JUNE AOA 2010 Quarterly

Nestlé Professional achieves business milestone in debut partnership with Nando's Dear Colleagues CWAR Launch of Nescafé Ginger&Spice GCR Welcome to the second Nestlé Professional AOA Quarterly Unique Carnation, Diverse Applications newsletter 2010. IndoChina Maggi Liquid Seasoning - the icon of We have reached our goals for the first half of 2010. Our Chinese New Year RIG and OG stand at all time highs and I hope we will be Israel Winning the Arab sector able to carry on this performance into the second half of 2010. Also, the profitability is in line with expectations. Japan Beverage Business Department formed Beauty Bar adds value to customers In this issue, you will find some interesting work done in Korea different markets in AOA which can inspire us for the coming Special Agent success story months. If you come across good ideas, please speak to Cold beverage success in local chains your colleagues to use the knowledge to accelerate growth in the next months. In 2009, we MAGHREB Football fans are spoilt in coffee shops were able to get back on our growth path after a difficult start. Therefore, I feel that the second Channel and key account workshops half of 2010 will be more challenging and we have to put our focus on 2011. Continued growth Middle East and acceleration are needed to succeed in today's competitive world. NP AOA will have to Relaunch of Nescafé Red Mug continue to deliver high growth with continued improvement of EBIT. MYSG Maximising the intelligence of Kalina Launch of Maggi Hainanese Chicken Rice This year, we signed a regional agreement with ISS and just recently, we established business Resorts World@Sentosa, Singapore relationship with Nando’s, a South African chain restaurant, to be the Global Strategic Coffee Sjora launch in Singapore Solution provider. This is a very exciting regional opportunity and many people, from the Global NEAR team and Beverage Centre with the NP AOA Regional and market teams, were involved. I NP NEAR participates in HOST exhibition would like to express my gratitude to them and let us successfully build the Nando’s partnership Oceania TAG conference to kick off growth across AOA. Certainly, this will help us find more opportunities to work with customers across platforms our vast and diverse geographic region. Getting the best end of Campbell's Nescafé LiquiFresh continues to win new businesses I hope you will continue to enjoy reading our newsletter. If you have any suggestions on how Philippines to make it more appealing or inspirational, please advise me or Ai-Khuan, who has been a Relaunch of Nescafé in BPO and offices great support to me in publishing this document quarterly. NP joins first Creating Shared Value Forum NP Global CFO visits Partnering Enderun College to build capabilities The next issue is planned for end September 2010. Thank you for your continued support and Visit to SOS Children's Village new successful stories to build our next newsletter. SAR Culinary Art 2010 Thank you also for the great results for the first two quarters in 2010 and for the tremendous Turkey work you and your teams have put in to deliver them. McDonald's serving McFlurry with Nestlé Lion Mix New advisory chefs Good luck and every success to all NP AOA staff. ZAR Sponsoring South African Chef's Village With Warm Regards at Hostex Launch of the Maggi Premium sauce range

1 Nestlé Professional achieves business milestone in debut partnership with Nando's

Nestlé Professional has received the "go ahead" to implement the Nescafé Milano Café Style Beverages Solution and its Beverage Acceleration Programme (BAP) as the Global Strategic Coffee Solution of Choice at Nando's restaurants.

Nando's is a fast-casual and quick-service restaurant (QSR) group originating in South Africa (SA), with over 1,100 outlets in 34 countries. It is home to the Legendary Flame Grilled Peri Peri Chicken. The agreement to implement the Nescafé Milano Solution began on 1 June 2010, with a 90-day test in 20 high volume sites across SA, to prove the concept. In addition, the Nescafé Milano Café Style Beverages Solution will also be implemented in 55 stores in countries throughout the AOA region.

Should the 90-day trial prove successful, an additional 250 stores will be implemented in SA and the solution will be introduced into remaining stores in various countries across the AOA region. Lastly, the concept will be introduced as from Quarter 4, 2010, in the key markets of Oceania (270 stores), the United Kingdom (225 Stores) and North America (35 Stores), in the context of a 5-year global agreement.

The New Nescafé Milano Solution

Nescafé Milano is a professional dispensed coffee solution that delivers a variety of Café Style Beverages to Out-of-Home (OOH) commercial restaurant customers. The solution was developed by the R&D team at the Nestlé Professional Beverage Centre, working closely with the PTC in Orbe. Milano leverages Nestlé’s patented turbo-chamber dispensing technology to deliver perfect crema on an espresso, the perfect milk froth on a capuccino as well as beautifully layered lattes. The solution also leverages our manufacturing know-how to produce new mid-yield extraction soluble coffee, improving end-cup quality.

2 AOA Quarterly June 2010 Milano reduces restaurant operational complexity by dispensing high quality café style beverages consistently, time and again. It provides operators with the opportunity to customise coffee beverages on the spot. As a result, restaurateurs are trading up to capture the added value consumers are willing to pay for a premium cup of coffee.

The solution creates competitive gaps generating two revenue streams: the sale of product and the sale of an exclusive fully integrated service programme. The Nestlé Professional BAP delivers a range of value-added services with the express aim of enabling customers to capture and accelerate incremental same-store sales growth.

How it all began

After a brief initial contact with the Nando's senior management in November 2009, a follow up meeting was arranged at the Nestlé Professional Beverage Centre in February 2010. A team from the Nestlé Professional Beverages Commercial Unit at the Centre, the AOA region and the SA market decided that even though Nando's was aggressively seeking roast and ground coffee, the time was right for Nestlé Professional to introduce the new Nescafé Milano Solution and its BAP.

On 6 and 7 April 2010, the team, presented Nando's with Nestlé Professional proprietary industry insights, focusing on unique accelerated growth opportunities in coffee beverages. This was followed by a compelling pitch on how the Nescafé Milano Solution and its BAP could deliver against key industry drivers to accelerate Nando's entry into the premium coffee beverages arena. The group was then invited to experience a creative coffee beverages menu developed specially for Nando's, addressing their consumer's specific coffee needs. The comprehensive presentation was attended by the entire Nando's management team including their Chairman, CEO, their executive board and senior personnel.

The Nando's team were inspired by the new Nescafé Milano solution and its BAP, quickly understanding its value, making it their Global Coffee Solution of Choice.

In less than 60 days since receiving the green light, Nestlé Professional has worked tirelessly to develop, refine and implement the new Nescafé Milano and its BAP. The system is now installed, commissioned and launched at 20 high volume Nando's sites in SA as part of the agreed 90-day test, just in time for the 2010 FIFA World Cup.

Marc Caira, Chief Executive Officer at Nestlé Professional said, "This initiative is a truly exciting opportunity for our business. We have created a lighthouse to guide our markets into the future - a clear example of what can be accomplished for all to see".

Michiel Kernkamp, Head of Global Branded Beverages at Nestlé Professional added, "The Nando's relationship has enabled us to work hand in hand with a customer to validate the BAP, a premium 10-point fully integrated service package we sell alongside our products. This now provides our markets with a clear way forward on their journey to becoming a valued driven service partner".

The first steps - The South African trial

The Nestlé Professional team in SA worked to very tight time-lines. In fact, from the day the dispensing equipment and products arrived in the market, the team had exactly one week to deliver, install, train and commission the new Nescafé Milano systems at 20 participating Nando's locations in Johannesburg,

3 AOA Quarterly June 2010 Durban and Cape Town. The South African team completed the installation with just 4 hours to spare. When asked to comment on the initiative, Barend Minnaar, Country Business Manager at Nestlé Professional SA said, "The concept is already delivering a strong market presence for the new Nescafé Milano Solution in major centres across the country. Our team has done a tremendous job and continues to work hard to ensure we execute promotional plans flawlessly and make the trial a resounding success".

The initial feedback from Nando's and their franchisees has been overwhelmingly positive. Jeff Rakusin, President of Nando's trading said, "We are delighted to serve your new Nescafé Milano premium café style beverages at our restaurants. In fact, this morning, I received a report from one location in Cape Town which has gone from no coffee sales to 185 cups in the first three days of the programme. We are truly delighted with the response we are getting from consumers and particularly pleased to have the support of such a great global partner as Nestlé Professional to ensure the projects' success".

Nestlé Professional continues to work diligently to ensure that Nando's expectations at local, regional and global levels are met. "It is now crucial that we deliver the growth Nando's is expecting during the trial by leveraging the BAP and executing the plan", says Friedrich Mahler, Regional Business Head, Nestlé Professional AOA. He also added, "The regional team in Singapore, will now work closely with markets to implement the entire solution in 13 additional countries across AOA in the next three weeks. I am looking forward to leveraging the successes of the initiative to expand the business beyond the Nando's system and into the business."

A bright future

Once the business is fully implemented in 2011, the new Nescafé Milano Solution will have been extended to 34 countries, with a presence at more than 1,000 Nando's restaurants. In addition, the business will deliver integrated accelerated growth as Nando's is projecting to reach 1,600 stores by the end of 2013.

The business will generate above-average profits from both the sale of products and the sale of services in the form of a Beverage Acceleration Programme. This initiative is a prime example of how to create competitive gaps through the rapid implementation of relevant innovation in commercial channels, while strengthening the Nestlé Professional position as a growth driver at Nestlé, through the sale of ingredients, and systems, and service.

