Business Review


A major highlight was the Nestlé Promosi ‘Lebih Kebaikan, Lebih Nilai’ in March – a key campaign building on our Nutrition, Health and Wellness platform.

The Group recorded a modest growth for the financial year ended 31 December 2014, with a turnover of RM4.8 billion. This represents a 0.4% increase from the previous financial year. Whilst the domestic business has performed well, the moderate overall performance can be attributed to the weak performance of the Export business to affiliated companies.

The revenue growth was primarily driven by the domestic business. Despite the subdued consumer sentiment during 2014, investments in marketing and promotional activities continued to take place which has gained us stronger market shares in all major product categories, particularly in the Confectionery, Ice Cream and Liquid Drinks businesses.

A major highlight was the Nestlé Promosi ‘Lebih Kebaikan Lebih Nilai’, in March – a key campaign building on our Nutrition, Health and Wellness platform. The Sales Team supported this campaign by executing over 23,000 in-store displays across various channels nationwide.

In September, Nestlé carried out another major corporate campaign, ‘Lebih Nilai, Lebih Funtastik’ Promotion, offering value packs and a chance to win holiday packages. This was supported by a comprehensive marketing campaign, which included multi-brand displays and in-store sampling as well as advertisements in the mainstream and digital media. Both the promotions resulted in successful sales uplift and increased market shares.

At the operational level, Sales Force Automation (SFA) was notched up to the next level, as the Sales teams were equipped with new tablet PCs, which offer better and faster functionalities as well as the ability to track merchandising execution standards.

2014 also saw efforts to increase the number of ‘Perfect Store’ outlets across the country, with more outlets remodeled and their floor space optimised to leverage shopper traffic and patterns as well as, to enhance the consumer shopping experience based on solid shopper insights.

The strong performance during the year was also enabled by the continued application of Nestlé Continuous Excellence (NCE), which has resulted in cost savings and operational improvements in productivity. Collectively, Nestlé factories have increased their productivity by significantly and reduced energy consumption by 7.6% of energy usage per tonne product, from 3.82 GJ per tonne in 2013 to 3.53 GJ per tonne in 2014, surpassing the annual 4% target.

Total carbon footprint was reduced through initiatives such as recycling campaign for packaging materials, market trial for natural gas refrigerant freezers, and embarking on our Zero Landfill journey. On-going efforts to reduce carbon dioxide (CO2 ) emissions in the Supply Chain were also successful in minimising impact on the environment, as well as reducing distribution expenses per kilogramme of delivery.

In addition to the environmental factors, the sustainability of the Company is also very much dependent on the workforce, as it is people that will drive the business forward. Thus it is critical that the Company not only attract the best talents but also retain current ones. Efforts to do this include ensuring safety at the workplace and providing career opportunities through various training programmes, as well as continuing with initiatives to tap fresh talent from universities and relevant agencies, such as TalentCorp Malaysia.

In an effort to enhance and further strengthen the work culture, Nestlé Malaysia organised and conducted a Leadership & Personal Effectiveness Programme – LEAD PEP 2.1 – for its senior managers, which included the Company’s Managing Director, as well as division heads and business unit managers.

Implemented in collaboration with leadership experts from Mount Eliza Executive Education, University of Melbourne and Melbourne Business School, the programme addressed topics that are key and essential in becoming a good leader such as leadership, self-awareness, motivation and engagement of employees, coaching, strategic human capital, cultural sensitivity and awareness, global mindsets of leadership, navigating complex and abstract challenges and marketing.

The programme reached out to a total of 170 participants who were divided into seven cohorts. They completed two out of the three modules and will continue with Module 3 of the programme in 2015.

It is also important for employees to embrace the Nutrition, Health and Wellness (NHW) lifestyle and the Company has several initiatives in place to promote this.

On a regular basis, Nestlé carries out a training programme called Nutritional Quotient (NQ), aimed at equipping employees with regular nutrition education sessions and empowering them to apply NQ in their professional activities and day-to-day lives.

In addition, Nestlé also hosted fun and interactive NQ Wellness Day sessions at the Petaling Jaya, Batu Tiga and Shah Alam factories, all of which included a briefing on healthy eating and a healthy cooking demonstration.

