Nestlé to roll out new food line

Nestlé, the world's biggest food and drink company, said last Friday that it is launching new, healthier versions of its traditional Stouffer's meals.

Executives with the Swiss food maker gathered in New York to discuss its nine-month sales results, its emphasis on nutritious products and its realignment.

For the first nine months of the year, Nestle's sales rose 4.1 per cent from the same period in 2009 as it raised prices worldwide.

The increase rounds out 10 years of improved performance in the United States, even though the weak dollar took a bite of more than 2 per cent out of Nestlé's revenue as it was translated back into stronger francs.

Brad Alford, chairman and CEO of Nestlé USA, said the Farmer's Harvest line launching in the next few months will add more nutritional value to Stouffer's foods.

Nestlé also is deploying environmentally friendly packaging. The bags for a new pet food line coming next year - Purina One Beyond - will comprise 90 per cent renewable materials.

Alford said many consumers still think of Nestlé for its candies, such as Butterfingers, Kit Kat and Nestlé Crunch chocolates, but its portfolio also includes Gerber and Coffee Mate and the weight control lines Jenny Craig and Lean Cuisine.

Nestlé, which reports earnings only twice a year, said its revenue for the first nine months of 2010 was 82.8 billion Swiss francs (US$85.6 billion), compared with 79.6 billion francs (US$82.48 billion) for the same period in 2009.

The maker of Perrier and Haagen-Dazs said its sales grew in all regions and categories, with food and beverage sales of 77 billion francs.

Adverse currency conditions - mainly related to the dollar's softness - reduced revenue by 2.7 per cent.

51,000 US employees

Nestlé has nearly saturated the US with its products, which appear in 96 per cent of US households, including nine brands that bring in more than US$1 billion apiece here.

Its more than 120 factories, distribution centres and other facilities across the US employ more than 51,000 people, about 18 per cent of its global work force.

In its core food and drinks business, which has 25 brands including Tombstone and Nesquik, the strongest growth occurred in developing countries. Sales grew 9.2 percent in Asia, Africa and Oceania to reach 12.9 billion francs (US$13.37 billion).

Sales in Europe increased two per cent to 15.9 billion francs (US$16.47 billion).

In the Americas, which include rapidly developing markets like Brazil as well as the nearly saturated US market, sales rose 5.7 per cent to 25 billion francs (US$25.9 billion).

- AP