Nestlé to restructure infant nutrition business | Progresiv
Switzerland-based global food and drinks company Nestlé is reorganizing its infant nutrition business to compete more effectively with local rivals and start-ups. 
The company will make infant nutrition into a regionally-managed business effective from 1 January, 2018, which has been part of the globally-managed Nestlé Nutrition. Nestlé stated that it doesn’t have any such plans for its other businesses.
For the infant nutrition business, Nestlé will create a dedicated Strategic Business Unit (SBU) which will retain the strengths of its globally-aligned nutrition strategy. The SBU will handle key global operations like science-based innovation, compliance, quality management, and global manufacturing capacity.
Nestlé will appoint a nutrition business head for each of the company’s three zones to execute its global strategy in local markets. The three business heads will report to the respective zone CEO and will hold operational and financial responsibility.
Nestle, in a statement, said: “The new organization will allow Nestlé’s infant nutrition business to deliver accelerated organic growth and realize further efficiency gains.
“The more agile and efficient structure will enable Nestlé to respond faster to rapidly changing local consumer preferences, evolving regulation, and customer and channel demand for tailor-made solutions.”
Created in 2006, Nestlé Nutrition is claimed to have consolidated Nestlé’s global position in the infant nutrition sector.
The company says that Nestlé Nutrition has given it sustained growth and margin expansion, besides integrating and leveraging the 5.5 billion dollars acquisition of the US baby food brand Gerber and the 11.85 billion dollars infant nutrition brand Wyeth.
Last month, Nestlé reported an organic growth of 2.6% in its overall group business for the nine-month sales for 2017 which saw it earn 66 billion dollars. Nestlé Nutrition contributed 7.78 billion dollars out of it. (www.food-business-review.com)
