1 / PRV/OMY/al / IHMC 5.6.10 5th INTERNATIONAL HALAL MARKET CONFERENCE: BRUNEI DARUSSALAM 5 June, 2010 Peter R. Vogt Region Head for Nestlé Malaysia / Singapore / Brunei HALAL – A KEY COMPONENT OF NESTLE’S BUSINESS MODEL
May 06, 2015
1 / PRV/OMY/al / IHMC 5.6.10
5th INTERNATIONAL HALAL MARKET CONFERENCE: BRUNEI DARUSSALAM
5 June, 2010
Peter R. VogtRegion Head for
Nestlé Malaysia / Singapore / Brunei
HALAL – A KEY COMPONENT OF NESTLE’S BUSINESS MODEL
2 / PRV/OMY/al / IHMC 5.6.10
AGENDA
1. Introduction to Nestlé
2. The Nestle HALAL Assurance System
3. HALAL – an Excellent Growth Opportunity
3 / PRV/OMY/al / IHMC 5.6.10
... captures the very essence of Nestlé and the promise we commit ourselves to everyday, everywhereas the leading Nutrition, Healthand Wellness Company
4 / PRV/OMY/al / IHMC 5.6.10
Introduction: Nestlé Group
• Founded in 1866 by Henri Nestlé
• Employs over 280,000 people worldwide
• 456 factories in 84 countries
• Sales of approx. USD 100 bn in 2009
• World’s largest food manufacturer, headquartered in Switzerland
5 / PRV/OMY/al / IHMC 5.6.10
Nestlé Group
Competitive Advantages
1. Products & brands
2. R&D capabilities
3. Global presence
4. People, culture and values
Competitive Advantages
1. Products & brands
2. R&D capabilities
3. Global presence
4. People, culture and values
6 / PRV/OMY/al / IHMC 5.6.10
1. Product and Brand Portfolio
7 / PRV/OMY/al / IHMC 5.6.10
2. The industry's leading R&D capability
8 / PRV/OMY/al / IHMC 5.6.10
R&D Global Network – 2009
MinneapolisSolon
St. Louis + NRCSt. JosephMarysville
VittelAmiensLisieux
BeauvaisTours
YorkSingen
ShanghaiSingapore
SderotCasa BuitoniKonolfingenOrbeBev. Centre Orbe
NRC Lausanne
Beijing + NRC
Queretaro
Fremont Rzezsow
CPW - Welwyn Garden City
1 Science & Research Centre 27 PTC and R&D Centres280 Application Groups
CPW – Rutherglen
Abidjan
Broc CCENRC Tokyo
9 / PRV/OMY/al / IHMC 5.6.10
3. Global Presence
10 / PRV/OMY/al / IHMC 5.6.10
4. People, Culture, Values, Attitude
11 / PRV/OMY/al / IHMC 5.6.10
• Established in Penang (Malaya) in 1912
• Employs over 5,000 people with 7 factories
• RM3.7 billion in turnover in 2009
• Public-listed on Bursa Malaysia since 1989
• Leading HALAL food manufacturer
Introduction: Nestlé (Malaysia) Berhad
12 / PRV/OMY/al / IHMC 5.6.10
OUR MISSION
13 / PRV/OMY/al / IHMC 5.6.10
Our Business StrategyCreating Shared Value
Creating Shared ValueNutrition | Water | Rural Development
Compliance
Sustainability
14 / PRV/OMY/al / IHMC 5.6.10
Our Focus - Consumers
15 / PRV/OMY/al / IHMC 5.6.10
Our vision of Nutrition, Health and Wellness
Pleasure Balance
Understanding
16 / PRV/OMY/al / IHMC 5.6.10
Nestlé Malaysia’s HALAL Facts
• 1980: Established internal Halal committee• 1992: Formal implementation of Halal policy• 1994: Halal certification by JAKIM• 1997: Established Nestlé Halal Guidelines for
inter-market supply for the Nestlé Group• 2004: Contributed towards the Malaysia Halal
Food Standards• 2009: Halal exports to >50 countries worth RM689 million• 2010: Biggest Halal producer in the Nestlé world
17 / PRV/OMY/al / IHMC 5.6.10
Pillars for Effective HALAL Implementation
POLICY& STANDARDS
COMMITMENT& DISCIPLINE
CONTROLS& MONITORING
18 / PRV/OMY/al / IHMC 5.6.10
Nestlé Malaysia HALAL Policy
As a responsible corporate citizen of Malaysia,we are mindful of our obligations to the countryand its consumers.
Nestlé Malaysia manufactures, imports and distributes only products which have been Certified “HALAL” by authorized certification bodies.
