Starbucks-branded products boost Nestlé nine-month sales

Nestle has reported organic growth of 3.7 per cent for the first nine months of 2019, with real internal growth (RIG) of 3 per cent and pricing of 0.7 per cent.

Total reported sales increased 2.9 per cent to CHF 68.4 billion (about US$69.1 billion), from the CHF 66.4 billion (about US$67.1 billion) reported for the same period last year.

Net acquisitions had a positive impact of 0.7 per cent and foreign exchange reduced sales by 1.5 per cent.

“We are pleased with our nine-month results and have made further progress towards our 2020 financial goals. We continue to see good momentum in our largest market, the United States,” Nestlé CEO Mark Schneider says.

“Nestlé’s growth was supported by investment behind our brands, rapid innovation, and disciplined execution. During the third quarter, the roll-out of Starbucks products continued, now reaching 34 countries… With prudent investments and a disciplined approach to acquisitions our value creation model is generating profitable growth and attractive cash returns for our shareholders.”

The beverages category in the Americas, comprising Coffee mate creamers, Starbucks, and Nescafé coffee, saw mid-single-digit growth. Nestlé says the launch of Starbucks creamers generated strong demand. Net acquisitions increased sales by 5.5 per cent in the Americas, largely related to the acquisition of the Starbucks license.

Coffee saw positive growth in Europe, Middle-East and North Africa, with high single-digit RIG in the third quarter, helped by the launch of Starbucks products across 20 countries in the zone.

Nespresso has also maintained solid mid-single-digit organic growth, while North America and emerging markets grew at strong double-digit rates. Nestlé says the Vertuo system, now available in 21 markets, continued to generate strong consumer demand.

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