Nestlé Global CEO Affirms Commitment to Philippines

Jun 23, 2011

In a meeting with President Benigno Aquino at Malacanang Palace, Nestlé S.A. CEO Paul Bulcke re-affirmed the Nestlé Group’s commitment to the Philippines as the company celebrates its 100th year of doing business in the country.

Accompanied by Nestlé S.A. EVP Frits van Dijk, Zone Director for Asia, Oceania, Africa and the Middle East, and Nestlé Philippines, Inc. Chairman and CEO John Miller, Mr. Bulcke is in the country for an update on Nestlé operations in the Philippines and to meet with public and private sector leaders.

"The global Nestlé family proudly congratulates Nestlé Philippines on its centennial. This is a remarkable milestone in its enduring mission to provide generations of Filipino families with tasty food and beverage products that promote nutrition, health, and wellness. We are deeply grateful for the trust that Filipinos have put in Nestlé brands through the years," Mr. Bulcke said.

Mr. Bulcke said the Nestlé Group looks forward to the next 100 years of serving future generations of Filipinos with high-quality brands offering affordable nutrition. These brands are supported by Nestlé’s outstanding food and nutrition R & D capability, which is the largest in the world.

"We will strive to continue to create shared value by working with leading stakeholders in society and by focusing upon nutrition, water management and rural development, all of which are areas that are particularly pertinent to our business. We take very seriously our corporate responsibility towards our shareholders, the local communities where we operate and the society that we serve. In this way we build long term sustainable businesses which benefit a wide range of stakeholders. This is the case both in the Philippines and globally," he said.

Mr. van Dijk, who served Nestlé Philippines, Inc. for many years, said that the Philippines is a key market for Nestlé both in ASEAN and worldwide. Sales of Nestlé Philippines totaled PhP 92 billion in 2010, making it the 8th largest corporation locally. NPI currently has four factories manufacturing coffee, milks, chocolate energy drinks, cereals, infant nutrition products, ice cream and chilled dairy products.

A fifth Nestlé factory is under construction in Tanauan, Batangas, and will start operations in 2012. "As Nestlé Philippines marks its centennial, the ongoing construction of the Tanauan factory is a concrete re-affirmation of our commitment to the Philippines," said Mr. van Dijk. Nestlé has invested over PhP 10 billion in the country in the past five years, with PhP 4.8 billion allocated for the Tanauan facility. The bulk of these investments have gone towards enhancing production capability to meet growing local market demand.

Mr. Bulcke said, "By opening a new factory, we are closer to our consumers and our valued customers. At the same time, we are able to enhance local economic activity by creating employment and business opportunities for partners and suppliers."

Turning to global operations, Mr. Bulcke said that a significant portion of Nestlé’s growth has and will come from emerging markets, in which it is already strongly represented. Nestlé sales in these markets currently amount to CHF 39 billion or 35% of turnover, and are projected to grow to 45% by 2020.

"The Philippines continues to grow in importance to Nestlé. We believe that making long-term investments will help unlock the country’s great potential. The diversity and dynamism of Filipinos and the favorable demographic and economic growth trends mean that the country will continue to draw foreign investments which, I believe, will contribute significantly to its growth and development. Nestlé’s long-standing presence in the Philippines and our ongoing investments re-affirm our confidence in the country and our commitment to nurture future generations of Filipino families," Mr Bulcke said.