tidy Cats

WATER

Poland Spring, Nestlé Pure

Life, Arrowhead, Vittel,

Deer Park, Levissima, Perrier,

S.Pellegrino, Ozarka, Contrex,

Ice Mountain, Zephyrhills,

Nestlé Aquarel,

Hépar, Acqua Panna

Nestlé, Sveltesse,

La Laitière, La Lechera,

Ski, Yoco, Svelty,

Molico, LC1, Chiquitin

DAIRY - CHILLED

Nestlé, Antica Gelateria del Corso,

Dreyer’s/Edy’s, Drumstick/Extrême,

Maxibon/Tandem, Mega,

Mövenpick, Sin Parar/Sem Parar/

Non Stop, Delta

ICE CREAM

PowerBar, Pria, Musashi

PERFORMANCE NuTRITION

Nutren, Clinutren,

Peptamen, Modulen

HEALTHCARE NuTRITION

Frozen foods (prepared dishes, pizzas, small meals)

Stouffer’s, Lean

Cuisine, Hot

Pockets, Buitoni,

Maggi, Wagner,

La Cocinera

(cold meat products, dough, pasta,

pizzas, sauces, snacks) Nestlé,

Buitoni, Herta, Toll House, Sabra

REFRIGERATED PRODuCTS

Chef,

Davigel,

Minor’s

PETCARE

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Nestlé Structure todayNest lé is a decentral ized

o r g a n i z a t i o n w h e r e

responsibility for operating

decisions is delegated to local

units, which have a high degree

of autonomy concerning pricing,

distribution, marketing, etc.

As the company of the operating

units, Nestlé S.A. sets the broad

strategy l ines and contro ls

profitability. It is organized in three

geographical zones: Europe (EUR),

Americas (AMS) Asia-Oceanic-

Africa (AOA).

In DRC, for example, Nestlé had

to rethink its traditional distribution

methods (operating a central

warehouse), because of the

lack of adequate infrastructure.

Consequently, Nestlé built a

network of small warehouses

around the country. This example

shows that the company is able to

respond quickly to different local

conditions.

Another point supporting this

strategy is that Nestlé employs

a majority of local staff. Local

employees better know and

understand the local culture and

business procedures. This results

in a more efficient way to respond

adequately to local demand

conditions.

Furthermore, Nestlé can take

advantage of location economies.

Location economies arise from

performing a value creation activity

in the optimal location for that

activity, anywhere in the world.

The optimal location for a value

creating activity lowers the costs

of value creation, therefore helping

the company achieve a low-cost

position.

Nestlé is organized into seven

different worldwide strategic

business units. These have

responsibility for high-level strategic

decisions and engage in overall

strategic business development,

including acquisitions and market

entry strategy. The regional

organizations are responsible for

developing regional strategies

and assist in the overall strategy

development process.

In adddi t ion Research and

Development is essential for

the company. One of Nestlé's

distinctive competitive advantages,

Food & Beverage R&D benefits

from a yearly budget of CHF 2

billion. Throughout the world, 28

research and development centres

directly employ 5,000 scientists

and researchers.

Nestlé Headquarters in Vevey, Switzerland

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Nestlé is committed to the following Corporate Business Principles in all countries, taking into account local legislation, cultural and religious practices:

• Nutrition, Health and Wellness Our core aim is to enhance the quality of consumers' lives every day, everywhere by offering tastier

and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition Good Food, Good Life.

• Quality assurance and product safety Everywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe

and of high standard.• Consumer communication We are committed to responsible, reliable consumer communication that empowers consumers to

exercise their right to informed choice and promote healthier diets. We respect consumer privacy.• Human rights in our business activities We fully support the United Nations Global Compact's (UNGC) guiding principles on human rights

and labour and aim to provide an example of good human rights and labour practices throughout our business activities.

• Leadership and personal responsibility Our success is based on our people. We treat each other with respect and dignity and expect everyone

to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination

• Safety and health at work We are committed to preventing accidents, injuries and illness related to work, and to protect employees,

contractors and others involved along the value chain.• Supplier and customer relations We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity

and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed towards our own customers.

• Agriculture and rural development We contribute to improvements in agricultural production, the social and economic status of farmers,

rural communities and in production systems to make them more environmentally sustainable.• Environmental sustainability We commit ourselves to environmentally sustainable business practices. At all stages of the product life

cycle we strive to use natural resources efficiently, favour the use of sustainably-managed renewable resources, and target zero waste.

• Water We are committed to the sustainable use of water and continuous improvement in water management.

We recognise that the world faces a growing water challenge and that responsible management of the world's resources by all water users is an absolute necessity.

Nestlé Corporate Business Principles

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NESTLÉIN AFRICA

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Nestlé has a long story in Africa.

The company always believed in

the potential of the continent. Its

presence dates back to the end

of the 19th century, when Nestlé

Sweet Condensed Milk travelled

the African continent in miner’s

Nestlé in Africa

rucksacks. As early as 1927,

Nestlé established its industrial

presence on the African soil,

opening a factory in South Africa.

Since then, Nestlé has steadily

b u i l t a c o m m e r c i a l a n d

manufacturing network in Africa.

Our company has a long-term commitment to rural development and the use of local raw materials rather than imports. We intend to significantly expand our business in Africa by developing local food resources for our factories.Paul Bulcke - Chief Executive Officer, Nestlé S.A.

Nestlé Kenya Laboratory.

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In 2011, this network includes

27 factories and dozens of other

warehouse and office facilities

serving all 54 African nations. The

Company employs approximately

15,500 people in Africa, and

around 50,000 additional jobs

have been indirectly created

t h r o u g h t h e s u p p l y a n d

distribution chain.

Nestlé has built this business by

following its primary business

pr inciple: Favour long-term

sustainable growth over short-

term transitory profit, establishing

national and regional companies

through consistent investments

over many decades, despite

often chal lenging economic

circumstances.

During the last 5 years, Nestlé’s

investment in the cont inent

exceeded USD 800 million. The

Company will invest even more

in the next 5 years, across a plan

to upgrade and expand 3 of the

existing factories and build not

less than 6 finishing factories

to manufacture products, with

a view to increase intra-Africa

trade instead of simply importing

products to the continent.

Th rough expend i t u re t ha t

includes taxes, salaries, social

security contr ibutions, rent,

procurement and purchase of

raw materials, among others,

Nest lé’s est imated f inancial

input to the African economy

as a who le s tands a t over

USD 1 billion. Nestlé’s greatest

contribution to Africa is through

the impact of our core business,

with responsible, sustainable

operat ions that create jobs

and catalyse entrepreneurship.

We make major investments in

infrastructure, industrialisation,

job creation and human capacity

building.

Nestlé Kenya Factory. Nestlé R&D Centre in Abidjan, Ivory Coast.

