Nestlé announces strong performance in UK as cost conscious shoppers turn to affordable treats

To Press Releases listCroydon,Feb 15, 2012

  • Continued focus on new products to meet changing demand

  • Nestle will invest £500 million in the UK over next 3 years

Following today's publication of Nestlé SA’s global financial results, Nestlé UK & Ireland Chairman & CEO Paul Grimwood credited the company’s ability to meet the changing
habits of cost conscious consumers for driving the UK business forward.

Mr Grimwood pointed to the growing number of UK shoppers who are looking for value for  money without sacrificing quality or the occasional affordable luxury.  Nestle’s range of trusted brands, that offer both quality and value for money, is ideally positioned to meet this need.

In the last year alone NESCAFÉ Dolce Gusto, which provides coffee-shop quality coffee at home, for a fraction of the price of coffee on the high street, has increased machine sales by over 77%.   In confectionery, the ultimate affordable treat, chocolate multipacks (+17.20%), blocks (+20.7%) and confectionery share bags (+30%) have also seen significant increases.  In food, Maggi ‘So Juicy’, which provides a quick and easy family meal, has gained a 47% share of the cooking bag market since its highly successful launch in 2011.

Paul Grimwood said:

 “2011 was a strong year for Nestlé UK & Ireland despite the difficult economic climate.  UK shoppers are adapting to challenging times, they still want to provide their families with good quality food and drink, and the occasional luxury – they’re just looking for value in the way that they do it.  We are helping them by offering brands they can trust, great quality products, value for money, and the occasional affordable luxury.”

“Listening to shoppers and providing them with the quality products they want that deliver real value for money has never been more important.”

“2012 will continue to be tough but our focus remains on developing new products to meet changing demand to drive growth.  If we continue to invest in our business and our brands during challenging times we will be in a much stronger position when the economic climate improves.”

“We have announced a £500 million three year investment programme to establish our next generation of world class manufacturing facilities in the UK.  This is a real sign of our confidence and commitment in the UK in the long term.”

 

Other highlights for Nestlé UK in 2011 include:

  • Nestlé Confectionery continued growth driven by the core brands with exceptional growth from AERO® and ROWNTREES up 17.6% and 16.8% respectively with ROLO® up 31.5%.  Continued innovations in confectionery including KIT KAT Pop Chocs, ROLO and AERO biscuits, AERO Caramel, and the expansion of the ROWNTREE’S offering including SOUR PASTILLES, JELLY ALIENS and VERY BERRY JELLIES.

 

  • NESCAFÉ Dolce Gusto increased machine sales by over 77% vs. 2010 and increased value share of the pods market by 4.2% points to 44.1%. 
    • NESCAFÉ continues to retain its position as the UK’s No. 1 soluble coffee brand producing the categories two best selling brands NESCAFÉ Original and NESCAFÉ Gold Blend.   NESCAFE continued to grow particularly well in the cafe menu segment and in a new   mixes segment, with the launch of NESCAFE 3 in 1.

 

  • Nestlé recently announced two investments into its Tutbury site in Derbyshire.  A £110 million extension to the NESCAFÉ Dolce Gusto plant will triple production and create 300 jobs.  While a further £200 million will be invested into the NESCAFÉ plant.

  

  • Maggi has gained 11.3% value share of the cooking sauce category and 47.0% share of the cooking bag segment in 2011 through the launch of Maggi So Juicy. This contributed to the delivery of an increase of 14.6% growth to the sales value of the total cooking sauce category in 2011.  One of Nestlé’s billionaire brands, MAGGI is a global powerhouse, with products including everything from stock cubes, to soups, table sauces and noodles.

 

  • Herta had a strong year in 2011, with value sales up 8.9% and market share increasing from 45.0% to 47.9%. Share in the last 8 weeks of the year was over 50%, following the successful launch of new Herta Chilli Frankfurters in October.

 

  • Nestlé Waters finished 2011 strongly with total value market share of 20.5% (Share of Total Plain Water YTD 31 Dec 2011) up from 19.3% a year ago and making Nestlé Waters the fastest growing branded player in the category. 

 

  • Nestlé Pure Life consolidated its role as the fastest growing bottled water brand, with value growth of +140bps, and Buxton maintaining its position as the UK’s No. 1 local mineral water with a value share of 11.9%.

 

  • In 2012, Nestlé Waters will open the new £35 million bottling plant in Buxton that will be one of the most environmentally sustainable operations of its kind in the world.

 

  • Nestlé Purina delivered a strong performance in 2011, increasing its share of the pet food market by 40bps. Ground breaking campaigns and product launches helped market leading brands such as FELIX®, BAKERS®, GOURMET®, PRO PLAN ® AND PURINA ONE ®  to continue their strong performance, while the remaining Purina portfolio helped to add further momentum. The company has continued to focus on integrating the needs of pets, owners and retailers to create value in the Category.

 

  • Nestlé UK and Ireland will move its Head Office to new state of the art offices at 1 City Place Gatwick, relocating its 840 office based employees by the end of 2012.

More information

Reports published today:

 

 

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*Source: GfK Retail and Technology UK
 (All figures from Symphony IRI Group Jan to Dec 2011, Total IRI Grocery)