Nestlé cracking down on caged eggs within the EU

In line with their 2017 pledge to help animal welfare, Nestlé is now only using cage-free eggs in all European food products. The company, alongside food brands such as ALDI, Mondelēz and Unilever are also calling for the European Union to ban cages for laying hens.

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Smart move by Nestlé sees them with world first

Nestlé has announced that its  Smarties brand is now using recyclable paper packaging for its confectionery products worldwide. This represents a transition of 90 per cent of the Smarties range, as 10 per cent was previously already packed in recyclable paper packaging. Smarties is the first global confectionery brand to switch to recyclable paper packaging, removing approximately 250 million plastic packs sold globally every year.

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Wishing waste would go away

New research shows Australians are a nation of ‘wishcyclers’ as more than half of us (51%) admit to putting waste in a recycling bin even if we’re not sure it’s recyclable. Read more

Growth strong for Nestlé in Oceania

Nestlé has released the results for the first nine months of 2020 with the Oceania sector having strong growth over that time.
“Nestlé has remained resilient in a difficult and volatile environment. Our people have acted in a responsible and prompt manner to mitigate the impact of the global pandemic and have adapted quickly to evolving consumer needs. Strong organic growth was broad based and supported by sustained momentum in the Americas, Purina PetCare and Nestlé Health Science, as well as the acceleration of our coffee business in the third quarter,” said Mark Schneider, Nestlé CEO.
“We continue to develop our portfolio with speed and discipline. As an example, we are transforming Nestlé Health Science into a nutrition and health powerhouse through a combination of strong organic growth and targeted acquisitions. The recent additions of Zenpep, Vital Proteins and Aimmune Therapeutics are further steps in the expansion of our nutritional health offerings.”
Zone Asia, Oceania and sub-Saharan Africa (AOA)
Organic growth was flat, with RIG of -0.2 per cent and pricing of 0.2 per cent. Foreign exchange reduced sales by 6.7 per cent. Reported sales in Zone AOA decreased by 6.7 per cent to CHF15.3 billion. Organic growth in the Zone reached 4.5 per cent in the third quarter.
China saw negative growth, turning positive in the third quarter. Coffee, culinary and ice cream all delivered positive growth, with sequential quarterly improvements. The contraction in Wyeth infant formula sales continued to moderate. The roll-out of the locally produced Belsol brand is on track. Infant cereals and Purina PetCare both grew at a double-digit rate. Nestlé Professional reported a sales decrease, with growth recovering to almost flat in the third quarter. Strong momentum in e-commerce continued, driven by Nescafé, Starbucks products and dairy.
South-East Asia maintained mid single-digit growth. Sales in the Philippines grew at a double-digit rate, with elevated consumer demand for Bear Brand, Milo and Maggi. Indonesia delivered high single-digit growth, led by Bear Brand, Dancow and Milo. South Asia continued to perform well. India posted strong mid single-digit growth, with good momentum in Maggi, Nescafé and KitKat. Sub-Saharan Africa grew at a double-digit rate, with strong growth across most markets. Growth in Japan, South Korea and Oceania was slightly positive.
Oceania reported strong growth across most product categories, particularly in coffee and confectionery. Japan saw a decline in sales, with some improvement in the third quarter. KitKat sales declined in Japan, impacted by a reduction of inbound tourists.
By product category, the largest contributions to growth came from dairy, culinary, coffee and Purina PetCare. In coffee, consumer demand for Starbucks products remained strong. Infant nutrition continued to perform well outside of China. Nestlé Professional and confectionery posted negative growth, with improved sales development in the third quarter.
The company expects full-year organic sales growth around 3 per cent. The underlying trading operating profit margin is expected to improve. Underlying earnings per share in constant currency and capital efficiency are expected to increase.

How Nestlé came out on top during COVID-19

When you’re a big conglomerate like Nestlé, reputation is key – not just in terms of the products  you produce, but how you look after staff.

Nestlé is a world-renowned food and beverage company, which means it is a vital industry during the COVID-19 pandemic. This also means it has to go through a lot of adjustments when it comes to the processing and manufacturing of products.

Alain Riesterer is the company’s Technical and Production director and has worked all over the globe in many different environments. He knows how important it is to keep staff safe, which is why the company implemented strategies before the pandemic hit that in turn meant the teams were anticipating a number of challenges that lay ahead.

“Since the beginning of COVID our operations have run full,” he said. “We have not had a single day of shut down because one of our main reasons of existence is to supply food to the population. That is very clear in this situation of crisis. We have seen several countries where there were potential food scarcity situations, which is why it was important for us to be able to supply food to the communities.”

