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UK Media Statement On Half Year Results

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Following the announcement of Nestlé SA’s 2011 half year results Paul Grimwood, Chairman & Chief Executive, Nestlé UK & Ireland said:

“The first six months of 2011 was just as challenging as we expected, as household budgets across the country continue to be squeezed.

However, we are pleased with the progress we have made as we continue to grow market share in nearly all of the categories we operate in. Our focus on driving innovation continues to pay off. Consumers today are looking for quality products that deliver true value for money as demonstrated by the success of the recent launches of the MAGGI So Juicy range and NESCAFÉ Original 3 in 1.”

Other highlights:

  • Nestlé Confectionery continues to perform strongly YTD compared to the market and share has gone from 15.5% YTD in 2010 to 16.5% for the same period this year (mid June). Strong performers include AERO, ROWNTREES, MILKYBAR and ROLO where product innovations have been introduced. This year, AERO has launched three new products (Aero Biscuit, Aero Caramel and Aero Orange block) and ROWNTREES has an entire new range including Sour Pastilles, Very Berry Jellies, and Jelly Aliens. MILKYBAR and ROLO new sharing bags have helped the brands achieve 13% and 24% growth YTD respectively.
  • Launched last year, NESCAFÉ ORIGINAL 3 in 1 has transformed the Non–foaming mixes segment with value sales at +153%*. Year to date value share of the segment continues to grow and has now reached 62%*. 3in1 is succeeding in bringing in new and younger consumers to the instant coffee category, with penetration and repeat at 5.5%** and 37%** respectively.
  • NESCAFÉ DOLCE GUSTO has grown ahead of the market in both 2009 and 2010 and increase share of cups for the pods market from 29% to 30.3% in the latest year.
  • MAGGI continues to build its presence in the dry recipe mix category after the launch of MAGGI So Juicy in January. Year to date share of the cook in bag category continues to growth month on month and has now reached 45.5% with penetration and repeat since launch sitting at 9%** and 28%** respectively.
  • Nestlé Waters continues to perform with our key promotions just underway and record market share performances in July. BUXTON became the third largest brand in the market for the first time Buxton (9.1% volume; 9.3% value) and NESTLÉ PURE LIFE continues to be our fastest growing brand (6.0% volume, 4.9% value).
  • Nestlé Purina’s leading brands continued to perform well in the market driven by strong innovation programmes, investment in consumer communication. Year on year market share is up 120 bpts.

Source data: Symphony IRI Group Value Sales to 18th June 2011
**Kantar purchase data YTD 10/07/11
A copy of the full half year report can be found here.