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Despite energy crises, very tense security situation, devastating floods and high inflation in the country, Nestle Pakistan achieved a strong growth of 25% in the previous year 2010 and net profit increased by 37%.Market is expecting even better results in 2011 as the indicators are all very positive About 60 per cent ingredients in beverages and cereals are acquired from local sources while dairy products are processed from 100 per cent locally available raw milk.Nestle Pure Life is now number 1 brand in the world in bottled water brand category.
Nestle Pakistan has announced that the company is introducing their juices brand Fruita Vitals in prisma packaging format of Tetra Pack which will enable them to distribute their juices in distant markets without refrigerator and without preservatives.
Nestle Pakistan has realized that by keeping their profits margins high over a long period of time they have allowed lot of companies to become their strong competitors and no one is more threatening than Engro foods and their brands in the processed milk category.
The Company continued to expand its development infrastructure aimed at accelerating procurement of good quality fresh milk.
Nestle Pakistan is committed to enhancing its product base by diversifying into low cost high quality products with good financial returns that is called by company as “Popularly Positioned Products (PPP)”, which focuses on creating products that are both highly nutritious and affordable on a daily basis for lower income consumers.
Engro Foods just established in 2005, was the second-largest seller of drinking-milk products in Pakistan in 2010, according to Euromonitor.
Nestle is pushing products for lower-income consumers into more rural regions of Asia as it aims to sell the items in a million stores by next year.
He further added that now we have so may brands in the bottled water category.
Coco- Cola with Kinley brand and Pepsi with Aquafina will create lot of problems for Nestle leading brand “ Pure Life” in couple of years time as the price of Nestle is almost 40 to 50% higher than the other brands in 19 Litre category.
Innovation & renovation remained an integral part of the Nestle Pakistan Limited operational strategies and vision for growth.
Nestle Pakistan is also exporting their products and in the current year the company has experienced 25% growth in exports to Afghanistan The major new product launches during 20 included: MAGGI Umda Maza, MAGGI Noodles (Bar-B-Q, Masala & Karara), NESTLE Peach Nectar, LACTOGEN low lactose, & NESTLE Pure Life–5 liters.