Nestle S.a. · SIX:NESN
Nestle — Investor Day (May 2016)
61 slides from Nestle's investor day presentation, May 24, 2016
Slide 1: Leading and Shaping the New Coffee Reality
Leading and Shaping the New Coffee Reality Patrice Bula EVP, Strategic Business Units, Marketing, Sales and Nespresso Nestlé Investor Seminar 24 – 25 May, 2016 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements.
Slide 3: Today's Coffee Menu
TODAY’S COFFEE MENU 1. The Coffee opportunity 2. Reinvigorate the NESCAFÉ brand 3. Accelerate Innovation Leadership 4. Build competitive gaps through proprietary technology 5. Win in portioned coffee systems 3 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 4: Today's Coffee Menu
TODAY’S COFFEE MENU 1. The Coffee opportunity 2. Reinvigorate the NESCAFÉ brand 3. Accelerate Innovation Leadership 4. Build competitive gaps through proprietary technology 5. Win in portioned coffee systems 4 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 5: The exciting New World of Coffee
The exciting New World of Coffee VARIETY & PREMIUMISATION & IN-HOME COFFEE-SHOP A 3 BILLION SOPHISTICATION NEW COFFEE EXPERIENCES QUALITY + CONVENIENCE CONSUMER POTENTIAL Coffee cups per person per year 100 <13 China, India, Rest of the Africa* World Nestlé, World of Coffee 5 CONFIDENTIAL – PROPRIET
Slide 6: Solid growth momentum driven by premiumisation and personalisation
Solid growth momentum driven by premiumisation and personalisation 2015 RETAIL COFFEE MARKET in CHF bn CAGR ’10-’15 95 TOTAL 5% 6.5 120 19 RTD 2% 6.5 6.6 16 Portioned1 18% 36% of expected growth 6.6 2.9 27 Soluble 5% 1.5 2.9 2.3 1.5 2.3 2.3 2.8 2.3 95 2.8 33 R&G 2% 2015 2015 US BRA Greater Russia Ot
Slide 7: Nestlé leading globally in a fast reshaping competitive landscape
Nestlé leading globally in a fast reshaping competitive landscape 15 13+ ~ 11 Coffee chains Keurig 4.3 JDE 2.7 2.4 2.0 2.0 5.3 1.4 1.4 1.3 1.0 0.7 JAB Estimated Net Revenue in CHF bn 7 Source: Nestlé estimates, based on FY 2015 revenues. JAB and Lavazza including M&A. CONFIDENTIAL – PROPRIETARY INFO
Slide 8: JAB: a different brand portfolio and footprint
JAB: a different brand portfolio and footprint Brand portfolio Categories & geographies footprint JAB: 50 brands1 Value share, 2015 (50+ licensed 44 44 in Keurig) 37 20 15 JAB 1 Nestlé Nestlé Soluble R&G Portioned 75% of sales in Western Europe & US 8 Note: 1. 34 brands owned by JDE + 20 owned by Ke
Slide 9: Nestlé leading globally in the fastest growing Soluble & Portioned segments
Nestlé leading globally in the fastest growing Soluble & Portioned segments Yet with an historical gap in North America Nestlé leader Other leader No data Soluble + Portioned coffee (excl. R&G, RTD) 9 Source: Euromonitor. Nestlé estimates where Euromonitor data are not available. CONFIDENTIAL – PROP
Slide 10: Today's Coffee Menu
TODAY’S COFFEE MENU 1. The Coffee opportunity 2. Reinvigorate the NESCAFÉ brand 3. Accelerate Innovation Leadership 4. Build competitive gaps through proprietary technology 5. Win in portioned coffee systems 10 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 11: Soluble coffee: solid growth momentum driven by Premiumisation and Mixes
Soluble coffee: solid growth momentum driven by Premiumisation and Mixes CAGR ’10-’15 2015 RETAIL COFFEE MARKET in CHF bn 7.6 Premium / 6% S. Premium 95 TOTAL 19 RTD Pure Soluble 16 Portioned1 9.0 Mainstream 3% 27 Soluble Premium / 2.9 7% S. Premium 33 R&G Mixes Mainstream 7.1 7% 3in1 2015 Source: N
Slide 12: NESCAFÉ: the leading coffee brand
NESCAFÉ: the leading coffee brand GLOBAL SCALE #1 COFFEE BRAND #3 MOST VALUABLE GLOBALLY BEVERAGE BRAND 6,000 44% cups/second share of soluble cups 170+ #1 system for retail 1 countries portioned coffee 2 3 (excl. N. America) 12 Source: Nestlé World of Coffee. Nielsen. Interbrand 2015. CONFIDENTIAL
Slide 13: NESCAFÉ: the leading coffee brand
NESCAFÉ: the leading coffee brand RESTAGE THE BRAND NESCAFÉ FLAGSHIP GROWING THE NESCAFÉ PLAN 1 2 13 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 14: CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 15: NESCAFÉ: the leading coffee brand
NESCAFÉ: the leading coffee brand RESTAGE THE BRAND NESCAFÉ FLAGSHIP GROWING THE NESCAFÉ PLAN 1 2 15 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 16: CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 17: NESCAFÉ: the leading coffee brand
NESCAFÉ: the leading coffee brand RESTAGE THE BRAND NESCAFÉ FLAGSHIP GROWING THE NESCAFÉ PLAN 1 2 17 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 18: CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 19: Connecting with Millennials
Connecting with Millennials A fresh brand voice New coffee experiences Above & beyond innovations 19 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 20: CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 21: With new coffee experiences
