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Nestlé is the world leader in the food and beverage industry, with a presence in beverages, dairy products, infant nutrition, medical nutrition, and culinary products, featuring iconic brands such as Nescafé, KitKat, and Perrier. The group stands out for its geographic and sectoral diversification, its capacity for innovation, and its strong focus on profitability and shareholder value creation.
With iconic products in nutrition, beverages, and health, Nestlé serves essential needs that don’t fade with time. From infant formulas to coffee, people will always consume food and nutrition, meaning the company’s brands are likely to remain relevant for decades. Their focus on innovation (plant-based, health-focused, sustainable products) ensures they adapt to future consumer trends, making Nestlé a strong candidate for long-term portfolio stability.
Why it matters for investors: These are not just companies performing well today; they are structurally resilient, globally diversified, and positioned to grow with consumer demand across generations. Including them in a long-term portfolio is less about timing the market and more about anchoring exposure to secular growth and enduring brand strength.
Ambitious restructuring plan: Nestlé is undertaking 16,000 job cuts to simplify its organization and focus on its most profitable activities, thereby improving operational discipline and margins.
Volume and growth: The new CEO aims to revive volume growth, particularly in high-value segments, in order to stimulate organic growth in a competitive global environment.
Macro context favorable to consolidation: Despite inflationary pressures on raw materials and consumer spending, Nestlé’s strong brands and diversified portfolio allow it to maintain a solid position in both mature and emerging markets.
Sectoral impact: The simplification and refocusing initiatives could act as a catalyst for the food industry, boosting investor confidence and improving perceptions of the group’s future performance.
Summary Opinion: Buy / Hold with conviction. Nestlé combines financial stability, a diversified portfolio, and an ambitious transformation plan, offering attractive exposure to both global consumption and premium brands.
Global leader with strong brands: Nestlé products benefit from worldwide recognition and high customer loyalty.
Margin-enhancing restructuring plan: Simplifying the organization and focusing on profitable activities should strengthen medium-term profitability.
Sustainable volume growth: Focus on strategic products and organic growth provides leverage for future revenues.
Macro resilience and diversification: Presence in mature and emerging markets, with a balanced portfolio of consumer categories, limits exposure to economic cycles.
Execution risks related to the restructuring plan (costs, social impact, productivity);
Inflationary pressure on raw materials and logistics;
Intensifying competition in the global food industry.
Horizon: Medium to long term (6–24 months) to capture the benefits of the transformation plan and organic volume growth.
Allocation: Core position in a portfolio focused on mass consumption and premium brands, with monitoring of operational results and implementation of the restructuring plan.
Knowledge is power.
