Nestle 's A Swiss Company

Nestle was involved in the unethical marketing practices, endangering consumer health to promote its infant formula in developing nation. Nestle often used deception and doublespeak to justify its unethical business practices. Many NGOs and groups spread the word about Nestlé’s unethical practices making people to boycott its products. Later Nestle changed its policy and stops free sampling and aggressive marketing techniques. Nestle promoted the infant formula over breast milk which caused the illness and death of many infants in the developing countries. There are many reasons that contribute to it:

Before formula a baby had to be breast feed by the mother or another woman. In the 1920’s 90% of woman breastfed. As formula was promoted that fell to 38% in 1946 (Guasti). Formula sales were going great fueled by the post war baby Boom caused by World War II. As the baby boom came to an end sales started dropping. In the late 1970’s to the 1980’s with the reduction of formula feeding mothers in the United States and Europe Nestle turned it’s marking towards third world countries mainly Africa, Asia, and South America. This had devastating results to young infants in the area. The lack of clean available water and the resources to prepare the water prevented the formula from being used in a manner it was designed for. Often the formula would be watered down with dirty water. This caused many ill effects for infants and could led to death. Common ailments were diarrhea, dehydration, and intestinal infections.

Very few experts disagree with the fact that breastfeeding is the optimal choice for the infant. However, decreasing breastfeeding rates raise many questions as to why mothers are not choosing the best nutritional choice for their children. Despite breast milk being the obvious choice for infant feeding due to the health, psychological, and economic benefits, many mothers still decide to feed their infants formula due to lack of knowledge and support, difficulties with breastfeeding, and social embarrassment. Changes need to be made with formula companies, medical professionals, and the public opinion of breastfeeding in order to give nursing mothers the support they deserve.

“When breastfeeding is not exclusively practiced, infant formulas are generally used. The World Health Organization International Code of Marketing of Breast-Milk that parents be fully informed about the health hazards of unnecessary or improper use of infant formula”(2).

To increase the percentage of mothers’ breastfeeding their infants, U.S. Department of Health and Human Services has argued that “breast milk is uniquely suited to the human infant’s nutritional needs and is a live substance with unmatched immunological and anti-inflammatory properties that protect against a host of illnesses and diseases for both mothers and children” ( 1-1). Many people think that instead of taking out their breast, why don’t mothers just feed their children formula. There are many classes of human milk substitutes out there being marketed to be better and healthier than breast milk, but that is simply untrue. The U.S.

Nestlé, one of the biggest food companies in the world, has around 50 percent of the global market share of infant formula. Nestlé was charged with being involved, besides other corporations, in the death of many babies in Third World countries. They were accused of providing formulas to countries where people do not know how to use them properly, and they also encouraged mothers to depend on formulas, which contain all the nutrition supplements that infants need. This ethical issue was very critical for Nestlé and resulted in a series of boycotts from angry consumers around the world in response to this issue.

Nestle was founded in 1866 by Henri Nestle and is today (2015) the world's biggest food and beverage company. The milk-based baby food was the main product for the Nestle, and later produced the milk chocolate with their innovation. The vision of Nestle in making food is always produces the best quality of food for consumers in the market. Nestle was named ‘Nestle Alimentana SA’ was taken the result as the acquisition of Fabrique de Produits Maggi SA (founded 1884) and the holding of the company, Alimentana SA, of Kempttal, Switzerland. The Nescafe (Nestle’s coffee) was became a staple drink of the US military when the war time.

Nestlé is a Swiss multinational food and beverage company headquarter in Vevey Switzerland; the company product include beverages, milk products, ice cream, nutrition and healthcare, dishes and cooking aids, confectionery last but not least pet care. Nestlé has factories in 86 countries and its products are sold in 196 countries around the world (Nestlé 2013 annual report). The macro environment in 2013 was one of the soft growths in developed and developing countries, Nestlé response was to increase brand support, innovation and ensure price sensitively matching consumer needs. Nestlé sales have significantly growth 2.7% from CHF 89.7 billion in year 2012 to CHF 92.2 billion in year 2013.

“Nestle” one of the most well known brands, which produce the milk, and Henri Nestle had founded chocolate-based food company in 1866. This company had expend in to a whole new level right after First world war then after the second world war consequently, then they have made a an offer to produce and create infant formula products and condensed milk powder to be used nation wide that time back in those days. Nestlé is well known for now day’s new level products and had collaborated with international dairy and milk based companies in focusing health and nutrition. They also had continued to expend their research in various field and hit a massive success across the world. Nestlé giving away their best based on their good food,

Capacity:Nestlé’s in the mid 1860’s tried out different combinations of cow’s milk, wheat flour and sugar in order to develop infant nutrition products. The idea was to tackle malnutrition. The infant product was called FarineLactee Henri Nestlé. The product faced a lot of competition from the “Anglo-Swiss Condensed Milk Company, that had cheese and infant formulas as their products. There was tough competition until 1905 – when the two giants merged. Nestle managed to grow

I will be focusing on the transnational food company ‘Nestle’ for my project in International Marketing MN313. Nestle is a Swiss food and drinks company that operates in over 195 countries supplying food, drinks and more products every single day. Nestle operates from a central headquarters based in Vevey, Switzerland where it was founded in 1905. I find it remarkable that they still operate and run their business from the same location it was founded over 100 years ago. Most business grow too large and need to move out of the area they were founded in as it can no longer offer them the required sustainability they need to expand and enter into new markets and become bigger players

Nestlé’s marketing and false advertising in baby food has caused another corporate crime. According to the World Health Organization, “an estimated 1.5 million infants die each year because of inappropriate feeding, because children vulnerable to disease are being bottle-fed on breastmilk substitutes rather than breastfed whenever possible.” Nestlé has been a large contributor in

Also, the second poor issues pertaining to CSR is Nestle for unethical promotion and sale of infant formula. Nestle was target for causing death and suffering of infants around the world by advertising baby food. In poor countries, such as Asia, Africa, and Latin, Nestle had gone wrong which leading to many deaths due to the lack of clean water sources to prepare formula and it had been happening since 1974. Boycott helps to stop the violation and take action to force the company to make changes in policy. Later, the international code of marketing breast milk substitute was created in 1981, they had met with world health organization to

Like all mammals, humans obtain life-sustaining nourishment through suckling and throughout the history of the human species; the only or primary source of nourishment for infants was breast milk which has many virtues (Newman, 1995). Alongside it also involves the necessary skin-to skin contact from the mother which gives the baby a feeling of warmth and security as well as strengthening the infant’s immune system. In spite of this, the majority of infants are still formula-fed predominantly in undeveloped countries where poor, uneducated parents often dilute the formula in an effort to make the expensive powder last longer. As a result, in such circumstances the parent’s attempts to promote the health of their babies end up having the opposite effect (Popkin and Doan, 1990) with later development of inadequate growth and physical deficiencies. And although every individual has a ‘blueprint’ for growth, but realisation of this growth potential is only possible if nutrient supplies in childhood are adequate (Jackson, 1996).

‘Nestlé has around 333,000 employees and is no. 41 on Forbes list of World’s Most Valuable Brands, coming 63rd in sales, 45th in profits and 11th in market value. Which means that the company highly ranked amongst its competitors due to its treasured merchandises. Its annual revenue was $75.39 billion in 2013 and $99.41 billion dollars in 2014, showing an ongoing increase in demand for its products.’ We can see from the statistics that