Nestlé SA

Nestlé SA, multinational manufacturer of food products. It is headquartered in Vevey, Switzerland, and operates factories in more than 80 countries. Nestlé’s chief products are condensed and powdered milk, baby foods, chocolate products, candies, instant coffees and teas, soups, seasonings and condiments, frozen foods, ice cream, and bottled water. The company also produces pharmaceuticals.

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The company dates to 1866, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In August of that year, Charles A. Page and George Page, brothers from the United States, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. In September, in nearby Vevey, Henri Nestlé developed a milk-based baby food and soon began marketing it. In the succeeding decades both enterprises aggressively expanded their businesses throughout Europe and the United States. (Henri Nestlé retired in 1875, but the company, under new ownership, retained his name as Farine Lactée Henri Nestlé.) In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestlé company added condensed milk, so that the firms became direct and fierce rivals.

In 1905, however, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977.

From the beginning of the 20th century the Nestlé company began diversifying. In 1904 it bought chocolate rights that would eventually result in products under the Peter, Kohler, Nestlé, and Cailler brands. In 1927 it acquired rights from the cheese makers Gerber & Company AG. In 1937 the company invented instant coffee, which it began producing under the name Nescafé the following year. In 1960 it acquired control of Crosse & Blackwell (founded 1830) and affiliated companies in Great Britain, Australia, South Africa, the United States, and elsewhere. Nestlé’s bottled-water division was created through the purchase of European brands such as Vittel (1987), Perrier (1992), and Sanpellegrino (1998). The many acquisitions of U.S. food companies have included Libby, McNeill & Libby (1970), the Stouffer Corporation (1973), and one of America’s largest food companies, the Carnation Company (1985). In 2002 Nestlé’s purchase of Ralston Purina created a new division, Nestlé Purina PetCare, while Nestlé’s American ice cream businesses were consolidated under the Dreyer’s brand. Chef America, Inc., a frozen-food company, was also purchased in 2002. In 2007 the company added the milk-flavouring product known as Ovaltine to its product line. The company also entered the frozen-pizza market in 2010 by purchasing Kraft Foods’ frozen-pizza business in the U.S. and Canada for $3.7 billion.

Over the years, Nestlé came under scrutiny for some of its business practices. In July 1977 a boycott was started in the United States against the company’s products, because of Nestlé’s advertising of its infant-formula baby food to mothers as an alternative to breast-feeding, particularly in less-developed countries. The boycotters criticized the advertising as aggressive and claimed that the use of infant formula resulted in health problems and deaths among infants; led by such groups as World Alliance for Breastfeeding Action (WABA) and Save the Children, the boycott later spread to Europe and beyond. Nestlé was also targeted by lawsuits from the International Labor Rights Forum and anti-child-labour activists for alleged child-labour practices on its cocoa farms in Côte d’Ivoire. In 2013 Nestlé Canada, two of its former executives, a competitor, and a distributor were charged with allegedly fixing the price of chocolate; the charges followed a multiyear investigation by the Canadian Competition Bureau that also resulted in a $23 million settlement paid by Nestlé Canada and other chocolate producers.