Jacques Poulet, Global Head of Logistics, Nestlé Waters speaks at the session on 'Proven Methods to Manage Supply Chain Risk & Drive Your Costs Down' at the 7th European 3PL Summit in Brussels, November 25th 2009. To download all of the slides from the conference for free visit www.3PLsummit.com/eu_2009ppts

1. 3 PL summit 2009
Brussels, Nov. 24th 09
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2. 1. The bottled water market
2. Nestlé Waters at a glance
3. The origin of the crisis
4. Nestlé Waters answer
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3. The bottled water market
A competitive category
Global differences
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4. A competitive category
Billion Breakdown Consumption Average
litres (%) per capita annual growth
in litres 2003 to 2008
Total refreshment beverages 565 100 83 105
Carbonates (colas, lemonades, …) 203 36 30 102
Bottled water (including HOD) 200 35 30 106.5
Fruit juices / still drinks 61 11 9 105
Dilutables (powder/liquid concentrates) 46 8 7 104
Ready to drink tea 24 4 4 108
Sport drinks / energy drinks 14 2.5 2 109
Flavoured water / functional water 9 1.6 1 119
Source: Zenith International 2008 for bottled water,
Euromonitor 2008 for all other beverages
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5. Global differences
in volume
Billion Breakdown Population Growth
litres (%) breakdown 2007/2008
(%) (%)
Total bottled water 198 100 100 + 4.3
Western Europe 46 24 6 - 0.2
Eastern Europe 15 7 6 + 6.9
North America 33 17 5 - 2.7
Latin America 34 17 9 + 5.5
Asia / Oceania 52 26 56 + 9.6
Africa / Middle East 18 9 19 + 11.4
Source: Zenith International 2008-
Early estimates
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6. Nestlé Waters at a glance
Key figures
Brand portfolio
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7. Key figures 2008
Sales CHF 9.6 billion (9% of Nestlé Group sales)
Organic growth -1.6%
RIG -3,9%
EBIT CHF 573 million
Market share* 18%
Employees 31,500
Factories 103
Producing countries 36
Brands 64
*Internal estimate in value terms
EBIT: earnings before interests & taxes
7 RIG: Real Internal Growth

8. Key positions 2008*
N°1
in Europe
N°1 n°1 in Belgium, France, Germany, Hungary,
in North America Italy, Switzerland
n°1 in Canada, n°2 in Poland, the United Kingdom
in the United States n°3 in Greece, Russia, Spain
in Asia
n°1 in Pakistan, Vietnam
n°3 in Thailand, South Korea
N°1
in Africa / Middle East
Latin America
n°1 in Bahrain, Egypt, Jordan,
n°1 in Cuba
Lebanon, Qatar, Saudi Arabia,
n°2 in Argentina
Turkey, Uzbekistan
n°2 in South Africa
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N°1 bottled water company worldwide *In value (including HOD)

9. A showcase of 64 brands
56 Local brands
5 International brands
3 Nestlé brands
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10. Breakdown of sales by brand
Nestlé
brands 18.5%
International Local
brands 21.2% brands 60.3%
In value terms (2008)
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11. Every brand has its market
Local brands
Almost two-thirds of sales
Present on every continent
Key for access to local markets
Providing a real competitive edge
Essential to the development of Nestlé Waters
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12. A quintet of international stars
5 international brands
Natural mineral waters from protected sites,
located in France and Italy
At the origin of growth on the bottled water market
Strong identities
Distributed worldwide
Umbrella brands meeting different needs
At the forefront of innovation
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13. ’
What’s in the Nestlé name
The Nestlé brand
1st driver for growth
Unique multi-site production model
A family positioning at an affordable price,
adapted to local needs
Over 5 billion litres
Present in 39 countries on every continent
13 N°1 brand of bottled water in 2008

14. The origin of the crisis
2 drivers for a category crisis
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15. 2 drivers for a severe category issue
Crisis started in 2007
Western Europe: Sales decrease
North America: Growth stopped
First driver was prices
Move to private label
Low cost production models
Second was environmental impact
Tap water versus bottled water
Negative image of the bottle
CO² emissions in transport
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16. Nestlé Waters answer
Safeguarding resources
Produce more with less
Optimising logistics
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17. Safeguarding resources
Protecting water quality
Creating protective
perimeters
Constant monitoring
of the quality and quantity of resources
Improving environmental
performances at factories
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18. Produce more with less
Anticipating the impact of packaging
on the environment
Reducing the weight of packaging
In 1992: 90 grams of PET to produce two 1.5 L bottles
In 2007: 90 grams of PET to produce more than three 1.5 L
bottles
Using recyclable or reusable materials
Reducing energy consumption
(by 17% since 2004 for every litre produced)
Taking part in the setup of waste collection
and sorting systems
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19. Optimising logistics
Constantly seeking solutions
to reduce the impact
of logistics on the environment
Optimising transport
policy by:
- reducing the number of trucks
- developing road-rail transport
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