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Nutrition , Health and Wellness

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December 2008

The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

RE S PL PON PR EAS SIBL OD UR E UC E TS

PR OTH OD ER UC TS

AD NF PR EQU OD AT UC E TS

AD NUT D R PR ED V ITION OD AL UC UE TS

60/40 win

NH STR O PR W VA NG OD LU UC E TS

Classification Standard Date of publication December 2008 Replaces Not applicable Author Corporate Wellness Unit. The Corporate Wellness Unit wishes to thank: u Wellness Champions of Zones, SBUs

and Markets u Nutritionists of NRC, PTCs and Markets u GLOBE and F&C specialists u Market Heads and SBU Heads who

commented on the strategy as it was evolving u And so many other talented colleagues from corporate teams. Approver Nestlé Board of Directors and Nestlé Executive Board

Paul Bulcke Chief Executive Officer

Werner Bauer Executive Vice President Strategic Business Units, Marketing and Sales

Repository All Nestlé Principles and Policies, Standards and Guidelines can be found in the Centre online repository at: http://intranet.nestle.com/nestledocs Copyright and Confidentiality The content of this document may not be reproduced, distributed or disclosed to third parties without proper authorisation. All rights belong to Nestec Ltd., 1800 Vevey, Switzerland. ©2008, Nestec Ltd.

This booklet, and accompanying materials including the CD-ROM, should be kept strictly confidential. Please only share with colleagues who are directly involved with Nestlé strategy.

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

Goal
The goal of this Standard with support material is to empower Markets, Strategic Business Units and Global Businesses to gain Nutrition, Health and Wellness (NHW) visibility and clarity on their product portfolio and be further equipped to accelerate its evolution and drive growth.

Introduction
Transforming our Company means transforming the products and Brands at the heart of the business.
We must continuously invest in the innovation and renovation of our products, leveraging their superior nutrition and taste attributes to enhance our Brand communications with more consumer-relevant, credible and differentiated messages. We have made great progress in shifting to a NHW mindset internally. The next step requires even greater focus and discipline. In order to transform products and Brands, all levels of the organisation need full NHW visibility, allowing us to view our business and plan our strategies through a NHW lens.

In this document you will find: u Nestlé’s NHW Vision and Objectives

2 u A NHW Strategic Framework for Faster, Stronger Leadership 3 u A Common Mapping for Product Portfolios 4 u NHW Mapping Criteria: A Few Important Notes 5 u NHW Mapping Criteria: Category Specifics 6 u Growing and Evolving the Portfolio 7 u Strategic Mappings for Strategic Planning 8 u NHW Dashboard: The Product Portfolio Lens 9 u NHW Dashboard: The Category Lens 10 u NHW Dashboard: The Brand Lens 11 u NHW Dashboard: Analysing and Reporting NHW Progress of Product Portfolios 12 u Different NHW Tools for Different NHW Analyses 13 u Mapping Product Portfolios and Building NHW Leadership 14 – Relevant and Meaningful Products 15-19

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

1

Nestlé’s NHW Vision and Objectives

Nutrition, Health and Wellness as a Core Strategy
True success will be measured by Nestlé being recognised and trusted by consumers as the leading Nutrition, Health and Wellness Company.
We will achieve this by: u Creating NHW value in a sustainable way, both financially and socially u Constantly working at being the preferred NHW partner for consumers, through our products, services and Brands, as well as appropriate guidance on the usage of our products u Acting as a NHW leader of the Food and Beverage industry with the financial community, health authorities and our business partners, including retailers.

Delivering the Product Portfolio of a NHW leader
Teams across the Company are working at shaping the portfolio of a NHW leader.

Identifying NHW Opportunities

Innovating and Renovating

Product Portfolio Evolution
Working with Authorities Generating Demand

To further support informed decisions across the business and optimise our strategic action plans, we need to sharpen the visibility on our progress.