With new coffee experiences CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A. 21
Slide 22: And embracing the Cold Coffee opportunity: 80% of growth expected from Asia
And embracing the Cold Coffee opportunity: 80% of growth expected from Asia #1 IN GREATER #1 IN JAPAN #1 IN GREECE CHINA, ASEAN, (TAKE HOME) TURKEY 22 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 23: And innovating with patented technologies
And innovating with patented technologies N. 2 IN CHILLED, CHINA 2016 EUROPE 23 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 24: Above & beyond innovations
Above & beyond innovations 24 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 25: Today's Coffee Menu
TODAY’S COFFEE MENU 1. The Coffee opportunity 2. Reinvigorate the NESCAFÉ brand 3. Accelerate Innovation Leadership 4. Build competitive gaps through proprietary technology 5. Win in portioned coffee systems 25 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 26: NESCAFÉ: 77 years of innovation-driven profitable growth
NESCAFÉ: 77 years of innovation-driven profitable growth Vivaldi 1 + Dolce Gusto IceQ Volume Vivaldi 1 Green Blend Era Lsmuch Direct injection Everest, eden 2 jars VAX, Mont Blanc mixes Ges/gear, dawn jar Green coffee classification system Much process, sma in cup aroma Coffee concentrate japan Arom
Slide 27: 2015-16: mainstream NESCAFÉ relaunch
2015-16: mainstream NESCAFÉ relaunch New patented filtering technology 27 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 28: 2015-16: capture coffee origins authentic story
2015-16: capture coffee origins authentic story 28 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 29: Driving Premiumisation in Mixes
Driving Premiumisation in Mixes Patented mixing and foaming technology CHINA 29 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 30: Accelerating in Super Premium
Accelerating in Super Premium Patented yield splitting for intensive in-cup aroma and taste JAPAN: ULTRA-PREMIUM 30 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 31: Today's Coffee Menu
TODAY’S COFFEE MENU 1. The Coffee opportunity 2. Reinvigorate the NESCAFÉ brand 3. Accelerate Innovation Leadership 4. Build competitive gaps through proprietary technology 5. Win in portioned coffee systems 31 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 32: Building competitive gaps through proprietary technology
Building competitive gaps through proprietary technology Patent Patent Patent Removing harshness Extra-fine micronised coffee Intensive aroma & taste & undesired aroma at affordable cost Patent Patent Patent Patent Patent Coffee concentrates Increasing coffeeness White foam + for cold solubility abo
Slide 33: Making the difference in the cup
Making the difference in the cup GLOBALLY Example: ITALY Example: JAPAN winning liking scores 60/40 win consumer preference (60/40) vs. leading R&G brands vs. leading coffee-shop brands Parity 75% Win 33 Note: 85 tests run worldwide in 2015. Note: Italy - liking scores on short black cup, 200 consum
Slide 34: Today's Coffee Menu
TODAY’S COFFEE MENU 1. The Coffee landscape 2. Reinvigorate the NESCAFÉ brand 3. Accelerate Innovation Leadership 4. Build competitive gaps through proprietary technology 5. Win in portioned coffee systems 34 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 35: Nestlé pioneering and winning in portioned coffee
Nestlé pioneering and winning in portioned coffee 13% CAGR 2010-’15 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 35 Note: at constant exchange rate CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 36: Nespresso & NESCAFÉ Dolce Gusto: the leading brands in portioned coffee
Nespresso & NESCAFÉ Dolce Gusto: the leading brands in portioned coffee Portioned coffee retail value - World Top 10 coffee capsule brands (vol.) - World Brands System 1. NESPRESSO NESPRESSO JAB 2. PRIVATE LABELS SENSEO 19% 44% 3. NESCAFÉ DOLCE GUSTO NESCAFÉ DOLCE 4. SENSEO SENSEO 5. PRIVATE LABELS
Slide 37: NESCAFÉ Dolce Gusto: building the leading global retail coffee system
NESCAFÉ Dolce Gusto: building the leading global retail coffee system >1.2 bn sales (CHF) #1 in Europe, Latam New factory Double digit growth 82 markets & Asia in Brazil to support Retail machines & capsules sales growth ambition 37 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 38: NESCAFÉ Dolce Gusto: the fastest growing system in Europe retail
NESCAFÉ Dolce Gusto: the fastest growing system in Europe retail 50.0 %MS Machines – in units 45.0 40.0 35.0 30.0 27.9% 25.0 17.1% 20.0 15.0 15.9% 10.0 5.0 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 38 Source: GFK panel in units 17 Eur. markets retail only CONFIDENTIAL – PROPRIETARY INFORMATIO
