Monday, May 16, 2016

Nestle grows and dominates premium line

Last year, the operation of Nestlé worldwide had 4.2 percent advance in sales. The company, which does not reveal the figures by country, said that, despite the crisis, also grown in Brazil, in a move pulled by opposites: a race to the cheaper products and premium lines. "I believe we are well positioned at both ends," says Laurent Freixe, Nestlé ''s global Vice President. According to the Executive, in the crisis people are more attentive to the cost-benefit equation. "Consumers tend to buy cheaper products, but still those in which realizes superior quality." On the route of the more sophisticated items, one of the main vectors of growth was the line Nescafe Dolce Gusto, which, with double-digit growth, led to the opening of a factory for the product in Montes Claros, Minas Gerais, inaugurated in December 2015.
For the food and beverage consultant Adalbert Viviani, the pullback in the economy makes explicit the confidence that consumers have in the company in certain categories. "Today, people need to preserve income. So, will think twice before changing for the sake of a few cents ", ponders the expert. "This is even stronger in infant feeding-related products, such as milk and milk flour."
Present for 95 years in Brazil, Nestlé made the country the fourth largest global market for their products – behind United States, China and France. Today, the company dominates no less than 8% of the national market of processed foods, according to consulting firm Euromonitor. Despite the arrival of new brands to Brazil in recent years, the company has been able to maintain its dominance in the gondolas.
The Swiss group holds the leadership isolated from traditional and important segments, such as chocolates and dairy products, but was not stopped and opened other fronts, in which also become reference. The segment of coffee capsules, in which today''s share of 48%, with Nespresso and Dolce Gusto.
Fonte: Estadão - 16/05/2016
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