2

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

A NHW Strategic Framework for Faster, Stronger Leadership
Ready for Acceleration
In 2008, Market Teams have already implemented several powerful, sometimes new, programmes which contribute to the NHW transformation of Nestlé.
Nutritional Profiling of total portfolio & 60/40+ plan SBU/GSBU/GMB NHW Strategies Brand Communication in Action (BCiA)

GLOBE NF 60/40 NCA NHW Claim Front of Pack

FOOD

PROFESSIONAL

PETCARE

Weight of Investment & Strength of Voice
HeAltH BeNefit

DAIRY

ICE CREAM

CONFECTIONERY

HeAltH BeNefit NutritioN AdvANtAge

NutritioN AdvANtAge reSPoNSiBle PleASure

C&B

NESCAFé RTD

WATERS

reSPoNSiBle PleASure

TODAY

TOMORROW

2008: year end objective for all Markets

2008: SBU/GSBU/GMB support to Markets & NQ Specialist Modules

2008: 1st tracking by Market Communication Directors

To sharpen our visibility on our NHW progress, we are now adopting a common way of mapping our product portfolios.
This will: u Ensure coherence and synergy, between SBU/GSBU/GMB and Market efforts, and across Categories u Enable multiple progress paths according to Brand positioning and Market maturity, however all converging in their own way and at their own pace u Empower Market teams in our NHW transformation, by giving them the tools to drive, monitor and measure progress.

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

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A Common Mapping for Product Portfolios

A Framework for Transversal Understanding
A helpful mapping must reflect well our different businesses. In defining this common framework, all learnings of SBUs, GSBUs and GMBs were taken into consideration. The Nestlé common mapping framework allows us to map our products in terms of 60/40+ results, when available, and NF nutrition profiling. Our Nutrition Policies and Guidelines also bring additional clarity.

All our products can and will fit in this mapping, to give us all a full visibility.

No 60/40 win: Either loss, parity or not assessed. No NF: Either not adequate or not assessed.

The common product mapping is leveraging all key aspects of Category-specific mapping tools developed by SBUs, GSBUs and GMBs for their Nutrition Strategies in 2007-2008. In due course, the SBU/GSBU/GMB mapping tools might evolve to the common mapping framework.
4 CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

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NHW Mapping Criteria: A Few Important Notes
What is a true NCA?
A NCA focuses on one nutritional strength which is superior to a key competitor product. It must be: u Scientifically justifiable u Nutritionally meaningful u Consumer-relevant u In line with the Brand essence u Regulatory approved.

Policy compliant?
The product must be in line with the objectives and timelines of the Nestlé Nutrition Policies. More info? http://intranet.nestle.com/wellness/ nestlepoliciesandguidelines You can also search on the Technical and Production site, under http://intranet.nestle.com/tp/ nestlenutritionpolicies

More info? http://intranet.nestle.com/ wellness/6040plus

NCA without the NF for ‘Nutrition Added Value’? u Remains the exception u The product has to be on a progress

Portion guidance?
The product must be brought to consumers with practical portion guidance to be enjoyed as part of a balanced diet. This could be indicated on the label, in the Nutritional Compass, in the advertisement, and/ or made easy via an appropriate format or packaging (top packaging or secondary packaging). More detail on this topic will be provided in 2009. More info? http://intranet.nestle.com/wellness/ portionguidance

path towards achieving NF u It is particularly crucial that

the NCA is credible for the product carrier, and sensitive to perceptions within the Market. More info? http://intranet.nestle.com/ wellness/6040plus

Why is a 60/40 win so important for NHW mapping?
Taste is a key driver of consumer preference. This is why we invest PFME on products which have been proven to win in a 60/40 preference test over a key competitor in the Market. Products with enhanced NHW values should win on taste as much as indulgent products. More info? http://intranet.nestle.com/ wellness/6040plus

Nutrition at least equal to competitor?
NHW Leadership is our strategic choice. Before making a Responsible Pleasure product very visible through 360º communications, we need to ensure its nutritional profile is at least equal to competitor. This is evaluated with the Nutritional Assessment Tool (NAT) of 60/40+. More info? http://intranet.nestle.com/ wellness/6040plus

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

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NHW Mapping Criteria: Category Specifics
The common mapping framework is the backbone of all our NHW product and Brand mappings. Its concept is flexible enough to accommodate elements that are necessary for some specific Categories.