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Sub-Saharan Africa and hundreds

of ethnic groups account for 13%

of the global population, but bear

a disproportionate burden of the

world’s problems.

Despite these problems, Africa

shows steady economic growth

and business opportunity for

those able to have a long-

term vision and solid business

practices. Income levels and

consumer spending power are

increasing

Nestlé’s commitment to Africa

goes much beyond mere ly

a c h i e v i n g t h e C o m p a n y ’s

bus iness object ives. Be ing

the world’s largest Food and

Beverage Company, and the

world leader in Nutrition, Health

and Wel lness carr ies social

responsibilities, especially in such

a challenging environment as is

the case in Africa.

Through institutions as the Nestlé

Foundat ion and the Nest lé

Nutrition Institute of Africa, as

well as Creating Shared Value

initiatives, Nestlé supports a

number of major projects on the

continent, aimed at reducing

malnutrition.

Nest lé is committed to the

principles of Creating Shared

Va l u e , b a s e d o n t h e f i r m

conviction that only by creating

value for society as a whole can

we create long-term value for our

shareholders.

Creating Shared ValueNestlé is committed to the principles of Creating Shared Value, based on the firm conviction that only by creating value for society as a whole can we create long-term value for our shareholders.

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As part of its Creating Shared

Value approach to its basic

business, Nestlé focuses on

3 main areas of intervention:

Nut r i t ion , Water and Rura l

Development.

On a yea r l y bas i s , Nes t l é

p u r c h a s e s f r o m A f r i c a ,

millions USD worth of cocoa

providing for the l ivel ihoods

of thousands of farmers. To

meet the expectations of the

communities we serve, Nestlé

has launched in October 2009

The Cocoa Plan, with the vision

of helping the cocoa farmers

run profitable farms, respecting

the environment, having a good

quality of life and for their children

to benefit from an education

and see cocoa farming as a

respectable profession. Better

quality crops in West Africa will

allow Nestlé to replace imported

raw materials by local ones that,

in turn, will raise the income and

the quality of life of local farmers.

Creating Shared ValueNutrition, Water and Rural development

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To achieve this ambition, Nestlé

will invest USD 108 millions over

the next 10 years, building on the

USD 59 millions invested over the

last 15 years.

N e s t l é a l s o p u r c h a s e s a

considerable amount of coffee

f rom A f r i ca i n 2008 . He re

again, we are fully committed

to enhancing the qual i ty of

life of African coffee farmers.

Over the last 30 years, Nestlé

h a s d e v e l o p e d a d v a n c e d

technology enabling the mass

production of trees with desirable

characteristics.

This enables the propagation of

high-yielding, disease-resistant

p lants on a broad scale to

rejuvenate cocoa and coffee

plantations. This approach, which

tends to curtail deforestation as it

eliminates the need to expand

existing plantations, is already

successful ly implemented in

different parts of the world.

Research and Development is

at the core of Nestlé’s business

principles. In this respect, the

Company has inaugurated in

April 2009 a state-of-the-art R&D

Centre in Abidjan, Ivory Coast,

which will focus on improving

the quality of locally-sourced

raw materials, including cocoa,

coffee, cassava, sorghum, millet

and maize, among others, and

on adapting products to the

nutritional needs and tastes of

African consumers.

Creating Shared Value

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NESTLÉ EQUATORIAL

AFRICAN REGION

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B e f o r e 2 0 0 8 , N e s t l é ’s

organization in Africa was shaped

around four big regions: the

Maghreb Region, the Horn of

Africa Region, the Central and

West Africa Region, and the

Southern and Eastern African

Region.

However, within the different

regions, increasing gaps between

countries were appearing, in line

with differences between their

respective paces of economic

growth. It had become timely

for Nest lé to create a new

region regrouping countr ies

with roughly similar social and

economic development patterns,

and to consequently set up

for the new unit a long term

homogenous strategy harnessing

its development.

A New Organisation Structure

Thus, in Apr i l 2008, Nest lé

Equatorial African Region was

born , w i th i t s Head Off ice

established in Nairobi, Kenya.

The new reg ion covers 21

countries in total, all of them

reporting to the Nairobi HQ:

Angola, Burundi, the Union


Population: 400,000,000

Main economic resources: Agriculture, Oil, Mining, Tourism

GDP (uSD millions):

Lowest: 548,751,654 (Comoros)

Highest: 75,492,890,298 (Angola)

GNI (uSD) per capita per year:

Lowest: 150 (Burundi)

Highest: 8,480 (Seychelles)

Source: www.worldbank.org/afr

of Comoros, the Democratic

Republic of Congo, Dj ibouti

E r i t r e a , E t h i o p i a , K e n y a ,

Madagascar, Malawi, Mauritius,

Mozamb ique , Repub l i c o f

Congo, Rwanda, Seychelles,

Somalia, South Sudan. Tanzania,

Uganda, Zambia, and Zimbabwe.

“If there is a company that fully understands value chain approach in food systems, it is Nestlé. There is a lot for Africa to gain from this partnership. Through the shared value concept, we can promote public private partnerships that can fully confront the food and nutrition insecurities facing Africa today. Together we can create healthier communities” Hon. Prof. Ruth Oniang'o, a leading African nutritionist, and member of Nestlé Creating Shared Value Advisory Board

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Nestlé Equatorial African Region Map

South SudanJuba

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Overa l l , th is newly created

regional entity aims at taking full

advantage of the different regional

integration groups to reach one

objective: to produce in EAR

and supply to EAR markets. As

far as possible, Nestlé EAR will

adapt its development strategy

in the region to benefit from the

different business incentives

offered by COMESA, SADC,

EAC, and by bilateral agreements

as the Zimbabwe-Mozambique

duty-free trade accord, with

the ultimate goal of creating

economic prosper i ty in the

countries in which the Company

operates.

comesa countries in ear sadc countries in ear

eac countries in ear

The new State of South Sudan is currently negotiating

its addition to regional blocks.

29


This new region presently hosts three factories, one in Zimbabwe (Harare), one in DRC (Kinshasa) and the other one in Kenya (Nairobi). It also encompasses 9 operating companies, in Kenya,

Mauritius, Angola, Mozambique, Democratic Republic of Congo, Zimbabwe and Zambia. Four representative offices are based in Ethiopia, Tanzania, Uganda and Madagascar, and 9 distribution

centers, in Angola, Kenya, DRC, Mozambique, Mauritius and Zimbabwe. The Nestlé Equatorial African Region currently provides direct employment to some 990 people.

