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    0.110
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    7.270
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    0.000
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  • OTRI.USA
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    0.110
    0.4%
  • OTVI.USA
    15,497.910
    7.270
    0%
  • TLT.USA
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    0.000
    0%
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  • TSTOPVRPM.CHIATL
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News

Nestle’s global focus: green goals, innovation, attention to local tastes

Swiss food products giant Nestle S.A. (OTC: NSRGY) has announced plans to spend up to $2 billion to cut plastic waste, but CEO Ulf Mark Schneider said in a CNBC interview on Tuesday that shareholders have nothing to worry about: The green goal initiative will be balanced with $2 billion to address consumer demands that their food products be both healthier and less damaging to the environment.

“We said right from the beginning we are going to make this earnings-neutral, so we are going to find other ways and other efficiencies in our manufacturing and supply chain to make up for this,” Schneider said. “Now, you could say those efficiencies could have been flown to the bottom line, but for a food and beverage company and a consumer packaged goods company, it’s important to stay relevant to its consumers. Consumer tastes are shifting fast. They want to know their consumer packaging is not causing environmental concerns, and so this is all about staying relevant to today’s consumer.”

For Nestle, it’s all about scaling up. Their goal is for all their packaging to be recyclable by 2025. Schneider noted that it’s not even necessarily about whether or not millennials want the company’s specific products. Consumers want healthier products, he noted, but they also want them to have less of an environmental footprint.

“People trust good brands but they want to be sure their products meet their expectations,” he said.

Nestle’s $7 billion deal with Starbucks a year and a half ago is a signature deal and another high-growth area. The company plans on growing with Starbucks over the next two years with a pipeline of new products because “we know people want to be entertained by something new every day, every year.”

Pet food is another of Nestle’s signature high-growth categories and is well-positioned to take advantage of two notable trends, Schneider said. The first involves the “premiumization” of pet food products in the Western world and “caloric conversion” in growing markets where pet food is replacing household scraps. “Both of these trends are on fire,” he said.

Plant-based food also represents a multiyear growth opportunity, and Nestle wants to be at the forefront as a core food company. The company offers a yellow-pea-based product in America and a soy-based product in Asian markets. According to Schneider, Nestle is the only company offering two unique plant-based food products to different markets to better meet local tastes. “They both taste great,” Schneider said.

Is a deal with McDonald’s coming? Schneider says he “would like to be helpful” but can’t comment on specific clients. Broadly speaking, the company is interested in working with fast-food chains.

Interestingly, because the company is committed to local manufacturing, it hasn’t seen significant disruptions as a result of the trade war between the United States and China. Nevertheless, their stance is pro-trade. “Finding a deal is better than not finding a deal,” Schneider said.

Schneider also struck a note of optimism about Brexit. Because the deal didn’t turn out to be a “hard exit,” it will be completed in a more orderly fashion, and as far as Schneider can tell, it doesn’t look to disrupt Nestle’s operations and supply chain.

Nestle placed second in FreightWaves’ inaugural Shipper of Choice Award last year. That designation is all about being a good partner, and it often goes beyond the movement of goods. The tributes come from companies that a shipper has worked with across the supply chain.

Being named a Shipper of Choice can come from things as simple as providing bathrooms and coffee for drivers, or being transparent about dwell times and minimizing detention. It also means working to improve elements of the supply chain that have a bearing on goods movement even if they aren’t specific to transport services.

Nestle has been at the forefront in such efforts as well. In June 2018, Nestle and XPO announced they would build a 638,000-square-foot distribution center in Leicestershire, U.K. that will contain a “next generation logistics environment” to test future initiatives for Nestle’s brands, combined with a “joint innovation laboratory” for XPO and Nestle technology teams. Such a project is the first of its kind for both companies. The center should open sometime in 2020.

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Chad Prevost

Chad Prevost has covered a variety of beats for FreightWaves, with an emphasis on technology and industry trends. He has hosted and co-produced the shows What the Truck?!?, FreightWaves NOW, Off the Supply Chain, and Inside the Box. Prior to FreightWaves, Chad taught for seven years as an Assistant Professor of English and ran an independent publishing house. He is the author of several books, and has a Ph.D. in Creative Writing from Georgia State University.

3 Comments

  1. Avatar Noble1 suggests SMART truck drivers should UNITE & collectively cut out the middlemen from picking truck driver pockets ! UNITE , CONQUER , & PROSPER ! IMHO says:

    Consumers want healthier products .

    Quote :

    “People trust good brands ” ???

    Quote :

    “Nestle’s $7 billion deal with Starbucks a year and a half ago is a signature deal and another high-growth area. ”

    What’s in a cup?

    If your daily routine includes swinging by Starbucks for a quick latte, you may be well on your way to diabetes, obesity, or both. A grande café mocha with breve sends 580 calories and 40 grams of fat down your system. The recommended calorie intake is about 2,000, which means that one cup has roughly the same calories as a full meal, without the nutritional value. In fact, according to News Target, Starbucks’ drinks can hardly be called coffee – coffee-flavored sugar is more like it. The coffee itself is not bad, but with all the sugar, cream, and other heavy add-ons that go into each cup, you might as well have ordered ice cream.

