1. Nestlé’s Infant Formula and Breast
Milk
Is Nestlé a baby killer??

2. History
 Heinrich Nestle was born Aguest
10,1814
Frankfurt main in Germany
 He was the eleventh of fourteen
children of Johann Ulrich Matthias
Nestle and Anna Maria
 Henri Nestle combined cow’s milk with
wheat flour and sugar to produce a
substitute of mother’s milk for does
children who couldn’t accept breast
feeding
 He also began manufacturing and
selling carbonated mineral water.

3. History, ctn.
 The company was involved in the
production of nuts oil, rum, and vinegar.
 Nestle launched the world’s first instant
coffee in 1938.
 By the 1960’s, Nestle was one of
Switzerland's biggest company with
over 200 factories around the world.

4. Nestle’s location
Formally known as
Nestle’s Alimentana S.A.
main headquarters is
located:
Nestlé Offices Worldwide
HEADQUARTERS:
Nestlé S.A.
Avenue Nestlé 55
1800 Vevey
Switzerland
General Enquiries:
(Tel) +41 21 924 2111
(Fax) +41 21 924 4800

5. Mission Statement
 At Nestlé, we believe that research can help us make better food so
that people live a better life.
 Good Food is the primary source of Good Health throughout life. We
strive to bring consumers foods that are safe, of high quality and
provide optimal nutrition to meet physiological needs. In addition to
Nutrition, Health and Wellness, Nestlé products bring consumers the
vital ingredients of taste and pleasure.
 As consumers continue to make choices regarding foods and
beverages they consume, Nestlé helps provide selections for all
individual taste and lifestyle preferences.
 Research is a key part of our heritage at Nestlé and an essential
element of our future. We know there is still much to discover about
health, wellness and the role of food in our lives, and we continue to
search for answers to bring consumers Good Food for Good Life.

6. Nestlé’s Company
 Owns and controls various companies in
the food and cosmetics industry
- I973 Nestlé benefits from catering services,
restaurants, and hotel operations
with the Stouffer Corporation
-1975 the company bought food processor Libby,
McNeil & Libby
-1979 Beech-Nut the baby food maker became apart of
the list

7. Company
 In 1980 the company expanded it
marketing of products to countries like
Europe, Africa, North America, Latin
America, The Caribbean, Asia, and
Oceania
- Diary products, instant drinks, and
culinary/sundry were among the top three
- Infant foods, Infant formula, and dietetic
tallied in at less than 10 percent of the
corporation’s sales
 Generated Sales of 12.5 billion in 1983

8. EARNINGS OF NESTLE
 Nestle, the world's largest food company, brushed off fears of
commodity price inflation and global slowdown to post the forecast
15.8 percent rise in 2007 net profits sending its shares higher.
 Like 2007 the year 2008 is also the year of global growth. In
2008, consolidated sales were CHF 109.9 billion and net profit was
CHF 18.04 billion. Research and development investment was CHF
1.977 billion.
 Sales by activity breakdown: 27% from drinks, 26% from dairy and
food products, 18% from ready-prepared dishes and ready-cooked
dishes, 12% from chocolate, 11% from pet products, 6% from
pharmaceutical products and 2% from baby milks.
 Sales by geographic area breakdown: 32% from Europe, 31% from
Americas (26% from US), 16% from Asia, 21% from rest of the
world.

9. Nestlé’s Main Brands
Nestlé expands across many different markets including beverages, ice
cream, baby foods/formulas, soups, frozen foods, snacks, pet care and of
course candy. Some of Nestlé’s main brands include:
 Kit Kat, Butterfinger, Smarties, Crunch, Quality Street,
Milkybar/Galak, Tollhouse
 Nestea, Nescafé, Taster’s Choice, Nesquick, Carnation, Libby’s
 Stouffer’s, Lean Cuisine, Hot Pockets, Buitoni, Powerbar
 Purina, Friskies, Fancy Feast, Dog & Cat Chow, Tidy Cats
 Deer Park, Ice Mountain, Pure Life, Arrowhead
 Good Start, Nan, Lactogen, Beba

10. Infant Formula Industry
Development and marketing of
milk food product for infants begin
in 1867
- Creation of the product progressed due
to the urgent need of a substitute for
infants who could not consume any food
 Infant formula foods were
matured around the 1920’s
- As an alternative to breast
milk
 Sales boost after WWII and
reached it climax in 1957
 Market took a downturn around
1970’s
- Nestle’s decided to market to
countries like Africa, South
South Africa, and Far East
because of population growth

11. Infant Formula Industry cont.
 Total sales including of infant formula and
other milk products was about $1.5 billion.
 Nestle makes up about 40-50% of the
market in developing countries
-U.S. companies American Home Products, Bristol
Meyers, and Abbot Labs make up about 20%
- Foreign corporations come in at about 20-30%
- $600 million of sales came from developing countries
 The market in 1981 was expected to grow
at about15 to 20% per year

12. The Crisis began...
“Some 1.5 million children still die every year
because they are inappropriately fed”
WHO 2001
"Marketing practices that undermine
breastfeeding are potentially hazardous
wherever they are pursued: in the developing
world, WHO estimates that some 1.5 million
children die each year because they are not
adequately breastfed. These facts are not in
dispute."
UNICEF

13. 1.5 million real lives
"Use my picture if it will help," said this
mother at the Childrens
Hosptial, Islamabad, Pakistan. Photo:
UNICEF.
A baby dies every 30 seconds from
unsafe bottle feeding
The babies are twins: the child with the
bottle is a girl - she died the day after this
photograph was taken - but her brother
was breastfed and thrived.
The mother was told that she wouldn’t
have enough milk for both children, and
so breastfed her son while the
grandmother bottle-fed her daughter. But
she would almost certainly have been
able to feed both babies, since the more
a baby suckles, the more milk is
UNICEF, Islamabad Children’s
produced. Hospital, Pakistan.

