Name: Nestlé CEO Mark Schneider on New Markets for the Company
Uploaded: 2020-01-15
Duration: 5 min 41 s
Description: Coffee and plant-based nutrition are at the top of the list.

Nestlé CEO Mark Schneider on New Markets for the Company

Leadership

Coffee and plant-based nutrition are at the top of the list.

mark what's going on at Nestle? Most people think of candy bars, chocolate. When you say the name Nestle. Now you've sold off that business and you're focused more on health and wellness. Tell us why you're going in that direction. I think the consumer around us is changing pretty fast. People become so much more health conscious and demand for healthier products. Good for you. Good for the planet type products is on the rise, and consumer goods company were all about leading and Fargo into consumer. You've been doing a lot of dealmaking since he became CEO three years ago. Let's talk about some of them. One of the big ones is the $7 billion deal that you did with Starbucks and you're selling its coffee products in a supermarket. How important is that for Nestle? That was a deal with very proud off because it really adds another key club will point them to our coffee lineup. So between Nescafe A, which stands for so little coffee espresso with stands, proportion, coffee and now a Starbucks, which also has a unique position in the world for premium coffee, I think we're controlling three pretty significant coffee brands with a distinctive taste profile. This has been a fast launch where half a year after the signing of the agreement, we were out of 24 products on the shelves seen overarching success. This year we're shooting for 250 million dollars of additional growth just this year coming from this point. Transactions. When you say $250 million of growth is that contributing to your sales, that is to sales. And that is the organic rope on the business we bought from them in the U. S. Plus all the new business we're generating now in more than 30 markets around the world. So it's been very successful. You actually started selling those Starbucks products first in Asia. Now you spread toe 40 countries. What else do you want to do with Starbuck? Well, now it's about Maur products coffee creamers, which would want this summer soluble coffee, which is going to come next year. So we have a problem chock full of innovations that give you that distinctive Starbucks taste profound experience right in your home. You've also gotten into the vegan burger market. You have the incredible burger that you healthy European customers. You call it the awesome burger in the U. S. Not quite sure why you call it awesome, but is this a trendy food fad? Or it's something bigger. So we called it awesome because it is awesome and we strongly believe in it. Do you like, Do you eat it? I love it. I've tasted burgers, probably every week for the last years old because as we're trying to get closer and closer to perfection, I wanted to be part of that team that sample the product, decide from the burgers. We are strong believers in plant based nutrition. We also have the meat business. But we do see more crop opportunity and plant based nutrition down the road. Western diets so over indexed on meat and dairy products that I think going a little lighter on badge does a whole lot for public health. And it also doesn't look for the ecological footprint of what we have to offer. There are other companies that air getting into this business is, Well, there's the impossible burger, which has a little bit of a head start on Nestle. How do you compete with these kind of Cos. well, first of all, this is a significant business opportunity just to give you a number for the US every year. 50 billion hamburger Patties sold in the U. S. That computes about three for adult American for a week. So this is a huge business. And if only part of that goes plant based, it means lots of opportunity for several players. In addition to taste, which everyone is chasing, we're also trying to offer Superior Nutritionals so lower saturated fat, lower sodium and also offer a product that has a good fiber content. And how much is this going to contribute to yourself? We have not disclosed the numbers for 2019. We just launched the products literally a few months ago. But overall, the plant based theme to us is one of the major game changers for our food business going forward. Tell us about your pet care business. Uh, it looks like consumers as they're going organic with their own food. Now they're coming up with organic choices for their dogs and cats. How big a market is this? It's a significant market is one of our top four growth businesses. In addition to infant nutrition, coffee and water. I think what's driving this is two things in advanced economies, pets are seen one Maur as family members, and you want to treat them just as well as any of the human family. Members want to offer the best food and beverage choices for the emerging markets. It's all about what we call caloric conversion, and that is, rather than feeding the pet with household ways to have dedicated pet food, which saves you time and money and, of course, is the healthier solution. So you're famous for the Purina brand with pet care? Are you thinking of expanding toe other lines or maybe making some acquisitions? Well, we have built this business business not only through organic growth, but also through acquisitions over the years will continue to do that. The Fortune Global conference that you are attending the theme of it is reinventing business for the next decade. As you look at reinventing Nestle, what do you want people to be saying about the company 10 years from now in the year 2030? I think these two key planks off healthier food and beverage choices served up in a more sustainable way so right for you, right for the planet. I think making good, incredible progress and being recognized for that by consume was that whole key agenda.