Nestle by Business Enquirer (Internal Use Only Not Downloadable)

A CENTURY OF GOOD FOOD, GOOD LIFE

Manufacturing Feature

Nestlé

A CENTURY OF GOOD FOOD, GOOD LIFE 2

Issue 101 · Business Enquirer Magazine

Business Enquirer Magazine · Issue 101

PROJECT DIRECTED BY

WRITTEN BY

Jamie Waite

Jay Benmehidi

Issue 101 · Business Enquirer Magazine

Manufacturing Feature When a German pharmacist by the name of Henri Nestlé first developed Farine Lactée in 1867, a pioneering milk-based baby food designed to help combat malnutrition and infant mortality, it set in motion an unlikely journey that would one day lead to the emergence of one of the greatest names in modern business.

With a footprint spanning 179 countries, a workforce of over 279,000 staff, and a 2000-strong portfolio of household brands - 29 of which generate sales of over US$1 billion apiece - Nestlé is today the world’s largest FMCG company with a reach that extends to every corner of the globe.

The Nestlé story is a fascinating one that spans more than 150 years and, as is often the case with such stories, it is one that starts from humble beginnings. The formation of the Nestlé Company by Henri Nestlé and Daniel Peter, the inventor of milk chocolate, in the 1870s was unheralded at the time, but over the century that followed the company would grow to become the leading confectioner in Europe and beyond - the rest, as they say, is history.

Of the many countries in which the Swiss multinational has a presence, few can match the long-standing union that exists between the South American nation of Peru and Nestlé – a century-long partnership stretching back to the early 20th century.

Special grease formulation tanks of Grupo Palmas, Nestlé’s main palm oil supplier

Business Enquirer Magazine · Issue 101

Manufacturing Feature

Nestlé

The Nestlé Peru story first began when in 1919 it was established initially as an import and product marketing division for condensed milk, evaporated milk, milk flour, chocolates and other products. However, great demand for its products quickly saw the company expand its presence in Peru, and only 20-years later Nestlé cemented its presence in the country following the setup of manufacturing plants for several of its product lines in Chiclayo, Cajamarca and Lima – facilities that remain essential to its modern-day operations: “On September 20, 1940, Nestlé officially became present in Peru. Nestlé’s rapid positioning in the country led to the opening of its first factory in Chiclayo (Perulac), a plant that began operations with the manufacture of dairy products. In 1946, Nestlé chose Cajamarca as the ideal area for the development of a dairy district, installing a fresh milk plant whose first collection capacity was 1,000 liters per day. Currently the Cajamarca Plant can collect up to 300,000 liters of fresh milk per day.

Not that Nestlé Peru only caters to the confectionary demands of more sweet-toothed Peruvians – far from it. Nutrition and wellness are the cornerstone on which the company was founded and the principle of continues to be the foundation that has made Nestlé Peru the leading operator in the Peruvian food sector.

Not long after this, the renowned Lima Factory was inaugurated to produce dehydrated broths, tomato-based products, mustard and other products from the Maggi and Libby’s range of goods. These expansions in the country consolidated Nestlé’s as one of the leading food companies in Peru.” Today, Nestlé Peru is a leading provider of a range of products, such as dairy products, coffee, culinary, beverages, cereals, sweets, ice cream and animal feed, and a hugely important engine of wealth creation for the Peruvian economy. As the leading FMCG operator in the country, currently, approximately 99.5% of urban households in the country consume at least one of the 70+ brands that are positioned in the Peruvian market, which includes popular and much-loved product lines such as Sublime chocolate, Chocolate Triangulo and Morochas cookies, amongst others.

Issue 101 · Business Enquirer Magazine

In the Quality area, tailor-made products are developed for customers The integrated operation of Grupo Palmas, from the field to the industry, ensures the quality and timely delivery of its products

“Nestlé is the leading company in nutrition, health and wellness, appreciated and perceived as the company with the best reputation in Peru and as one of the most socially responsible. The success achieved in Peru is due not only to the support of being the first food company in the world, but also to a local strategy to conquer new consumer segments, accompanied by the constant innovation of its brands.

Research & Development team of Grupo Palmas testing chocolate for cookies and ice cream toppings

We develop all the power of food to improve the quality of life, today and for future generations. Our employees are deeply committed to Nestlé’s purpose of improving the quality of life and contributing to a healthier future. The company’s performance is driven by its Nutrition, Health and Wellness strategy.”