4 AOA Quarterly June 2010 Nestlé Professional CWAR: Launch of Nescafé Ginger and Spice Senegal -Alain Diop

Nestlé Professional and Nescafé Senegal have decided to The response from the be the prime movers in the launch of African coffee in our consumers was positive. Region. Jointly, we have collaborated to successfully bring This was reflected in the Nescafé Ginger&Spice to consumers. average sale of 70 cups per day for each Nescafé Under the leadership of Alain Diop, NP Manager for Senegal, Field Soldier. Moreover, 100 Nescafé Field Soldiers were recruited. it is estimated that the recruitment of an additional 400 Nescafé Field Soldiers will be needed in order to achieve a total of 1,000 cups by the end of 2010. A field soldier on his way to his Based on this initiative, assigned market. all other countries in CWAR are developing their launch plans which will be executed accordingly.

Key learnings: It is critical to develop and implement a One Brand Plan to ensure success. The benefits Training for our Nescafé Field Soldiers. are threefold:

After taking part in a product usage workshop and a team- • Internally, we were able to reduce costs of developing building session sponsored by Senegal’s Country Manager, POP materials as a result of economies of scale. each Field Soldier was presented with a sales kit, comprising: Coordination and communication were also made much easier. • a Nescafé case • Externally, the impact on customers and consumers was • a Nescafé flask impressive. When they heard the Nescafé jingle on the • Nescafé paper cups radio or watched the TVC on a billboard, they were able • Nescafé Ginger&Spice to buy a cup of our aromatic Nescafé from one of our • a Nescafé apron Field Soldiers on the street. • Finally, and in line with what Marc and Fritz mentioned On 9 March 2010, all 100 Nescafé Field Soldiers started during their visit to CWAR, by leveraging on NiM, with selling Nescafé Ginger&Spice in the assigned markets. NP focusing on GD, we will ensure Top Line and business growth.

Many thanks to Alain Diop and his team in Senegal. We would also like to acknowledge the support given by Senegal's Country Manager, Mr Alvaro Labarca and the Nescafé team in Dakar. At the regional level, the close collaboration between Erwan Vilfeu, BEM Nescafé, his team (Setutsi Goka and Amma Yirenkyi) and the Regional NP CBM (Patrick Stern) and NP Beverage Manager (Richard Apaloo) also contributed greatly to this success.

All is now set for Nescafé Ginger&Spice to grow.

Our Nescafé Field Soldiers hard at work.

5 AOA Quarterly Nestlé Professional GCR: Unique Carnation, Diverse Applications Innovation through Application - NP Culinary competition rejuvenates Nestlé Carnation Filled Evaporated Milk and serves up delicious business opportunities -Yu Yingjie

The use of milk products in Chinese cuisine is a relatively The competition provided a platform for energising the new phenomenon and represents an exciting new growth Nestlé Carnation brand while promoting the creative use of area for our branded culinary milks business. With the goals Nestlé Carnation Evaporated Milks in Chinese cuisine. The of rejuvenating the Nestlé Carnation Filled Evaporated Milk participating chefs produced a diverse range of innovative brand and stimulating increased product usage among Nestlé Carnation culinary applications in well-established professional chefs, Nestlé Professional staged the “Unique areas such as soups, curries, dim sum and pastries, while Carnation, Diverse Applications” national culinary contest also creating many new applications such as sauces, from September to December 2009 in mainland China. marinades and desserts.

The 3-month contest began in early September 2009 via A media event attended by leading culinary media helped contest announcements in East Eat, the most popular publicise the contest and the extraordinary potential of professional chef’s magazine in China, and on Nestlé Carnation Evaporated Milks in Chinese cuisine. In www.6eat.com, the chef's website associated with East addition, the Nestlé Professional team selected key recipes Eat. from the contest and created attractive recipes booklets - both on hot dishes and pastries - which were then sent to The contest solicited recipes from two categories: Chinese- thousands of chefs throughout China, further extending the style hot dishes and Chinese-style pastries. Either Nestlé influence of the contest. Other chef-focused publicity Carnation Filled Evaporated Milk - NP highest-volume SKU activities are also planned, including chef blogs and digital in mainland China - or Nestlé Carnation Full Cream magazine programmes, to further enhance customer Evaporated Milk were required to be used in all recipes. In intimacy. total, more than 1,000 recipes from around 800 chefs were received from all parts of the country. Judging from the enthusiasm of the participants in the “Unique Carnation, Diverse Applications” contest, the Nestlé Placing a clear priority on innovative recipes that have Professional team expects that many more chefs will be practical applications for real life restaurant usage, the panel using Nestlé Carnation Evaporated Milks in their dishes - of food experts from Nestlé Professional and East Eat and this can only mean delicious, long-term business selected 20 finalists to compete in a final “live cook-off” in opportunities for Nestlé Professional. Beijing. The finals were held on 16 December 2009 at the Marriott Courtyard Hotel in Beijing, in close cooperation with the China Cuisine Association.

Presenting the Special Gold Prize: Mr The innovative use Of Nestlé Carnation The prize-winning dish “Creamy Chinese Jeroen Pluijmers, Country Business Evaporated Milk in the award-winning entry Yam Noodles With Caviar” showcases Manager, Nestlé Professional GRC (centre); “Creamy Beijing-Style Pastries” the delicious possibilities for using Nestlé Mr. Liu Xiujun, Vice President Of China demonstrates how the product adds Carnation Evaporated Milks in Chinese Cuisine Association (left). smooth richness to Chinese pastries. soups.

6 AOA Quarterly June 2010 Nestlé Professional IndoChina (Thailand): Maggi Liquid Seasoning becomes the icon of Chinese New Year in Thailand -K Piyamas Wiriya-udomphol

Background of Marketing Campaign As Thai-Chinese consumers reunite and celebrate with their loved ones over a special dinner, our idea was to combine With their long heritage, Thais and Chinese share a mutually the two key points and extend special offers to our loyal close relationship, creating a harmonised culture and an operators during this festive period. integrated pattern of knowledge, beliefs, behaviours, traditions, including food and special occasions. Key Message

Chinese cuisine and special occasions are very important Primary message: Great Aroma, Delicious and Healthy in representing a harmonised Thai-Chinese culture. Chinese from Maggi New Year is the longest and most recognised of all Chinese Secondary message: Get Lucky! Increase your sales and special occasions, celebrated by Chinese communities be prosperous in the Year of the Tiger throughout Thailand. It is the time for families to reunite, Target Customers: Nationwide operators not only to welcome the new lunar year, but also to feast together and wish each other good fortune. Integrated Marketing Activites

Chinese cuisine is central when it comes to celebrating the The campaign was divided into 2 phases. Chinese New Year or other special Chinese occasions. It plays an important role not only for daily consumption, as evidenced by its extensive availability from local food stalls to high-end restaurants, but also for special occasions and celebrations, such as wedding ceremonies.

Maggi Liquid Seasoning has been designated as one of the key focus areas on which to build our food pillar in Thailand. NP Thailand took this opportunity to promote Maggi Liquid Seasoning's unique aroma and taste as the perfect complement to Chinese cuisine during Chinese New Year.

Main Objectives of the Campaign

• To associate Maggi Liquid Seasoning, with its great aroma, as being part of Chinese cuisine and endorsed by professional chefs and customers. • To build Maggi Liquid Seasoning as an icon of Chinese The first was to educate users on product knowledge and New Year among Thai-Chinese operators in Thailand. usage by providing training to all NP Thailand staff. The • To generate trial and to boost up overall sales of the Maggi training was conducted by professional chef, Chumpol product portfolio during festive occasions. Jangprai, Maggi's brand ambassador, who demonstrated the profile and usage of Maggi Liquid Seasoning with its The Big Idea signature aroma through various recipes, eg. in steamed fish, stir-fried fish and Chinese soups. The idea was generated based on the following key points: Once the NP Thailand staff were well-trained on product • Using Chinese New Year as a celebratory occasion for knowledge, all related activities were kicked-off through Thai-Chinese people to mutually express their sincere key customer touch points to generate awareness, trial, thanks to their beloved ones. purchase, and brand relationship and preference. This was done through product demonstrations, wet samplings, sales • Using the occasion whereby food operators extend best blitz, promoting brand visibility in high traffic areas, 2nd wishes and present Lucky Angbaos to their family members shelf displays, and Lucky Angbaos promotion. and close relatives.

7 AOA Quarterly June 2010 How We Delivered

A special package, comprising all products in the Maggi range, was offered to our operators and AEs when they make purchases of at least Baht 1,000 from January to March 2010. The AEs took on the role of delivering the well wishes and lucky Angbaos, as well as putting up lanterns at operators’ shopfronts in order to build closer relationships.

Campaign in Action

• Product Training Session to all NP staff

• In-Store Brand Visibility and 2nd Shelf Displays In-store brand visibility was increased in order to reinforce • Building Brand Visibility in High Traffic Areas: brand awareness on customer’s path to purchase. 500 Maggi umbrellas were placed in high traffic areas in order to build brand awareness during campaign. • Sales Blitz The sales blitz was carried out across regions in order to create trial for all products in the Maggi range as well as to build team unity.

