Nestlé’s Creating Shared Values Strategy

     Nestlé’s creating shared values strategy

Summary

  This case focuses on Nestlé's creating shared value (CSV) strategy. Creating shared value (CSV) strategy includes three categories: nutrition, water, and rural development. Since 1990s the packaged food and beverage industry had improved supply chain sustainability and provided healthier, more natural foods, because of the industry pressure (For example: population growth, climate change and water scarcity, etc.). However, this improvement led to the consolidation and caused the sales decline in the 2010s. Nestlé is the company which have 150 years’ experience in the industry. In the early 21st century Nestlé had transformed into a nutrition, health, and wellness company and made its CSV strategy. In 2014, Nestlé CEO considered how to best fully embed the company's CSV strategy and to communicate it to shareholders and external stakeholders.

Analysis & Discussion:

1. Describe Nestlé’s creating shared values strategy.

   Nestle has been a global leader in package food and beverage industry. As the leader, they try to create long-term positive value for society - Creating Shared Value. And they embed it firmly across all parts of their business. They deliver their strategy mainly in five parts : nutrition, rural development, water (three of these are mentioned in the article), environmental sustainability, human rights and compliance (two of these are mentioned in Nestlé’s web site).^[1] To fulfill their CSV they founded a pharmaceuticals company Nestlé Health Science. Which can investigate the latest technology so they can run big data analyses.

• Nestlé Nutrition

Market breast-milk substitutes responsibly

  Nestlé holds the opinion that breast milk is the “gold standard” . However, some mothers of infants cannot provide it. Due to this reason Nestlé Nutrition innovated the milk product which closer to the “gold standard”.

Reduce sodium (salt) in products

   The concept of “Healthy eating” has been the hot issue in nowadays. Nestlé believed that reducing the amount of sodium in our foods and beverages can provide healthier choices while retaining the same great taste. This is achieved through gradual reductions using Nestlé’s culinary expertise and replacing sodium with other healthier minerals.^[2]

• Water

   In 2014 Nestle opened the world’s first “zero water footprint” diary factory in the water-stressed state. Besides, they continue to reduce, reuse and recycle water across their business through water-saving projects and the introduction of innovations such as zero water withdrawal technology.^[3]

• Rural Development

   Farmers are one of the key success in every food industry. As the result, Nestle provides agricultural support and capacity-building programs to their direct suppliers.^[4] Nestle not only care about the farmers ,but also implement responsible sourcing in their supply chain.