:. Food Industry News


Nestle Aims for Faster Growth in Eastern Europe

Source: Reuters
15/05/2008

London, May 15 - Nestle SA, the world's largest food group, said on Thursday it aims to increase growth from its central and eastern Europe (CEE) region with the aim of seeing one fifth of its European sales coming from the area.

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Currently, Nestle's CEE region only accounts for 5.6 billion Swiss francs of its European annual sales of 40 billion francs, or 14 percent, but says the region has been growing underlying sales in double-digit percentages for a number of years.

Now the plan is to accelerate growth in the coming years to above 15 percent from above 10 percent previously, and so reach 20 percent of its European sales with above average profit margins, the company said in a presentation in Moscow published on the group's Web site without giving any timescale.

The Swiss group's CEE region's share of its European sales at 14 percent is behind France with 21 percent and Germany at 16 percent, but ahead of the UK and Italy at 12 and 11 percent.

Over 70 percent of its CEE sales, from nations such as Russia, Poland and Bulgaria are in two Nestle's sectors -- confectionery and coffee & beverages -- with brands such as KitKat, Lion, Nescafe and Nesquik.



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