How We Won

• Overall sales of the Maggi product portfolio increased by 18% during January to May 2010, compared to last year sales in the same period. This was derived mainly from sales of Maggi Liquid Seasoning, which saw an increase of 60%. • Product Demonstrations & Wet Samplings The customised workshop was conducted in the operators’ • Increased brand awareness of the Maggi product range, premises in order to create trial and to build credibility and enhanced customer satisfaction and relationship with potential customers. Product demonstrations and between current and new customers. wet samplings in store also were done in key channels, i.e. at food service wholesalers and MAKRO to generate trial and first purchase.

8 AOA Quarterly June 2010 Nestlé Professional Israel: Winning the Arab sector in the Israeli market -Danny Fuchs

Israelis like food, are food connoisseurs and love After only 9 months since the beginning After to eat. Over the years, they have developed of the project, we have already only 9 months good taste, adopted influences from the we have reached reached additional sales of 700,000 world’s best cuisines and, in spite of already additional NIS per month (versus the original its small size, Israel has evolved into sales of 700,000 target of 600,000 NIS), with much a mini culinary power. NIS per month. more growth potential still to exploit. To date, we have recruited 80 new Israeli cuisine is characterised by aromas and flavours that customers. are a blend of East and West, old and new, with mainly Mediterranean influence stemming from a social fabric made The key to our success has been our Osem-Nestlé up of a Jewish population alongside an Arab population. Professional’s very high quality service model based on promoter, teleselling, direct logistics, advisory chefs and In the last decade, there have been many changes in the customer service units. This high quality service, in addition habits of food consumption in the Israel’s Arab sector, the to our wide and unique strong portfolio of products and most prominent of which is the gradual shift from the custom solutions, have of eating at home to a culture of going out to eat. brought a truly innovative way of At NP Israel, we identified this new trend and followed up satisfying the fast by identifying the special needs of business owners and changing needs of chefs. We found that there were hundreds of restaurants the foodservice and function halls out there, all in need of direct distribution customers in the of quality products in addition to a fair, competitive price Arab sector in Israel. and top-notch service. Responding with alacrity, we prepared a customised solution made to fit their needs, covering variety, service and pricing, all especially tailored to these businesses.

In order to initiate sales to clients in the Arab sector, in June Mr Attef Odi - the key person who is 2009, we recruited a sales representative who has a strong driving growth in the Arab sector. command of the Arabic language and is also familiar with the Arab culture and traditions, and provided him with appropriate training and tools. This initiative turned out to be a great success which exceeded everyone’s expectations.

9 AOA Quarterly June 2010 In line with the strategy to grow the beverage business in Nestlé Professional Japan: OOH, in particular the office channel, the Beverage Business NP Japan forms Beverage Department (NP BBD) was recently formed. This team is responsible for Marketing and Sales with the purpose of Business Department to creating focus on the placement of systems into commercial channels as well as driving growth of beverages in the office drive growth -Jet Cornejo channel. Japan has over 6 million offices and the objective is for NP to “own the office” channel.

A NP BBD kick-off meeting was held and activities were lined up in order to give the team deeper knowledge about the world of beverages, new initiatives such as Nescafé Milano, EZ-care and Sjora, including an introduction to a simplified coffee profiling test, machine troubleshooting and team discussions on how to attain strong growth for the systems business this year. An ongoing programme is in place to further develop people to drive the business and obtain long-term sustainable growth in beverages.

Everyone hard at work at the BBD workshop.

Nestlé Professioal Japan: Nestlé Beauty Bar adds value to NP Japan customers -Tomoyuki Kokuhoh

Nestlé Beauty Bar was created in 2009 as a new range of Nestlé Beauty Bar is also available in city hotels and resort healthy and refreshing beverages specially made for women hotels, presented as one of the services only for women, who want to feel naturally beautiful from inside out. Nestlé as beverages in buffets, and as welcome drinks at the lobby. Beauty Bar comes in three varieties: Jasmine & Oolong + This concept matches the needs of these hotels as they Dietary Fibre, Karin & Yuzu + CoQ10 and Rose Hibiscus + focus their attention on attracting more women to their Collagen. establishments.

NP Japan was successful in introducing these products to In addition, we have received requests from hotels to put hotels as well as cafés, amenity catalogues and beauty the Nestlé Beauty Bar brand in their advertisements in salons. So far, 40 machines have been installed and an magazines and on the trains, as well as on their websites. average of 40 cups per day are sold. We are pleased that our brand value is increasing and this in turn adds value to our customers' businesses.

The Nestlé Beauty Bar variants and sachets.

10 AOA Quarterly June 2010 Nestlé Professional Korea: Special Agent success story -JM Ryu

• The performance of the machines was measured regularly and we continued to improve its efficiency. In order to enhance the programme, supportive programmes such as vehicle branding, sales staff uniforms, quality assurance trainings and POP materials were introduced.

With the implementation of this programme, we witnessed a significant sales growth and this was contributed by: - a widely expanded machine installation network - established and stronger loyalty from customers - direct management of end customers The Special Agent kick-off.

Up till mid 2008, Nestlé Professional Korea did not have an By the end of the first year since its launch, we expect over exclusive solution partner, and therefore, we did not have 70% sales growth with over 4,200 machines deployed a pool of loyal users and customers from which to develop. working with 30 exclusive solution partners. We also had difficulties controlling our machines.

Nestlé Professional introduced the “Special Agent” programme in mid 2008 to resolve these issues and to expand our Solution business.

• These Special Agents work as Nestlé’s exclusive solution distribution partners.

• We focused on newly growing channels with our “Solution” programme, by promoting EZ-care and Kalina in PC Bang (internet café) and leisure channels as well as FD mini vending in the office channel.

• We provided machines to agents with the Free-on-Loan We scheme, although collateral was received in exchange expect over Special Agent P&J. so that attention will be paid to managing the machines 70% sales growth with over 4,200 effectively and properly. machines deployed working with 30 exclusive solution partners.

11 AOA Quarterly June 2010 Nestlé Professional Korea: Cold beverage success in local café chains -GH Jo

“Davinci” and “Tom N Toms” outlets which are popular with the locals.

Café chains are one of the biggest and growing channels This summer, on top of Nestea & Nestlé Lemonade, we also in Korea. There are 1,400 cafes from the top 10 chains. started selling Sjora in “Tom N Toms” (166 outlets) and While there are limited opportunities in coffee, opportunities “Sleepless in Seattles”(70 outlets). The expected sales abound in the cold beverages segment. However, over the volume is 152.8 MM KRW per year. last few years, NP Korea has been facing difficulties in penetrating this segment. The most difficult hurdle was their perception of and brand loyalty towards the Lipton brand, which is a market leader This is so as global chains like Starbucks and Coffee Bean in Korea, and is perceived as the tea specialist with a wide & Tea Leaf are using only globally sourced ingredients and range of leaf teas, iced teas and RTD. However, through a approval from their headquarters is needed for all of the blind tasting test with their staff and consumer tests at their items on their menus. outlets, they could see the results for themselves and finally accepted Nestea & Nestlé Lemonade. As such, since 2009, our sales have been focusing on local café chains which have the authority to make their own The key to success: decisions quickly pertaining to menu items and ingredients. (1) Continuous and relentless approach with purchasing team We started with the “Angel-in-Us” chain which already has (2) Blind tasting with R&D & marketing 235 outlets and is still growing fast. For the iced tea item (3) Consumer tests at limited stores (where possible) at this chain, all Lipton products were replaced with Nestea. (4) Annual contract price proposals The expected sales is 61.5 MM per year. And, of course, this success of this cold beverage is only The second success story, which took more than 5 months possible because of our endless “fire & passion”. of negotiation, came from the “Davinci” chain which has 105 outlets. Expected sales is 97.5 MM KRW per year.

12 AOA Quarterly June 2010 Nestlé Professional MAGHREB: Nescafé spoiling football fans in coffee shops in Tunisia -Fethi Rejeb

during the most important matches and they will then receive an immediate gift (a Nescafé branded pen) and stand to win a more important gift (a Nescafé premium set) by participating in a lottery held at the end of the first half.

This event was organised by the NP team in Tunisia with the assistance of an operational Marketing Agency. Infact, a dynamic duo, a hostess and a supervisor, was placed in each coffee shop with a clear mission: to welcome consumers and encourage them to order a Nescafé (instead of R&G coffee or other beverages) before and during the match.

Key objectives of this promotion were:

• To increase Nescafé consumption in the coffee shop channel, one of the key channels for the NP Business Development in Tunisia. • To develop the relationship with the main influencers in the coffee shops we work with (owners & managers, barmen & waiters and consumers). The promotional poster. Results are very encouraging. Nescafé turnover in these During the African Football Cup held in Angola from 10 to coffee shops increased by almost 80% and this was very 31 January 2010, Nestlé Professional in Tunisia launched much appreciated by the coffee shop owners and managers. a big promotion in more than 50 selected coffee shops in Sales have also increased by 60% in the targeted coffee the biggest cities of the country (Tunis, Bizerte, Sousse, shops. The event created much excitement in several Monastir and Sfax). The objectives were either to increase neighbourhood coffee shops and they soon became our market share (inside the coffee shop) or to improve new customers. penetration and brand awareness in this channel. Considering the huge success of this promotion, it has been This operation was codenamed “Live the Best Football decided it will be relaunched during the World Cup from 11 Moments with Nescafé”. The concept was to invite the June to 11 July 2010 in South Africa. consumers in these coffee shops to order a cup of Nescafé

Customers placing their orders. The lucky winner receiving the Nescafé premium set.

