We continue to shape future
generations of coffee
For a business to be successful in the long term it has to create value, not only for its shareholders but also for society. We call this Creating Shared Value. It is not philanthropy or an add-on, but a fundamental part of our business strategy.
Over the past few years, it has become evident that it is increasingly important to stand by this strategy and even to strengthen it. We are faced with economic, social and environmental challenges such as diversifying developing economies, aging of coffee farmers and competition for land & water use – to name just a few. And we are willing and capable to find solutions.
One of our big advantages is our brand. Today, NESCAFÉ is the world’s leading coffee brand. With great heritage, size, expertise, people and passion come great responsibilities, but also the power to initiate change. Together with our partners we create value for everyone who is involved in the process of coffee production and processing - from farmers to consumers - following 3 pillars.
NESCAFÉ is the world’s leading coffee brand, with sales of over CHF 10 billion in 2009. Around 4,600 cups of NESCAFÉ are consumed every second.
NESCAFÉ is available around the world in different blends and flavours, which are adapted to local taste. NESCAFÉ comes in different sizes and at different price points, from our affordably priced products to premium products such as NESCAFÉ Gold or NESCAFÉ Dolce Gusto. It also comes in varieties such as NESCAFÉ Protect and NESCAFÉ Green Blend, a new type of coffee, which contains high levels of naturally occurring polyphenol antioxidants.
To help reduce energy consumption while preparing NESCAFÉ coffee, Nestlé is launching new initiatives, such as improving the energy efficiency of NESCAFÉ Dolce Gusto machines or facilitating the preparation of soluble NESCAFÉ coffee with, for example, a new eco-kettle which helps consumers prepare the right amount of water at the right temperature.
All in all, Nestlé is investing CHF 500 million in coffee projects over the next ten years (2011-20). This includes CHF 350 million for the NESCAFÉ Plan and builds on the CHF 200 million investment in coffee projects over the past ten years.
Our aim is that we meet the needs of the present without compromising the ability of future generations to meet their own needs.
Over the next five years (2011-15), we will double the amount of NESCAFÉ coffee bought directly from farmers and their associations, purchasing 180,000 tonnes of coffee from around 170,000 famers.
With the support of Rainforest Alliance and 4C, all directly purchased green coffee will be compliant with the internationally recognized 4C sustainability standards by 2015.
In addition, 90,000 tonnes of NESCAFÉ coffee will be sourced according to Rainforest Alliance (SAN) principles by 2020.
We will expand our technical assistance programmes for farmers, providing advice on farming and post-harvest practices to over ten thousand coffee farmers per year.
We will also set up new microfinance schemes for coffee farmers and increase the number of community projects focused on education, public health and water supply.
We will distribute 220 million high-yielding, disease-resistant coffee plantlets to farmers by 2020, through partnerships with public and private institutions in countries such as Mexico, Thailand, Indonesia and the Philippines, where we have already distributed over 16 million coffee plantlets in the past ten years.
New propagation centres will open in coffee producing countries, starting with Mexico.
Nestlé: Creating Shared Value
NESCAFÉ is in fact only one brand within the Nestlé family where quality goes well beyond the product itself. Throughout the world and across Nestlé brands, we’re involved in a broad range of social and environmental initiatives that together make quite a difference.
Actually, it’s how we’ve always done business at Nestlé and is part of what we call Creating Shared Value. For us, caring about the wellbeing of others and the environment is integral to our promise of improving the quality of life through good food and beverages everywhere. Our commitment to great tasting and trusted products has and always will be tied to our respect for the environment and the people we work with, including the farmers who supply us, our employees, our consumers and the communities where we operate. At Nestlé quality means more.
Visit www.nestlé.com/csv to learn more.