Dive Brief:
- Nestle reported profits for 2013 of $11.12 billion, short of analysts' expectations. The food and beverage powerhouse blamed declining growth in emerging markets and currency woes for its problems.
- Things won't look much better this year, according to the world's largest food company, which said it expected continued weak demand and anemic growth in 2014.
- Organic sales growth — one of Nestle's key metrics — rose 4.6%, short of the company's goal of a at least a 5% rise.
Dive Insight:
Given the sheer size, diversity and market penetration of Nestle, it's easy to see its earnings as a sort of stand-in for all of the food industry's earnings. But that would not be wise.
Nestle faces some distinct challenges — particularly the weight of poor-performing brands that have fallen out of consumers' favor. The company continues to unload brands and unwind deals. More such moves are expected, but these things take time. Thus, our biggest concern for Nestle is the same one we have about ConAgra — that management grows distracted by the ax that hangs over them and their units.