13 AOA Quarterly June 2010 Nestlé Professional MAGHREB: Channel & key account workshops in the MAGHREB region -Mahmoud Khalfallah

The key objectives of this training were:

(1) To provide participants with the necessary tools that will allow them to reach a profitable “hand- shaking” with the customers.

(2) To upgrade their approach with their customers by having a structured commercial proposition based on convincing financial figures.

MCP also helped the participants to reinforce their negotiation skills by learning the best tactics on how to trade variables with the customer. All participants left with the required knowledge that will allow them to deal successfully with their key accounts. MCP Participants at the “Managing Customer Profitability” (MCP) workshop. also helped the This event was participants to From 26 to 30 April 2010, 11 participants attended the organised by the reinforce their Nestlé Professional workshop: Managing Customer Profitably Moroccan NP Team, negotiation skills by (MCP) in Tangier, Morocco. with the support and learning the best tactics coordination of Mr on how to trade During the five days, five participants from Tunisia, five from Fiorenza, in compliance variables with the Morocco and one from Algeria, received training on how with the annual training customer. to present a structured commercial proposition to a key programme for Zone AOA. account, following all the steps of selling & negotiation. They were also given financial notions & financial templates that will help them to come out with a win- win agreement with key accounts.

This workshop was facilitated by Anthony Fiorenza, Sales Capability Development Manager, Nestlé Professional Zone AOA. MCP falls under the NP Commercial Framework which was created to support the markets and to enable them to build their people’s capabilities.

14 AOA Quarterly June 2010 Nestle Professional Middle East: Relaunch of Nescafé Red Mug, introduction of 2 new SKUs’ “instant success” -Paul Nagelkerken

With 2009 NPS of 5.5 mio, Nescafé Red Mug is one of the customers; the right people that are extensively trained on leading categories in the Nestlé Professional Middle East our products, selling brands and products that address the Beverages portfolio. needs of our customers and their consumers.

In 2009, however, sales of the leading 200g SKU started In an exciting and interactive 3-hour session, we covered declining, while the Red Mug 2g single serve solution the following topics: witnessed a growth of 50%. Based on customer insight, we realised the need for a high quality coffee with a more • Product Knowledge - Understanding how our products are made and what makes them so great. • Introduction of the new SKUs - Understanding the value proposition and FAB’s. • Presentation of the newly developed Nescafé Red Mug sales presenter. • Presentation of the re-launch activities.

The re-launch was supported by several activities with the objective to aggressively fill the pipeline in Key Channels (B&I, Hotel and Street) with promotions that truly drive our route-to-market partners to push the product in order to Red Mug-Ingredients of Success. start creating a pull. affordable price per kg versus the current 200g jar, targeting • The “Big Buy, Big Reward” promotion - A 3-month high traffic locations. In conjunction, to enable us to further progressive promotion that allows key selected wholesalers leverage on the growth trend of the single serve solution, to earn up to 15% of total purchased value in customised an improvement in packaging and blend was required. rewards.

Within nine months, we were • Modern Trade Activation Activities - 1 off-shelf awareness able to launch 2 new SKUs campaign and 2 on-shelf on-pack promotions. with a 60/40 winning blend from Brazil. • “Stickbox” promo - A luxury leather box with our range of single serve solutions sent as a direct mailer to key The kick-off of the re-launch decision makers in 4 and 5 star hotels, followed up by was through the “Ingredients our sales force with a customised combo offer. of Success” road show which was held in 7 countries and It is foreseen that the new SKUs will have a combined NPS addressed 120 people from of 3 mio USD in the first seven months of sales, further different levels of the sales boosting the Nescafé Red Mug category to 7 mio in 2010 organisation. In line with the and double digit sustainable growth in years to come. roadmap for our new training platform, we aspired to Nestlé Professional Middle East: “Adding value back into transfer tangible and technical the value proposition”. Nescafé Red Mug 1.8g stick know-how of our products, pack and Nescafé Red Mug enabling our 475g tin. sales force to truly understand and present the essence of our value propositions to our customers.

We included key stakeholders from the retail organisation to ensure full transparency as well as full support on the launch in shared route-to-market channels such as Modern Trade and Wholesalers.

“Ingredients of Success” refers to all the elements in the value chain that Nestlé Professional Middle East offers to its The group photo of the roadshow in Dubai.

15 AOA Quarterly June 2010 Nestlé Professional MYSG: Maximising the intelligence of Kalina

-Linus Chow

“There’s only so The way forward is to introduce more new beverages for much you can KFC, and Nestlé Professional responded with the perfect do”, this phrase solution...the birth of Nescafé Cham. Kopi Cham is a locally might be concocted drink available in various eateries throughout familiar to most Malaysia, especially coffee shops. people but not to the Nestlé It is a mixture of Coffee, Tea and Creamer. Nestlé Professional Professional concocted the perfect Cham for KFC Malaysia, maximising community in the capability of the Kalina machine to the Malaysia brim, going through various dosage when it Sales combinations of Nescafé Alta Rica, comes to increased by a Nestea Teh Tarik and Nestlé Cappuccino massive 50% from Topping, thus, giving birth to Nescafé AMS and this Cham. indirectly drove up sales of Teh Tarik Nescafé Cham was launched (Milk Tea) in KFC as well. nationwide in KFC through the KFC Afternoon Cravers, from November to maximising the December 2009. KFC Afternoon Cravers The counter poster displaying the Nescafé Cham promotion in KFC outlets. resources we caters to patrons looking have. The for a quick break from Kalina machines in KFC have been installed throughout its work in the afternoon, 400 plus outlets, and since then, about 100,000 cups of between 3pm and 6pm. Nestlé hot drinks, using products like Nescafé Alta Rica, Milo Hot Mix, Nestea Teh Tarik, Nestlé Cappuccino Topping To add excitement to the are dispensed from the machines every month. All canisters promotion, every in the machines are fully utilised. purchase of Nescafé Cham came with 2 FREE pieces of Nestlé Crunch chocolates (5g). Sales of Nescafé Alta Rica, Nestea Teh Tarik and Nestlé Cappuccino Topping increased by a massive 50% from AMS and this indirectly drove The print advertisement announcing the Nescafé Cham up sales of Teh Tarik (Milk promotion. Tea) in KFC as well.

The success of this is a result of the hard work, creativity and perseverance of the colleagues in Nestlé Professional Malaysia and hopefully, Nescafé Cham will become a permanent feature in KFC Malaysia.

Creative buy for Nescafé Cham in The Sun.

16 AOA Quarterly June 2010 Nestlé Professional MYSG: Launch of Maggi Hainanese

Chicken Rice - Malaysia's favourite dish -Wan Alleena Faiza Abdullah

Chicken rice is The paste can also be used to make traditional chicken rice undoubtedly Malaysia’s balls; made by skillfully shaping cooked chicken rice into most popular dish. The bite-size balls. A total of 7,000 chicken rice balls were made dish is popularly served to complement healthy dishes and products featured during with either steamed or Nourishing Malaysia, to encourage healthier diets and active roast chicken, piping hot lifestyles among Malaysians. chicken broth, fiery chilli Meritus Pelangi Beach Resort & Spa Executive Chef, sauce and fresh Mohammad Shamsul Azham said, “Maggi Hainanese cucumber. Affordable, Chicken Rice Paste provides the user with a base that can filling and mouth- be extended into a signature product depending on the watering, Hainanese chicken rice is often the best selling dish in the fast growing out-of-home The newly-launched Maggi sector such as full service Hainanese Chicken Rice Paste in a signature yellow tub. restaurants, hawker stalls and food courts.

In February 2010, Nestlé Professional Malaysia launched Maggi Hainanese Chicken Rice Paste. The paste is conveniently packed in a compact and recognisable yellow Maggi tub. Once opened, the paste exudes the fresh aroma of ginger and garlic, guaranteed to amaze any chicken rice chef or connoisseur. In line with Nestlé's commitment to nutrition, health and wellness, Maggi Hainanese Chicken Rice Paste has no added MSG. The traditional method in LIMA 2009 international guests enjoying Hainanese chicken rice preparation involves cooking the rice in stock that has rice made with Maggi Hainanese Chicken Rice Paste. been simmering for several hours with chicken meat and carcass. Maggi is now offering value and providing a handy chef’s creativity. It was the best seller during LIMA 2009, one step solution for food operators. during which Meritus Pelangi Beach Resort & Spa was able to promote Malaysia's most popular dish to international Hainanese consumers.” chicken rice was also The quality, convenience and taste of our Maggi Hainanese featured in Chicken Rice Paste has given Nestlé Professional Malaysia high profile the opportunity to prove its commitment in providing events such authentic food solutions to local as Nestlé’s out-of-home operators Nourishing whilst sharing our brand The quality, Malaysia and local creation with convenience and taste Showcase Nestlé Professional of our Maggi Hainanese in April 2010 world-wide. Chicken Rice Paste has given and LIMA Sampling of sumptuous chicken rice balls us the opportunity to prove our (Langkawi during Nestlé’s Nourishing Malaysia commitment in providing Showcase in April 2010. International authentic food solutions to Maritime & local out-of-home operators Aerospace Exhibition) 2009. The paste was used to make whilst sharing our brand the fragrant rice and proved to be popular amongst local and local creation. and international guests.