Nestlé Professional The Nestlé Professional 60/40 win Performance Test and NPPT win (NPPT) is the way Nestlé Professional evaluates products or solutions directly with customers (chefs or operators). Both taste and ease of use may be examined at the same time. The Nestlé Professional specific mapping allows for both NPPT results and 60/40 results to be featured.

Nestlé Waters Plain mineral waters are highly regulated and most of their 60/40 win attractiveness comes from their ‘untouched’ nature. All these waters achieve the NF by definition and no 60/40 test is conducted since there could not be any reformulation afterwards. Yet, several plain mineral waters can have a true NCA (e.g. rich source of calcium and magnesium in some markets). The Nestlé Waters mapping allows us to feature these ‘NF and NCA yes, but no 60/40 win’ products appropriately.

Nestlé Purina PetCare Nestlé Purina PetCare business includes 60/40 win some non-food or non-beverage products not currently tested with the 60/40+ tool (pet accessories and services). The NPP-specific mapping allows for representing the proportion of these products and services in the total sales.

Nestlé Nutrition A large proportion of the Nestlé Nutrition products are chosen either by consumers, caregivers or health professionals with very specific nutrition and health considerations in mind. For this reason, Nestlé Nutrition is currently developing detailed assessment standards which will be reflected in a slightly adjusted product mapping (to come in 2009).

Nespresso and Joint Ventures Products of Nespresso and joint ventures (CPW, BPW, Lactalis, etc.) are, for the moment, outside the scope of the common NHW strategic framework as their characteristics are not currently computed in the 60/40+ website, NF Check website and NHW GLOBE Tab.

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

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Growing and Evolving the Portfolio

Mapping our products according to a common framework equips us all with one transversal way to look at our portfolio and make appropriate plans for its evolution.

Our aim is not to move all Nestlé food and beverages to the green portion of the map.

60/40 win

60/40 win

60/40 win

2008

2008 + x

2008 + y

Rather, our efforts and know-how will be invested in making the entire portfolio grow and in strengthening our market share with products bringing more NHW value.

60/40 win

60/40 win

60/40 win

2008

2008 + x

2008 + y

In doing so, and as we become the recognised NHW leader of the industry, we will grow our ‘60/40 win’ products faster than the base of the map, the yellow faster than the blue and the green faster than the yellow.

Our NHW transformation will gradually modify the proportions of each section of the portfolio map, and increasingly make Nestlé a true NHW partner for all consumers.

7

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

Strategic Mappings for Strategic Planning

Understanding and interpreting properly the NHW status and evolution of our Brands and product ranges is an essential skill in our business.
An accurate and meaningful mapping serves many purposes. It can be: u a benchmarking tool u a planning chart u a check at every important milestone u a confirmation of our objectives being met.

Yet it is our informed strategic planning and our competent execution that will get us from where we are today to where we want to be tomorrow.
Strategic Planning TODAY

What? How much? By when? How?

TOMORROW

ACTIONS

60/40 win
60/40 win

The NHW Strategies of each SBU, GSBU and GMB precisely detail the ‘What – How much – By when – How’ of the Category portfolio evolution, in addition to setting targets to attain and timelines. Please refer to these documents and the Wellness Champions of these SBUs and Global Businesses for further directions.

A mapping is a snapshot of our transformation at a given time. It is exactly the same as checking your dashboard whilst driving.

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CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

The Product Portfolio Lens

AMBIENT DAIRY: ALL FAMILY CEREALS GLOBE SKU Masterfile. Portfolio clarity in terms of NHW is obtained from the NHW tab in the
NH STR O PR W VA NG OD LU UC E TS

The Product Portfolio lens allows us to map the product portfolios and track shifts and growth. Key users will be Top Management (for the global view) and the local Market Management and Wellness Teams.

