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This year, Nestlé focused on expanding the global presence of its portfolio of brands both organically and through partnerships. Examples include branding ready-to-drink tea in Taiwan and Hong Kong through the expansion of Nestea and a partnership with Chinese confectionary company, Hsu Fu Chi. In an effort to further expand its presence, Nestlé is diversifying away from food manufacturing by growing its portfolio in nutritional healthcare. The acquisition of Pfizer Nutrition, as well as Accera, a biotechnology company, have bolstered Nestlé’s portfolio of nutritional products with medical benefits. Further signaling its intention to expand into the health and wellness market, Nestlé is exploring how nutritional solutions can actually improve health through its Nestlé Health Science division. Such moves are likely to positively impact the brand’s public image. For a company known for its coffee and chocolate products, migrating into critical care nutrition will be challenging. Nestlé will have to retain the positive equities of its masterbrand in service of the health and nutrition platform. The migration into this new health arena will require a delicate balance of leveraging Nestlé’s heritage of quality with the added commitment to serious nutrition. As it continues to diversify, Nestlé could consider better integrating its fragmented portfolio of products and aligning them with the Nestlé masterbrand. Doing this would enable the brand to achieve greater and more efficient expansion in emerging markets.
Nestlé, Cathy Kerzner
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