The Company also organised and carried out health-related activities throughout the year to encourage healthy eating and active lifestyles, and these include health and wellness tips via e-mail, and programmes on fitness, health screening and stress management.

As further encouragement to employees, Nestlé teamed up with Fitness First to organise the Nestlé Treadmill Challenge, which is aimed at encouraging employees to lead healthier lifestyles and showing them that staying fit can also be fun. The Challenge, which is the first of its kind for Nestlé, required participants, in teams of five, to run on the treadmill for 10 minutes.

With its significant investment in its people, Nestlé is widely acknowledged as a leading employer and a great place to work, and this has been recognised with the award for the Most Popular Graduate Employer in the FMCG/Retail category at the Malaysia’s 100 Leading Graduate Employers Award 2014.



Malaysia Breakfast Campaign
MILO has long advocated the importance of breakfast and this continued into 2014 with the MILO Breakfast Campaign. The aim of the campaign was to raise awareness and reinforce breakfast as the most important meal for the day, and encourage the adoption of healthy and active lifestyles for everyone.

One of the major highlights of the campaign was the Malaysia Breakfast Day which was held at Dataran Putrajaya in April, where Malaysians were encouraged to come together as a family to enjoy breakfast and participate in physical activities. The event was a resounding success with approximately 20,000 people attending, of which 8,169 participated in the concurrent Malaysia Breakfast Day Run.

Another key initiative was the creation of the MILO Breakfast Squad also known as the Positive Energy Squad. Comprising two groups of cyclists, the Breakfast Squad targeted offices; public transport and LRT stations; and coffee shops and mamak outlets to spread health messages and remind Malaysians to have breakfast. In total, they reached out to 50,000 Malaysians at 108 locations in the Klang Valley.

Hidup Bola Campaign
For decades, MILO has helped nourish and fuel Malaysian children to bring out the champion within them. At the MILO Institute of Champions, we help children become Malaysia’s future champions by unleashing their sporting potential, and give advice to help them grow up healthy while learning the right values in life.

While MILO has been involved in various sports, football has been one of the more popular activities among schoolchildren. The MILO Hidup Bola annual futsal tournament was once again a milestone event in 2014 with hundreds of youth teams in the under-12 and under-16 categories participating over 14 legs at State level, competing for a place in the Grand Finals, which was held on June 22 in Kuala Lumpur. Coaching clinics were also held at selected locations to give parents with children under the age of 10 the opportunity to learn more about how to get their kids on the right track with sports and nutrition.

This year, a new open category for both male and female players aged 18 years and above was introduced, which included a talent scouting system to select the top 24 performing players from the top twelve final teams during the Grand Finals. These 24 players were then sent to the selection camp for further evaluation where subsequently, 12 best players were selected and sent to Chonburi, Bangkok for training and exposure with the Chonburi Bluewave Futsal Team, who were the 2013 AFC Futsal Club Champions and 2014 runner-up.


First introduced to Malaysians in the 1960’s, NESTUM is very much a part of the Nestlé legacy in bringing healthy and nutritious food to the table. The heritage Nestlé brand synonymous with nutrition and unique aromatic multi-grain cereals has embarked on an exciting journey of digital communication to attract new generation of consumers.

In keeping with the digital age and the world of social media, the brand launched its ‘MORE CEREAL, MORE LIFE’ digital campaign in March 2014. With the objective of accelerating the brand’s modern image to attract interest among young adults, the campaign created relevance in their lives with NESTUM being their inspiration to live life with a spirit of joy and vitality. It was successful in achieving notable growth and market share.

The campaign initiatives included NESTUM’s first ever mobile-friendly microsite which attracted 87,000 fans in the first two months, with more than 50% engaging in content featuring fun facts on NESTUM’s online sampling and blogger-inspired videos.

The brand also moved away from tradition by posting digital videos on YOUTUBE and FACEBOOK, featuring an upbeat melody titled ‘Live it, Love It’, accompanied by an infectious ‘tummy-tapping’ move to communicate the goodness of cereals. Over 2.1 million digital views were garnered with fans from all over Malaysia showcasing their creativity via their own digital video entries to express their affinity with the brand.