17 AOA Quarterly June 2010 Nestlé Professional MYSG: Integrated Resorts, Singapore - Resorts World@Sentosa -Jeremy Lee

our coffee eases the mind of visitors who seek respite from the buzzing excitement.

Since the opening of both the casino and Universal Studios, we have sold over 1,000,000 cups of beverages in RWS. This translates to 17,000 cups consumed per day and this is just the beginning.

Our presence is further Since established in the the opening of family-themed both the casino and Festive Hotel and Universal Studios, we artistic Hotel have sold over Michael with our 1,000,000 cups of cheery Kit Kat 4- beverages in RWS. Finger bars, Milo Ready-to-Drink cans, Universal Studios Sentosa Celebrity Cafe staff showcasing our Milano machine. Milo sachets and Nescafé Gold Blend coffee stick packs. Resorts World@Sentosa (RWS), one of the two integrated resorts in Singapore, opened its doors on 14 February 2010 The management and operational staff of RWS also have at an auspicious time of 12:18pm. the opportunity to recharge themselves with our selection of hot and cold beverages round-the-clock in the staff The RWS property includes canteens. In addition, there are 2 staff convenience stores 6 hotels as well as 2 “firsts” which cater to staff ‘breaks’. They are branded with our - the first casino in very own Kit Kat and Milo/ Nescafé Frappe, in sync with Singapore and the first the fun and colourful ambience of RWS. Kit Kat bars, Universal Studios in together with our beverages are readily available in both Southeast Asia. convenience stores.

Nestlé Professional The staff and leadership team in RWS have given their Singapore is proud to be utmost support in the past 2 years leading up to the 2010 part of this exciting project, opening. The strong partnership between Nestlé and RWS working with RWS Casino would not have been possible without their support. And Operations to provide it is certainly 24-hour free flow hot the greatest beverages to casino commitment guests, as well as and refreshing guests at dedication of Kit Kat branded staff Universal Studios with our the Nestlé convenience store. Milo and Nestea range of Professional cold beverages. To date, we have installed a total of 68 Key Account dispensers in RWS with more opportunities on the horizon. team that has paved A stroll in Universal Studios will allow one to see our 21 EZ- the path for care machines and 14 Milano machines in 12 unique F&B our success outlets. Our wide range of Nestea beverages provides the in RWS. Universal Studios Sentosa Mel’s Drive-In Manager, Steven, delighted with our Milo EZ-care single perfect solution to visitors in our warm tropical climate while machine.

18 AOA Quarterly June 2010 Nestlé Professional MYSG: Sjora launch in Singapore -Jazzy Javier

The new Nestlé Sjora was officially launched in Singapore 3) Marketing Activation on 15 January 2010 at Park Hotel. The internal launch to The last phase was all about broadening the top end of the NPSG sales team was held the year before on 3 the brand funnel - generating awareness and trial. The December and the January event was to launch to most cost-efficient manner was to work with specific the distributors. customers and develop bundle meal programmes.

Conducting a separate launch for the distributor sales team This strategy proved very effective because the results allowed for a more detailed briefing as well as a workshop have shown that once Sjora was bundled, there was very to ensure the distributor teams have a very good grasp of little swapping-out, i.e. consumers were happy to take the product. In addition, it also helped motivate them further, Sjora as the default drink and did not see the need to as they truly felt part of Team Sjora SG. ask that it be changed to CSD or iced tea. The cuppage per day was also very encouraging; on some days, as The journey of Sjora in Singapore to date has undergone much as100 cups were shifted. 3 major phases: Sell-in really began in earnest in February and within about 1) Market Assessment two months, the total NPS was already S$121,000 (CHF Research was done on the needs of consumers as well 93,000) and distribution points hit 100. Penetration will as operators prior to the launch to fully ascertain the continue in Q2, and we will be moving into MOP and opportunities available. A Consumer Acceptance Test, a Education channels. central-location testing quant study, was conducted first, and overall, acceptance results indicated 78% Top 2 Box To sustain the momentum, the brand will move into the 4th scores. The team then approached selected key accounts Phase of the journey: Consumer Engagement. Team Sjora to validate the emerging “NutriRefresh” opportunity - and SG is working with some agencies for simple guerilla the feedback was likewise positive - customers did think marketing initiatives, so consumers can really get up close that there was a growing need for beverages that are to the brand and this serves to plant the seeds of affinity. both good for you, but still taste great. So watch this space for more updates!

2) Sales and Distributor Launch Armed with positive consumer research and operator feedback, two launches were then conducted. It was decided that it would be best to separate the NP Sales Team and Distributor Sales Team launches as each caters to a different audience. The former was more strategic, covering points such as consumption patterns and NutriRefresh. The latter was simpler, more to ensure the product proposition could be clearly explained.

Sjora as part of the bundle meal. Sjora in drink kiosks. Sjora in FSRs.

19 AOA Quarterly June 2010 Nestlé Professional NEAR: Participation of NP NEAR in HOST exhibition -Haidi Rihan

During the exhibition, Nestlé Professional NEAR had around 50 footfalls per day. Most of the Food and Beverage managers from big hotels and resorts in Sharm-el-Sheikh visited our booth. Even managers from some other smaller cities paid our booth a visit to find out more about what we had to offer.

The exhibition was a success for us. We received orders of 31 Hot Vending Machines which will be distributed in hotels and resorts of 10 major chains.

The Nestlé Professional booth at the exhibition.

Nestlé Professional NEAR participated in HOST 2010, the biggest exhibition meant only for hotel suppliers. Held at Hotel Savoy at Sharm-el-Sheikh, the exhibition lasted from 10 May to 13 May 2010.

Visitors to the booth.

20 AOA Quarterly June 2010 Nestlé Professional Oceania: A TAG conference to kick off our six growth platforms -Editha Del Carmen and Sally Brennan

The 2010 Nestlé Professional Oceania Team at Manly Pacific.

The 2010 Conference was one of the biggest gatherings of These growth platforms were presented via an interactive sales and marketing teams across all of the businesses and trade expo - adding a much appreciated visual stimulus to the key to motivating everyone to grow the business further. the conference. It provided extra enthusiasm to an already high level of excitement. Held at the Manly Pacific in Sydney, it went for two and half days and unlike previous conferences, there was And while growth was the ultimate goal, we realised that to representation not only from the Catering Team but from reach that goal, it was imperative that we also talked about the Beverage Solutions, CDS Gourmet Foods and New behaviours and attitudes, like teamwork, a sense of urgency Zealand teams. and passion, to achieve the growth we really wanted.

We introduced the theme TAG - Teamwork, Acceleration, The 2010 conference was a huge success with motivated, Growth - a theme that we reinforced in various ways enthusiastic people leaving the next day to take our TAG throughout the conference. message back to their teams and in their day-to-day work.

Nestlé Professional TAG Logo.

One of the most important items on the agenda was the introduction and clarification of the six growth platforms that had been identified as drivers of our future growth: 1) Nescafé 2) Maggi 3) Beverage Solutions 4) Bakery Solutions 5) Top 100 Platinum Customers Trade show of the 6 growth platforms. 6) Cold Beverages

21 AOA Quarterly June 2010 Nestlé Professional Oceania: Getting the best end of Campbell's

-Norman Tilbrookt

Campbell’s Cash n of Maggi Rich Gravy to visually separate the promotions Carry is unique in that and as a way of giving Maggi exposure. as well as being a distributor, it is also a With this display, 1.5 pallets of Milo, 1 pallet of Nescafé retail outlet. Blend 43 and half a pallet of Maggi Rich Gravy was sold on this basis. This equated to between A$15,000 - A$18,000 For about four months, worth of stock. we have been building up a strong relationship, The gondola now helping with the site, takes pride of place advising on how the at Campbell’s and business could run will remain there for more efficiently and approximately eight generally looking for weeks. opportunities from Display at Campbell's which we could both The success is Cash n Carry. benefit. attributed to having built up a strong When the Nescafé Blend 43’s Red Balloon and Milo's relationship with the Summer of Cricket campaigns launched their promotions, account and it it was identified that this could be a real opportunity to get clearly yielded volume stock on display in Campbell's and strengthen our benefits for both relationship with the local branch even more. sides. A win all round. We suggested a joint promotion display The using a gondola success is end. Campbell's attributed to having Nescafé Red Balloon’s had never done built up a strong promotion’s tin. this before with relationship with the us but because account and it clearly they trusted yielded benefits for Nestlé both sides. Professional enough, they decided to give us an aisle end for free.

