Nestlé sees 4.8 per cent decline in sales in second quarter

Nestlé confirms that the strong Swiss Franc has contributed to a decline in sales for the first half of 2014. Total sales for the Nestlé Group came in at US$47.5 billion, down 4.8 per cent on the same time last year, according to a statement. Despite this drop, the company says its existing companies are on track for a 5 per cent total increase in growth by the end of 2014. “We continue to drive the growth momentum with innovation, increased support for our brands, and a focus on efficiencies in what is still a very volatile trading environment,” said Paul Bulcke, Nestlé CEO, in a statement. The company says Coffee-mate experienced a positive performance in North America, driven primarily by the introduction of new flavours. The strongest performing coffee products in Mexico were Nescafé 3-in-1 and Nescafé Dolce Gusto. Nescafé Dolco Gusto performed well across Europe, gaining market share in a deflationary environment where consumer confidence remains fragile. Asia delivered growth in both developed and emerging markets, although strong performance in parts of the continent were counterbalanced by the effects of deflation and unrest elsewhere. The continuing rollout of Nescafé Dolce Gusto delivered double-digit growth, Nestlé reported. Nespresso’s expansion in established markets was accelerated with the opening of 14 new stores across the world. However, the company says that significantly increased competition has contributed to slower gains. Nestlé celebrated the 200-year anniversary of the birth of founder Henri Nestlé last week. Originally from Frankfurt am Main, Henri Nestlé trained as a pharmacist’s assistant before coming to the Swiss town of Vevey to hone his scientific knowledge.
It was in Vevey, in 1867, that he established his cereal business. The small town has since remained the global headquarters of the company.