Nestle beats organic growth estimates, cites 'promising' revamps
- Nestle SA is sticking to its goal of 5% organic sales growth for 2015 after reporting 4.5% organic growth for the first half of the year, which beat analysts' estimates.
- This growth comes amid issues Nestle has faced, including a strong franc and a massive product recall in its Indian market. Sales also slowed in emerging markets like China and Brazil in the first half of the year.
- Nestle has responded to lagging sales for products like Lean Cuisine and Stouffer's in North America, and revamps of these two brands are showing "promising" results, the company said in a press release.
The company said in its earnings press release that it has seen "good momentum in our food and beverages businesses," complemented by other non-food categories Nestle is involved with, which has led to the company's growth this year.
Nestle continues to innovate and adapt to consumer trends, most recently including the revamps of Lean Cuisine and Stouffer's but also changes in other areas of frozen foods, including removing artificial flavors from frozen pizzas and opening a new global frozen foods R&D center in Solon, OH, last month.
Nestle recognized the ailing frozen food market, sales for which have fallen the past three years, and decided to work on that segment's brands.
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