Nestlé Malta has registered a seven per cent increase in turnover and with anticipated future growth along the same lines, has already had to add on to its new premises in Lija.
Nestlé has been in Malta since 1923, operating from Valletta and stores dotted around the island. However, the parent company has been aggressively expanding through acquisitions and now represents everything from coffee to cereals, pet food to baby food and pasta to pralines. As the range grew, the company here had to reconsider its modus operandi.
It located the ideal site in Lija, adjacent to Hal Mann, where it could consolidate its operations under one roof and moved there a few months ago, with the official opening held last week. The move represents a long-term investment of over Lm2 million.
"Since we started the project, we have already had to increase our store footprint by 1,500 square metres and even that will not be enough," Nestlé Malta managing director Giorgio Mondovì said.
Nestlé Italiana celebrated the opening by holding its annual managers' meeting here.
"We came here so that we could get to know the offices as well as to celebrate the great results," Nestlé Italiana CEO Manuel Andres said.
Growth was seen in all the product areas but some stood out, in particular the Nescafé instant cappuccino range launched a few years ago with the "froth" adverts, whose sales were boosted by 25 per cent after 100,000 samples were sent to households.
Buitoni pasta - and the recently-introduced range of frozen pizza - also performed well.
"We were very satisfied with the results for pasta as this is a huge but very competitive market. We believe that we have secured 15 per cent market share," Mr Mondovì said.
"Nevertheless, there is room for growth for this very strong brand, indeed, for all our brands."
One of the problems of being part of a company with such a wide portfolio is that few people make the connection between the brands.
"People constantly underestimate the amount of products that we advertise and that we represent. In fact, we handle over 600 different products," Mr Mondovì said.
The companies acquired by Nestlé often already have a distributor in Malta and nine were retained, the other products being handled directly by the Malta office.
"One of the reasons behind an acquisition is finding an established route to market. Of course, some times, it makes more sense for us to take over distribution. In a few weeks we will be taking over distribution of our chocolate range from importer Charles Camilleri and will have 480 pallets' capacity in our new warehouses," Mr Mondovì said.
With growth comes job creation. There are currently just over 40 staff working for Nestlé Malta with more being taken on in the near future. The distributors would also have to take on more people to cope with increased demand, he said.
Facing up to controversy
As Nestlé grew, it gradually focussed more clearly on a direction: health, nutrition and wellness.
"As a group, we are part of people's lives from the time they are a few months old to the day they leave this world!" Mr Andres said.
"The group is now looking at functional benefits and recent acquisitions are all in line with our vision. For example, we took on nutritional menus by Jenny Craig in the US last year and recently took over Novartis' health foods. There is a clear dynamic here to become the world leader."
Nestlé is also very active in R&D and is seeking ways to bring nutritional aspects into its products.
Nestlé has joined up with L'Oreal to produce a range called Inneov, aimed at cosmetic nutritional supplements.
"In many countries, people have not yet understood the importance of food and the impact that it has on your health. For example, you can eat foods that will have an impact on your wrinkles," he said.
"You can also take a pill which helps you to absorb Vitamin D - which makes you tan easier."
No company can attain global status - it is the largest food and beverage company in the world - without some controversy. Nestlé has been criticised in the past for promoting powdered milk for babies to the detriment of breastfeeding and for aggressively marketing sugar-laden cereals. Rather than round on its critics, it has put its efforts into a set of corporate principles.
"If we want to be a health and wellness company, then all we do has to be coherent with our main objectives," Mr Andres said.
"We fully appreciate consumer concerns and have drawn up strict guidelines on advertising aimed at children, for example. We also have utter respect for the WHO code on breastfeeding and willingly pass on information about its benefits. However, there are children who require powdered milk. My own child was intolerant to breast milk.
"I worked in underdeveloped countries for some time and can assure you that Nestlé supports local codes, even if they are more strict than the WHO ones. And sometimes this puts us at a competitive disadvantage because not all our competitors do this.
"We are also leading the effort to provide clear definitions of the nutritional content of our food, working with seven other companies."
