Driving Growth Through Innovation and Volume
Nestlé has strategically shifted towards Real Internal Growth (RIG), marking a significant departure from price-driven expansion. The first half of 2024 saw a 2.1% year-on-year organic growth, with a crucial 0.1% rise in RIG—the company’s first positive RIG since the pandemic. This growth is largely attributed to Nestlé’s coffee segment, which led the charge with mid single-digit gains, supported by brands like Nescafé, Nespresso, and Starbucks.
Coffee as a Growth Engine
Nestlé’s coffee business has been a pivotal contributor to its RIG-led recovery, particularly in the Asia, Oceania, and Africa regions, where market share in the ready-to-drink coffee segment has surged. The company’s strategic focus on product innovation, including new coffee launches, has reinforced brand differentiation and expanded market presence.
Sustaining Momentum
Looking ahead, Nestlé plans to increase its innovation efforts by 20% by the end of 2024, further driving growth through product differentiation and market expansion. This strategy is expected to enhance Nestlé’s market share and strengthen its leadership in the global coffee industry, positioning it for sustained success amidst a challenging economic landscape.
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