Operating Companies: 7 CountriesFactories: 3 CountriesRepresentative o�ces: 4 CountriesDistribution Centres: 7 Countries

Dar es Salaam

South SudanJuba

Two operating companies

Two operating companies

Nestlé Existing Infrastructure in EAR

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Nestlé Kenya Factory

Nestlé Zimbabwe Factory

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South SudanJuba

Nestlé’s Regional Strategy for GrowthTo l e v e r a g e t h e e x i s t i n g opportunities in the region, Nestlé will enhance its existing regional structure. Our redeployment scheme is ambitious. We are building new factories in Angola and Mozambique. We are also setting up a number of strategic d is t r ibu t ion cent res in the Equatorial African Region. This plan will obviously carry extensive employment opportunities in many countries of the region, a s p a r t o f o u r l o n g - t e r m commitment to Equatorial Africa.

Nestlé is also investing massively in training EAR employees. We firmly intend to enhance those programs in the near future, in line with both the company planned growth in EAR and our global technology transfer effort.

Popularly Positioned Products to address Micro-nutrient deficiencies A n i m p o r t a n t p a r t o f o u r reg iona l s t ra tegy re l i es on adapting our product portfolio to the commercial and social environment in Equatorial Africa. To succeed in making healthy and nutritious food available

to a l l , no matter the depth of their pockets, requires a profound understanding of the local situations and conditions, Made and packaged to meet local culture and taste, Nestlé products sold in Equator ia l Africa offer the same quality standards than in the rest of the world, but their nutritional content is adapted: the food is fortified to cope with the nutrient

deficiencies prevailing in this part of the world. Micro nutrient deficiencies, quite common in Africa, indeed carry serious risks of developing diseases, as shown in the following list.

Nestlé EAR Future Plans

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Micro-nutrient deficiencies

Micronutrient Risks Prevalence examples

Iron Iron-deficiency anemia, Iron deficiency anemia

decreased work output, (children under 5)

reduced growth, increased Mozambique: 90%

health risk in pregnancy Angola: 72%

DRC: 79%

Vitamin A Blindness from chronic eye Children deaths

infections, poor growth precipitated by

vitamin deficiency

Malawi: 17 500

DRC: 76 000

Vitamin D Bowed legs, weakened bones Rickets in premature

bones deformities, osteoporosis, 6 months old infants

susceptibility to tuberculosis, Nairobi, Kenya:

rickets 58.8 %

Iodine Enlarged thyroid gland, poor Mentally impaired

growth in infancy and childhood, children due to iodine

possible mental retardation, deficiency

cretinism, goiter Congo: 59 000

Zimbabwe: 35 000

Angola: 235 000

Zinc Skin lesions, diarrhea, increased Children deaths

susceptibility to infections, precipitated by zinc

night blindness deficiency: whole

Africa: 260 502

sources: Econocom Foods, John Hopkins Bloomberg School of Public Health, united Nations university, Kenyatta Hospital, Nairobi

33


Popularly Positioned Products

Another pillar of our strategy for

growth in Equatorial Africa is on

our Popularly Positioned Products

(PPP) initiative.

Th rough i t s PPP s t ra tegy,

Nestlé EAR has the intention

of extending its offer to lower

income consumers, by bringing to

this sector of the market relevant

and good quality products at

price points that allow those

consumers to buy them.

PPP typically offer high nutritional

value food, at low prices, available

in smal ler, more affordable,

pack sizes. Our PPP strategy

is built on a low-cost business

mode l tha t re l i es on loca l

raw materials and packaging

sourcing, local manufacture and

local distribution, to take costs

out of all areas of the business.

Nestlé Popular ly Posit ioned

Products are distr ibuted by

a network of retailers ranging

from hypermarkets to street

vendors and kiosks, the small

neighborhood outlets belonging

to the traditional business sector.

Nestlé Marketing Initiatives

in EAR

Nest lé EAR undertakes to

develop its marketing initiatives

in a number of sectors: culinary

products, coffee and beverages,

dairy products and Nestlé nutrition

products, amongst others. In

February 2010, we also launched

Nestlé Professional, with a range

of products specifically designed

for the hotel, restaurant and

catering industry or out of home

industry.

Specific marketing actions will

target each segment of the broad

spectrum of potential customers

for those different products. From

brand activation in low-income

neighbourhood to attendance to

hospitality industry professional

gatherings, from cooking contests

to on-air promotion of healthcare

products benefits, Nestlé EAR

intends to explore all possible

ways to fulfill our mission: to be

the reference brand for Nutrition,

Health and Wellness, trusted by

all stakeholders.

34

MILO PARTNERSHIP WITH MINISTRY OF EDuCATION - KENYASince 2009, the Min ist ry of

Education (MOE) has endorsed

MILO® as the principal partner

of the annual Kenya Primary

Schools Ball Games (Football,

Basketball, Volleyball, Handball,

etc) and gymnastics. The games

are structured in a way that the

4,000+ schools work up their way

(like a pyramid) from the lowest

level (Zone) to the national level,

where 1 team eventually emerges

a winner in each game.

MILO® actively participated

from the provincial level to the

national level. In addition, we also

provided the uniforms for the

teams, coaches and referees.

NESCAFÉ GET CLOSER AND CAMPAIGN – KENYAWith the objective of encouraging

consumers to ignite their day

everyday, NESCAFÉ® embarked

on a nationwide communication

campaign that involved getting

consumers to explore thei r

senses through seeing, touching,

smelling and tasting NESCAFÉ®.

T h e N E S C A F É B r a n d

Ambassadors communicated the

advantages of NESCAFÉ® and

clearly brought out the brand’s

attributes in a positive, exciting

and stimulating manner that

ensured consumer purchase of

NESCAFÉ® upon their arrival.

Using “rocket men” mechanics,

we managed to weave through

c rowds o f consumers and

sample them with the Perfect

Cup of NESCAFÉ®. Consumers

were rewarded through a lucky

dip raffle.

The MOE Bal l Games is a

unique concept in the sense

that:

• It caters for both boys and

girls.

• It is ownable and

sustainable.

• Has credibility due to format

and endorsement by the

Ministry of Education.

• Gives parents/guardian an

opportunity to be involved

• Can extend to other “areas”

and other sports.

F o r M I L O ® t h e p r i m a r y

objectives were:

• To develop an experience

that actively engages 7 to 12

year old kids at grass root

level.

• To own and run a sustainable

sporting event in Kenya.

• To build MILO's role in Kenya

as the leader in sports &

sport development leading

to the expert in “healthy

nutrition & active lifestyle”.

The schools’ tournament

provides a perfect platform

to nurture talent and success

of the students.

35


NESCAFÉ SAMPLING – DRCNESCAFÉ® launched its mobile

sampling activity in Kinshasa,

DRC, conducted by trained

foot samplers who created a

live sampling activity in high

traffic areas. This allowed first-

time users to taste NESCAFÉ®

and immerse themselves in

its rich taste and aroma at the

same time create a unique and

memorable exper ience that

clearly differentiated NESCAFÉ®

to any other coffee beverage in

the market. The response was

very encouraging from walking

through the busy footpaths in

Gambela, Zigida and Marché

Central markets to the buzzing

youth-filled corridors of Kinshasa

Polytechnics and Campuses.