From an operations point of view in, the company’s seven factories in Australia started with best hygiene practices and standards – that included additional hand washing and sanitation for hands with alcohol-based solutions. Also, from the beginning of the crisis, Nestlé implemented mandatory temperature control at the entry of all of its premises.

“We have also created a Team A and Team B structure in every single one of our operations in order to ensure the social distancing,” said Riesterer.

“We have a rule of two metres, some companies have a rule of 1.5m. In some places in our operation we could not ensure the 2m, so we went into physical barrier installation such as plexiglass separation between our employees.”

Team A and Team B were implemented by the company’s head office first. It has also implemented shift patterns on site at its factories – a morning shift, afternoon shift and night shift. Senior staff ensure that the shifts are consistent with start and end times with the same people so there is minimum cross-over. This means less risk of any cross-contamination between a staff member who might inadvertently come to work infected.
Riesterer said that a lot of the practices that the company has implemented, such as social distancing and physical separation between its employees, will stay and probably never go back to the way things were.

“At the end of the day, it is part of good hygiene practice. We also learned a lot and we proved that we could operate with these new circumstances,” he said. “We also ensure that between the shifts – the cross over – is limited to the bare minimum so we don’t have any potential cross-contamination between the different people.”

Panic buying can produce its own set of problems, mainly in terms of the supply chain and with raw and packaging materials. Luckily, Nestlé was also prepared in that instance, too.

“We did have some raw materials that were coming from overseas and we reacted very fast at the very beginning in increasing our stock cover,” he said. “Fortunately for our factories in Australia, we did not have any major disruption. We followed closely what was happening with raw and packaging material in different countries worldwide. At the moment we have certain raw materials coming from the US and we will increase our stock cover in advance. We have managed a very fluent supply during these last three months without major disruption.”

With a lot of uncertainty around the markets in many industries, some would think it might be time to sit back, take stock of the situation, and perhaps even pare back some activities. Not so, with Nestlé – it’s business as usual.

“Planned maintenance and capex are continuing,” said Riesterer. “From a crisis, there are a lot of opportunities. And I think the mindset of the people and how to embrace that change. This is where we have been very good – at all levels of the organisation from the shop floor up to the management of our factories in our organisation. Nobody wants to go through something like COVID-19 but at the end of the day it’s the adaptability of the organisation that will make it successful.”

A lot of the company’s maintenance needs are met by its own technicians. Being an international conglomerate, Nestlé does have parts suppliers from around the world but this has hardly affected its Australian operations, although like a lot of companies at the moment, it is careful about who it allows onsite and when.

“We limit access to third parties because we want to minimise risk. The health and safety of our people is our key priority, we therefore implemented remote support via
web based technologies, such as, video-conferencing.

Nestlé also did something extraordinary for a conglomerate with a huge workforce.
“We implemented a special 14-day COVID-19 leave, which is additional to the sick leave and holiday leave that is paid,” he said. “At the end of the day, it is to keep the workplace safe. A lot of industries have taken similar steps to ensure that frontline employees are safe, are motivated. We need them. Without them, nothing happens.”

Riesterer said that the company is malleable when it comes to how things will be in the future. He knows that COVID-19 will probably have a lasting effect on how a lot of companies are run. However, he isn’t ready to hang his hat on any one aspect that will change, only that the way things are done will not be the same.

“Are we rethinking the way in which we work in the office? Yes. What is the future? I do not know,” he said. “It has been a very interesting period for everybody. I think we have found out that by using new tools, it allows us to achieve a lot, of which maybe in the past, we were not so convinced.”

Nestlé introduce Starbucks at Home range

Australian coffee drinkers will now be able to pick up a Starbucks blend in five new  coffee styles from their local supermarket.

The range includes Roast & Ground, Whole Bean, Premium Instant, Premium Coffee Sachets, and Starbucks By Nescafé Dolce Gusto capsule options, and build on the existing
Starbucks By Nespresso range.

Available in a variety of roasts, intensities and flavours, the Starbucks at Home range allows Australians to have a coffee that suits their taste preference in the comfort of their own home.

Nestlé workers get three months pay if shut down occurs over COVID-19 – extra leave too

Food manufacturer Nestlé has gone the extra step when it comes to the COVID-19 pandemic and has added extra leave to its employees who have been affected by the pandemic.

Where the company needs to temporarily stop operations, all affected hourly and salaried staff will be paid in full for a period of up to 12 weeks.

It has also extended additional leave for those affected directly. Any employee diagnosed with COVID-19, or with a household member diagnosed with COVID-19, directed to self-isolate and unable to perform their job, will be paid up to two weeks paid special leave (10 days for a full-time employee working 5 days per week) above personal leave. For casual employees, this will be based on their planned shifts. Additional special leave may be available which will be determined on a case-by-case basis.

