Despite the challenging economic environment, Nestlé UK & Ireland has sustained its strong performance in the first half of 2012.
The company’s performance has been driven by its leading brands, KIT KAT and NESCAFÉ, which have both achieved good sales growth this year.
Successful innovation, such as the launch of premium instant coffee NESCAFÉ Azera and the expansion of the Maggi brand, has also lifted the company’s performance.
Nestlé’s major investment programme in its UK factories is also on track. The company is investing £500 million over the next three years to establish its next generation of world class manufacturing facilities in the UK. The company’s new £110m Nescafe Dolce Gusto plant in Tutbury is progressing well. The high tech plant will employ an additional 300 people and will supply both the UK market, where NESCAFÉ Dolce Gusto has increased its market share again this year, and export markets around the world.
Paul Grimwood Chairman & Chief Executive, Nestlé UK & Ireland commented:
“Our performance in the first half of the year has remained strong despite the tough market. UK shoppers are looking for value for money and innovation and we are working hard to provide this for them.
The UK market is very important for Nestlé and we are continuing to invest in our brands, our factories and our people. Our ambitious plans for the next three years demonstrate our long term commitment and confidence in UK manufacturing.”
Confectionery Highlights:
- Nestlé Confectionery performed strongly in the first six months growing in value by 0.4% YTD within a very competitive category.
- Value growth was driven by KIT KAT (3.8%) and childhood favourites ROLO, YORKIE and MILKY BAR.
- The most innovative activity and the key factor in KIT KAT’s growth was the KIT KAT Chunky Flavour Nation promotion which saw more than 500,000 people vote. Peanut Butter came out the winner and went on shelf as a long-term SKU from May.
Highlights Food & Beverage:
- NESCAFÉ Instant Coffee is in value growth at +6.8% YTD.
- NESCAFÉ Dolce Gusto capsule sales have grown ahead of the market in both 2011 and 2012, increasing YTD value share of the retail pods market from 42.7% to 47.6%.
- Maggi's growth reflects the market and is increasing its market share thanks to the launch of ‘So Crispy’ and ‘Fresh Ideas’ range. The Maggi range now boasts 24 SKUs in recipe mixes – just 18 months after launch.
- Source: Symphony IRI Grocery Imp Outlets excl AOI w/e 16 June 2012
Further information:
- 2012 Global Press Release: First Half 2012: steady momentum, full-year outlook confirmed
- 2012 Half- Yearly Report (pdf, 562Kb)