19 / PRV/OMY/al / IHMC 5.6.10
Our Internal Controls to Monitor Strict Compliance of HALAL
The Nestlé Malaysia HALAL Committee• comprises of senior Muslim executives from multi disciplines &from various work locations• the role of the committee is to advise the Company on matterspertaining to HALAL compliance and certification
HALAL Audit• members of the Halal committee audits suppliers, distributors, warehouses, customers, etc to ensure strict compliance of HALALstandards and practices
Internal Guidelines• working with the Halal committee, the brand teams must meet internal Halal guidelines on all products
20 / PRV/OMY/al / IHMC 5.6.10
Our Internal Controls to Monitor Strict Compliance of HALAL
HALAL Inspections• Nestlé premises are subject to surprise checks by the authoritieswho monitors and enforces HALAL compliance• All imported products by NESTLÉ Malaysia are certified HALAL by the relevant certification bodies and this will involve traveling to Nestlé factories worldwide for Halal inspections, accompanied bya Halal Committee representative• All locally manufactured products are certified HALAL by JAKIM
HALAL Communication• All NESTLÉ Malaysia employees are well-informed about the Company’s Halal Policy through various internal communication channels• Our Consumer Services Team is also ready to respond to Halal queries from consumers who contact us at 1-800-88-3433 orvia our website.
21 / PRV/OMY/al / IHMC 5.6.10
Our Internal Controls to Monitor Strict Compliance of HALAL
HALAL Implementation & Monitoring of:• raw materials/ingredients• suppliers• abattoirs• equipment & utensils• HACCP• quality management• sanitation & hygiene• storage• transporters• vending machines• packaging materials• business practices
22 / PRV/OMY/al / IHMC 5.6.10
The key messages:
Halal Integrity: No compromise
Halal is hygiene & food safety
A great demand
Good for everyone
Social responsibility
Nestlé Internal Controls Monitor Strict Compliance of HALAL
23 / PRV/OMY/al / IHMC 5.6.10
Nestlé Business in the main Islamic countries
Number of factories 50
Companies/representative offices 62
Turnover 2008 in billion USD 5.2
Number of people 31,305
Gross fixed assets in billion USD 1.7
24 / PRV/OMY/al / IHMC 5.6.10
85 Halal-certified factories worldwide majority are in Asia-Oceania-Africa :
25 / PRV/OMY/al / IHMC 5.6.10
85 Halal-certified factories worldwide: 19 factories are certified in Europe
26 / PRV/OMY/al / IHMC 5.6.10
Strong Market Position in Asia, Oceania, Africa & the Middle East
27 / PRV/OMY/al / IHMC 5.6.10
Nestlé Worldwide … an extensive range of Halal products
Popularly sought for as “Halal certified Food”: Culinary products
Halal certification extends into Other Food and Beverage Categories
Increase awareness
28 / PRV/OMY/al / IHMC 5.6.10
Europe – emerging market for HALAL
Muslim migrants in EU countries (around 50 million) bring cultural diversity & popularity of ethnic foods with greater Halal awareness
Growth in Halal food manufacturing & retailing,food service sector and the travel trade
Higher demand of Halal convenience food aslifestyles evolve
29 / PRV/OMY/al / IHMC 5.6.10
The European HALAL food industry is worth USD 66.5 billion
The biggest markets are France, Germany and the UK
Halal range is sold through:Specialised wholesalersSmall ethnic shopsModern trade - Carrefour, Tesco & Auchan
Nestlé business is CHF 55 millionGrowing at 12 % per annumReaching 10,000 shops with 150 products
30 / PRV/OMY/al / IHMC 5.6.10
HALAL Makes Good Business Sense
Opportunities:
1. Wins consumer trust & confidence
2. Appreciated by non-Muslims for quality & safety
3. Export potential as Nestlé Malaysia continues to expand its export business to over 50 countries worldwide with export sales of RM689 million in 2009
4. Improves innovation in product development
5. Gives a competitive advantage over competitors who are not Halal certified (Halal certification is voluntary, not mandatory)
31 / PRV/OMY/al / IHMC 5.6.10
Challenges to Promote HALAL
Challenges:
1. Harmonization of global Halal standards to ensure consistency and build trust among the global Muslim population
2. Establish global accreditation of Halal logo to enhance credibility and recognition among consumers
3. Surveillance and enforcement to weed out products displaying unauthorized Halal logos
4. Encourage SMEs in the food industry to be strictly Halal compliant to produce more and tap the global food market
5. Improve positive communication on HALAL practices for better understanding of its benefits, particularly on quality and safety.
32 / PRV/OMY/al / IHMC 5.6.10
THE END
Contact Nestlé Malaysia at:
www.nestle.com.my
TERIMA KASIH