Behind the Business of Nestle, the Food Industry Giant

Kellogg’s, Pepsico, Unilever, Associated British Food PLC, Cadbury, MARS, Coca-Cola, Wrigley, Mondelez, Nestle and many more have made good food one call away and this companies makes up the largest part of the food industry. It is quite impressive that these businesses have stayed long satisfying customers and reaching other major goals. In this post, I will be looking into a food company called Nestle and how they emerge to become a giant in the food industry.

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Behind the Business of Nestle, the Food Industry Giant

In the year 1866 when Charles Page (a former US council) with the dream of building a condensed milk factory and George Page his brother founded a company. The company name wasn’t Nestle but rather it was called the Anglo-Swiss Condensed Milk Co. So they weren’t the founders of Nestle. Okay, who founded Nestle?

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Henry Nestle, a German immigrant was the founder of Nestle. Henry started Farine Lactee Nestle because he wanted to solve of problem of mortality due to low milk, so in other to solve this problem he started working on a breast milk substitute by adding sugar and grains to milk so as to form an infant formula and that was how Nestle Started in the year 1867. The product was known as Farine Lactee Nestle, which a lot of family loved.

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Soon, Henry’s Farine Lactee Nestle became the talk of Europe as people consumed over 1000 cans daily which doubled as the year goes by. Just like henry was making money around Europe, so was the Charles and George Page’s Anglo-Swiss Condensed milk making waves around the world becoming the major supplier of the British empire which had their trade routes around 25% of the world and soon the Anglo-Swiss Condensed milk got to the United States. You know, every business want to expand and I think this was just the objective of the Page brothers and in other to archive growth, they started producing their own infant formulae just like Nestle.

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This two were into different businesses were doing something different until one of them decided to expand and that got Henry Nestle very upset that he started producing canned condensed milk and both companies started selling at low prices creating a price war between the both companies just to keep their customers buying one product over the other, and this continued for thirty years. You could tell that it would affect sales but this men were willing to give it anything to remain the favorite of the people at a less price. This continued until 1905 when the three founders were dead and the directors decided to agree to a merger as they could archive more together than separate. The company continued with the name Nestle and started growing widely. This company has become a big conglomerate even in the midst of a lot of controversies. The company now owns over 2000 different brands making it a very strong voice in the food industry.

Do you take Nestle?

Do you think if the two companies didn’t form a merger, they will survive the price war after their founders died?

Let me know your views in the comment section.