Nestlé Malaysia marked its centennial
in Malaysia with another year of solid
financial performance, underlined by
consecutive good quarterly growth.
This was driven by strong domestic sales
with several of the product categories
recording impressive double-digit growth.
Amid the challenging global economic
conditions, the Malaysian economy
remained resilient. The rising disposable
income and the people friendly assistance
such as the BR1M scheme helped
consumer sentiments to stay positive and
provide a boost in domestic demand.
In conjunction with the 100 years
celebration, there was a notable increase
in marketing and promotional activities to
generate awareness as well as to express
the Group's appreciation to our Malaysian
consumers. The market reaction was very
positive, which resulted in higher demand
for most of Nestlé's products.
Continuous product innovation and
renovation also resulted in the healthy
demand for new variants, while promoting
nutritional diets and healthy lifestyles in
line with the government's goal of creating
a healthy and productive society.
Meanwhile, exports, which accounted
for almost 25 per cent of the Group's
turnover, saw slower growth in 2012
as the weak global economic climate
affected the demand from some
Fortunately, strong domestic demand
continued to spearhead the growth,
compensating the softness in exports.
For the year under review the Group
turnover grew by 7.3%.
To support the increasing domestic
and export based demand for Nestlé's
high quality products, investments were
made to enhance efficiency and boost
In the 2012 Business Solution Awards
by the Nestlé Group, Nestlé Malaysia
won 2nd prize for 'A Perfect Flow with
Zero Waste to Deliver What Consumers
Value'. It recognised excellent turnaround
of the Nestlé Ice Cream Business,
which was enabled by GLOBE as well as
Nestlé Continuous Excellence tools and
methodology. Focusing on delighting their
consumers and customers with quality
products and services, Nestlé Ice Cream
started its Lean Value Stream journey
in 2009 by eliminating non value adding
activities and waste from its procurement,
production, supply chain, distribution and
retail value streams.
In 2012, training on Brand Building the
Nestlé Way, a methodology and tools
to help marketing teams develop strong
and impactful brand campaigns was
accelerated. The market conducted more
than 100 trainings and workshops
to all the marketing and sales teams
where many successful campaigns
such as MILO 'Play More, Learn More',
NESCAFÉ 'Let's see what develops'
and MAGGI 'Happiness is Homemade',
were developed. This was reflected in
improved brand health, accelerated sales
growth and enhanced brands equity.
Additionally, the Sales Teams focused
on 'Being Brilliant at the Basics'.
This involved improving customer and
shopper understanding, looking at ways
to tap growth in alternate trade channels,
strengthening performance with both
our Modern and General Trade customers,
and improving distribution and in-store
execution through initiatives such as
GPS coding of all outlets, creation of a
retail lab and development of a perfect
store concept. The implementation of a
new Ullage Policy for Distributors in 2012
resulted in better freshness in the trade,
improved stock levels and a reduction of
goods to be destructed.
Complementing this, the Supply
Chain performance improved in 2012
with service levels to our customers
rising significantly. This was achieved
while maintaining tight control of our
inventories. The physical logistics side
also showed significant progress with the
Group increasing the utilisation of trucks
in West Malaysia and containers moving
products to East Malaysia. This lowered
the variable distribution expenses and
reduced our impact on the environment
in terms of kilometer travelled per tonne
The Group also continued with its people
programme. A total of 27 Corporate
in-house training courses were offered to
employees which covered 1,589 people
through a total of 94 sessions. The Group
further engaged with employees by
gathering their views through the 'Nestlé
& I' employee survey, which saw a strong
participation rate of 98%.
From the feedback, areas that required
improvement were identifi ed and action
plans have been established. One of
the agreed action plans from the survey
was to introduce a People Management
Course for all our line managers. The
course helped 218 line managers to
better apply Nestlé's Management and
Leadership Principles to effectively
lead their teams to higher levels of
performance. After a duration of three
to six months, a training checkpoint
survey was conducted for all participants
to validate the outcomes of behavior
Thanks to the increased activities in
promoting Nestlé as the Employer of
Choice in universities, the Group also
made good progress in improving its
employer image in Malaysia. It ranked
23rd in the country among the 100 most
popular graduate employers in 2012.