    In the list provided by Healthy Weight Forum, only four of the drinks ”“ mostly cappuccinos with low-fat milk options ”“ have less than 200 calories. The rest are within the 300 to 500 range. Even their tiny pastry slices pack a mean dose: the popular carrot cake has 600 calories, and the low-fat muffins have 360. A simple muffin-and-coffee breakfast can carry over 1,000 calories ”“ the rough equivalent of lunch and supper combined.

    Quote:

    “Starbucks, others must carry cancer warning in California, judge rules

    Starbucks (SBUX) and other coffee companies in California should have to post warnings because the brew may contain an ingredient that’s been linked to cancer, a judge has ruled. The culprit is acrylamide, a chemical produced in the bean roasting process that is a known carcinogen and has been at the heart of an eight-year legal struggle between a tiny nonprofit group and Big Coffee.

    “While plaintiff offered evidence that consumption of coffee increases the risk of harm to the fetus, to infants, to children and to adults, defendants’ medical and epidemiology experts testified that they had no opinion on causation,” Berle wrote in his proposed ruling. “Defendants failed to satisfy their burden of proving … that consumption of coffee confers a benefit to human health.”

    Shall I continue with ingredients in pet food ? Or why domestic pets are more and more developing the same diseases as humans , diabetes , heart disease , cancer etc ?

    What about the sodium content in these supposedly healthier plant based foods ? What about the tiny plastic particles ingested by drinking bottled water ?

    Quote :

    ““We know that humans are exposed to these particles,” Stapleton says. “We know they get into our body through ingestion and inhalation, and depending on their size, we know they usurp the natural physiological barriers.” This means some of these plastic particles are small enough to pass through the body’s protective tissues and into the bloodstream and organs, she explains.

    There’s also evidence in animals and lab tissues that suggests females who are pregnant may pass these microplastics on to their unborn offspring. “Preliminary [rodent] studies from our group, and published studies from others, indicate that after maternal exposure, these particles have the propensity to cross the placental barrier and enter the fetal compartment, depositing in fetal organs,” Stapleton says.

    Other researchers say we know enough already to deem these plastic exposures a threat to human health. “In animal models and in epidemiological studies in humans, we have a correlation between plastic exposures and known health hazards,” says Frederick vom Saal, a distinguished professor emeritus of biological sciences at the University of Missouri.

    He says there’s evidence that plastics and the chemical pollutants that bind to them have toxic effects. “They’re implicated in the obesity epidemic and in other metabolic diseases such as diabetes and heart disease, as well as cancer and reproductive problems and neural problems like attention deficit disorder,” he says. “If you look at the trendlines of non-communicable diseases around the world, you see there is a correlation between exposure to these [plastic] pollutants.””
    It’s all a marketing scheme . ”

    BE VIGILANT !

    In my humble opinion ………..

  2. Quote:

    “Nestlé Foods and the Numerous Ways They Contribute to Cancer

    Educated consumers want real food. Organic, whole, unprocessed, local food. The way we are supposed to have it − without chemicals, refining, or genetic modifying. I want to emphasize that Nestlé’s products are in no way natural and definitely do NOT support a healthy lifestyle. You could say they were instrumental with making the processed food industry so successful, while simultaneously contributing to a decline in human health.”

    Start Your Baby Off Right… by Avoiding Nestlé Baby Foods
    Nestlé Baby Food Brands: Gerber’s, Cerelac Instant Cereal, Naturnes Baby Food, and Nestlé Good Start Infant Formula
    Nestlé created a product line that is supposed to grow along with your child into adulthood. Sadly, following such a practice is more likely to build a foundation for sickness all their life.”

    End quote .

  3. Advert : to turn the mind or attention

    The psychology of deception in marketing: A conceptual framework for research and practice

    Based on the interviews and previous definitions (e.g. Aaker 1974; Aditya 2001), deception can be defined from the consumer’s perspective as an interaction between two or more parties where one party perceives being supplied with misrepresented or inaccurate information or perceives information being withheld, regardless of intent or benefit. This inaccurate information then leads the consumer to form a belief or make a decision they would not have otherwise made if they had more accurate information.”

    Quote :

    “The Lies Behind the Label: Deception in Food Marketing”

    Quote :

    “7 Deceptive Terms Food Marketers Use To Manipulate Shoppers”

    Quote :

    “Deceptive Food Marketing Targets American Consumers

    Product Liability Lawyer and consumer protection attorney representing Consumers Targeted by Deceptive Food Marketing and false advertising

    The largest food and beverage companies in America, including organic food companies, spend billions of dollars to market products to the public each year. Many of these products are damaging to consumers’ health, though are marketed in a much different light.”

    Quote :

    “12 Deceptive Words Food Manufacturers Are Using to Trick You”

    Quote:
    “When Does Enhancement Become Deceit? Advertising Food Tricks ”

    WAKE UP ! Trucking recruiters are in kindergarten compared to the food industry CONsumer manipulators !

    In my humble opinion ………………

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