NESTEA LAuNCH - KENYANESTEA® was introduced into

the Kenyan market with three

variants under its belt; Tropical,

Lemon and Apple. The launch

was supported by a NESTEA®

Caravan activation, Door-2-

Door Home Visits and In-Store

activations. The response from

the market…OVERWHELMING!

Upon tr ial of the product, it

was quickly purchased and

became a common sighting in

the homes of many consumers.

Both children and adults loved

NESTEA®. It was the perfect

drink for those hot sunny days

when you need a nice, cold drink

to quench your thirst and keep

you refreshed.

36

CEREVITA® DOOR-2-DOOR ACTIVATIONS – KENYA and MOZAMBIQuEIn an effort to ensure that families start their day in a nutritious and filling way, CEREVITA® launched a 3 month Door-2-Door activation in Kenya and Mozambique whereby households visited were given a free sachet of CEREVITA® to sample and be educated on the nutritional benefits of the brand.

This was received well given the fact

that the Brand Ambassadors managed

to interact with the home owners and

to some extent, showed some of them

how to properly prepare CEREVITA®.

MAGGI IN-STORE ACTIVATION - ZIMBABWEThe in-store activation for MAGGI in Zimbabwe was launched with a road show incorporating sampling, demonstration and promotion. The activation agency has been trained on the brand, product port fo l io , the promotional offer and sampling techniques with a focus on quality assurance requirements. The objective of this activation was to encourage trial through sampling and drive sales with the promotional offer.

37


To b r ing to the Equato r i a l

African Region the benefits of its

experience as the world leader

in Health, Nutrition and Wellness,

Nestlé EAR will take advantage

of the expertise developed by

scient ists of the company’s

Research and Development

Centres.

Today, ou r sc i en t i s t s and

researchers are leading thinkers

in nutrition science who pioneer

advances, contribute to global

scientific debate and illuminate

the future direction of nutrition and

health.

Nestlé employs more than 5,000

people from 50 countries in its

integrated network of research,

development and product testing

cen t res . Th i s commi tment

demonstrates the extent to which

science underpins our core

business.

In April 2009, Nestlé inaugurated

a new Research & Development

Centre in Abidjan, Ivory Coast.

The new centre focuses on

improving the quality of locally-

sourced raw materials, including

cocoa, coffee and cassava.

Better quality crops in Africa will

allow Nestlé to source more raw

materials locally, which in turn will

raise the income of local farmers.

Indeed, Nestlé’s fundamental,

long-term business principle

is to create value both for the

company and the communities in

which it operates.

Nestlé’s first African R&D Centre

will help the company address

the problem of disease and

ageing plantations affecting the

West African cocoa harvest every

year by helping to promote the

propagation of millions of high-

yielding, disease-resistant cocoa

trees across the region over the

coming years.

This centre will also focus on

the study of indigenous foods in

Africa and their nutritional values.

Nestlé: At the forefront of Research in Nutrition

38

Nestlé Foundation

The Nestlé Foundation is yet

another organisation promoting

research on health and nutrition.

Based in Lausanne, Switzerland,

the Nestlé Foundation for the

Study of Problems of Nutrition

in the World was established in

1966 by a donation by the Nestlé

Company on the occasion of its

centenary.

The Foundation is independent

and self-constitut ing and is

managed by a Council consisting

of at least 5 internationally well-

known scientists as Council

Members. The Foundation is

and has been financially and

operationally independent of

the Nestlé Company since its

inception.

The results of the research provide

a basis for implementation and

action, what leads to sustainable

effects generally applicable to

the population at large. They

should also enable institution

strengthening and capacity

building in a sustainable manner

in the host country and further

cooperation and collaboration

between institutions in developed

and developing countries.

Many Afr ican projects have

b e e n b e n e f i c i a r i e s o f t h e

Nestlé Foundation. In Kenya,

the Foundation is working in

collaboration with the University

of Nairobi on improving the

Nutritional Status of Children

between 6-18 months in semi-

ar id areas. In Uganda, the

Makerere University is studying

the potential of amaranth grain

seeds to improve the nutrition and

health status of school children.

In Malawi, the Foundation is

sponsoring the University of

Malawi, College of Medicine,

to conduct a Mangochi Child

Nutrition Intervention Study.

Nestlé Nutrition Institute

In Africa, the Nestlé Nutrition

Institute will be of considerable

help to Nestlé EAR in fulfilling its

commitment to the advancement

of nutrition in the region.

The NNI is a multidisciplinary,

e d u c a t i o n a l o r g a n i s a t i o n

dedicated to the science of

nutrition for people of all ages.

The institute provides information,

guidance and support to use

the latest scientific discoveries

and their application to achieving

optimal nutrition.

It is the vision of the NNI to

provide continuous access to

the latest nutrition information to

health care providers to empower

them with knowledge, access

and motivation necessary to

promote good nutr it ion and

healthy lifestyles, throughout

the lifecycle of the populations

they are serving. The Institute

provides support in the following

areas: scholarships, medical and

scientific meetings, continuing

pro fess iona l deve lopment ,

c o n c e p t i o n o f e d u c a t i o n

materials, nutrit ion research

awards.

39


Nutrition, Health and Wellness

Food Fortification

To address malnutrition in the

region, Nestlé EAR builds on

food fortification – a long term,

la rge-sca le so lu t ion . Food

fortif ication, or nutrif ication,

consists in adding micronutrients

to food products to deal with the

most prevalent deficiencies. This

solution has the dual advantage

of being able to deliver nutrients to

large segments of the population

without requiring radical changes

in food consumption patterns.

To achieve this, Nestlé works

with local health and regulatory

experts, analysing local nutrition

landscapes – the nutrit ional

status, nutrient intake and dietary

habits of the population. The

company is then in a position to

add micronutrients to its Popular

Positioned Products to address

deficiencies with affordably priced

products.

Branded Active Benefits

Nestlé offers consumers a variety

of products with Branded Active

Benefits (BABs). These physi-

ologically active food components

are incorporated into a selection

of food and beverages categories

to provide scientifically proven

complementary health benefits

that go beyond the taste and

natura l nut r ient content o f

the product themselves. So

far, 15 individual BABs have

b e e n d e v e l o p e d a n d a r e

being used in many products

to improve digestive health,

increase immunity, aid weight

management, boost physical and

mental development, and support

healthy ageing amongst others.

