Dive Brief:
- Nestle has lowered its full-year outlook to 4.5% from its previous expectations of 5% to 6% growth.
- The company reported a 2.1% drop in revenue in the nine months including September.
- CEO Paul Bulcke attributed the sales impact to "exceptional events," like Maggi noodles in India and a Nestle Skin Health rebate adjustment.
Dive Insight:
"Failure in 2015 to achieve organic sales growth of between 5% and 6% would mark the third successive year the company has missed its long-term goal, which it refers to as the 'Nestle Model,'" The Wall Street Journal reported.
While Nestle has had complications in India with the food contamination scare and in emerging markets, the company is pursuing other interests in the U.S. Nestle announced that it would be bringing its premium chocolate brand Cailler out of Switzerland for the first time and into the U.S., U.K., and German markets thanks to a partnership with Amazon. The company will also introduce Cailler in travel retail outlets in Geneva, Zurich, Dubai, and Singapore.
Nestle has also committed to respond to the U.S. demand for single-serve coffee by expanding its Nespresso capsule business in the U.S. with a specialized capsule line for the country that appeals to American's preference for larger cups of coffee.