Solaron research spots supply chain risks 15 months before company hit with $50m product recall

Nestlé S.A.

NESTLÉ S.A.

Nestlé is a Swiss transnational food and drink company and the world’s largest food company by revenue.

In 2015 a food safety scandal led a to US$50 million product recall resulting in the company’s first quarterly loss in 15 years, and a 15% drop in share price over three months.

In March 2013 Solaron’s research highlighted a number of operational and financial risks in Nestlé’s emerging market operations including:

• Poor supply chain management.• Product safety concerns.• Inadequate product labeling policies..

March 2013 Solaron research into Nestlé uncovers significant operational and financial risks.

April 2014 Routine checks on Nestlé’s Maggi noodles range indicate presence of MSG – which is not listed on the label.

June 2015 – The Food and Safety Standards Authority of India order a complete recall of around 30,000 tonnes of Maggi noodles, valued at US$50 million. Share price drops 15% in three months.

August 2015 The Indian Government files a US$99 million class action against Nestlé for unfair trading practices, sale of defective products and selling without approval.