60/40+ concept

The 60/40+ concept is the

tangible expression of the Nestlé

vision. Increasingly the consumer

is looking to food to provide

nutritional and health benefits,

although not at the expense of

taste but in addition to it. 60/40+

means that in rigorous market

testing 6 out of 10 consumers

prefer the Nestlé product to a

competitor’s equivalent. It also

means that we always thoroughly

search for ways to add that

nutritional 'plus'. This result is

achieved through an in-depth

search for the perfect balance

between taste and nutritional

content.

Key to th is p rocess i s the

nutritional assessment of Nestlé

products. Nutritional assessment

is carried out by R&D nutritionists

who assess the levels of nutrients

and the intrinsic value of key

ingredients in our products.

— an everyday reality at Nestlé

40

The potential contribution of the

product makes to daily needs for

a healthy balanced diet can then

be determined.

The assessment identifies

nutritional strengths and

weaknesses, and provides

d i rect ion for product

improvement leading to

nutritional superiority.

Ultimately, the consumer

i s t he w inne r w i t h a

tested process in place

to continuously improve

the nutritional value of foods they

prefer.

Nutritional Compass

The Nestlé Nutritional Compass

was introduced by the company in

2005. It is an on-pack information

panel that provides consumers

with relevant, easy-to-understand

nutrition information, empowering

them to make informed decisions

about the food they eat.

We bel ieve that by provid ing

transparent and easy to understand

nutrition information on all our

p ro d u c t s , w e c a n h e l p o u r

consumers achieve a balanced

diet. This information is given in a

standardised format that will allow

the consumer to easily compare

the amount of energy, protein,

carbohydrate, fat, sugars or salt,

in different products per typical

serving. It also includes tips on how

to insert the food in a balanced diet.

Ultimately, the consumer is the winner with a tested process in place to continuously improve the nutritional value of foods they prefer.

41


42

PEOPLE DEVELOPMENT

43


People are Nestlé’s greatest asset

Perhaps it’s because food is

such a fundamental human need.

Perhaps it’s because we have

to be extraordinarily close to our

consumers and understand their

physical and emotional desires.

Whatever the reason, Nestlé is a

very human company. We care

about our people. We encourage

and bring out the best in them.

We work hard to ensure that they

benefit as much as they can from

their work at Nestlé.

The result is a very close-knit

company – even though some

278,165 people are spread

around the globe. What binds

them together is a common culture

and a high degree of loyalty – to

the Company and to each other.

The Nestlé culture or Nestlé spirit

is difficult to describe. It’s partly

to do with openness to ideas

and thoughts and a willingness

to learn from one another. It’s

also to do with giving individuals

Nestlé Kenya Factory.

44

the opportunity to add value in

whatever way they can.

While Nestlé expects a lot from

its people, it gives a lot back.

There is a sense of fairness and

consistency that is reflected in a

straight and honest, pragmatic

hardworking ethos.

Among univers i ty and MBA

students and graduates from

many backgrounds – for example

in the sciences, economics

or marketing – Nestlé is often

cited as one of the top favourite

companies to work for.

One reason is that wherever you

start work at Nestlé, the whole

world is opened up for you. It’s

not uncommon to work in as

many as four or five different

countries during the course of a

career at Nestlé. In some ways

there’s no such thing as a single

career. The diversity of disciplines

gives people the chance to

pursue many different careers.

To name a few among dozens:

research chemist, cook in the

test ing ki tchens, consumer

s e r v i c e s m a n a g e r, b r a n d

manager, manager in investor

relations or human resources,

auditor, productivity consultant,

and many more.

People not only move from country

to country, but also between

disciplines. That’s one reason why

so many people make a career for

life at Nestlé. Another is that we

make a point of “home-growing”

our own management, thereby

providing more opportunities for

advancement.

Human Resources is present in our

Operating Companies, with the

objective of actively contributing

to people performance in order

to increase the competitiveness

of the Company, preserve and

evolve the Nestlé cultural identity,

and listen & reflect the employee

view to the business.

The Centre of Expertise based

in Nairobi, provides support to

the HR Business Partners in the

areas of Training, Management

Development, Recrui tment,

Compensation & Benefits and

Manpower Planning & Legal

Compliance.

Nestlé EAR Head Office.

45


One-on-one with John Godfrey WanyamaCorporate Safety Health and Environment (SHE) Manager, Nestlé Equatorial African Region

John graduated with a Bachelor

of Science degree in Chemistry

from Moi University in Eldoret

(Kenya) in 2000. He later did an

MBA in Strategic Management

at the United States International

University (USIU-Kenya) and

an Internat ional Diploma in

Occupational Safety and Health at

the British Safety Council, London

(UK). He joined Nestlé Equatorial

African Region in May 2010 in

his current capacity and has just

completed one year with the

company. Prior to joining Nestlé,

he worked in various capacities

in both Unilever in Kenya and

Coca-Cola South African Bottling

Company.

My exper ience so far at

Nestlé…

When I heard about Nestlé’s

plan to create a new region in

Equatorial Africa (comprising of 20

countries), two things immediately

struck my mind. Having previously

worked in a regional office (albeit

with a fewer number of countries),

the first thing that struck me

was the different dynamics and

complexities of the countries

involved. The second th ing

was the opportunity to create

something new just like a painter

would do on a canvas. Therefore,

being someone that is motivated

by new challenges, I couldn’t let

the opportunity pass when I got

the chance to be part of the EAR

team.

I t has been an in te res t ing

experience so far, learning about

the company, its values, the

culture and the dynamics within

it. Some things were immediately

apparent after I joined the region:

the diversity in terms of people

and the number of years people

had been with Nestlé (I was a

few hours old then). Living in an

era where the lifespan of talent

in organizations is increasingly

declining, the impression was that

there must be something being

done right about talent retention.

The amount of experience could

not go unnoticed. As I read more

about the company, talked to

people who had been around

for a while and learnt what the

business stood for, the focus on

creation of shared value stood

out.

46

I realized Nestlé is not a company

that is out to make a quick buck

but one that will consistently strive

to add value to the community

in everything it does. It felt good

to be involved with a company

tha t be l i eved in long te rm

sustainability and was willing to

invest even in the most complex

of circumstances.

However, my biggest surprise

was to discover just how much

Nestlé globally invests in research,

the technologies Nestlé keeps

discovering, the expanse of

the product lines, the efforts in

consumer research, its fortification

programmes and the many

initiatives being run in various

countries. I had heard that Nestlé

was the largest food company in

the world but this only hit home

after realizing just how much

is being done and how many

resources are being invested in

the different areas of the business.

In view of this, I believe there

is opportunity to communicate

more about the good things we

are doing as a company and

make ourselves and our products

visible in our market.

What I enjoy most in my role...

