Nestlé announces strong performance in UK & Ireland
NESCAFÉ brand drives growth and innovation across the coffee category
Newly launched Fairtrade 2-finger KIT KAT is UK's second biggest Fairtrade product in terms of individual products sold – second only to bananas
Nestlé's £500m UK investment programme on track - creating 400 new UK jobs in 2013
Nestlé SA's global financial results, announced today, highlight the UK & Ireland as growth markets for the company in 2012 despite the tough economic environment. Nestlé UK & Ireland delivered growth by responding to the changing shopping habits of UK consumers, particularly in the growing online, convenience and discounter sectors.
NESCAFÉ continued to lead the coffee category by providing consumers with innovative new products such as NESCAFÉ AZERA, the instant barista style coffee, successfully launched in 2012. NESCAFÉ DOLCE GUSTO, which provides coffee-shop quality at home for a fraction of the price, increased sales of coffee pods by nearly 40%.
Sales of KIT KAT, Nestlé's leading confectionery brand, increased in 2012. The tough economy has not diminished consumers' commitment to Fairtrade. Following the success of Fairtrade KIT KAT 4-finger in recent years, KIT KAT 2-finger achieved Fairtrade certification in January 2013. KIT KAT 2-finger is now the second biggest Fairtrade product in terms of individual products sold, second only to bananas. Over 700 million Fairtrade bars will be sold each year (source IRI).
Nestlé also announced it will create 400 new jobs as the company continues its £500 million investment programme. Nestlé is recruiting across its UK sites for a wide range of roles including apprenticeships, graduate positions and engineers.
Fiona Kendrick said:
Nestlé UK & Ireland Chairman & CEO Fiona Kendrick: "2012 was a strong year for Nestlé UK & Ireland. Our consumers are adapting to the tough economic climate by changing the way they shop. We have grown our business by responding to this new reality, particularly in fast growing channels such as online shopping, convenience stores and discounters, as well as the more traditional outlets."
Highlights for Nestlé UK & Ireland in 2012 include:
NESCAFÉ DOLCE GUSTO, which provides coffee-shop quality coffee at home, for a fraction of the price of coffee on the high street, has increased sales of the individual pods by nearly 40% with the number of machines in UK households increasing by 30%. NESCAFÉ AZERA successfully launched in 2012, the instant barista style coffee. This is further evidence of consumers bringing the out of home coffee experience into their home. This is not at the expense of the core NESCAFÉ range, continuing to retain its position as the UK's No. 1 soluble coffee brand.
Nestlé Waters finished 2012 with a record total value market share of 21.7% (Share of Total Plain Water YTD 29 Dec 2012) up from 20.5% a year ago and making Nestlé Waters the fastest growing branded player in the category. Our key local brands, NESTLÉ PURE LIFE® and BUXTON® continued to deliver throughout 2012 with NPL consolidating its role as the fastest growing bottled water brand with growth of +15.8% in the year, and Buxton maintaining its position as the UK's No. 1 local mineral water with a value share of 12.8%.
In confectionery, MILKY BAR (10.5%), ROLO (29.3%) and YORKIE (27.7%) were the value growth highlights for a division that saw 2.5% value growth. KIT KAT 'Choose a Chunky Champion' campaign was a success with Chunky Peanut Butter returning to shelves in June 2012, a significant factor in Chunky's +16% value growth. The campaign was relaunched in January this year with the winner announced in March. YORKIE's growth was fuelled by its return to TV for the first time in 10 years.
MAGGI brings families round the table to enjoy fresh and nutritious ingredients prepared in a simple way through the SO JUICY range. It continues to shine with 46.5% share of the cooking bag market since its highly successful launch in 2011. One of Nestlé's billionaire brands, MAGGI is a global powerhouse, with products including everything from stock cubes, to soups, table sauces and noodles
• HERTA had a strong year in 2012, with value sales up 8.9% and market share increasing from 47.9 to 48.4%.
CARNATION successfully re-launched its website in 2012. Carnation.co.uk attracted 16% more visitors in 2012 vs. 2011 with over 1.3m consumers a year visiting to find new recipes and ideas.
Nestlé PURINA delivered another sound performance in 2012. This success was reinforced by innovative product launches and campaigns that drove growth for much loved PURINA brands such as GOURMET ®, PURINA ONE ®, BONIO® and PRO PLAN ®. By putting the needs of pets, their owners and retailers at the heart of every decision, the company has continued to shape and add value to the Category.
(All figures from Symphony IRI Group Jan to Dec 2012, Total IRI Grocery)
2012 Global Full Year Results
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2012 Financial Statements (pdf, 6 Mb)