A gondola was constructed displaying Milo's Summer of Cricket Nescafé Blend 43 and promotion flyer. Milo, using 7.5kg tubs

22 AOA Quarterly June 2010 Nestle Professional Oceania: Nescafé LiquiFresh continues to win new businesses -Kerryn Holmes

We were now on a roll. Every few months we successfully gained placements on site of more machines. We installed two machines in “Breezes”, a busy bar area on the Gaming Floor where “LiquiFresh Liquid Coffee Machines are fantastic. They around 500 hot beverages deliver a great cup of coffee; they’re efficient, easy to use, are offered to patrons every they save our staff time, us labour costs and because there morning free of charge. is little wastage, the overall savings to our sites is impressive.” Two more LiquiFresh - Kim B. Chilcott, Food & Beverage Manager, Twin Towns machines went into the Twin Services Club Towns Club Banora and a soluble machine into the Twin Towns is the largest Services Club in Australia, Twin Towns Juniors Leagues occupying almost five square kilometres of property spread Club. We also now have across four sites, straddling Coolangatta on the Queensland machines in the Services border and Tweed Heads in New South Wales. Clubs’ dedicated Food Court area and two portable For 20 years, the Twin Towns Group had been supplied by LiquiFresh machines have Amore Coffee, a local coffee company based in the Gold The fantastic LiquiFresh been set up on a cart to be Coast. However, in late 2008, with the help of Wally Carstens, Machine. moved around the site. Beverage Operations Manager for Queensland/Northern Territories, we secured the trial of two of our LiquiFresh To date, in total there are 11 LiquiFresh machines installed Liquid Coffee Machines in the Outrigger Twin Towns Resort throughout the Twin Towns Services Club & Resort. And "Signatures" Restaurant. the story is always the same: great coffee, easy to use, more time, minimal wastage and saves money. We continue These machines replaced the DE liquid coffee equipment to look at more opportunities as other contracts come up at back of house. For the staff, they were simple to use and for review. meant that they no longer had to run back and forth to the kitchen trying to keep the jugs of coffee up with demand. It is great to work in partnership with major clients who For the management, they freed staff up for other tasks, recognise the benefits of the service and solutions we reducing the cost of overtime and as there was minimal provide. wastage, saved the site money. To date, in total there The Food & Beverage Manager was so impressed with the are 11 LiquiFresh trial results that we achieved placement of two more machines installed LiquiFresh Machines, one in “Flame”, a busy throughout the Twin Towns café where a free-flow of coffee is included Services Club & Resort. And in the breakfast offer, and the other in the story is always the same: their “Stars” auditorium. great coffee, easy to use, more time, minimal wastage and saves money.

23 AOA Quarterly June 2010 Nestlé Professional Philippines: Relaunch of Nescafé in BPO and offices -Alex De Col and Carla Carballo

Channel Focus The Opportunity

In the Philippines, the biggest coffee sales volume (Nescafé Last March 2010, Philippines launched the new Nescafé and Coffee-Mate combined) is from the Business and Burgundy framework to support its fundamental objective: Industry channel. This includes the vending solution business To increase coffee consumption by uplifting the perception wherein we have been partnering with the No. 1 vending of Nescafé out-of-home from simply “free coffee” to “coffee operator for the past 15 years, Philippine Vending consumers will be willing to pay for”. Corporation. The first step was to improve the most vended white cup

Currently, the largest contributor in this channel comes from the growing Business Process Outsourcing (BPO) companies wherein penetration is at 95% of current moving universe or 206,900 seats (390 accounts). The second largest is Offices with 647 accounts and where we see a big potential for growth. To date, we have deployed 2,212 hot coffee machines in these two sub channels. The nature of this channel is that hot coffee is a standard employee benefit usually given for free or subsidised by the HR department for all employees. The Nescafé relaunch in Makati Nestlé Centre, led By CBM Zander Taningco.

Our Consumer recipe leveraging on Nestle in the market with its new ICEQ technology for Nescafé. This new preferred recipe Validated through spearheaded the launch of the new burgundy designs and consumer research and hot coffee machines. A shift from ingredient-focused to actual vended cup more descriptive and “coffee shop-like” machine selections readings in 2009, were also introduced, such as “Creamy and Sweet Coffee Filipinos prefer to drink Brew” as the new most vended white cup. Another addition a hot creamy and sweet to the selections was the new Espresso shot which was coffee cup. They mainly made specifically for stronger coffee drinkers who can drink Nescafé Burgundy menu tent card drink coffee to perk-up it as it is or add to any of the other machine selections if in the pantry area. but the average coffee desired. Initially, the launch took place internally in Makati cup consumed per Nestlé Centre and NBS-AOA as a dry run for roll-out to capita is still below 1 cup BPO's and offices nationwide this year. per day. One of the reasons of low Our Next Step consumption is the bitter taste of coffee. A All the hot coffee machines in BPO’s and offices will be consumer test was also transitioned to the new Nescafé Burgundy framework within conducted to test the the year. current most vended white coffee cup and Also within mid 2010, the new Nescafé Burgundy framework Nestlé Centre: Coffee corners results showed room for will support a new channel venture: launch of coffee in the redesigned. taste improvement. commercial segment through convenience stores. This will include a locally developed new product, Nescafé Caramel Macchiato, which will be tested for preference versus the well-known Starbucks version.

24 AOA Quarterly June 2010 Nestlé Professional Philippines: Nestlé Professional joins 1st Creating Shared Value Forum in the Philippines -Misha Rabat and Sunny Yu

On 23 April 2010, Nestlé Philippines, in partnership with food innovations accessible to the bottom of the pyramid. the Philippine Business for Social Progress (PBSP), the Mr Arjun Thapan, Special Senior Advisor to the President Asian Institute of Management, RVR Center for Corporate on Infrastructure and Water from the Asian Development Social Responsibility and the Asian Development Bank Bank, then spoke on the topic of water. In his speech, he (ADB), held the first Creating Shared Value Forum in the mentioned that “Managing our water’s future is very much AOA region. The theme for the forum was “Creating Shared a function of the choices we make today.” Value: Beyond CSR.” About 260 people from governmental Rounding off the event was Mr Tony Meloto, Chairman of and non-governmental organisations, business institutions, Gawad Kalinga, who spoke on the topic of Rural and the Academe, media, businesses, bilateral and multilateral Community Development. He said, “I am happy that we aid agencies, and a number of Nestlé employees actively talk now about creating shared value because that is lasting... CSV must help Filipinos end poverty in the Philippines, participated in this forum. Asians end poverty in Asia. It goes beyond profit and self- interest. Some call it enlightened self-interest; Bill Gates The Philippine CSV Forum aimed to engage a diverse group calls it “Creative Capitalism”. I just call it patriotism as a of stakeholders - governmental and non-governmental Filipino.” organizations and the private sector - in a pubic discussion of the evolving concept of “Creating Shared Value” or CSV. The event was moderated by Ms Gang Badoy, Executive The forum was also a platform for the diverse group to hear Director of Rock Ed Philippines. In closing, Gang said, “I an expert’s focused discussion on our country's problems, realised the Philippines is actually this room. We have pertaining to Nutrition, Water and Rural Development. educators, people in business who have consciences, people who prioritise social impact, sometimes over profit Mr John Martin Miller, Chairman and CEO of Nestle but for the most part, a balance of it, this is the Philippines. Philippines, opened the forum, encouraging the business Thank you very much and please, I beg you, continue community and other sectors of society to “form an era of creating shared value.” collaboration” and to reinforce the increasing role of the private sector, particularly the multinationals in development.

Professor Mark Kramer, Senior Fellow at Harvard University’s Kennedy School of Government, who in collaboration with Mr Michael Porter, also a Senior Fellow at Harvard, coined the term CSV, was the key note speaker for this event. Mr. Kramer explained the need for transition from Corporate Social Responsibility to CSV. He emphasised the importance of strengthening collaborative ties with different sectors of society. He mentioned the importance of “providing competitive success and at the same time really making a material difference.”

Following Professor Kramer’s lecture, Dr From left to right Mario Capanzana, Director of the Food Dr Mario Capanzana, Director of Food&Nutrition Research Institute; Mr Arjun Thapan, Special Senior Advisor to the President on Infrastructure and Water from the Asian and Nutrition Research Institute discussed Development Bank; Mr John Martin Miller, Chairman and CEO of Nestlé Philippines; the topic of Nutrition. He emphasised the Professor Mark Kramer, Senior Fellow at Harvard University's Kennedy School of Government; Mr Tony Meloto, Chairman of Gawad Kalinga; and Ms Edita De Leon Head need for promoting affordable but healthy of Corporate Affairs.

25 AOA Quarterly June 2010 Some CSV best practices programmes were featured through booth exhibits right outside the plenary hall. Nestlé CSV programmes included the following: • Ice-creams carrito programme • Pulilan and Lipa factory’s cut and sew programme • SH&E and SCM featuring their Water, Environment and Greening the Supply Chain programmes • Corporate Affairs featuring the Nestlé Healthy Kids programme • Sales featuring the Micro distributor programme • Nestlé Professional featuring their BOW programme • Nescafé’s Coffee Farming Initiatives and Adopt a Li’l Beanie Initiative, Bear Brand's Laki sa Gatas and Milo’s Champ Camp. Street Channel Manager, Liezl Lumbuan, and CCSD head, Sunny With this forum, we are hopeful that businesses will Yu, together with CBM Zander Taningco (centre) at the Business- remember their role in our country’s development, create On-Wheels (BOW) display at the CSV Forum. partnership with different sectors of society, develop focus on the causes they choose to undertake, and thereby truly make a social difference in the years to come.

