NestlĂŠ Equatorial Africa Investing in the
development of the EAR
c o m p a n y O P E R A T I O N S
NestlĂŠ Equatorial Africa is investing heavily
in the development of the Equatorial Africa Region Written by: Abbie Smith
Produced by: Belinda Robbins
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Over the last three years, CHF 150-200 million has been invested into Nestlé’s activity in 21 African countries
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February 2015
T
he Equatorial Africa Region (EAR) is an area of the world in which Nestlé is investing a lot of time, money and effort in developing. Nestlé’s EAR was set up in 2008 and from its Nairobi-based head office it is responsible for overseeing the brand’s activity and operations in 21 countries across the continent, which include Zimbabwe, Mozambique, Uganda, the Democratic Republic of Congo (DRC), Angola, Zambia, Tanzania and the Seychelles, among others. “Our role is defining the Nestlé strategies in each of these 21 countries and developing them once our plans have been approved by our headquarters in Switzerland,” explains Pierre Trouilhat, the Regional Director of Nestlé EAR. “We make sure that each of our countries has the necessary financial and human resources in place
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and that the best practices are implemented. It is also our role to report back financial information and status to our headquarters in Switzerland.” CONTINUOUS IMPROVEMENT Trouilhat explains that as the EAR is a fairly new subsidiary of the global Nestlé brand, it is vital for it to establish a condition of sustainable business in the region before implementing any continuous improvement practices. “Although we have been present in Equatorial Africa for more than 50 years, it was necessary to build up a foundation to be able to develop a strategy,” he said. The company took the decision to implement Nestlé’s global continuous improvement system (GLOBE) and after 18 months of preparation, it went live in January this year. “Through this initiative, we have joined the GLOBE band wagon
Pierre Trouilhat, Head of Region & CEO Nestlé Equatorial African Region
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Ne s t l é E q u at o r i a l A f r i c a
“We are spending a lot of time, energy and money on employee training. It’s part of our culture” – Pierre Trouilhat, Regional Director (Region Head and CEO), Nestlé Equatorial Africa Region
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February 2015
worldwide, thus ensuring continuous excellence in our business practices,” says Trouilhat. This method of driving efficiency has been extended to all aspects of the company; operations, manufacturing processes and supply chain. PEOPLE MANAGEMENT In total, there are over 1000 employees in Nestlé’s Equatorial Africa Region. In terms of staff training and development, the company has specific programmes in place which are developed at a regional level from Nairobi. Although the majority of EAR’s training is carried out on an on-the-job basis, it also has access to Nestlé’s international training centre in Switzerland which is often used for high-level training of senior staff members.
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One of Nestlé EAR’s most important regional training courses is its functional skills programme and in particular the focus it has on developing multi-lingual skills in its employees. “The language of the business is English, but many of our important markets are either Portuguese or French speaking,” notes Trouilhat. “In general we are spending a lot of time, energy and money on employee training – it’s part of our culture.”
EAR Head Office Staff with the Regional Head after a team building session
INVESTMENTS AND EXPANSION In 2010 Nestlé pledged to invest between CHF 150 million into the Equatorial Africa Region over a three-year time period. That investment plan is now in its third year and its impact is clear to see. The upgrading of factories w w w. n e s t l e - c w a . c o m
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Ne s t l ĂŠ E q u at o r i a l A f r i c a
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February 2015
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and the building of new facilities has taken place in a number of locations, mainly Kenya, Zimbabwe, Mozambique, Angola and the DRC. This year will see the first of the completion stages of these projects, although some will be ongoing until 2016. Even though these projects will be of great benefit to Nestlé’s EAR, Trouilhat admits such large expansion can be testing: “It’s not easy because we are in an environment which is difficult and it’s quite easy to be bought down by different challenges, but we are confident we are on the right track.” An investment he is particularly interested in is an opportunity for the company to support fresh milk production in Kenya and Uganda. “We are also exploring possibilities in Rwanda. There are hopes an investment like this could lead to the manufacturing of milk or dairy products in one of the EAC countries.” CORPORATE SOCIAL RESPONSIBILITY As a global company, Nestlé has a large focus on corporate social responsibility initiatives and programmes. “The idea is that the community can benefit from our presence, expertise and knowledge,” cites Trouilhat. “We operate under the Creating Shared Value concept, where the benefits for society and for our business converge in whatever we do.” Three areas have been identified as possible fields in which the organisation can make a difference: nutrition, water and rural development.
Nestle proactively works to ensure its products confirm to its CSR
Nestle actively work to support local communities
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EAR Management Team with the Nestlé Global Chairman Mr. Peter Brabeck and Executive Vice President Mr. Frits Van Dijk (July 2011)
Fresh milk production in Kenya and Uganda would be a considerable boost to the EAR’s rural development initiatives: “We would offer farmers the possibility of having a continuous and regular income. We would also be helping them to develop good practices, both operationally and in terms of their impact on the environment.” FUTURE In regards to future developments, Nestlé’s EAR would like to focus on developing its local manufacturing capabilities and move away from importing goods from outside
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February 2015
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Company Information Industry
Food and Drink headquarters
Nairobi, Kenya founded
2008 e m p l o y ee s
900 Re g i o n a l Director
Pierre Troulihat
of the area. Trouilhat sees some quite significant future investment being dedicated to this ambition and expanding Equatorial Africa’s route to market. “We want to control and own more of our total supply chain, it’s the start of our strategy,” he says. He concludes by saying: “Our ambition is to continue to develop our business. We are confident in our plan and as an investor we are pleased with the results so far, but we will continue to invest in this part of the world. We are really committed to that.”
products/ services
Nestlé branded food and drink products
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NestlÊ Equatorial Africa Address The Atrium, Chaka Road. P.O. Box 50813 – 00200 Nairobi, Kenya T: +254 20 649000 / E: Brinda.Chiniah@ke.nestle.com