The campaign was extended on-ground with exciting ZUMBA events initiated in urban parks with the participation of young and hip Malaysian bloggers such as Budiey and Juwei. To further create excitement at the events, NESTUM’s striking orange mobile-truck attracted consumers to sample thousands of warm and delicious cups of NESTUM and got them to ZUMBA with family and friends.


The year under review saw NESTLÉ OMEGA PLUS recording strong market share growth, reversing the decline in previous year’s trend in the adult milk powder category. The impressive performance was achieved through health-related activities under the World Heart Day campaign advocating Malaysians to care for their heart.

These include Walk-A-Mile, Win Your Heart with NESTLÉ OMEGA PLUS exhibition, cholesterol checks and sampling activities in conjunction with World Heart Day.

Walk-A-Mile is Malaysia’s longest running walk for heart health advocacy, jointly organised by NESTLÉ OMEGA PLUS and Yayasan Jantung Malaysia. The 2014 edition attracted more than 2,000 participants, comprising individuals and families who pledged to walk a mile (about 1.5 km) for healthier hearts at Taman Tasik Titiwangsa.

In 2014, the event and concept was refreshed to provide participants with a more interactive educational experience. This included incorporating fun facts and heart health tips along the route, and the introduction of a new Family Fun Route. The new route featured games stations, which were not only educational, but also fun and engaging for the entire family to learn more about caring for their hearts.

Additionally, participants were given free health screenings as well and were treated to live stage performances, lucky draws and free samples of NESTLÉ OMEGA PLUS.



NESCAFÉ started the year with NESCAFÉ Classic’s “What are you going to do today?” campaign, to encourage Malaysians to start the day right with a great cup of NESCAFÉ coffee in the morning – “It all starts with a NESCAFÉ”.

The campaign positioned the beverage as the inspirational moment for Malaysians to make the most out of their day and allowed consumers to associate the brand with their experiences throughout the day.

In April, the brand further strengthened its market presence with the launch of The Limited Edition NESCAFÉ Classic Fresh Pick. Made with the freshest and best coffee beans from the hills of Vietnam, it gave coffee lovers the most aromatic NESCAFÉ yet.

In February, the NESCAFÉ Pop-up Store was launched to drive trials and increase coffee consumption amongst the youth. Located near high traffic youthcentric areas, the booths were equipped with free Wi-Fi, and were especially popular among students. A total of 110,000 cups were sampled throughout the year.

Other activities during the year include the AEON DOLCE GUSTO pop-up café at AEON Quill City Mall in Kuala Lumpur, where shoppers can enjoy a cup of café-style coffee on-the-go, and the introduction of a new innovative product that younger consumers and non-coffee drinkers could relate to – NESCAFÉ Latte Caramel. The new product challenged current perceptions on coffee by being the first non-bitter coffee in the market and was successful in recruiting new adopters (non-coffee drinkers).



MAGGI continues to delight its growing consumer base with tasty and convenient solutions for healthy home cooked meals and snack preparation, affirming its role as an inspiring partner in the kitchen.

The Food business outpaced category growth significantly in 2014, increasing market share through focused and consistent support behind its core Noodles and Seasonings businesses. Concerted effort to streamline and create additional efficiencies within the value chain resulted in operational savings that further reinforced operating profit.

The MAGGI brand grew from strength to strength with the successful entry of the premium noodles range – MAGGI Royale Penang Seafood Curry and Korean Spicy Braised Beef. The enhanced sensorial eating experience received wide consumer acceptance, propelling the line to the Number Two market position in less than a year. Increased penetration of MAGGI CukupRasa, which has doubled the business in three years, further extended the brand’s footprint. In Noodles, the launch of MAGGI Big Ayam flavour continued to delight the brand’s core consumers.

Leveraging on consumers’ increased use of digital media when looking for tasty and balanced meal solutions, MAGGI intensified its communication activities online. This complemented high investments in traditional media, sampling exercises, sponsorship of cultural events and value pack promotions.