Not everyone agrees. An Australian parents' association recently criticised Nestlé (and Kelloggs) for "sneaky" labelling, pointing out that a snack bar advertised as having less than 2g of fat nevertheless has a fat content of 10 per cent - and 30 per cent sugar.
"It is not misleading. We declare the portion size and all the relevant information. And we are always impressed by the way that even children read packaging," Mr Andres said.
"With regards to sugar, the issue is not children's consumption but the fact that they are getting less exercise. One of our competitors said recently that children are not eating more 'bad' foods but because they do not play outside, they do not burn it up - which results in obesity. This is why we have taken it upon ourselves to promote a healthy lifestyle," Mr Andres said.
For example, a 12-page booklet spells out all the nutritional labelling taken on by Nestlé, which go beyond mandatory obligations to self-regulatory impositions on the front and back of packaging.
Nestlé have been very active in Malta, where child obesity is a real concern: 35 per cent of children aged seven to 11 are obese or overweight. It sponsors action-based activities like Skolasport and has published booklets for children as well as a fitness plan campaign. It has a number of publications on guideline daily amounts, using the Nestlé Compass as a guide. Last year it conducted a nationwide survey on obesity and eating habits.
It has also reached an agreement with Playmobil to provide educational activities at the Fun Park in Hal Far. It also went to schools to promote the importance of milk, although it was eventually stopped by the health department, which felt that the event was too commercial.
The 2006 survey findings
• 7.18 per cent of children do not eat any fruit
• 24.8 per cent of children do not eat any vegetables
• 12.05 per cent eat two or more sweets or pastry snacks a day
• 73 per cent of parents read nutritional labels before purchasing a product.
• 13 per cent of them do not think that their child has a healthy diet
• 62 per cent of children exercise one to three times a week
• 14 per cent are at risk of becoming overweight and 19 per cent are overweight. The survey described these results as "alarming".
Did you know?
Nestlé was started in 1867 making milk food for infants.
The first corporate business principles were published in 1998 and updated in 2004. They cover everything from consumer communication and child labour to anti-corruption.
Nestlé has been in Malta since 1923, operating from Valletta and stores dotted around the island. However, the parent company has been aggressively expanding through acquisitions and now represents everything from coffee to cereals, pet food to baby food and pasta to pralines. As the range grew, the company here had to reconsider its modus operandi.
It located the ideal site in Lija, adjacent to Hal Mann, where it could consolidate its operations under one roof and moved there a few months ago, with the official opening held last week. The move represents a long-term investment of over Lm2 million.
"Since we started the project, we have already had to increase our store footprint by 1,500 square metres and even that will not be enough," Nestlé Malta managing director Giorgio Mondovì said.
Nestlé Italiana celebrated the opening by holding its annual managers' meeting here.
"We came here so that we could get to know the offices as well as to celebrate the great results," Nestlé Italiana CEO Manuel Andres said.
Growth was seen in all the product areas but some stood out, in particular the Nescafé instant cappuccino range launched a few years ago with the "froth" adverts, whose sales were boosted by 25 per cent after 100,000 samples were sent to households.
Buitoni pasta - and the recently-introduced range of frozen pizza - also performed well.
"We were very satisfied with the results for pasta as this is a huge but very competitive market. We believe that we have secured 15 per cent market share," Mr Mondovì said.
"Nevertheless, there is room for growth for this very strong brand, indeed, for all our brands."
One of the problems of being part of a company with such a wide portfolio is that few people make the connection between the brands.
"People constantly underestimate the amount of products that we advertise and that we represent. In fact, we handle over 600 different products," Mr Mondovì said.
The companies acquired by Nestlé often already have a distributor in Malta and nine were retained, the other products being handled directly by the Malta office.
"One of the reasons behind an acquisition is finding an established route to market. Of course, some times, it makes more sense for us to take over distribution. In a few weeks we will be taking over distribution of our chocolate range from importer Charles Camilleri and will have 480 pallets' capacity in our new warehouses," Mr Mondovì said.