Nestlé is also providing reasonable access to paid support for parents and guardians who are unable to attend work because they are the primary carer for their children in the event of a school or childcare centre closure.

 

Nestlé joins the Race to Zero

Nestlé has joined ‘Race to Zero’, the global campaign to mobilize leadership and support from businesses, cities, regions, investors for a healthy and resilient zero-carbon recovery in the run-up to the 26th UN Climate Change Conference of the Parties (COP26). The campaign aims to drive a new growth and innovation agenda in support of a more inclusive and resilient economy following the COVID-19 pandemic.

‘Race to Zero’ will rally leaders who are committed to achieving net-zero emissions by 2050 at the very latest, in line with global efforts to limit warming to 1.5°C. All participants will also submit a plan in advance of COP26 and set interim targets in the next decade.

Nestlé is already in the race to zero. The company is accelerating its actions to tackle climate change and has committed to net-zero emissions by 2050. Nestlé will publish a roadmap, including interim targets consistent with the 1.5°C path.

Nestlé recognizes that its ability to succeed relies on system-wide changes and urges others to do likewise. It will also require a concerted global effort to ensure the recovery from COVID-19 revives the economy and enables the world to tackle climate change at the same time.

Ahead of his participation in the virtual launch event of ‘Race to Zero’, Mark Schneider, CEO Nestlé, said: “We know the challenge of climate change will not wait, so neither will we. Time is of the essence, and we need quick wins in the short term to build a better future as we recover from the COVID-19 crisis. Nestlé is committed to this cause. We will work with others and use our scale and expertise as well as the power of our brands to drive progress – fast. Building a more sustainable food system will be a core element of the solution to climate change, and we intend to play our part in making this happen.”

‘Race to Zero’ is also working to define the most effective pathways to zero-emission for key sectors such as energy, transport, industry, food, retail, and finance and reach key economic tipping points faster. The new pathways will drive coordinated action by investors, businesses, policymakers, and NGOs.

Nestlé baby food packaging designed for the future of recycling

Nestlé has launched what it said is the first-of-its-kind, single-material pouch for its baby food products designed for the future of recycling.

In the U.S., the new pouch will be available exclusively on TheGerberStore.com for Gerber‘s Organic Banana Mango Puree beginning in May 2020. It will be 100% recyclable through Gerber‘s national recycling program with TerraCycle.

In Finland, the pouch will be available for Piltti’s Apple Pear Blueberry Raspberry widely sold in supermarkets.

Thierry Philardeau, Head of the Nutrition Strategic Business Unit, Nestlé said: “We are proud to have found a solution for the recyclability of baby food pouches. We began in the U.S. and Finland for two product variants, and we aim to gradually extend the use of single-material pouch to our baby food pouches range globally.”

This is in line with Nestlé’s commitment to make 100% of its packaging recyclable or reusable by 2025.

The newly designed-to-be-recyclable pouch is made from polypropylene (PP), a versatile form of plastic available commercially. This switch is expected to make more plastics infinitely recyclable and increase the value of the material for the recycling industry.

“This launch is an important milestone on how we execute our ambition to create a wider market for recycled plastics that are safe for food. We will continue to work with other stakeholders to ensure that the infrastructure needed to recycle matches material innovation,” added Thierry Philardeau.

Nestlé and iQ Renew partner on soft plastic recycling in resource recovery trial

Nestlé and Australian recycler iQ Renew have announced a trial which aims to see soft plastics collected from over 100,000 homes through kerbside recycling and diverted from landfill.

With increasing consumer demand for improved recycling, the trial aims to find a way to collect, sort and process soft plastics that can be broadly adopted.

iQ Renew CEO Danial Gallagher said there is an opportunity in turning soft plastic from a waste to a resource.  Soft plastics not only make up 20% of the volume of Australian household landfill bins, but are also frequently found incorrectly placed in recycling bins.

“Most Material Recovery Facilities (MRFs) can’t separate soft plastic from other items in household recycling, so while soft plastic can be recycled, what we lack is a robust, scalable system to collect and process it using existing kerbside collection,” Gallagher said.

“We’ve designed the trial so that at the front end, it will support householders to pre-sort their soft plastic and get it into a recycling stream, while behind the scenes, we’ll test using the sorted soft plastic as a resource in a range of different manufacturing processes,” he said.

Nestlé Australia CEO, Sandra Martinez, said Nestlé wanted to find sustainable paths to recycle packaging.

“While we are working to make all our packaging recyclable, we know that soft plastics is an area that needs greater focus and collaboration. We need to find ways to drive more recycling here,” Martinez said.