As an Environmental, Health

and Safety professional, I am an

ardent believer in the International

Labour Organization’s principle

that “Decent work must be

safe work”. I see my role as an

opportunity not only to make sure

that the working environment

everyone is working in is safe and

decent, but that everyone goes

back home to their loved ones in

the same condition they came to

work in if not better, but probably

just a little bit tired because they

worked hard. It is challenging but

the fulfilment of preserving life and

uplifting humanity at the same

time while making an effort to

preserve our planet is immensely

enjoyable.

I am also a f irm bel iever on

environmental ly sustainable

profits and the moral responsibility

that companies have to ensure

this is the case. It is therefore

fulfilling to work with a company

that shares this belief and strives

for environmental sustainability

in its investments, its long term

choices and the openness to

share with the world the efforts it

is making to ensure environmental

sustainability.

My greatest ambition within the

company...

Martin Luther King Jr. once said that

all labour that uplifts humanity has

dignity and importance and should

be undertaken with painstaking

excellence. From the very onset,

Henri Nestlé created a company

geared towards uplifting humanity

by providing healthy solutions. I

believe what I do is geared towards

uplifting humanity by preserving

life. My greatest ambition within the

company would be to make my

mark and one day retire without a

single loss of human life through

work related causes that are clearly

predictable and preventable.

My advice to new recruits...

Take time to learn and understand

the company then leave your

footprint. As someone once said,

never be afraid to try, remember….

Amateurs built the Ark, professionals

built the Titanic.

"I realized Nestlé is not a company that is out to make

a quick buck but one that will consistently strive to

add value to the community in everything it does. It

felt good to be involved with a company that believed

in long term sustainability and was willing to invest

even in the most complex of circumstances."

47


48

CREATING SHARED VALUE IN EAR

49


“Creating Shared Value is a basic principle of business strategy and fundamental to our overall success as a company. By Creating Share Value, we mean that that in order to create long-term business success, we have to create value for our shareholders and value for the society at the same time. Creating Shared Value is not philanthropy or an add-on. We have been integrating the improvement of the lives of workers, families and communities into our core business strategy since the Company’s creation in 1866.”Peter Brabeck-Letmathe, Chairman, Nestlé S.A.

Appl ied as a da i ly work ing

principle, this definition of our

strategy has led Nestlé EAR

to develop strong operating

companies that fully integrate into

the social, cultural, and economic

lives of the countries in which they

operate.

Thus, as is the case throughout

the world, Nestlé EAR is involved

in programmes and projects

designed to improve the lives of

communities in those countries.

These programmes focus on

points essential to quality of

l ife improvement: education

to nu t r i t i on requ i remen ts ,

health issues awareness, water

sanitation and supply, nutrition

research and development, rural

development through agricultural

assistance.

CSV actions in Nestlé EAR go

beyond the mere concept of

social corporate responsibility.

They proactively meet pressing

societal needs, and aim at

bringing a long-term improvement

of the quality of life.

50

Taking place s ince 2007 in

Kenya, Uganda and Rwanda, the

project is a ten-year plan aiming

at improving the lives of around

179,000 dairy farming families,

representing approximately one

million people overall In financial

terms, the project target is to

bring in year 10 an average 240%

increase in net dairy income ($

per day) per household. The

East Africa Dairy Development is

funded by the Bill and Melinda

Gates Foundation. It gathers

Heifer International, the lead

partner, ABS, for breeding and

genetics, ICRAF, for feed and

fodder, TechnoServe, for business

and marketing, ILRI, for research,

and private sector partners,

including Nestlé and Tetrapak.


participates in this project with

two objectives in mind: to put

our expertise at the service of

the dairy community, and to

establish a sustainable long-term

procurement line of milk powder.

Carefully planned, the EADD

project articulates on several

objectives and operational steps

Improving Food Security in East Africa

East Africa Dairy Development Project: Kenya, Uganda, Rwanda

PROJECT OBJECTIVE 1: To generate information for decision-making on the dairy value chain, and to develop innovative solutions for use of resources that increase income.a). Establish and maintain a knowledge-based project b). Generate necessary research

to inform project analysis and decision-making

PROJECT OBJECTIVE 2: To expand dairy markets and increase market access for smallholder farmersa). Organize smallholder dairy

farmers to effectively bulk and market dairy products

b). Ensure steady, cost-effective supply of goods and services to farmers and farmer groups

c). Expand dairy markets

PROJECT OBJECTIVE 3: To increase dairy productivity, efficiency and sustainability a). Organize and strengthen

dairy farmers to manage dairy businesses with efficiency.

b). Increase on-farm milk production through the adoption of productivity

enhancement technologiesc). Sustain production and

quality of milk through improved animal healthcare and nutrition

EADD OBJECTIVES AND OPERATIONAL STEPS

51


that will progressively improve the

production capacity and quality

standards in the sector, at all

levels.

Nestlé EAR is contributing to the

project by ensuring that quality

standards are properly set up

and that stringent quality

control processes are enacted

across the entire value chain.

Amongst other serv ices,

Nestlé shares its expertise

on specific fields, such as

the elaboration of fresh milk

quality management system

processes, and equ ipment

specifications for fresh milk quality

analysis.

This aims at addressing an issue

well known by stakeholders in

the dairy industry, when bad milk

mixes with safe supply, resulting

in an entire bulk rejected at the

factory gate, with corresponding

losses for the farming families.

To apply this expert ise in a

concrete manner, Nestlé EAR is

offering assistance to develop

a model milk village in Kabiyet

(Western Kenya), an experience to

be duplicated by several farming

communities in Kenya, Uganda

and Rwanda with the assistance

of EADD staff.

Based on the Nestlé Milk District

Model, already successful in

India and Pakistan, the Kabiyet

Milk Village project involves all

• 27+ new farmer-owned chilling plants set up and staffed

• 19 new farmer-owned micro-finance institutions established at hubs

• 179,000 families with access to a cross section of micro-finance products

• 12 commercial banks whose loan officers are trained on dairy business and information flows from dairy businesses

• 14 traditional traders organizations trained to increase milk handling capacity and milk-quality management of their members

• 90% reduction in milk loss due to spoilage

• 415 community-based animal healthcare providers

trained and equipped as accredited artificial insemination technicians

• 110,000 improved animal houses

• 169,000 farmers trained in basic animal record keeping and traceability

• 169,000 farmers with access to Business Development Services

• 162 women in leadership positions

• 81 youth in leadership positions

• 1482% increase in sale of processed milk from farmer milk

• 1,591% increase in sale of other processed milk products from farmer milk

Turned into reality over a period of ten years, the EADD project will bear fruits for the whole dairy farming community, amongst others:

Nestlé Global Chairman visiting Kabiyet Dairies Limited.

52

actors in the dairy chain: small,

medium and large dairy farms,

milk collection points, chilling

p lan ts , p rocess ing p lan ts .