MAGGI’s commitment to promote healthy home cooking continued with several engagements, including cooking videos from MAGGI Masak-masak Kitchen to help strengthen affinity among Malaysian cooks; and the continuous collaboration with the Ministry of Education for the annual MAGGI Secondary School cooking competition. Now in its 18th year, the competition saw young student chefs from various states competing and gaining valuable knowledge on nutritious yet delicious cooking.


With the increase of health-conscious consumers, Nestlé Professional sought to provide healthier options for its partners in 2014.

In line with the company’s mission to provide Nutrition, Health and Wellness (NHW) food solutions, Nestlé Professional worked with long-term food chain partner KFC to provide consumers with NESTLÉ SJORA, an exciting and vibrant drink, which complemented KFC’s Bombay Fiery Crunch combo meals that was introduced in conjunction with the 2014 Deepavali festivities. A healthier alternative for KFC customers, the drink was a smooth fusion of mango and peach flavoured juices and milk.

No Added MSG eateries are growing rapidly in Malaysia with consumers looking for healthier food options when eating out. In line with this, we introduced a No Added MSG (NAMSG) extension to our MAGGI chicken bouillon range in April 2014, which were well received by hotels, healthcare institutions as well as NAMSG full service restaurants.

Following its successful launch in December 2013, the NESTLÉ DOCELLO dessert mixes went on a roadshow and charmed over 600 chefs, business owners and hoteliers in Langkawi, Johor Bahru and Kota Kinabalu. As a result, NESTLÉ DOCELLO is now widely used by chefs in hotels, restaurants, cafes and bakeries, including Chinese banquets to create signature desserts.


In 2014 and for the fifth consecutive year, the Nestlé Liquid Drinks business once again achieved a strong topline growth. Additionally, the year in review saw the launch and implementation of several creative campaigns to excite consumers and drive sales.

The MILO Ready-to-Drink category gained market share growth due to strong consumer and trade campaigns such as the MILO Breakfast Campaign and MILO Hidup Bola. Held for the second time, the MILO Breakfast Campaign is a movement that culminated with Malaysia Breakfast Day event and the Malaysia Breakfast Run, both aimed at encouraging Malaysians to celebrate the most important meal of the day and keeping fit. MILO Hidup Bola is an initiative that encourages children to develop themselves and explore their potential through sports, particularly futsal.

NESCAFÉ Cans had undergone some facelifts and executed two contemporary campaigns in its efforts of staying relevant to the youth, differentiating it further from the current cluttered ready-to-drink coffee segment in Malaysia. NESCAFÉ INSPIRE was an art-related campaign aimed at inspiring consumers with the creativity, goodness and essence of the brand’s new look; and NESCAFÉ Cans once again collaborated with Shaheizy Sam and Audi Mok for NESCAFÉ on Air music campaign.

To continuously delight loyal consumers, the Business Unit re-launched NESCAFÉ UHT with a richer and more aromatic milk coffee recipe as well as the MILO UHT range with Activ-Go – a unique blend of vitamins and minerals including Vitamin B, which is required for efficiency energy release. MILO UHT also took the opportunity to drive sports patronage and values during the 2014 World Cup season, running a nationwide consumer promotion during the time.


Nestlé Ice Cream continued on its innovation trail in 2014 with exciting products to re-define consumer ice cream eating habits.

The beginning of the year saw the introduction of yet another innovative product from the Ice Cream business. The launch of Nestlé Aiskrim Goreng proved to be a game changer for Nestlé Ice Cream, with overwhelming response from consumers.

The ‘hot’ product takes its cue from the traditional fried ice cream dessert first introduced at the Chicago World Fair in 1893. The easy-to-prepare snack comes in chocolate and vanilla flavours, and presented consumers with an alternative way to enjoy delicious Nestlé Ice Cream. It is available in packs of six as well as in catering packs.

The year also saw another addition to the Nestlé MAT KOOL range, the leading kids’ ice cream brand in Malaysia. The innovative MAT KOOL POPZ features a chocolate-flavoured core filled with popping candy and layered with refreshing strawberry and pineapple-flavoured ice confection.