“As Nestlé plans to reduce our virgin plastic use and increase the amount of food grade recycled plastic packaging we use, we need plastic to be collected. Given the low amount of soft plastic collected from consumers today, we hope this trial can unlock the significant potential for soft plastic packaging to become a resource.”

Martinez said Nestlé also wanted to help people to recycle effectively.

“Australians are enthusiastic recyclers and want better recycling systems that take plastic packaging out of landfill. This trial will uncover how households understand soft plastics collection and answer critical questions about how it affects their in-home recycling behaviour. We have a vision for Australia to have a waste free future.”

The project will commence with a pilot of 2000 households, then plans to expand to over 100,000 households later in the year, processing around 750 tonnes of soft plastic that would otherwise be sent to landfill. Locations for the trial are currently under consideration.

Simplifying and integrating the supply chain journey

Consumers’ daily lives revolve around trust. Every day, when peeling an orange, opening a can of baked beans or dining in a favourite restaurant, consumers put their trust in Australia’s food supply chain.

Behind every food and beverage product on the shelf is a supply chain journey that starts with ingredients. The Australian food manufacturing industry is an intricate maze of ingredient and packaging suppliers, most with different supply chain management solutions.

Today, sourcing ingredients without a traceability and food safety protocol invites counterfeit products onto the food chain and an increased risk of contamination. News of unsafe or spoilt food can impact business owner’s livelihoods and the industry’s broader reputation, along with disruption to consumer’s lives.

“To manage ingredient safety and increase the visibility of food ingredients and raw materials in these complex supply chains, a new initiative, the Supply Chain Improvement project, is being implemented using GS1 standards,” said GS1 Australian account director Andrew Steele. “The project’s objective is strengthening integration between the thousands of upstream supply chains in the Australian food manufacturing industry.”

An industry working group has been set up to drive the project using the GS1 global standards for product identification, data capture and data sharing. GS1’s Global Traceability Standard (GTS) is the foremost traceability framework, allowing businesses to track their products in real-time and have end-to-end visibility of the supply chain.

“The group will work to achieve consensus across the industry to improve food safety, deliver efficiencies and reduce costs,” said Steele.

Representatives from Nestlé, Ingham’s, SPC, Lion Dairy and Drinks, Sanitarium, CHR Hansen, Newly Weds Foods, FPC Food Plastics, Labelmakers, Matthews Australasia and Visy Industries make up the group.

The ability for companies to capture material movements from ‘paddock-to-plate’ provides data integrity and timeliness from receipt to delivery, with traceability back to the source. Through automation, many of the manual processes are eliminated and businesses can be proactive with inventory management and handling systems.

“As a food and beverage business it’s critical for us from a food safety perspective to be able to track ingredients all the way back to the origin,” said SPC’s national logistics manager, Christian Lecompte.

Also critical to business is the capability to support information and production flow within existing systems for integrated supply chains. The project has the capacity to eliminate waste within an organisation’s value stream, reduce non-value-added tasks and ensure cost-effective solutions for customers, leading to a ‘right-first-time’ approach for all deliveries.

“One of the things we found we could do to be more efficient was to look at opportunities to be able to electronically track all the product ingredients throughout the production cycle – how we identify a product coming into the warehouses, how we receipt goods, how we put our goods away, how we manage our inventory and how we deal with our suppliers,” said Lecompte.

The adoption of GS1 standards as the common language for the identification, data capture and data sharing will enable automation of key ingredient sourcing, and traceability between ingredient suppliers and food manufacturers. Using GS1 standards for upstream integration goes well beyond minimum standards and allows businesses to translate their internal processes and approaches into the one common language that all trading partners can use and understand, without having to translate data formats across different supply chain management systems. This is the key as Steele believes interoperability is essential to the future of data sharing.

“Establishing international standards to ensure transparency across the supply chain can help lower existing barriers to the exchange of data between suppliers, trading partners and consumers,” he said.

The Supply Chain Improvement Project has the potential to deliver many benefits to industry, including increased visibility of food ingredients and raw materials, unique identification and traceability to improve food safety, and reduced costs with automated business transactions.

Nestle Australia’s head of digital supply chain, Mandeep Sodhi pointed out the key to the project’s success. “By having consensus across the industry on how to interconnect electronically and exchange critical operational data, we can realise cost-effective solutions across the end-to-end – from manufacturers, to suppliers, to customers – everyone benefits from this improvement in standardisation,” he said.

Looking ahead, the industry working group is encouraging all upstream businesses to adopt the food safety and traceability protocol using GS1 standards.

“With an industry-wide solution in place, your trading partners will have more visibility of your products across the supply chain,” said Steele.