Nestlé is intervening in waste

water management and general

housekeeping at the chilling plant,

essential for the environment

and for an optimal milk quality

respectively. In order to optimise

processes Nestlé is proposing

an evening milk collection as well

as more effective transportation

methods focussed on cost-

optimisation.

At farm level, Nestlé specialists

are conducting both on-farm

and in classroom training, on

animal welfare, breeding, fodder

management and mycotoxin

management for dairy feeds. And

further along the supply chain,

Nestlé EAR is involved in quality

improvement and food safety

management at the processing

plant level.

The location of this Nestlé model

milk village in East Africa was

selected due to its impressive

potential for growth. Kabiyet

Dairies chilling plant was set

up in June 2009, when 6,000

farmers came together to form

Kabiyet Dair ies Limited and

started supplying milk. The daily

supply of milk was 1,600 litres.

With better payment terms and

a sophisticated milk reception

method, the supply started rising

sharply, to reach 35,000 litres

per day by June 2010. There are

currently 16,000 commercial milk

farmers in the Kabiyet area, who,

for the majority, used their milk for

their own consumption, or sold

to hawkers at a discounted price.

Their milk never entered into the

supply chain.

Through this effort towards

ensuring milk quality and food

safety across the dairy value

chain, Nestlé EAR shows how

our Creating Shared Value policy

really works. Nestlé EAR will

soon obtain more and better milk

powder from within the region,

hence decreasing its dependency

on imports, while the dairy value

chain stakeholders acquire new

skills and see an increase of their

revenue at the end of the chain,

the customer, the end-user,

benefits from safe and improved

quality food products.

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Coffee research scholarships: Tanzania, Uganda

“At a time when farmers are hungry for more clones of improved diseases resistant coffee hybrids, while the efforts made by TaCRI (Tanzania Coffee Research Insititute) to meet this demand in vain, a good friend appeared to assist at a very critical point. The options of conventional vegetative propagation are time consuming and limited in capacity of seedlings that can be produced. It is true that somatic embryogenesis is the fastest and most efficient way to produce clones, but it is also initially expensive. Here is where we received the much needed assistance. Thank you, Nestlé.” Damian Mtenga, Tanzanian Coffee Research Institute

It is a wel l-known fact that

the Equatorial African Region

produces one of the best coffees

in the world. Quite logically, Nestlé

is playing a key role in assisting

coffee farming communit ies

to enhance the quality of their

production and, as a result, to

elevate their living standards.

As a sign of this commitment,

Nest lé has sponsored two

scientists from the Tanzania Coffee

Research Institute (TaCRI) and the

Uganda Coffee Development

Authority (UCDA) for a one-year

scholarship to study somatic

embryogenes is in Nest lé ’s

Research and Development

centre in Tours, France.

Somatic Embryogenesis (SE) is not

genetic modification, but instead

a highly efficient propagation

techn ique . Us ing embryos

that are exact copies of a tree

selected for its characteristics, SE

is a substitute to the traditional

vegetative propagation method.

Applying the SE technique will

help Uganda and Tanzania to

propagate improved Robusta

and Arabica varieties respectively,

more resistant to diseases and of

better cup quality profile. The plan

aims at assisting the Ugandan

and Tanzanian coffee farming

communit ies achieve better

quality beans within a shorter

growing period, thus also allowing

higher yearly overall crop output,

with related revenue increase.

54

Developing Women Entrepreneurship

This pro jec t i s par t o f our

s u s t a i n a b l e d e v e l o p m e n t

initiatives supporting the first

Millennium Development Goal,

which is to eradicate extreme

poverty and hunger. Run in the

Democratic Republic of Congo

in Kinshasa, it aims at providing

perennial revenues to a group of

unemployed women through a

unique micro-retailing model. The

New Hope project targets women

from the lower level of urban and

suburban populations who have

no other means of earning a living,

and who are yet often expected to

cater for the needs of the family.

Those women receive a seed

capital, in the form of a stock

of Nestlé products and related

marketing tools, such as branded

tables, kiosks, marketing materials

such as leaflets, and posters,

adapted to the informal channels

in which their sales activity is

taking place. The beneficiaries

are expected to generate revenue

through sales, which would enable

them to replenish their stock.

Nestlé’s implementing partner

in this project, works in close

collaboration with the Nestlé DRC

team to secure a regular supply of

products and to train the women

in micro business management.

The project a lso includes a

partnership with micro-finance

institutions, where dedicated fund

managers assist the beneficiaries

in re-investing their capital to

sustain their earnings.

New Hope Project: Democratic Republic of Congo

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Mauritius is a country suffering from numerous and serious health issues. National statistics are indeed painting a gloomy picture:

• 38% of the population are

obese or overweight

• 20% of the population

aged 30 years and over

suffer from diabetes

• 30% of the population

suffer from hypertension

• 45% of the population have

a high cholesterol level

• 75% of the male population

and 90% of the female

population do not practice

physical exercises

(Source: Mauritius Ministry

of Health survey, 2004)

Over the past 20 years, there has been significant increase in the number of non-communicable diseases in Mauritius. The main causes are a sedentary lifestyle spread across the Maurit ian society, and poor eating habits coming right from childhood.

Promoting Nutrition, Health and Wellness in Equatorial African RegionBetter Food for Better Life: A Nutrition and Wellness awareness campaign in Mauritius

Nestlé Maurit ius launched a national campaign using its experience and expert ise in nutrition, health and wellness to help reduce the enormous health complications associated with non-communicable diseases.

This campaign articulates several key actions, all of them promoting an increased awareness of nutrition and associated health issues.

Through different init iat ives, Nest lé a ims at reaching a l l relevant stakeholders: local authorities, NGOs, hospitals and health centres, social welfare associat ions and above al l , consumers and society at large.The campaign used a huge range of channels to disseminate the relevant information:

• internal training: nutrition

Sampling and information dissemination by Nestlé Mauritius to consumers.

56

Kudyarawanza is a rural school

located about 45km from Harare,

the capital city of Zimbabwe. The

school has an enrolment of 470

pupils housed in 15 classrooms.

The school was adopted by

Nestlé Zimbabwe in 2002 as

part of the then corporate social

responsibility. Back then, around

50% of the pupils were orphans

whilst others were brought up by

single parents and grandparents

who faced economic challenges

to educate these children. Nestlé

came in to compliment efforts by

the community to educate their

children by paying for school fees

and purchasing of uniforms for 50

children .

Kudyarawanza Primary School Kudyarawanza School has since

then been adopted as the Nestlé

Village. A borehole has been

sunk to provide clean and safe

water for both, the school and the

community. A nutrition garden

has been set up to maximize use

of the donated borehole. School

children will compliment their

nutrition studies with hands on

projects in the garden. Surplus

produce wi l l be sold to the

community and proceeds will go

towards the school development.