Nestlé participated in 18 career fairs in
various universities across Malaysia, and
engaged with campus communities and
undergraduates who were given a clear
insight of the company, as well as the vast
career and development opportunities
within it. Additionally, as a result of greater
brand visibility in key publications specially
targeted at graduates, the Group managed
to recruit best-fit young talents for its
core programmes such as the 'Internship
for Undergraduates' and 'Management
Trainee for Fresh Graduates'.
Coffee & Beverages
It has been an exciting year for MILO, which started off with the launch of a
nutrition campaign, aimed at educating mothers on the benefits of MILO.
Key highlights of the campaign include the 10,000 pledges from mothers supporting
this campaign and 10,000 breakfast giveaways by MILO to selected rural schools.
The campaign was well received by parents and gain strong presence in the media.
MILO continues to advocate learning life values via sports through the MILO
'Play More, Learn More Campaign'. A total of 12 camps - reaching out to more than
45,000 children - were carried out nationwide, with the support from the
communities through the respective local resident associations.
MILO Malaysia also introduced a new range of MILO mixes range - MILO Cereal
(packed with cereal flakes), MILO Hi-Fibre (with a dietary fibre to help maintain
the digestive system) and MILO Less Sweet (with all the goodness of MILO
and 47% less sucrose compared to other chocolate malt mixes) - which provide
added benefits catering to young working adults who are health conscious
and looking for healthy options in their daily diet.
To provide consumers with even more value,
MILO Sejuk was introduced in a value pack
of 25 sticks.
2012 is a year of innovation and continuous stimulation for
NESCAFÉ with the start of a new communication campaign and
launches of new products for the coffee shop specialty segment.
The NESCAFÉ mixes portfolio was expanded with the introduction
of new NESCAFÉ Brown & Creamy, with brown sugar which gives it
a creamy and caramel-like taste that appeals to young adults who are
new to coffee.
Strengthening the growing white coffee segment was the launch
of NESCAFÉ Ipoh White Coffee Hazelnut and NESCAFÉ Ipoh
White Coffee Brown Sugar, along with the relaunch of an improved
NESCAFÉ Ipoh White Coffee Original.
NESCAFÉ Dolce Gusto meanwhile launched its new machines - Genio and Circolo
Automatic - while doubling the range of café-style beverages with Grande Intenso,
an indulgent Chococino, refreshing Cappuccino Ice as well as the exotic, spicy Chai
Tea Latte. The machines, beverages and accessories can now all be bought
from Nestlé Malaysia's first online shop at www.dolce-gusto.com.my
Nestlé Liquid Drinks
The Liquid Drinks business achieved strong topline growth, higher profitability and gained significant market shares in 2012.
This was attributed to product renovation with the relaunch of MILO UHT and the launch of new NESCAFÉ UHT to recruit more
With an improved recipe, MILO UHT is now tastier, creamier and more chocolaty
to delight 7-12 year old children. Meanwhile NESCAFÉ UHT in 200ml packs aims to
delight new coffee drinkers who prefer the comforting goodness of milk with a light
touch of coffee and has gained significant market shares from the competition.
In the digital social sphere, youths were engaged to discover the extraordinary in
them through the new NESCAFÉ on the Life Campaign, while the MILO Cans Next
Games Campaign engaged and tapped their creativity by inviting them to redefi ne
the future of sports.
Meanwhile, MILO UHT for the third year, continued to raise the awareness
on the importance of paper carton recycling amongst Malaysians by collaborating
with Tetra Pak, schools, retailers, charity organisations and other stakeholders.
