A major highlight was the
Nestlé Promosi ‘Lebih
Kebaikan, Lebih Nilai’ in
March – a key campaign
building on our Nutrition,
Health and Wellness
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
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
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
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
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
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
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
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
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
NESTLÉ OMEGA PLUS
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
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
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
NESTLÉ LIQUID DRINKS
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
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
Nestlé Ice Cream continued on its innovation trail in 2014
with exciting products to re-define consumer ice cream
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
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
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
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
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
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.
weaning.com.my) went through a domain name change to
become www.nestlejuniorclub.com 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
Nestlé Health Science (NHS) delivered strong sales growth,
fueled by investments in consumer engagement and
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
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