The powerful NHW GLOBE database is populated by the appropriate teams in the Markets. At the present time, the data is primarily derived from 6040+ tests (for prioritised recipes), 2012 Please refer to Ambient Dairy NHW Strategy Strong NHW Value Products 51% from the nutrition profiling program ‘NF Check’ (for the rest of the portfolio) and from for important strategic analysis & direction tracking of on-pack claims. of NPS

Everyday Natural Goodness

Benefit Platforms

Functional Health

Children Health & Nutrition Solutions

SBU

PROTECTION

B-DAIRY CATEGORIES

Children

Healthy Growth

Mental Development

RE S PL PON PR EAS SIBL OD UR E UC E TS

% Nutrition NHW data in the GLOBE SKU MasterfileAdded Value Products can be updated in real time (as testing and innovations/ renovations are rolled out) but must be updated at least twice a year for official reporting purposes (mid-year and end of year). Responsible Pleasure Products %
AD NUT D R PR ED V ITION OD AL UC UE TS

Wellness

Indulgence (Experience, Treat, Customization)

of NPS

Height

All Family Cereals

of NPS

HEART HEALTH

NUTRITIOUS DIGESTION

NATURALLY GOOD FOR YOU

AD NF PR EQU OD AT UC E TS

Adult Health & Wellness
Adult
HEART HEALTH DIGESTION

Evolution of the portfolio can be tracked over time (in NPS) to determine, for example, whether the “Strong NHW Value” layer of the mapping grows60/40 than the “Responsible faster win Pleasure” layer.
NUTRITIOUS ENERGY

Dairy Culinary Solutions
SPREADS

HEALTHIER OPTIONS

KITCHEN SOLUTIONS

Roasted Cereal Bev.

Coffee Tea Enhancement Enhancement

BONE HEALTH

PROTECTION

BEST CUP EXPERIENCE

BEST CUP EXPERIENCE

…with 4 categories which are key carriers of NHW…

…and 3 with healthier options

Other Products Policy compliant: see Nestlé Nutrition Policies. Portion guidance: Not currently reportable. Full clarity will be provided in 2009. No 60/40 win: Either loss, parity or not assessed. No NF: Either not adequate or not assessed.

Date

MARKET

AD NUT D RIT PR ED V ION OD AL UC UE TS

NH STRO PR W VA NG OD LU U E

........
Date

Date
CTS

AD NUT D R PR ED V ITION OD AL UC UE TS

NH STRO PR W VA NG OD LU UC E TS

........
AD NUTR D IT PR ED V ION OD ALU UC E TS

NH STR O PR W VA NG OD LU UC E TS

Please refer to your Market Business Strategy (MBS) for important strategic analysis & direction

PR OTH OD ER UC TS

WEIGHT MGMT

HEALTHY ENERGY

REVITALIZING

More info? See page 12.

RELAXATION

HEALTHIER OPTIONS

HEALTHIER OPTIONS

of NPS

%

........

%
RE S PL PON PR EAS SIBL OD UR E UC E TS

%
%
RE S PL PON PR EASU SIBL OD R E UC E TS

% %

RE S PLE PON PR ASU SIBLE OD R UC E TS

% %

% %
AD NF PR EQU OD AT UC E TS

AD NF PR EQU OD ATE UC TS

AD NF PR EQU OD AT UC E TS

PR OTH OD ER UC TS

PR OTH OD ER UC TS

PR OTH OD ER UC TS

% %

% %

% %

This poster should be kept strictly confidential. Only share with Nestlé colleagues who are directly involved with strategy. December 2008.

This NHW information can be cross-analysed with other information maintained in the GLOBE SKU Masterfile or examined with a specific focus (e.g. geographies, BABs, PPPs, Brands).