The Food Business continued to sustain strong growth driven
by its core categories within noodles, stocks, seasoning and
sauces, supported by investments in consumer engagements
The Me and My MAGGI Campaign promoted tasty and balanced
preparation of MAGGI noodles with fresh eggs, meat and
vegetables, which was supported by the launch of a new
packaging with noodle recipe suggestions. Consumers were
also encouraged to share their unique recipes through a digital
Another highlight of the noodles campaign was the successful
introduction of MAGGI Mi Goreng Kari Ori - a delightful fusion of
MAGGI's well-loved curry flavour into a convenient dry noodle
format - while the MAGGI Mi Goreng range was launched in
a cup format. These initiatives resulted in increased consumer
loyalty for MAGGI, which enabled the brand to maintain
MAGGI's big idea - Happiness is Homemade - was further strengthened via
continuous communication behind key culinary solution categories such as
MAGGI Cukup Rasa all-in-one seasoning, bouillon stocks, Chili Sauce and
Oyster Sauce. MAGGI Cukuprasa registered double-digit growth and increased
market share as penetration increased with the launch of the 1 Ringgit Pack.
Media communications, sampling and cooking events were also intensified promoting the goodness of home cooking among women, as well as the youth.
Nestlé Professional acknowledged and thanked coffee-shop
operators by hosting 'A Tribute to Malaysian coffee-shop,
the Nation's heritage' ceremony. The coffee-shop operators
unyielding support towards NESCAFÉ and MILO has made
both beverages staples in Malaysia. Nestlé Professional also
advocates healthier lifestyle and healthier choice through the
'MILO Kosong Campaign'.
In the Food business, the new MAGGI Abalone Sauce launch was well received
by Chinese restaurant operators in Malaysia. NESTUM was also launched in
coffee-shops, to grow the out-of-home consumption for this nutritious drink,
as well as for restaurants, as a key ingredient in their menu creations.
Chilled Dairy delivered another year of accelerated growth with a double-digit
rise in both yogurt and yogurt drinks. Impactful brand communications
and shopper engagement successfully led category growth and reinforced
Nestlé's number one position in the yogurt category.
The communication for the Nestlé BLISS 'Looking Good From Within Campaign',
which focused on the product's superior taste and product benefits,
was effective in gaining new customers. Nestlé Natural Set yogurt generated
higher brand awareness and usage through cooking demonstrations in store
and recipe suggestions.
Confectionery maintained strong double-digit growth in 2012 driven
by both the domestic business and direct exports. KIT KAT strengthened
market leadership in the count lines segment and continues to be the
main growth driver.
KIT KAT remains successful with its digital communication programs
and in-store activities while Nestlé Wafer, which is targeted
at the mass market, stays driven by strong marketing support and
The year under review was a great year for the Ice Cream
segment - driven by breakthrough innovations
- which expanded the share of the Impulse segment.
Key highlights of the year included the
successful launch of MAT KOOL Spiro
and DRUMSTICK Rockin' Hazelnut. These
breakthrough innovations were the first in
the market and delivered our commitment to
delight our consumers by creating excitement
for the overall Ice Cream category.
Milks & Cereals
The encouraging growth of Nestlé OMEGA PLUS continued through collaborations with
retail partners to drive higher heart health awareness. A more convenient way to manage
cholesterol level was also introduced with the launch of Nestlé OMEGA PLUS One.
The Hot Cereals portfolio was reorganised under
the NESTUM brand (for both All Family Cereals and
3in1 mixes) and the label was relaunched with a
more contemporary design. A new value-added 3in1
range now offers the balanced goodness of NESTUM
cereals and the renowned goodness of Traditional
Asian Medicine (TAM) - NESTUM 3in1 with American
Ginseng and Dang Gui - in collaboration with Eu Yan
Sang, which is recognised for its TAM expertise.
In conjunction with the Nestlé centennial celebration, the Nestlé Start Well Stay Well Educational
Programme was undertaken to educate Malaysian healthcare professionals and consumers on the
importance of nutrition in the first 1,500 days of life.
A symposium on breastfeeding was also organised by the Nestlé Nutrition Institute to share
knowledge and exchange best practices amongst healthcare professionals in evolving and
Strong double-digit growth was achieved
leveraging the Diabetes and Critical
Care product platforms. NUTREN untuk
is the biggest contributor to the
business while PEPTAMEN is the first
choice nutritional formula for Intensive
Care Unit patients.