Good Food, Good Life

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Good Food, Good Life
Presented by Susan Wang
Adam Hurlbert Windy
Wang Catherine Ning
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• Text Your Chocolate IQ

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• The best way to store chocolate is
• In the fridge
• In a cool, dry place
• Next to the stove
• It should never be stored
• just eaten right away

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• The Aztec name for chocolate was xocalatl (try
  saying that 5 times fast), which means
• A. MedicineB. Brown pasteC. Fruit of the
  godsD. Bitter water

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• White chocolate is
• A. Not really chocolate B. Cocoa butter without
  the cocoa liquorC. Sweetened milkD. A disco
  group from the 70s

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• Which country consumes the most chocolate per
  capita?
• A. The USAB. FranceC. SwitzerlandD. United
  Arab Emirates

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• Finish the sentence The higher the cocoa level
• The darker the chocolate
• The bigger the chocolate bar
• The more romantic the date
• The higher the price

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Overview

• Introduction
• History
• SWOT
• Global Market
• Industry Analysis
• Competitors
• Recommendations

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Introduction

• Type Public
• Founded 1866
• HQ Vevey, Switzerland
• Key people Henri Nestle (Founder)
• Products Chocolate, water, dairy products
• Revenue 88.6 billion USD
• Net Income 4.9 billion USD
• Employees 305,000

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ANCIENT HISTORY OF CHOCOLATE

• Cocoa and Maya Civilisation(600 AD)
• 4 cocoa beans a pumpkin
• 10 cocoa beans a rabbit
• 100 cocoa beans a slave
• The Aztec Empire
• Food of the Gods
  

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• First Chocolate For Eating (1847)
• Created by Fry Sons in Bristol, England.
• Only plain dark chocolate
• First milk chocolate bar (1875)
• Daniel Peters (1836-1919)

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History of Nestlé

• 1866-1905
• Farine Lactée Henri Nestlé
• Merged with Anglo-Swiss Condensed Milk Company
• 1905-1918
• By the early 1900s, the Company was operating
  factories in the United States, Britain, Germany
  and Spain.
• World War I
• 1918-1938
• The end of World War I brought with it a crisis
  for Nestlé.

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1938-1944 World War II Nescafé became popular
1944-1975 Dozens of new products were
added Outside companies were acquired In 1974,
the Company became a major shareholder in
L'Oréal 1996
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(No Transcript)
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Industry Analysis

• Very strong globally
• Many different brands
• Compete in several markets
• Chocolate, dairy products, food, water, baby food
  and pet food

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SWOT Analysis

• Strengths-
• Many products with wide variety
• Flexibility
• Recognized world wide

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SWOT Analysis

• Weaknesses-
• Compete in many markets
• Weak in US

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SWOT Analysis

• Opportunities-
• Healthy food market
• Asian Market

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SWOT Analysis

• Threats-
• Chocolate interest decrease
• Water

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Global market

• Nestle leads the global milk market with a 3.2
  share
• Leads the global ice cream market with a 17
  share
• Leader of bottled water in North America, Europe,
  Middle East-Africa
• Ranks third in the soft drinks global market with
  3.4 percent in total sales

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Nestle in Europe

• In 1868, set up a sales office in London
• In 1901, opened first UK factory
• In 1913, chocolate production began at Hayes
• In 1988, bought the British confectionery company
  Rowntree Mackintosh
• In 2007, teamed up with Barry Callebaut
• In Nov.2007, acquired Russian chocolate factory

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Nestle in USA

• In 1900, entered the US
• In 1984, acquisition of American food giant
  Carnation
• In 2002, merged with Dreyers of the US ice cream
  business
• In Aug. 2002, acquisition of Chef America
• In 2007, bought Gerber for 5.5 billion

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Kit Kat Issue

• Produced worldwide by Nestle except USA
• In USA, made under licence by Hersheys
• Number 1 brand in UK, the worlds
• 2 chocolate after snickers
• Japan pushed Kit Kat flavors the most

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Nestle in China

• In 1908, opened sales office in Shanghai
• In 1987, established the first joint venture
  company
• In 1990, the first factory opened
• In 1999, bought famous food seasoning company -
  Happy Wife
• In 2004, set up milk factory in Inner Mongolia

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Chinese market

• Most famous for Nescafe, Nesquick and Nestle baby
  mike formula
• Launched premium ice cream
• Ambitious to be leader in food-seasoning
• Condemned by consumers for
• its unqualified baby milk formula-
• too much iodine

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Competitors (chocolate)

• Mars Inc.
• Type Private
• Founded Tacoma, Washington (1911)
• Headquarters McLean, Virginia
• Key people Frank C. Mars, Founder
  
• Industry Confectionery manufacturing
• Products MM's, Snickers, Twix, and Skittles
• Revenue US 21 billion (2006)
• Employees 40,000 (2006)

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Competitors (chocolate)

• The Hershey Company Inc.
• Type Public
• Founded 1894
• Headquarters Hershey, Pennsylvania, USA
• Key people Milton S. Hershey, founder
• Industry Chocolate and candy manufacturer
• Products Hershey KISSES, etc.
• Revenue 4.944 Billion USD (2006)
• Net income 305.6 million
• Employees 14,352 employees worldwide
• Slogan "a palatable confection and a most
  nourishing food."

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Competitors (food)

• Kraft Foods Inc.
• Type Public
• Founded 1903
• Headquarters Northfield, Illinois, USA
• Key people Irene Rosenfeld, CEO
• Industry Food Processing
• Products Kraft, Nabisco
• Revenue 34.356 billion USD (2006)
• Net income 3.06 billion (2006)
• Employees 90,000 (2006)

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soft drink global market (2006)
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Competitors (water)

• The Coca-Cola Company
• Type Public
• Founded 1892 by Asa Griggs Candler
• Headquarters Atlanta, Georgia, USA
• Key people E. Neville Isdell, CEO Chairman
• Industry Beverage
• Products Water and Non-alcoholic soda drinks
• Revenue 24.088 billion USD (2006)
• Net income 5.080 billion USD (2006)
• Employees 55,000 (2006)
• Central promise to refresh the world in mind,
  body, and inspirit to inspire moments of
  optimism to create value and make a difference

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Competitors (water)

• Danone Group
• Type public
• Founded 1919
• Headquarters Paris, France
• Key people Franck Riboud, Chairman CEO
• Industry Food
• Products Dairy products (55), Water, Biscuits
  (18),
• Revenue EUR 13,024 million (1.9 million US)
  (2005)
• Employees 88,184

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Recommendations

• Short-term
• Local markets
• Purchase Kit Kat license in U.S.
• Health and Nutrition

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Recommendations (cont.)

• Long-term
• Continue to expand globally
• Other markets and one brand
• Quality of products

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Thanks for watching!

• Any questions?