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Nestlé: Kit Kat: Case Study: Kit Kat

1225 Words5 Pages

Nestlé: Kit Kat 1.0 Company’s Profile Nestlé is the global leading nutrition, health and wellness company based in Switzerland. Its product line includes baby food, breakfast cereals, coffee, confectionery, dairy products, frozen food, pet foods, yoghurt and snacks with high revenues making it the world’s largest food company. Nestlé operates in 197 countries with over 340,000 employees, in 2014 its group sales account CHF 91.6 billion (USD 99.9 billion), whereas its trading operating profit is CHF 14 billion (USD 15 billion). “The Group’s net debt fell from CHF 14.7 billion to CHF 12.3 billion reflecting strong free cash flow during the year at CHF 14.1 billion more than offsetting the payment of the dividend of CHF 6.9 billion and the initial phase of the current share buy-back programme” (Nestle, 2014). In the confectionery market its most well-known product is Kit-Kat, which was first created in 1935 as Rowntree Chocolate Crisp by Rowntree 's of York in UK. In 1988 Nestlé acquired Rowntree and today 150 KitKat bars are consumed worldwide every second (Kit Kat, 2015). 1.1 Competitors Chocolate is mainly a regional business where consumers seek a particular taste, which brings about the market fragmentation. The top five producers account for slightly more than 50% of the global market (King, 2013). …show more content…

Greenpeace has accused Nestlé of using palm oil from Indonesia 's largest palm oil producer, Sinar Mas, which it says is clearing orangutan habitats by destroying rainforests and breaking Indonesian law. Moreover, carbon-rich peatlands were burnt and drained releasesing vast amounts of greenhouse gases into the atmosphere, helping to make Indonesia the third largest greenhouse gas emitter in the world (Armstrong, 2010). Nestlé announced a partnership with The Forest Trust to establish "responsible sourcing guidelines" and ensure that its products did not have a deforestation footprint. They aimed to achieve a fully sustainable method of palm oil harvesting by

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