Nestlé defies recession delivering strong results in the UK and Ireland

   
To Press Releases listNestlé UK,Oct 17, 2012

Despite the challenging economy Nestlé UK & Ireland has defied the gloom of the recession and continues to deliver a strong performance in the third quarter of 2012.   

Key to the business’ performance is the continued success of the NESCAFÉ range across a number of different coffee categories.  NESCAFÉ retains its position as the UK’s No. 1 soluble coffee brand producing the categories two best selling brands NESCAFÉ Original and NESCAFÉ Gold Blend.
 
NESCAFÉ Dolce Gusto Coffee, the innovative coffee system providing coffee-shop quality drinks at a fraction of the price on the high street, has increased share of cups for the pods market from 33.2% to 40.0% and increased machine sales by over  19% this year.   The NESCAFÉ Dolce Gusto plant in Tutbury has introduced seven new high speed production lines to meet the growing demand.

Nestlé Confectionery also enjoyed a strong  third quarter with record sales in September, driven in part by a number of innovative marketing campaigns.  Yorkie returned to TV screens for the first time in 10 years and has seen a 29.5% increase in value year to date.   Kit Kat Chunky sales have been boosted by more than 18%, benefiting from the introduction of Peanut Butter Chunky chosen by public vote.   While Kit Kat, Yorkie and Aero have launched a promotional first with the ‘We Will Find You’ campaign, where winning consumers will be tracked by GPS and handed a £10,000 prize by a Special Delivery Team.

Fiona Kendrick Chairman & Chief Executive, Nestlé UK & Ireland commented:

“Our business continues to perform well as we enter the last quarter of the year. The economy remains tough but overall we are growing market share in the majority of our categories.

Coffee and confectionery have always been our heartland and they continue to drive our business forward.   The success story of Dolce Gusto proves that even in challenging times providing shoppers with quality products that answer their lifestyle needs is what matters most.  Nestlé has also always led the way in the world of marketing and our results show that our ground breaking campaigns continue to win new fans for our iconic brands.”
 

Notes to Editors

 

Nestlé Confectionery Highlights

  • Nestlé Confectionery continues to perform robustly, increasing its YTD value growth by 2.6%
  • The big highlight for Nestlé Confectionery is Yorkie which returned to TV screens for the first time in 10 years and has seen a 29.5% increase in value YTD. 
  • The new Rolo tablet has strengthened the brand significantly with 24.8 value growth and Milkybar saw strong value growth of 8.7% in YTD till September 2012
  • Kit Kat has had a strong YTD driven by the success of the Kit Kat Chunky up more than 18% YTD.  This success is partly down to ‘Choose a Chunky Champion’ promotion that saw Peanut Butter Chunky returning to our shelves following a public vote.
  • In Q3, Nestlé Confectionery has led the way on firsts for promotional activity with the launch of ‘We Will Find You’ running across Kit Kat, Yorkie and Aero.  Six consumers will win £10,000 each if they find a GPS device instead of their chocolate treat.  Once activated, the Special Delivery Team will track the signal and present a cheque for the cash to the winning individual.    

Food &Beverage Highlights

  • 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 with value growth better than last year at 5.8%. Stronger than market growth for NESCAFÉ Original has resulted in an increase in share by 0.4% points on last year.
  • NESCAFÉ Dolce Gusto Coffee has grown ahead of the market in both 2011 and 2012 and increase share of cups for the pods market from 33.2% to 40.0% in the latest year with over 51,000 machines sold since January. In 2011, Nestle announced a £300 million investment at the Nestle Tutbury site in both Dolce Gusto and freeze-dried coffee production.  Last week, councillors unanimously approved plans for the new 33,000sq m coffee production facility.
  • Nesquik's growth has resulted in a 2.6% points share increase to 66.8%
  • Maggi’s new range of recipe mixes, Fresh Idea’s and So Crispy, have been received well helping to grow market share attracting new shoppers to the category.
  • Herta continues to grow above the market and has seen share increase by 2% points to 49.9%.

Nestle Waters

  • Nestlé Waters finished Q3 2012 strongly with total value market share of 22.1% (Share of Total Plain Water 12 we 8 Sep 12), up from 21.4% a year ago. Nestlé Waters is the fastest growing branded player in the category (YTD). 
  • Nestlé Pure Life consolidated its role as the fastest growing bottled water brand of recent years, with continued value growth of +70bps, while Buxton maintained its position as the UK’s No. 1 local mineral water with a value share of 12.6% (YTD).
  • Nestlé Waters’ new £35 million bottling plant in Buxton is now operational and is one of the most environmentally sustainable operations of its kind in the world.

More information

For further information please contact Nestle Press Office on 020 8667 6005 or email nestleukpressoffice@uk.nestle.com