Business Enquirer Magazine · Issue 101

GRUPO PALMAS: INTEGRATING PRODUCTION WITH INDUSTRY

With more than 40 years of experience, Grupo Palmas is the largest palm oil producer in Peru. It has 26,000 hectares of land for production and 4 industrial operations located in the Peruvian Amazon and Lima. It is part of the Grupo Romero, one of the main business conglomerates in the country. INTEGRATED PRODUCTION

Their integrated operation from the field to the industry and knowledge of oils and fats, allows the company to co-develop innovative solutions together with its customers that meet nutritional quality standards for their products. SUSTAINABLE MANAGEMENT

In line with the “No Peat, No Deforestation, No Exploitation (NDPE)” trend, Grupo Palmas is committed to sustainability as a factor of differentiation and competitive advantage. The organisation has strict commitments to deforestation-free production, respect for forests, people and communities, as expressed in its Sustainability Policy.

The organisation is also a member of the Roundtable on Sustainable Palm Oil (RSPO) and the Earthworm Foundation (EF), the main organisations that ensure a sustainable supply chain and responsible production. SUPPLY CHAINS

As part of its growth strategy, Grupo Palmas develops sustainable value chains in the regions of San Martin and Loreto which includes more than 600 palm farmers in its supply chain. For this, implements a Sustainable Supply Chain Programme that aims to help independent producers achieve maximum productivity through training, technical assistance and access to quality agricultural inputs CONTACT:

Website: www.palmas.com.pe Telephone: +51 2154230 Address: Av. Circunvalación del Golf Los Incas 134, Torre 1 – Piso 17, Santiago de Surco, Lima. E-mail: palmasinforma@palmas.com.pe

Industrial complex with a modern palm oil extractor of Grupo Palmas

(Campoverde, Ucayali region) Palm producer who is part of the Grupo Palmas Sustainable Supply Chain Program.

www.palmas.com.pe +51 2154230 palmasinforma@palmas.com.pe

Av. Circunvalación del Golf Los Incas 134, Torre 1 – Piso 17, Santiago de Surco, Lima.

Business Enquirer Magazine · Issue 101

Nestlé Suffice to say business is booming for the company, and as the undisputed industry leader in the Peruvian FMCG space, on paper at least, there is seemingly nothing left for the company to achieve from a business standpoint. As a responsible business committed to sustainability, however, Nestlé Perú’s senior leadership team would undoubtedly disagree. As an organisation with access to the astonishing resources and capability of its colossal parent company, preserving the rich biodiversity of the Peruvian Amazon and protecting the indigenous peoples who live there has been a key strategic goal of Nestlé Perú in recent years. In-line with this objective, Nestlé Peru’s commitment to no-deforestation initiatives have been a central goal to which the company has demonstrated great commitment in recent years.

Together we are working on projects that value the environment, communities and our workers

Manufacturing Feature tect the environment. In Peru, Grupo Palmas has been working for more than 40 years to achieve both objectives. We are committed to the responsible development of 100% traceable palm oil and have a range of high-quality products that position us as one of the leading companies in the sector in Latin America. Our strategic alliance with Nestlé has been key to transforming the way palm is made in Peru and the world. Together, we are working on projects that value the environment, communities, and our workers.” Going forward, Nestlé Perú will continue to do what it does best: provide delicious, nutritious food and beverages for its customers, ensure the wellness of its loyal and dedicated workers, and continue striving to use its standing to make the world a better place then it found it. In keeping with Nestlé’s Good food, Good life policy, it would be safe to assume that the company will continue to be a positive force in Peru for many years to come.

Alongside its key business partner and supplier, Grupo Palmas, Nestlé Perú is an avid supporter of the Earthworm Foundation, Nestlé started engaging with the company to find a way forward together. In 2017, Grupo Palmas became the first Peruvian company to publicly commit to no-deforestation and, as such, it froze all development plans on its Manati concession. This was also the beginning of a broader sustainability journey. With the support of Nestlé, Earthworm and NORAD, Grupo Palmas also developed one of the first indicative HCS/HCV studies in Peru. This covered the Tocache landscape, where Grupo Palmas had been sourcing from smallholders. On this, Grupo Palmas explained: “Today, global food companies seek two objectives: to provide healthy products to their consumers and to pro-

Issue 101 · Business Enquirer Magazine

The integrated operation of Grupo Palmas from the field to the industrial plant, ensures the quality and timely delivery of its products.

Business Enquirer Magazine · Issue 101

Nestlé +41 21 924 1111 consumer.services@uk.nestle.com www.nestle.com

info@busenq.com www.busenq.com