Nestlé Professional Philippines: NP Global CFO visits the Philippines -Cindy C Banaria

Lukas was visibly impressed with the performance of the NP Philippines team. Presentations covered an overview of the business which included key drivers in Category, CCSD, Sales and Finance. Also discussed were the challenges and issues faced in food and beverages, as well as the short to medium term plan in addressing these.

In the end, Lukas congratulated the NP Philippines team for a job well done and for having very clear plans and focus on actual execution. He likewise challenged us to accelerate the OOH business.

Lukas greets the Philippines NP Team during the market visit. The following day, Lukas joined the rest of the market CFOs for the Key Market F&C Conference which took place from Lukas Paravicini, CFO of Nestlé Professional, visited the 8 and 9 April. Philippines in April 2010. He spent two days with the team.

6 April 2010 was devoted to trade checks of the various channels and key accounts of NP. This included visiting the Business-On-Wheels (BOW) model catering to the street outlets such as Carinderias (Street Food Stalls) and Kapihans (Street Coffee Stalls). He also visited BPO’s (call centres), foodcourt clusters, FSRs and key accounts namely Jollibee and Chowking. The trade visit was headed by NP NSM Pat Dino. NP CBM Zander On 7 April, the NP Mancom Team headed by CBM Mr Taningco shows Lukas Zander Taningco presented plans and updates for 2010. outlets in the street channel.

26 AOA Quarterly June 2010 Nestlé Professional Philippines: Nestlé Professional partners Enderun College to build capabilities -Bing Rubia

To kick-off the partnership, Nestlé Professional held its national teambuilding activity in February 2010. Nestlé Professional’s Competency Head, Bing Rubia, together with NP HR partner, Farid Mohd, organised the activity for NP. NP was grouped into 8 teams and each team was assigned to complete a specific dish which will eventually be served for lunch. Judges from Enderun rated the participants in terms of teamwork, Claygo, taste and presentation of dish. There was also a time limit given to each team.

The Nestlé Professional Team. In the end, the NP team who prepared the Vietnamese roll bagged the overall prize. Nestlé Professional in the Philippines will embark on a journey towards transforming its team to become experts Each participant was presented with a Certificate of in foodservice management by entering into a partnership Participation, signed by Chef Thomas Wenger, Senior with a hotel and business school in Manila - Enderun College. Culinary Head of Enderun.

Enderun is a very prestigious culinary and management school located at Fort Bonifacio, Makati. It has academic partnership with the world famous Les Roches International School of Hotel Management in Switzerland.

The full curriculum will run for 153 hours. It features two major training dimensions: Technical Skills and Soft/Behavioural Skills. The Technical Skills training focuses on increasing one's knowledge and understanding of the hospitality and restaurant business and operations. Using classroom teaching methodology, participants will be exposed to industry-related subjects which allow them to “think and speak F&B” with ease.

The subjects that will be taught include the following: • Introduction to Hospitality Industry • Introduction to Restaurant Operation • Kitchen Management • Introduction to Culinary Arts • Beverage Management • Personality Development • Platform Skills and Presentation Training • Solutions Selling • Customer Service Training

The graduates of this curriculum will receive the Post Graduate Professional Certificate Course in Food Service Management. A NP staff member races to finish the dish assigned to them during the Enderun Team Building Activity.

27 AOA Quarterly June 2010 Nestlé Professional Philippines: Nestlé Professional visits

SOS Children’s Village -Sunny Yu and Zander Taningco

On 15 February 2010, in keeping with NPI’s commitment A Truly Inspiring Experience to CSV, the entire Nestlé Professional Mancom visited the SOS Children’s Village Philippines. The group was During the visit, it was evident that the children in the SOS accompanied by David Laurel and Patricia Rabat of Homes we entered were full of confidence and warmth. Corporate Affairs. During interviews, some children eagerly shared their dreams and aspirations. SOS Children’s Village Philippines, founded by Dr George Winternitz and his wife Susie in 1964, is a private, non- As SOS Children’s Village National Director Bienvenido political, non-denominational organisation providing long- Delgado pointed out, “we believe the measure of success term family-based care and education to children in need. is not academic achievement but rather self-sufficiency. Once the children are in our care, we work to make them SOS aims to provide “a home and family for orphaned, stand on their own two feet. We provide food and clothing. abandoned and neglected children in extreme difficult We provide shelter and schooling. Most importantly, we circumstances. Here, competent and responsible provide each child with a mother who will care and nurture SOS Mothers and co-workers provide the child to adulthood. What we strive to provide unconditional love, inspiration, support and is a path to independence. We help them today encouragement for these children to take to make sure they will not need help tomorrow their place in society, enriched with their as they grow to become mature, responsible God-given talents and contribute adults.” their share to the progress of the human family.” The Heroes

The key to the The Archbishop of Manila, Gaudencio B. Cardinal success of SOS Rosales, attested to the brilliance of the SOS model. Children’s Village is the SOS Mother. The SOS In a moving letter addressed to would-be supporters, mother “builds a close relationship with every child entrusted he said “The genius in the SOS Children’s Village philosophy to her, and provides the security, love, and stability that is to place kindness, respect and trust, as it were nestling, each child needs. As a child care professional, she lives in the ‘house mother’, at many times assisted by an ‘auntie’, together with her children, guides their development, and in order that through and from them the children imbibe the runs her household independently. She recognises and rest of the virtues. In this regard, the SOS Mothers, who respects each child’s family background, cultural roots, and are single women volunteers who go through a rigorous religion.” To run the household, each SOS mother is provided screening process and intensive 2-year training programme, a monthly allowance to purchase food and other items for are the real heroes.” the household. NP & SOS: Winning Lives together

What are the plans of NP in achieving CSV together with SOS? As a start, NP will be focusing on Rural Development of the CSV framework.

Rural Development:

One of the key strategies for NP is to strengthen the route- to-market programme called Business On Wheels (BOW) for the Out-of-Home Street Channel. A key element is to have a steady supply of BOWers. In partnering with SOS, NP can offer the BOWer programme as a livelihood opportunity to SOS family members who have graduated NP MANCOM together with Misha Rabat and Dave Laurel visit from the SOS Programme, providing them with a positive key members from the SOS Village.

28 AOA Quarterly June 2010 path towards their journey to self-sufficiency. This can also complement SOS’ Family Strengthening Programme where livelihood opportunities are offered to families outside the SOS’ village and in areas which SOS supports.

For NP, this will be an excellent source/pool of potential BOWers and even Business Development Officers as we accelerate our expansion nationwide, helping fellow Filipinos improve their lives in the process.

Positive Small Steps Forward

As an initial step, we have agreed to start with a recruitment roadshow across all For SOS Children’s Village sites and NP, this will be an communities nationwide in May. NP CBM Zander Taningco (5th from right) together excellent source/pool with SOS MOM “Mama Beth” (encircled in red) of potential BOWers and and 4 of her 10 beloved children in their home. Another inititative is to expose more even Business Development NP staff to SOS and CSV. In our Officers as we accelerate our March Nestlé Professional expansion nationwide, Operation’s Meeting (NPOM), we helping fellow Filipinos organised a visit to SOS Children’s improve their lives in Village in the morning and held the the process. meeting in the afternoon. Already a number of ideas are being shared and possible synergies are beginning to sprout. As we dialogue further, we become inspired and motivated to truly WIN LIVES together!

29 AOA Quarterly June 2010 Nestlé Professional SAR: Reaching out to the Chefs -

Culinary Art 2010 -Deepal Abeywickreme and Jagath Wedage

The Event Nestl ’s participation

Culinary art is Sri Lanka’s largest food exhibition for the In consideration of the anticipated growth and the positive F&B fraternity which is organised by the Chefs Guild of signs in the tourism industry, Nestlé stepped forward to co- Lanka once every two years. This year, the 13th Culinary sponsor this mega event in order to further strengthen Art exhibition was held at the BMICH, Colombo from 5 to relationships with the hotel industry. 8 February with the participation of over 1600 entrants including 900 chefs. A Nestlé “Chefs Corner” was created at the entrance where all participants were given the opportunity to taste Nestlé’s The participants range of hot beverages. More than 2000 chefs & hoteliers represented five sampled Nescafé and Nestea during this event. star hotels, resorts, hotels in The “Sri Lankan cookery” competition, the most prestigious the Maldives event, was sponsored with the theme of “You & Maggi make Islands, hotel tastier meals”. schools, restaurants, All recipes during the contest had to include a Maggi product. airline catering Maggi Coconut Milk Powder, and Maggi Chicken Stock establishments, usage and its superior taste were thus established amongst Sri Lanka Air Enjoying a cuppa at the Nescafé the chefs. Force and Chefs’ Corner. Hospitals. There were more than 150 participants at the Maggi Live Cooking Competition and Colombo Hilton won the Maggi Culinary Art trophy for the “Best Sri Lankan Meal”. 2010 showcased the More than 21 companies were represented at the event. talents of local The show was dominated by Nestlé due to the heavy chefs, mainly branding and visibility of Nescafé and Maggi. This was only young chefs possible due to the strong relationships the Nestlé from 130 hotels Professional team has developed with the Chefs Guild of and gave them Lanka. the opportunity Maggi Live Cooking Competition. to be Other Activities recognized. This year it had • Milkmaid Trophy was awarded for the “Best Creative over 6,000 Bakery Show Piece” dishes to please • Karapincha Soup Sampling - it was a great opportunity the palate and to let the hoteliers taste Maggi Karapincha soup. the eye. • Nestlé stall - to establish new customer contacts.