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

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The Category Lens

This more focused lens equips SBU, GSBU, GMB and BEM teams to manage the NHW transformation of a given Category portfolio.
SBUs, GSBUs and GMBs have issued in 2007-2008 Nutrition Strategies for their product categories, with specific objectives, timelines and action plans. For each SBU, GSBU and GMB, these have been translated and summarised using the common NHW framework. This allows for easy mapping with GLOBE data and transversal reading across Categories by Market Heads and Wellness teams. Category posters with a workable surface are provided to Wellness Champions and BEMs to plan Market-specific evolution targets and timelines with their teams and track them over time.

AMBIENT DAIRY: ALL FAMILY CEREALS
Everyday Natural Goodness
Please refer to Ambient Dairy NHW Strategy for important strategic analysis & direction
Strong NHW Value Products

2012
NH STR O PR W VA NG OD LU UC E TS

51% of NPS

Benefit Platforms

Nutrition Added Value Products
Functional Health Wellness Indulgence (Experience, Treat, Customization)

AD NUT D R PR ED V ITION OD AL UC UE TS

of NPS

%

Children Health & Nutrition Solutions

SBU

PROTECTION

B-DAIRY CATEGORIES

Children

Healthy Growth

Mental Development

Height

All Family Cereals
NUTRITIOUS ENERGY

Dairy Culinary Solutions
HEALTHIER OPTIONS SPREADS

HEART HEALTH

NUTRITIOUS DIGESTION

NATURALLY GOOD FOR YOU HEALTHY ENERGY REVITALIZING RELAXATION PROTECTION

AD NF PR EQU OD AT UC E TS

Adult Health & Wellness
Adult
HEART HEALTH DIGESTION WEIGHT MGMT

Roasted Cereal Bev.

Coffee Tea Enhancement Enhancement

BONE HEALTH

…with 4 categories which are key carriers of NHW…

…and 3 with healthier options

Date

MARKET

AD NUT D RIT PR ED V ION OD ALU UC E TS

NH STRO PR W VA NG OD LU UCT E S

........
Date

Date
AD NUTR D IT PR ED VA ION OD LU UCT E S

AD NUT D R PR ED V ITION OD AL UC UE TS

NH STRO PR W VA NG OD LU UC E TS

........

NH STR O PR W VA NG OD LU UC E TS

Please refer to your Market Business Strategy (MBS) for important strategic analysis & direction

LE P M SA
Responsible Pleasure Products
KITCHEN SOLUTIONS HEALTHIER OPTIONS HEALTHIER OPTIONS BEST CUP EXPERIENCE BEST CUP EXPERIENCE

RE S PL PON PR EAS SIBL OD UR E UC E TS

of NPS

%

60/40 win of NPS

Other Products

PR OTH OD ER UC TS

%

Policy compliant: see Nestlé Nutrition Policies. Portion guidance: Not currently reportable. Full clarity will be provided in 2009. No 60/40 win: Either loss, parity or not assessed. No NF: Either not adequate or not assessed.

........

%
RE S PL PON PR EAS SIBL OD UR E UC E TS

%
%
RE S PLE PON PR ASU SIBLE OD R UC E TS

% %

RES PL PON PR EASU SIBLE OD R UC E TS

% %

% %
AD NF PR EQU OD AT UC E TS

AD NF PR EQU OD AT UCT E S

AD NF PR EQU OD ATE UC TS

PR OTH OD ER UC TS

PR OTH OD ER UC TS

PR OTH OD ER UC TS

% %

% %

% %

This poster should be kept strictly confidential. Only share with Nestlé colleagues who are directly involved with strategy. December 2008.

Example of a Category poster

As SBUs, GSBUs and GMBs gain better global visibility with the Category lens, Category posters will be updated yearly with revised global targets and timelines.