Slide 39: Driving a powerful machine innovation pipeline
Driving a powerful machine innovation pipeline 2016 2015 Eclipse Stelia Drop 39 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 40: New unconventional coffee
New unconventional coffee 2015 2016 40 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 41: And surprising limited editions
And surprising limited editions 2015 Limited Edition 2016 Limited Edition 41 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 42: The recognised ultimate coffee experience
The recognised ultimate coffee experience 42 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 43: Continue to create competitive gaps
Continue to create competitive gaps CONTINUOUS CULTIVATING UNIQUE CONQUERING NEW INNOVATION AND CUSTOMER TERRITORIES PREMIUMIZATION RELATIONSHIP 43 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 44: Innovative rare coffee origins for new coffee experience
Innovative rare coffee origins for new coffee experience Price Index: 340 Price Index: 228 Price Index: 129 Price Index: 106 44 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 45: SULUJA: leveraging our unique direct to farmer sustainability program
SULUJA: leveraging our unique direct to farmer sustainability program “We drank our first cup this summer and it tasted just a little bit better knowing that it was from people who have worked so hard for normalcy and peace” George Clooney, Bloomberg 2015 45 CONFIDENTIAL – PROPRIETARY INFORMATION OF
Slide 46: CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
46 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 47: Creating gaps in machine design and functionalities
Creating gaps in machine design and functionalities 47 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 48: 20+ new markets and 50 boutique openings/year
20+ new markets and 50 boutique openings/year Existing Nespresso Markets New Markets 2011-2020 48 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 49: A focused strategy to win in the USA
A focused strategy to win in the USA UNIQUE LONG CUP PREMIUM BRAND RETAIL COFFEE EXPERIENCES CAMPAIGN EXPANSION 49 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 50: Vertuoline: revolutionising premium long cup coffee experiences
Vertuoline: revolutionising premium long cup coffee experiences SUPERIOR MACHINE UNIQUE SYSTEM NOVEL IN-CUP QUALITY DESIGN & VERSATILITY CONVENIENCE 50 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 51: The Brand Campaign
The Brand Campaign Nespresso Training Day - (00:30) GC Testimonial – Long (02:55) 51 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 52: CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
52 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 53: The Brand Campaign
The Brand Campaign Nespresso Training Day - (00:30) GC Testimonial – Long (02:55) 53 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 54: CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
54 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 55: Expanding our retail footprint: 30+ new boutique openings
Expanding our retail footprint: 30+ new boutique openings 55 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 56: USA: Nespresso brand steadily gaining shares
USA: Nespresso brand steadily gaining shares +33% CAGR 2009-’15 Portioned coffee Market Share (vol.) - USA Top 10 portioned coffee brands (vol.) - USA Brands System 1. PRIVATE LABELS KEURIG 2. GREEN MOUNTAIN KEURIG 15% 3. STARBUCKS KEURIG 6% 4. FOLGERS GOURMET KEURIG 5. NESPRESSO NESPRESSO 79% 6. EI
Slide 57: Aggressively addressing the Out-of-Home opportunity
Aggressively addressing the Out-of-Home opportunity PURSUE AGUILA INCREASING COFFEE CONTINUE TO SUCCESSFUL LAUNCH OFFER AND SERVICE LEAD IN FINE DINING WITH NEW RANGE LEVEL 750 top chefs 2&3 Michelin star restaurants Personalised blends 57 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 58: Cultivating unique Customer Relationship
Cultivating unique Customer Relationship INNOVATING IN NEW BUILDING UNIQUE IMPROVED DIGITAL RETAIL FORMATS & RELATIONSHIPS WITH EXPERIENCE EXPERIENCES OUR CONSUMERS 58 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 59: CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
59 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.
Slide 60: Uniquely positioned to seize the coffee category potential
Uniquely positioned to seize the coffee category potential INNOVATION FAVORABLE WINNING CAPABILITIES POSITION IN KEY TERRITORIES Technology lead Accelerating in Gaining share in US Portioned Coffee expertise High ambition in Brazil Leading in Soluble Global brands and Solid leadershi
Slide 61: Leading, Inspiring, Delivering! Thank you!
Leading, Inspiring, Delivering! Thank you! 61 CONFIDENTIAL – PROPRIETARY INFORMATION OF NESTLÉ S.A.