With growth comes job creation. There are currently just over 40 staff working for Nestlé Malta with more being taken on in the near future. The distributors would also have to take on more people to cope with increased demand, he said.
Facing up to controversy
As Nestlé grew, it gradually focussed more clearly on a direction: health, nutrition and wellness.
"As a group, we are part of people's lives from the time they are a few months old to the day they leave this world!" Mr Andres said.
"The group is now looking at functional benefits and recent acquisitions are all in line with our vision. For example, we took on nutritional menus by Jenny Craig in the US last year and recently took over Novartis' health foods. There is a clear dynamic here to become the world leader."
Nestlé is also very active in R&D and is seeking ways to bring nutritional aspects into its products.
Nestlé has joined up with L'Oreal to produce a range called Inneov, aimed at cosmetic nutritional supplements.
"In many countries, people have not yet understood the importance of food and the impact that it has on your health. For example, you can eat foods that will have an impact on your wrinkles," he said.
"You can also take a pill which helps you to absorb Vitamin D - which makes you tan easier."
No company can attain global status - it is the largest food and beverage company in the world - without some controversy. Nestlé has been criticised in the past for promoting powdered milk for babies to the detriment of breastfeeding and for aggressively marketing sugar-laden cereals. Rather than round on its critics, it has put its efforts into a set of corporate principles.
"If we want to be a health and wellness company, then all we do has to be coherent with our main objectives," Mr Andres said.
"We fully appreciate consumer concerns and have drawn up strict guidelines on advertising aimed at children, for example. We also have utter respect for the WHO code on breastfeeding and willingly pass on information about its benefits. However, there are children who require powdered milk. My own child was intolerant to breast milk.
"I worked in underdeveloped countries for some time and can assure you that Nestlé supports local codes, even if they are more strict than the WHO ones. And sometimes this puts us at a competitive disadvantage because not all our competitors do this.
"We are also leading the effort to provide clear definitions of the nutritional content of our food, working with seven other companies."
Not everyone agrees. An Australian parents' association recently criticised Nestlé (and Kelloggs) for "sneaky" labelling, pointing out that a snack bar advertised as having less than 2g of fat nevertheless has a fat content of 10 per cent - and 30 per cent sugar.
"It is not misleading. We declare the portion size and all the relevant information. And we are always impressed by the way that even children read packaging," Mr Andres said.
"With regards to sugar, the issue is not children's consumption but the fact that they are getting less exercise. One of our competitors said recently that children are not eating more 'bad' foods but because they do not play outside, they do not burn it up - which results in obesity. This is why we have taken it upon ourselves to promote a healthy lifestyle," Mr Andres said.
For example, a 12-page booklet spells out all the nutritional labelling taken on by Nestlé, which go beyond mandatory obligations to self-regulatory impositions on the front and back of packaging.
Nestlé have been very active in Malta, where child obesity is a real concern: 35 per cent of children aged seven to 11 are obese or overweight. It sponsors action-based activities like Skolasport and has published booklets for children as well as a fitness plan campaign. It has a number of publications on guideline daily amounts, using the Nestlé Compass as a guide. Last year it conducted a nationwide survey on obesity and eating habits.
It has also reached an agreement with Playmobil to provide educational activities at the Fun Park in Hal Far. It also went to schools to promote the importance of milk, although it was eventually stopped by the health department, which felt that the event was too commercial.
The 2006 survey findings
• 7.18 per cent of children do not eat any fruit
• 24.8 per cent of children do not eat any vegetables
• 12.05 per cent eat two or more sweets or pastry snacks a day
• 73 per cent of parents read nutritional labels before purchasing a product.
• 13 per cent of them do not think that their child has a healthy diet
• 62 per cent of children exercise one to three times a week
• 14 per cent are at risk of becoming overweight and 19 per cent are overweight. The survey described these results as "alarming".
Did you know?
Nestlé was started in 1867 making milk food for infants.
The first corporate business principles were published in 1998 and updated in 2004. They cover everything from consumer communication and child labour to anti-corruption.