Jollibee Phenomenon

Nestle Philippines Inc.

Company Profile

History

Over a hundred years after it first started operations in the country, Nestlй Philippines, Inc. (NPI) today is a robust and stable organization, proud of its role in bringing the best food throughout the stages of the Filipino consumers' lives.

The Company, which is now among the top in the Nestlй world, employs about 3,500 men and women all over the country.

In the Philippines, Nestlй is among the country's Top 10 Corporations. Its products are No. 1 or strong No. 2 brands in their various categories.

100 Years of History

Although Nestlй products were already available in the Philippines as far back as 1895, it was not until 1911 that the Nestlй and Anglo Swiss Condensed Milk Company was established with its first sales office in Calle Renta, Binondo. Eventually, sales branches were opened in Cebu and Zamboanga, indications of the continued acceptance of the Nestlй brands among Filipino cosumers.

The Company was forced to suspend its operations during World War II, but soon made a comeback after Liberation, under a new name: Filipro, Inc. It continued to import products such as MILO, NIDO powdered milk, MILKMAID and NESCAFE from other countries.

In the early 1950's, Filipro encountered difficulties when the Philippine government imposed the import control bill. Due to lack of imported products to sell, it was forced to become a distributor of peanut butter, sanitary napkins, fruit preserves, and even patis (fish sauce) just to keep its operations going.

Local Production

It was this import control experience that prompted Nestlй to seriously think of putting up its own manufacturing plant. In 1960, Nestlй S.A. and San Miguel Corporation entered into a partnership resulting in the formation of Nutritional Products, Inc. (Nutripro). In 1962, Nutripro's first factory started operations in Alabang, Muntinlupa to manufacture NESCAFE.

Through the years, other manufacturing facilities were established in Cabuyao, Cagayan de Oro, Lipa, Pulilan, Quezon City, and Marikina to meet the growing demand for Nestlй products in the country. Today, these factories directly provide jobs to thousands of Filipinos and indirectly give job opportunities to thousands more whom the Company does business with. They continue to meet world class standards for consistently top quality products, competitive costs and reliability.

In 1977, Filipro, Inc., the trading company, and Nutripro Inc., the manufacturing company, merged under the name Filipro, Inc. In 1986, Filipro, Inc. changed to its present name as Nestlй Philippines, Inc.

Growth and Diversification

In 1991, Nestlй pioneered the AIJV (ASEAN Industrial Joint Venture), a regional complementation program. The Philippines participates in this program with the production of breakfast cereals at the Nestlй Lipa Factory, for export to the Nestlй ASEAN markets. In the process, Nestlй infuses substantial investments in the Philippine economy and facilitates the transfer of technology in food manufacturing.

In 1997, Nestlй acquired Goya, Inc., maker of popular confectionery sold under the brand GOYA.

In late 1998, Nestlй Philippines became a wholly owned subsidiary of Nestlй S.A., following the latter's purchase of all of San Miguel Corporation's equity sharedholding at NPI.

In 1999, Nestlй moved its administrative offices to its new home at Nestlй Center, located at the Rockwell business district in Makati City.

In 2001, the Nestlй Cabuyao and Cagayan de Oro Factories expanded to serve as the ASEAN Supply Centers for infant nutrition and filled milk powder, respectively, to meet the requirements of Nestlй markets in the region. Also during this year, coffee production was consolidated in the Cagayan de Oro Factory, resulting in the closure of the Alabang Factory.

Through the years, Nestlй has continually developed and made available products that meet the needs of young and old, products tailored to their diverse tastes, budgets, and fascinating lifestyles. Over time, Nestlй's quality and affordable products have become strong brands, No. 1 of No. 2 in their various categories, and a part of the Filipino way of life.

Today, Nestlй produces and markets products under some of the country's well known brands such as NESCAFE, NIDO, MILO, NESTEA, MAGGI, BEAR BRAND, and NESTLE. Its product range has expanded to include coffee, milk, infant nutrition, infant food, beverage, non-dairy creamer, food, ice cream and chilled dairy, breakfast cereals, and confectionery.

Nestle Production centers

Providing Good Food for a Good Life

Nestlй Philippines has five major manufacturing facilities located in Cabuyao, Cagayan de Oro, Lipa, Quezon City, and Marikina.

The Cabuyao Factory, located in a 25-hectare land area in Barangay Niugan, Cabuyao, Laguna, manufactures the widest range of products. Established in 1976, it manufactures milk, infant nutrition, and beverage products. It is the ASEAN Supply Center for Infant Nutrition.

Located in Mindanao is the Cagayan de Oro Factory, built on a 25.67 hectare land at Barrio Tablon. The Cagayan de Oro Factory started operations in 1984. The factory is the hub of NESCAFE production in the Philippines and the ASEAN Supply Center for filled milk powder.

The Lipa Factory was established in 1992 and started operations the following year. Located in Barangay Bagong-Pook, Lipa, Batangas, it has the biggest land area of 29 hectares. The factory is the ASEAN Supply Center for breakfast cereals. Today, the Lipa Factory manufactures a host of other Nestlй products, including beverage and milk powder.

The Aurora Factory joined the league of Nestlй factories in 1996, with the merger of the ice cream operation into Nestlй Philippines, Inc. Situated in a highly urban community, the Aurora Factory also houses the administrative and business units managing the ice cream and chilled dairy operations. It is located in the vicinity of Aurora Boulevard, Hemady and N. Domingo Streets in Quezon City. It occupies a land area of 5.25 hectares. The Aurora Factory produces ice cream and chilled dairy products.

The Marikina Factory was acquired in 1997,