10

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

The Brand Lens

The Brand Lens allows a transversal view of a Brand, in terms of product portfolio, communication and NHW attributes. This lens is critical for BEMs, Communication Directors and Marketing Managers in the Markets, the SBUs/GSBUs/GMBs and for Top Management.
The Brand-specific lens delivers the NHW core of Brand dashboards, where the product mapping is leveraged as an input indicator. NHW dashboards for our Strategic Brands will enable us to better manage Brand plans for faster recognition of our NHW leadership, namely by mapping and monitoring Brand portfolio transformation and traditional media spend. The Brand lens looks at a Brand in its totality, across all categories (e.g. Nesquik: powdered beverage, RTD, ice cream, cereal bar, confectionery). The sum of all pieces builds the NHW image. The corporate SGDU team is currently developing a complete Brand dashboard within the scope of the ‘Brand Building the Nestlé Way’ (BBNW) programme. This complete Brand dashboard will be rolled out in 2009.

FT A R D
Example of a NHW Brand Dashboard (preliminary prototype)

The NHW equity of our individual Brands is fuelling Nestlé’s NHW equity as a Company.

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

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Analysing and Reporting NHW Progress of Product Portfolios
NHW data has full value when properly contextualised. As data owners, the teams who drive the transformation of a product portfolio have the first right to the GLOBE-generated reports. They also have the responsibility to issue and document reports in a timely fashion.
A Reporting Standard explaining how and by whom the three ‘lenses’ can be extracted from the GLOBE SKU Masterfile and properly analysed has been issued in Q4 2008 and will be regularly updated. To further help all pertinent teams, ‘Learning and Training’ material from GLOBE Generating Demand experts have been made available. The Reporting Standard also describes data and report usage by selected internal stakeholders. The NHW Dashboards and Reporting Standard are under the guardianship of the Corporate Wellness Unit.

More info? u The NHW GLOBE Data Reporting Standard at:

http://intranet.nestle.com/wellness/nhwdashboard u The GLOBE GD Learning & Training material at:

http://intranet.nestle.com/wellness/nhwdashboard u For a compendium of Frequently Asked Questions about the NHW Dashboard:

http://intranet.nestle.com/wellness/nhwdashboard u For guidance in your Market or in your SBU/GSBU/GMB:

contact your Wellness Champion u For further guidance on the NHW Dashboard initiative globally, write to:

nhwdashboard.cwu@nestle.com

Wellness Champions have received a CD-ROM containing the complete series of Category posters. For this reason, they will act as NHW Strategy ‘hubs’ in their organisations.

12

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

Different NHW Tools for Different NHW Analyses
The success of our NHW offer to consumers will continue to be the result of insightful work on the product, the Category and Brand, and the communication. Different tools allow us to plan and track these different elements.

NHW Product Mapping

SBU/GSBU/GMB NHW Strategies

Brand Communication in Action (BCiA)

HeAltH BeNefit HeAltH BeNefit NutritioN AdvANtAge reSPoNSiBle PleASure NutritioN AdvANtAge reSPoNSiBle PleASure

Product characteristics Recipe and package facts Source: GLOBE Tab and labelling

Category and Brand Marketing positioning Strategic vision Source: Category and Brand experts

Communication voice Perception of our message Source: Evaluation of ads by the Communication Directors

The SBU/GSBU/GMB NHW Strategies define the strategic orientation of Categories and Brands, whilst the NHW product mapping and the BCiA mapping provide the clarity to drive, and adjust plans and resources when needed.

BCiA’s 3-tier classification is for monitoring strength of voice as perceivable by the external world, whereas NHW product mapping is for monitoring portfolio transformation based on objective characteristics. The two are different, essential, complementary. Products without communication are wasted, communication without product reality is undefendable.

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

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Mapping Product Portfolios and Building NHW Leadership

14

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

Relevant and Meaningful Products

Mapping our product portfolio will help us to drive our NHW strategy and track our progress, but also to generate proof points for external communication.
Our NHW mapping framework must lend itself to clear directions internally and a credible dialogue with the external world, namely the consumers and the authorities who do not speak about NHW in marketing or business terms.

