Nestle has released its action plan for next year, which includes targeted investments in key segments and incremental cost reductions of at least 2.5 billion Swiss francs ($2.83 billion).
The action plan, announced during the company’s Capital Markets Day, aims to drive the company’s performance and transformation, as well as shape its long-term growth.
Actions will include targeted investments in winning brands and growth platforms, more focused innovation activities, and systematically addressing underperformers. The company will also step up investments in advertising and marketing, accelerate its digital transformation, and ensure that sustainability is integrated into its operations.
In addition, Nestle aims to deliver incremental cost savings of at least 2.5 billion Swiss francs by the end of 2027, with work having already begun on key initiatives across procurement, commercial investments and structural costs.
The company also disclosed its intentions to separate its water and premium beverages businesses into a global company beginning January 1.
“Nestle is a strong company with global reach, exceptional demand generation and in-market capabilities,” said Laurent Freixe, who was appointed as Nestle CEO in August.
“We have a diverse and strategically well-positioned product portfolio. Our iconic brands and innovative products connect with people every day, at every stage of their lives.
“These strengths give us a unique advantage and position us to win in the marketplace. We will now invest further in our brands and growth platforms to unlock the full potential of our products for our consumers and our customers.”
Nestle confirmed its organic sales growth of about two per cent and expects the growth rate to increase next year.
