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Strong coffee performance boosts Nestlé‘s growth in 2018

Nestlé has reported organic growth of three per cent for 2018, supported by stronger momentum in the United States and China.

Total reported sales increased by 2.1 per cent to CHF 91.4 billion (US$90.8 billion) over 2017’s CHF 89.6 billion. Nestlé says its coffee portfolio continued to make significant contributions with sustained high growth.

Nespresso maintained mid-single-digit organic growth, with very strong momentum in North America.

Nestlé says momentum was supported strong demand for the recently launched Master Origin range and the latest limited-edition coffees inspired by Parisian cafés.

Vertuo, a versatile coffee system with five capsule sizes, gained further traction globally and is now available in fourteen markets worldwide. Nespresso continued to expand its distribution and global footprint throughout the year, reaching 792 boutiques.

"We are pleased with our progress in 2018. All financial performance metrics improved significantly and we saw revived growth in our two largest markets, the United States and China, as well as in our infant nutrition business. Nestlé keeps investing in future growth and – at the same time – has increased the amount of cash returned to shareholders through our dividend and share buyback program,” Nestlé CEO Mark Schneider says.

“We made significant progress with our portfolio transformation and sharpened our Group’s strategic focus, strengthening key growth categories and geographies in the process.”

In North America Nestlé says its licensed Starbucks business was smoothly integrated and saw strong demand for its coffee products.

Nescafé posted positive growth in Europe, the Middle-East and North Africa despite of lower coffee commodity prices and a challenging competitive environment.

Nestlé says robust growth in South Asia was based on strong momentum from Nescafé among other brands, with several new product launches. Japan and Oceania reported positive growth with successful launches of Nescafé Gold and KitKat Gold in Australia.

“In 2018, we upgraded our innovation engine notably to ensure continued technology leadership and a shorter time to market. In the fast-changing food and beverage space Nestlé has what it takes to truly excite consumers with meaningful innovation and must-have products,” Schneider says.

“We reaffirmed our sustainability leadership at a time when consumers and regulators around the world are increasingly looking for solutions to today’s environmental and societal problems. Our decisive action and strong commitments to tackle the global packaging waste problem are a case in point. We are on our way to meeting our 2020 targets and positioning Nestlé for sustained and sustainable growth in the years beyond."

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