The chocolate-coated popping candies wrapped in strawberry-flavoured ice confection is the only product in the market with such attributes, making it a hit with children due to its popping sensation and is now one of the best sellers within the MAT KOOL ice cream range.


Nestlé is now the number one chocolate company in Malaysia, on the back of strong double-digit growth in 2014.

The Confectionery Business Unit sustained strong doubledigit growth in 2014, with KIT KAT recording strong market share growth and becoming the leading chocolate brand in Malaysia.

To further strengthen the brand’s position in the market, a premium chocolate variant – Nestlé KIT KAT RUBIES – was introduced in December. Created with a rich chocolate truffle filling, crispy wafer centre and pieces of hazelnut encased in silky smooth milk chocolate, the new offering is expected to further extend the brand’s reach in 2015.

In addition to KIT KAT, MILO Nuggets also performed well and is fast becoming a strong contender in the nibbling category with a consistent market share growth.

The success of the Business Unit was driven by media and non-media activities conducted throughout the year, complemented with strong in-store activation.


Nestlé Chilled Dairy delivered another strong performance during the period under review, maintaining its lead position in the yogurt category.

During the year, Nestlé continued to delight its consumers with the launch of the NESTLÉ BLISS Limited Edition series, and the introduction of a new family pack for its Nestlé Greek-style yogurt.

The NESTLÉ BLISS Limited Caribbean Edition was launched in November and was the first in the destinationthemed ‘Treasures of the World’ Limited Edition series. Available for a limited time of three months, the Caribbean series featured an elegant packaging design for the two flavour variants. The Pineapple Coconut and Apple Banana variants are made using real fruit juice and contains no artificial colouring. The Pineapple-Coconut and AppleBanana combinations created a delicious Caribbean experience and received favourable responses from consumers.

Meanwhile, the Nestlé Greek-style yogurt continued to be a popular choice among the health-conscious, as it has live cultures to aid the digestive system and is a source of protein and calcium. With the introduction of the new 470g family pack, which comes in the existing three variants – Natural, Strawberry Field and Peach Harvest, it is now easier for families to enjoy the nutritious product together.


Keeping with its promise to nurture a healthier generation, the Infant Nutrition business has continued to launch innovations that help meet the need of growing children.

In 2014, the various brands and digital assets under the Infant Nutrition Business Unit were consolidated under the Nestlé Junior Club umbrella. The CERELAC website (www. went through a domain name change to become and now houses all the Nestlé maternal and infant nutrition brands, while the Facebook page was renamed Nestlé Junior Club.

As part of its strategy to continuously improve and renovate its products, Nestlé introduced a new CERELAC variant – Nestlé CERELAC Wheat, Honey and Dates. Children can now enjoy the taste and texture of dates together with BIFIDUS BL, iron, zinc, vitamin A and vitamin C found in all Nestlé CERELAC products.

The year also saw the launch of the new LACTOKID with GROW PLUS, which now has a combination of 13 vitamins and minerals including vitamin D, vitamin B1, vitamin B2, calcium and zinc; as well as protein to support optimum growth in children.

In addition to the product launches, the Business Unit also engaged with consumers through the NAN HA Grow 3’s allergy awareness campaign, to educate parents on childhood allergy, and what can be done to minimise the risk of allergies, leading to a better quality of life. The Allergy Risk Tracker (ART) was made available in-store, clinics and on digital platforms to allow parents to assess their child’s allergy risk for early intervention.


Nestlé Health Science (NHS) delivered strong sales growth, fueled by investments in consumer engagement and product innovation.

2014 was an exciting year for NHS, with the business recording strong double-digit growth. NUTREN untuk Diabetik, the trusted medically recommended formula, continued to contribute positively to the overall business portfolio.

Responding to consumer feedback and as part of its on-going product development, NHS launched the new NUTREN untuk Diabetik. This new formula features an enhanced nutritional profile and is in compliance with diabetic requirements, without sacrificing on its great taste. To further strengthen the category, the product is now also available in a Ready-to-Drink (RTD) format to allow consumers to enjoy the great tasting diabetic-friendly beverage anytime, anywhere.

The launch successfully generated traction through the pharmacy channel and contributed to an increase in market share.