Nestle History as Anglo-Swiss Condensed Milk Company

Nestle first established in Penang in 1912 as the Anglo-Swiss Condensed Milk Company to focus its core product. Due to its business growth, Nestle then expanded its operations to Kuala Lumpur and successfully set up its first production facility in 1961 (Ma’arif, 2007). In operation for over 106 years, Nestle basked in the glory of being the largest Fast-Moving Consumer Goods (FMCG) in Malaysia with 15.5% market share (Norman, 2018).

In respect of Muslim consumers, Nestle has assured all its products sealed with Halal-Certification which strategically push to become the largest halal food producer in the world and its business in Malaysia worth RM5 billion (Hamid, 2016).

Despite Asian economic crisis in 1997, cereal market still maintains its dominance in Malaysia. Ministry of Agriculture (1991) stated that “cereal product is the highest imported food represent 27% of Malaysia’s total imports by RM10 billion in 1998”. Food and Agriculture Organization (2017) reported that “total cereal imports for the period 2017-2018 is expected to grow 4% (2016: 5.8 million tonnes)”. As urbanites in Malaysia perceived healthier breakfast than traditional breakfast such as nasi lemak (Idris, 2018). Therefore, Nestle entered into a strategic partnership with General Mills Inc to built a cereal production facility in Malaysia with capital expenditure of RM115 million (The Edge Markets, 2011).

The concern on consumer health has driven Nestle to invent the first RTE cereal known Cheerios Oat Crisp to reduce cholesterol as heart disease ranked the highest cause of death in Malaysia (Yesuiah, 2016). With continued fuel the growth strategy, Nestle’s domestic sales grew 4.1% in 2017 from its prior year sales of RM5.064 billion (Malay Mail, 2017).