Internationally qualified judges that are aligned to the World Eager consumers at our soup Association of sampling booth. Cooks Societies (WACS) were flown in from all over the world to judge this prestigious event. We were privileged to have the advisory chef of Nestlé Professional Middle East - Mr Zain Sidhu as one of the key judges for the event.

30 AOA Quarterly June 2010 Nestlé Professional Turkey: McDonald's Turkey serving

McFlurry with Nestlé Lion Mix! -Elif Yonca & Petek Boyacigil

After a long period Imported from Germany, as of the beginning of April their of negotiation to consumers have two options of enjoying Nestlé Lion introduce Nestlé McFlurry, with the established dosage or with a slight up products on the charge, a double dose of topping is given for those chocolate menu, to jump start lovers looking for more intense flavor. Initial volume forecasts this year's summer have already been increased twice due to a very good start, season we have projecting very promising results with this new introduction! successfully managed to introduce Nestlé Lion Mix as one of the four summer toppings consumers can choose from for their McFlurry ice cream in any one of POP branding for Nestlé Lion McFlurry. their restaurants.

In Turkey, McDonald’s is the second biggest global fast food chain and has been operating for the last 24 years with the Anadolu Group. It has more than 130 restaurants across the country, employs 4000 people and serves around 73 million consumers.

With the intense competition in QSR channel, McDonald's has diversified and adapted some of their meal offers according to local taste, always searching for differentiated Nestlé Lion branding in one of the products targeting the different consumer segments such McDonald’s outlets. as breakfast menus, traditional menus, salads, and their range of deserts. Perfect harmony of caramel, wafer crumbles and chocolate of Nestlé Lion are now in all McDonald’s restaurants inviting With the strategy to have a differentiated offer in the dessert consumers to refresh themselves on this year’s hot summer range, Nestlé Professional has searched for numerous days and nights. possibilities that will provide McDonald’s the opportunity to delight their consumers with a special treat. Seeing as their expectation was to have a differentiated product not readily available on the local market, we Initial looked around for opportunities that volume would suit both their forecasts have management as well as the already been increased Turkish consumers taste. twice due to a very good start, projecting very promising results with this new introduction!

31 AOA Quarterly June 2010 Nestlé Professional Turkey: New Advisory Chefs with Nestlé Professional Executive Chef Eyüp Kemal Sevinç, one of Turkey’s most successful and awarded chefs, and his team -Elif Yonca & Petek Boyacigil

Chef Sevinç and his team have begun presenting and demonstrating our current product range to key customers and opinion leaders in the gastronomy field. Through this and the sampling of a variety of our future range of products, they have gained key insights into new product developments targeted at the premium culinary segment. They have also started culinary and product trainings for the whole Nestlé Professional sales team, giving them insights on the preparation of gourmet dishes with products they have been selling for numerous years.

With the arrival of Chef Sevinç and his team, Nestlé Professional has experienced increased support in product demonstrations and from important and exclusive culinary organizations. We are now able to Culinary workshop with the sales team. leverage the Nestlé brand across numerous channels conveying a coherent message from one professional to another. With the aim to reposition the culinary business in Turkey through an improved image and product offering, work begun some time ago to review our product range, brand image, sales information and necessary tools required to conquer the kitchens of the numerous high quality hotels and restaurants thriving in Turkey, delighting both national and international consumers daily.

Eyüp Kemal Sevinç was born in Istanbul on 28 May 1976. He is a member of the European Cooks Association, World Cooks Confederation, an executive member of Euroasia Cooks Association and Kitchen Professionals Association. He is also a member of the Kitchen Cultures research group of IOV supported by UNESCO. He has won more than 80 awards from almost 100 national and international cooking competitions and has participated in cooking shows for various national TV broadcasting channels since 2001.

Nestlé Professional Turkey has signed an annual agreement Executive Chef Eyüp Kemal Sevinç, one of Turkey’s most with Chef Sevinç and his team to assist us in achieving this successful and awarded chefs, and his team. challenging objective through product demonstrations and sales team trainings. We will also leverage on their experience and know-how in our I & R research exploring new customer needs and opportunities.

32 AOA Quarterly June 2010 Nestlé Professional ZAR: Nestlé Professional sponsors the South African Chef's Village at Hostex in Cape Town -Tracey Felicidade Jones

Spectators look on while chefs demonstrate the latest culinary products.

Hostex took place in Cape Town from 8 to 10 March 2010 The South African Chef’s Village was filled with activity, with at the Cape Town International Conference Centre. It is the demonstrations on the latest culinary products and trends, largest and longest running exhibition of its kind in Africa, competitions, and of course, the much anticipated launch and the only one endorsed by the South African Chefs of the Maggi Premium sauces. Association. The “Liven Up Your Menu” campaign showed the 4 new There were over 220 exhibitors and the South African Chef’s Maggi sauces in various applications with top chefs Martin Village was once again the highlight of the 3-day show. Kobald (Nestlé Professional Corporate Executive Chef) and Hostex Cape Town was ideally timed to assist the industry Stephen Billingham (President of South African Chef’s in meeting the demands of tourists, giving visitors a one- Association) battling it out to try to present the best tasting stop destination from which to source the products and meal to the audience. The new sauces are available in services to meet the demands for the FIFA 2010 World Cup. Wasabi Flavoured Plum, Teriyaki, Zesty Citrus and Spicy Hot and Sour. Many chefs commented on the originality of Nestlé Professional was the proud naming rights sponsors the flavours and the authenticity of the range which would of the South African Chef’s village and used this opportunity add excitement and new flavours to menus around the to launch the new range of Maggi Premium sauces, as well country. as to create product awareness for Sjora and Milo cold beverages. Sampling in the past has always proven to be All in all, it was deemed a huge success and 6,000 visitors successful in this product category as it allows the customers had a chance to interact and experience the start of an to sample at their leisure. This same methodology was exciting innovation pipeline from Nestlé Professional in employed at the event and it was a success! 2010.

33 AOA Quarterly June 2010 Nestlé Professional ZAR: Nestlé Professional launches the Maggi

Premium sauce range -Tracey Felicidade Jones

Nestlé Professional busy kitchen. It also aids in portion control as these sauces launched the new are intense in flavour, so only a small amount needs to be Maggi Premium sauce added to any meal. range at Hostex in Cape Town from 8 to The best part about the new sauces is that our customers 10 March 2010. love them. KFC, current sponsors of the national Protea cricket team, love the Zesty Citrus sauce so much that they The range consists of made a Caribbean burger around the sauce, to show support four sauces which are for our cricket team while they are playing cricket in the authentic in taste and West Indies. This burger was launched on 5 May and will intense in flavour, run as a promotion until the end of June 2010, promising allowing chefs to create a volume of 14.6 tons. sophisticated flavours on the menu. We are confident that we will get great support for this new sauce range as it brings a new flavour dimension into South The first sauce is a African professional kitchens! Teriyaki sauce which is Martin Kobald, Nestlé Professional made from an Corporate Executive Chef and Past authentic Japanese President of SACA, demonstrating the use of the Maggi sauces. recipe using a blend of soy and selected spices. Spicy hot and sour sauce is a true taste sensation and chefs relish the flavour hit of spicy chilli, coriander, garlic, capsicum and lemongrass. Wasabi Flavoured Plum sauce is an essential blend that merges sweet, spicy and savoury to perfection whilst the Zesty Citrus sauce is a tangy blend combining the sweetness of citrus with garlic, soy and ginger. Stephen Billingham, Current President The sauces were launched in response to the need for of the South premium authentic tasting products which chefs can use African Chef's Association, looks in their kitchens to create a base to creating innovative on while Martin recipes. Kobald demonstrates the Maggi sauces. The sauces are ready to use and can be used in various applications from marinating to stir-frying as well as being used as a dip or dressing. A small amount of Maggi Premium sauces is all one needs to experience intense flavour and maximum enjoyment.

The sauces are also cook-chill stable, bain-marie stable and Halal. They are sold in 500ml bottles as this squeeze bottle allows the chef to handle the bottle with ease in a

34 AOA Quarterly June 2010 How to reduce, prevent and cope with stress

Strategy 1: Avoid unnecessary stress - Learn to say “no” - Avoid people who stress you out - Take control of your environment - Avoid hot-button topics - Pare down your to-do list

Strategy 2: Alter the situation - Express your feelings instead of bottling them up - Be willing to compromise - Be more assertive - Manage your time better

Strategy 3: Adjust your attitude - Reframe problems - Look at the big picture - Adjust your standards - Focus on the positive

Strategy 4: Accept the things you can’t change - Don't try to control the uncontrollable - Share your feelings - Learn to forgive

Strategy 5: Make time for fun and relaxation and adopt a healthy lifestyle

35 AOA Quarterly June 2010