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Nestlé UK and Ireland 2011 Third Quarter Results

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Following the announcement of Nestlé SA’s 2011 nine month sales  Paul Grimwood, Chairman & Chief Executive, Nestlé UK & Ireland said:

“I am satisfied with the continued performance of the business 9 months into the year. The economy remains difficult, very challenging and unlikely to improve in the near future. There is a noticeable change in how shoppers are spending their money. There is more consideration on how and what they buy as disposable income goes down and cost of living goes up. For the remainder of the year we will be mindful of what our consumers are going through and we must be flexible and tightly control our costs to deliver great value.

“Overall, the business is growing market share in the majority of categories and this is a good measure of our effectiveness in a challenging market place.

“Innovation and renovation is key to our business and we have introduced new recipes and products into the market that are working well for us. Nescafé Gold Blend has been re-launched with a new taste and jar supported by extensive media campaign. Early results suggest it has been well received by consumers reflected by uplift in sales. Launched earlier this year, Maggi’s So Juicy continues its fantastic performance to grow further in Q3.”

  • Nestlé Confectionery continues to perform strongly YTD compared to the market and share has gone from 16% YTD (10th Sept) in 2010 to 16.6% for the same period this year. In particular, Rowntree’s (+22%), Aero (+16%) and Rolo (+28%) all saw excellent growth on the back of strong innovation
  • Maggi So Juicy continues to perform very strongly in the dry recipe mix category. After just over 9 months in the market, the So Juicy brand has a share of 48.6% of Total Bags category
  • Herta has had a good year to date performance compared to the category. Herta’s YTD value growth is 10.8% leading to an increased share from 44.2% to 47.9%
  • The instant coffee success has been driven by Super Premium ranges and the café style range showing growth over the first 9 months of the year of 4.2% and 8.5% respectively
  • NESCAFÉ Dolce Gusto has grown ahead of the market in both 2010 and 2011 and increase share of cups for the pods market from 30.2% to 33% in the latest year
  • Nestlé Waters success continues, with record market share performances again in September. The total portfolio achieved 20.2% value share, with  BUXTON and NESTLÉ PURE LIFE contributing 130bps improvement year on year. (Source: IRI, Share of Total Plain Water, Total Grocery, YTD 11/09/11)
  • Nestlé Purina’s leading brands have continued to improve market share and sales through strong innovation programmes and investment in consumer communications, such as the Bakers Meaty Meals campaign, despite difficult economic circumstances.

    Source data (unless stated otherwise): Symphony IRI Group Value Sales to 10th September 2011