Key stakeholders look at the industry (at Nestlé) from various angles:
For these stakeholders... u Financial world u Employees u Authorities u Medias (and journalists) u NGOs, consumer associations u Health professional bodies u Customers, suppliers, joint ventures u Consumers

...this is what the NHW Leader (Nestlé) should do u Deliver growth and margin by deploying

a strong NHW business strategy u Provide working conditions reflecting the Company’s

NHW values u Act responsibly, respect regulations, steer the industry

to engage with the civil society u Innovate, be unique, win, and communicate u Care, always offer more value for money u Participate efficiently to health promotion u Be the best NHW business partner u Be the obvious choice to respond efficiently to

their needs, NHW and others

The following pages show a few examples of Nestlé products in each of the mapping sections. Read about how these products (recipe, pack, nutritional composition, on-pack communication) contribute to our strategy, and could be presented to external stakeholders or be spontaneously interpreted by them.

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

15

Relevant and Meaningful Products
Responsible Pleasure Products u 60/40 win u Policy compliant u Portion guidance u Nutrition at least equal to competitor

What is the NHW value of these products and Brands from the perspective of...
Our Business These products and Brands must be responsible as well as delightful to continue delivering sustainable growth in today’s market environment. Our Consumers Winning taste! By definition, these products and Brands provide a superior product experience (since they are ‘60/40 wins’). Reassurance claims, portion guidance and healthy serving suggestions already start making the Brand a trusted NHW partner, even for indulgent products. Our Stakeholders e.g. Investors Nestlé will gradually stand out as the most sustainable indulgence or convenience player in the industry. e.g. Local Health Authorities Nestlé is right in saying that healthy diets make room for pure pleasure products and cooking aids… …and is also acting responsibly in recognising balance and moderation as all-time essentials for nutrition and health (Nutrition Policies and Portion Guidance).

Some Examples of ‘Responsible Pleasure Products’ in the Current Nestlé Portfolio:

KitKat Singles 15g bar u 60/40 win u With portion control u Only 80 calories per serving
Canada
16

Maggi 6 x 11g tablets u Same preferred taste with less fat Dominican Republic

Extrême Mini Mini with preferred taste Switzerland

Nestlé Hot Chocolate 25g plus 180ml water u Taste winning hot chocolate with skimmed milk powder

u Small-sized ice cream cones

u Low in saturated fat
Turkey

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

Relevant and Meaningful Products
Nutrition Added Value Products u 60/40 win u Policy compliant u Portion guidance u NF or NCA

What is the NHW value of these products and Brands from the perspective of...
Our Business These products and Brands add significant value to the total portfolio, having clearer NHW attributes and on-pack communications. Their presence in the Nestlé portfolio is increasingly important since they are winning on taste and each contribute to building a healthier diet. Our Consumers Winning taste! These products and Brands help improve the nutritional quality of the overall diet since: u they each visibly bring

Our Stakeholders e.g. Investors These products and Brands are great NPS generators. They consolidate Nestlé’s NHW positioning in the industry. Due to their better margins and penetration, they even shape the overall market towards NHW. e.g. Local Health Authorities Nestlé is creating sound and popular nutrition and health choices for consumers, which can end up having a significant impact on the overall diet and health of the population.

something positive in terms of nutrition; u and, being delicious, they are favourite choices for some or all family members.

Some Examples of ‘Nutrition Added Value Products’ in the Current Nestlé Portfolio:

Skinny Cow 4 Fl Oz sandwich Milo 300g refill pack energy drink

u Low fat ice cream sandwiches with superior taste

Nescafé Takumi 185ml can u Ready-to-drink chilled coffee with attributes of ‘rich aroma’ and ‘full bodied taste’ driving 60/40 win, with no nutritional weakness (NF achieved) Japan

Gold Blend u Pure soluble coffee: NF
Adequate by definition, with a winning taste United Kingdom

u Favourite chocolate malt u With Actigen-E for optimal release of energy (NCA) Philippines

u Only 140 calories with zero trans fat and 1.5g fat (NF)

u 3g fibre
USA

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

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Relevant and Meaningful Products
Strong NHW Value Products u 60/40 win u Policy compliant u Portion guidance u NF and NCA

