Nestlé Group invests increasingly in healthcare

The Swiss giant Nestlé, the world's largest food manufacturer, signals that will continue investing heavily in its development of food group for the "undisputed leader" in nutrition, health and wellness, also to react to increasing government regulations.
Peter Brabeck-Letmathe, Chairman of the Board of Directors of Nestlé, advised shareholders in the general meeting held yesterday in Lausanne (Switzerland), the food industry as a whole "is today questioned like never before".
According to Brabeck, "the explosion of health costs and non-viability of public health systems will increase the pressure on the food industry".
The company says he is improving the nutritional value of its products, reducing the sugar content (15% in Switzerland, for example), salt (10%) and fat and at the same time increasing micronutrimentos in cereals.
The goal now is to go beyond the borders of nutrition, and a better understanding of the interaction between food, health, genes and lifestyle, said yesterday Paul Bulcke, CEO of Nestlé.
In addition to billions of dollars of annual investment in research and development, the Nestle Health Science Division, created in 2011, has been making acquisitions.
Last year bought the American company Accera, which manufactures clinical nutrition products to treat patients suffering from Alzheimer 's. Also formed an association with the Chi-Med pharmaceutical group, controlled by billionaire Li Ki-shing, Hong Kong, to develop gastrointestinal treatment based on traditional Chinese medicine, herbal products.
In November, the Health Division of Nestlé bought Wyeth Nutrition, child nutrition arm of Pfizer. This company carries out 85% of its sales in emerging markets. One of the goals is to grow well in China, the world's second-largest economy.
The General Assembly adopted yesterday the Chinese entry Eva Cheng on the Board of Directors of Nestlé. China has become the second largest market of multinational and Chinese shareholders have now 2.6% of the company, in the same range of the Japanese. Swiss shareholders have 35%, and the United States, 26.5%.
The Group won 92.2 billion Swiss francs last year, with organic growth of 5.9%. The net profit amounted to 10.6 billion francs (11.8%)-60% will be distributed in dividends.
Bulcke celebrated the company's performance, before the shareholders, warned that the difficulties in the global context has not yet ended and insisted that the strategy does not change.
In February, analysts have noted slowdown in emerging markets, representing more than 40% of Swiss group billing.
Yesterday, the Board of Directors of Nestlé also received the green light from shareholders for its compensation package for 2012. But a thinly veiled threat to Switzerland, which has just adopted one of the toughest rules to prevent ' exorbitant salaries "of companies and banks in the country.
Brabeck, Chairman of the Board of Directors, complained that in Switzerland "the political and regulatory environment becomes more difficult for listed companies".
The leader regretted that the "fruitful symbiosis" of Switzerland with multinationals in the country has suffered lately "more and more political pressure, compounded by the irreversible globalization of economic activity in General."
Brabeck added that the "Nestlé want to continue in Switzerland", but I would feel welcomed "today, but also in the future".
The shareholders approved without problems the total package of Brabeck to 2012, 6.97 million francs. The CEO Bulcke received 9.97 million, 1.6% more value.
Amid the pressure on large salaries in Switzerland, especially in the financial sector, shareholders of the Julius Baer Bank rejected this week the remuneration of its directors.
In early March, 67.9% of the Swiss electorate approved a popular initiative against "abusive fees" of executives, a small revolution in a fairly liberal country, changing the power relationship between the Board of Directors and shareholders.
During the General Assembly, a representative of non-governmental organisation (NGO) has accused the company of not having given assistance to a former employee in Colombia that was murdered. Brabeck denied and asked: "why do you want to play ... in the company? You are a shareholder or what? ". Was applauded.