Nestle announced its decision to overhaul infant nutrition business
Date: 2017-11-16   Author: Satarupa De  Category: #market

In what may be touted as an attempt to prioritize on faster growing business verticals, Nestle, the food and beverage giant has apparently declared its decision to reorganize its infant-nutrition division, especially amidst the speculation of the company’s sluggish overall sales. Allegedly, the Swiss giant is on the verge of shifting its baby food business from a global perspective to a regionally managed unit. A new strategic unit would be incorporated to implement this latest nutrition strategy, cite sources.

For the uninitiated, Nestle currently holds the title of the world’s largest food and beverage company, boasting of a baby food business that claims to be operation for the last one and half centuries. Having said that, it has been reported that the Switzerland based food conglomerate has been somewhat experiencing a tough time over the last two years. The move thus, cite experts, is a strategic attempt by the company to curtail reporting lines in order to score a competitive advantage over other startups and local rivals.

If sources are to be relied on, the new strategic division would allow Nestle to deliver accelerated organic growth and realize efficiency gains. Reportedly, the increasingly efficient and more agile structure of the new unit would also enable the company to respond better to the changing dynamics of the food industry with regards to consumers’ changing preferences, demand for customized solutions, and evolving regulations.

For the record, Nestle, encompassing a chain of inhouse brands such as KitKat chocolate, Nespresso, and Perrier water, is slated to witness even lower sales growth than the abysmal value it recorded in the year 2016. In a bid to respond to this crisis, the company is apparently planning to bring a change in its business strategy, which analysts claim is vividly coherent from its increasing focus on reorganizing the infant nutrition business.

Sources have claimed that this is probably the first time the Swiss Group has shifted its business strategy from sales growth to increasing profit margins.



About Author


Satarupa De

Satarupa De

Satarupa currently works as a associate content writer at AlgosOnline. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writin...

Read More

More from Satarupa


Post Recommendents

Four things to know about construction equipment rental market
Author: Saipriya Iyer

Construction equipment rental market apparently recorded a valuation of USD 100 billion in 2017. As per Global Market Insights, Inc., the vertical hit the coveted 100-billion frontier owing to rapidly expanding constru...


Distribution panel market valuation to cross USD 7 billion by 2024, five pivotal regional trends to look out for
Author: Saipriya Iyer

Global Market Insights, Inc., projects the overall distribution panel market size to register a CAGR of 5% over 2017-2024. The industry growth is reportedly driven by the increased funding provided toward electrifying ...


Nitrile butadiene rubber (NBR) powder market revenue to hit USD 600 million by 2024, four regional trends to look out for
Author: Saipriya Iyer

Nitrile butadiene rubber powder market size is reportedly anticipated to register a CAGR of 6.5% over 2017-2024, with the robust expansion of the automotive sector being the principal driver. OICA’s estimates cla...