What is the NHW value of these products and Brands from the perspective of...
Our Business These products and Brands are those which stand most strongly for NHW in the Nestlé portfolio: they make excellent ‘flagship’ candidates. They generate the strongest NHW Brand equity and marginal contributions. Our Consumers Winning taste! These products and Brands are embraced as NHW ‘gems’ in the diet. They are visibly excellent NHW references in-store because our retailers recognise the value of showcasing them. They speak strongly of Nestlé’s NHW commitment and competence, and show Nestlé’s care to provide tastier and healthier choices in each category. Our Stakeholders e.g. Investors These products and Brands shine as the best value generators in the market (with a stronger MC and EBIT). This sets Nestlé as the most attractive NHW leader of the industry. e.g. Local Health Authorities These Nestlé products and Brands are truly nutrition and health reference products in the industry. They demonstrate Nestlé’s seriousness and leadership.

Some Examples of ‘Strong NHW Value Products’ in the Current Nestlé Portfolio:

Contrex et Fruits 1.5L bottle u A delicious fruit drink with u Low in calories, rich in antioxidants 49% DV calcium and 20% DV magnesium (NCA) France
18

Maggi Panier de légumes Purina One Light u Healthy weight management for cats with 60/40 win Europe

u 100% natural garden

80% consumer preference

vegetable soup, with superior taste

Molico 300g tin u 0% fat powdered dairy u Actifibras for smooth beverage with winning taste

u All the benefits of Contrex:

preservatives France

u No artificial colouring or

digestion Brazil

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

Relevant and Meaningful Products
NF Adequate Products
No 60/40 win Policy compliant Portion guidance NF

Other Products u No 60/40 win

u Policy compliant u Portion guidance u No NF

In defining the 60/40+ yearly plan, we prioritise the major products and strategic Brands. This explains why products that have undergone a full 60/40+ assessment today represent approximately a third of our total sales – in itself, a very impressive achievement. The ‘60/40 win’ sections of the portfolio mapping therefore cannot be expected to represent the major part of our products and Brands. Yet this large group of products appearing in the white and orange sections are critical to Nestlé’s success.

What is the value of ‘NF Adequate’ and ‘Other Products’ from the Nestlé NHW perspective? u We can report all products achieving NF to Health u The mapping reflects the portfolio status at a Authorities, consumers associations and journalists, given time. Parameters for some products may as well as tell consumers within the NUTRITIONAL be temporary (e.g. very new SKUs or currently COMPASS®. being renovated). u As Nestlé’s Nutrition Policies apply to all our u Relevant ‘Portion Guidance’ can also contribute products, even ‘Other Products’ could be reassuring to NHW Leadership recognition; this will be to consumers, if not better than competitor more strongly leveraged in the near future. products in the Markets. This has significant value More info? for consumers and stakeholders. http://intranet.nestle.com/wellness/portionguidance

Some Examples of ‘NF Adequate Products’ in the Current Nestlé Portfolio:

Nestum All Family Cereals – 500g pouch u Original flavour wholegrain

Nestlé Breakaway 19.3g bar u Wholemeal digestive biscuit

cereal

u A good source of protein,

calcium and vitamins A, C, D and E Malaysia

covered with milk chocolate u Now at 99 Calories u Source of fibre u No artificial colours or preservatives United Kingdom

D’Onofrio – Nesquik Ice Cream – 64ml stick u Children’s ice cream made

Uncle Tobys Chewy Muesli Bars – 31g bar u An oat-based muesli bar

with low GI and fibre

with milk and Nesquik chocolate powder for a delicious, nutritious, snack u Source of calcium Peru

u Natural colours and flavours u Source of wholegrains

Australia

CWU December 2008 – The Nutrition, Health and Wellness Mapping Standard for Product Portfolio Evolution

19

Nestec S.A., Corporate Wellness Unit, Avenue Nestlé 55, 1800 Vevey, Switzerland © December 2008 Nestec Ltd., Vevey (Switzerland)

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