In addition to all this, Nestlé

Zimbabwe has reserved every

Labour Day for staff to offer their

services voluntarily and give any

form of donations towards the

school development. Nestlé staff

have donated clothes, furniture,

books and their time to offer

their skills in order to improve the

welfare of these disadvantaged

children. This has seen the

school being painted, re-flooring

of classrooms and renovation of

the Early Childhood Development

classroom which was in a bad

state. Through Creating Shared

Value, it is Nestlé’s desire to create

lasting value for the communities

in which it operates.

Creating Shared Value -

training amongst Nestlé

staff in order to ensure that

the latter has the proper

nutrition knowledge.

• point of sales events:

road shows in shopping

malls and supermarkets,

quizzes, cooking contests

• media: daily radio talk

shows, with Nestlé’s

nutritionist supplying nutrition

tips to consumers

• professional information:

publications from Nestlé

Nutrition Institute of Africa

(NNIA) delivered to community

health care professionals.

• scientific events: nutrition

lectures, scientific meetings

on diabetes and

cardio-vascular diseases.

• sports events in schools:

MILO sports awards, which

in December 2008 earned

Nestlé the recognition from

the country’s Minister of

Sports "the Sports-friendly

Company Award".

• blood donation by Nestlé

Mauritius employees

57


“By combining Peace and Sports across such a tremendous array of tribes and communities currently involved in conflict, and by offering their youth the only opportunity to interact, the Laikipia Highlands Games are crucial to the development of a peace process in the area” Kuki Gallmann, writer (I dreamed of Africa), founder of the Laikipia Highlands Games

The Laikipia Highlands, in Kenya’s

North Rift Valley region, where

several pastoralist tribes used to

coexist peacefully for ages, has

in recent years been the theatre

of cattle rustling, tribal fights,

retaliation raids…

Local communities have been

severely affected, with hundreds

of people, including women and

children, killed in the clashes,

and thousands others being

displaced.

In addition, the most severe

drought experienced over two

generations has exacerbated the

tension.

The Laikipia Highlands Games in Kenya

Access to water and pasture have

thus become an added bone of

contention.

Tw o N G O s , t h e G a l l m a n n

Memorial Foundation (GMF)

and the Great Rift Valley Trust

(GRVT), involved for many years

in communi ty serv ices and

reconciliation efforts in the region,

have launched from the beginning

of 2009 a food relief operation.

Joining forces with the two NGOs,

Nestlé Kenya has provided NIDO

powdered milk to the people of

Western Laikipia.

An estimated 28,000 women,

children and elderly have been

fed since, and the programme is

ongoing.

Later in 2009, GMF and GMVT

went beyond the simple relief

action, and created the Laikipia

Highlands Games, a unique

sports event dedicated to bring

together youths from the warring

communit ies and to br idge

divisions through peaceful athletic

competitions. Nestlé Kenya was

again supportive of the Highlands

Games, with MILO products

distributed to all participants.

58

N e s t l é s u p p o r t s n u t r i t i o n

education programmes that

currently reach children in 30

countries worldwide.

To rationalise all its nutrition

education programmes Nestle

had Launched in 2009 the Nestlé

Healthy Kids Global Programme.

Designed in collaboration with a

partner (either a NGO or a national

authority), and with child nutrition

experts, Healthy Kids builds on

Nestlé’s existing base of 30 health

programmes.

The Nestlé Healthy Kids Global Programme

It aims at addressing one of the

world’s most complex health

challenges today – increasing

malnutrition and obesity rates

among school-age children

Through nutrition education, the

health and nutrition messages

are specifically designed to bring

beneficial changes in children's

eating habits, and to combat the

issues of malnutrition and obesity.

In the Equatorial African Region,

in its first year of implementation,

the Healthy Kids Programme

targets around 10,000 children in

different countries including Kenya

where the programme focuses on

malnutrition and micro-nutrient

deficiencies, and Mauritius and

Mozambique, where combating

child obesity and unhealthy eating

habits are the main focus.

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Nestlé EAR Countries ContactsNestlé Angola LdaTensai Business CenterTalatona - Luanda -SulTel: +244 934 764604 / 934 764605Email: [email protected]

Nestlé CONGO SPRL,Coin des avenues LUKUSA et NGONGO LUTETE2ème Niveau Immeuble Citigroup BP 9192Kinshasa/GombeTél.: +243 81 555 4773E-mail: [email protected]

Nestlé in EthiopiaRepresentative OfficeWorké’s Promise BuildingAlexander Pushkin StreetP.O. Box 3203 Code 1250Ethiopia, Addis AbabaOffice: +251 911507908Mobile: +251 118500542E-mail:[email protected]* : [email protected]* : [email protected] Nestlé Kenya LimitedPate Road, Industrial AreaP.O. Box 30265-00100Nairobi, KenyaTel: +254 020 3990000Fax: +254 020 532572E-mail: [email protected]

Nestlé Sea Trading MadagascarMG-Antanarivo 101Zone Industrielle ZitalBatiment SDS 1st. FloorAnkorondranoTel: +261 2022 23927Fax +261 2022 250 30E-mail: [email protected], Antanarivo

Nestlé Zimbabwe (Pvt) Limited38, Samora Machel AvenueP.O. Box 1668Zimbabwe, HarareOffice:+263 4 702393-7 Mobile :+263 912 895931Fax :+263 4 250401Email: [email protected]

Nestlé Zambia Trading LimitedPlot 7403, building "C"Mungwi Road,P.O. Box 310101Lusaka, Zambia,Office:+260 965 038 000E-mail: [email protected]

Nestlé Equatorial African Region LimitedThe Atrium, Chaka RoadP.O. Box 50813-00200Nairobi, KenyaTel: +254 020 4984000Fax: +254 020 2533861E-mail: [email protected]

Nestlé Products (Mauritius) LimitedNorth Motorway Riche TerreP.O. Box 366Port Louis, MauritiusTel: +230 249 3535Fax: +230248 9595E-mail: [email protected]

Nestlé Mocambique LDACaixa Potal 792Mozambique, MaputoTel: +258 21 360 379/387Fax: +258 21 360 403E-mail: [email protected]

Nestlé SEA Trading Limited – Tanzania BranchNestlé SEA Trading LimitedPlot 565, Old Bagamoyo Road, Kawe BeachInfotech PlaceP.O. Box 105665Tanzania, Dar Es SalaamOffice: +255 222 78354Fax : +255 222 781359E-mail: [email protected]

Nestlé Equatorial African Region(EPZ) LimitedUganda BranchPlot 1, Bandali RiseLuthuli Avenue, Bugolobi,P.O. Box 2984Kampala, UgandaOffice: 256 41 423 5070Fax : +256 414 222496E-mail: [email protected]

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