14.  Roughly 80 % of Singapore
three- month-old infants were
being breast- feed in 1951.
- By 1971 on 5% of mothers nursed
their infants
 In Mexico around 1966, fewer
than 40% mothers nursed their
infants
 Chile experienced three times as
many deaths of infants before
they became 3 months old in
1973

15. at death’s door as was not
breastfed

16. One year old child
weighing 4 kg Wasted buttock and
loose skin

17. Dilemma SET IN MOTION
 Nestlé’s was one of the many manufactures that was suspected
of contributing to the high infant mortality rate in Developing
countries in early 1970’s
 British charity organization (WOW) published twenty-eight page
pamphlet called the The Baby Killer in 1974
- Targeting Nestlé of Switzerland and Unigate of Britain in
the ill advised marketing efforts in Africa.
- Publication of the pamphlet raised concern of the general
Public
 Another version of the pamphlet created by The Germany- based
Third World Working Group focused more on Nestlé
- The activist alleged Nestlé “unethical and immoral
behavior”
- And renamed the pamphlet Nestlé Kills Babies

18. The Issue
 Sizeable amount of purchasers in developing countries
live in poverty, waters are contaminated, lack of healthcare,
and uneducated
 Mother’s in developing countries were misusing the product
by:
- Mixing with contaminated waters
- Using unsterilized bottles and nipples
- Diluting formula to stretch out feedings
 Studies conducted gave three reasons for the trend to
more bottle feedings and less breast feedings
1. Sociocultural environment was changing
2. Healthcare professionals took part in the change to bottle
feedings
3. Marketing and promotional factors played a key role

19. Nestlé Fights back
 As a result of the activists slander
Nestlé sued for defamation
- Trial lasted two years and Nestlé won
- Courts advised the company to revisit their current
marketing strategies
- The case caused a public-relations disasters

20. Quality Control
 The story started in 1976 in Australia when Nestle’s
Tongala Plant noticed an increase in bacteria in the milk
that was tested
- Bacteria found to be salmonella which causes gastroenteritis
-Nestle’s tried to sterilized the equipment without stopping production
and the dries ran for a full 8 months after the discovery.
 April of 1977, Colombian General Hospital death rate in
the premature ward increased
- Twenty-five deaths occurred before the bacteria was traced to Nestle’s
 Later that year the Australian Dept. of Health reported an
additional 134 infants fell ill due to contaminated infant milk
produced y Nestle’s
- An estimated 20 million pounds of the contaminated milk
was exported to Southeast Asia

21. Nestle’s Marketing Practices
 Nestle’s marketing strategies seem to be
somewhat forceful
- Marketing of the infant formula came in many forms which
include radio, newspaper, magazines, billboards, and
loudspeakers
- Free samples of bottles, nipples, and measuring spoons were
given out to mother’s
- Milk Mother’s were used as well to influence mother’s decision
bottle feed infants
 About 200 women were employed by
Nestle
- Registered nurses, nutritionists, or midwives which were called
milk nurses
- The nurses was criticized for being too persuasive
- Promoting of the infant formula physicians and other medical
personnel raised

22. Nestle still in the hot seat
 The Interfaith Center on Corporate Responsibility and Infant
Formula Action Coalition(INFACT) lead a boycott of Nestle
products and services
 Other agencies such as Protein Advisory
Group(1970 and 1973), the World Health Assembly(1974) and
the World Health Organization (1978) have been trying to
lessen promotion and advertising practices

23. Nestle tries to address the problem
 Nestle agree to make changes to their promotional
strategies
- The International Council of Infant Food Industries (ICIFI)
which was formed in 1975 by 9 infant food manufactures
including Nestle
 The changes included to note that breast milk is the best
choice, infant formula was to be advertised as a
supplementary, and professional advice is recommended,
and uniforms should be worn by registered nurses
- End result the self regulation was not effective
-Violations of the “code "continue to occur

24. Nestle’s boycotted again
 In July of1977 a boycott was established in the
U.S. and Canada lasted until January 26, 1982
 INFACT and boycotters had four demands
1. Stop use of milk nurses
2. Stop free samples
3.Stop promotion to health industry
4. Stop consumer promotion and advertising of infant formula
*Nestle was singled out because of their 50% market share worldwide

25. Nestlé Fight back again
 The corporation decided to deal with the boycott as a public
relations problem
 World largest PR firm Hill & Knowlton and Daniel J. Edelman
PR specialist were hired.
- After the unsuccessful attempts to improve Nestle image the
company decided to fire the PR firm
 Nestle changed their plan to regain creditability again by:
-Endorsing the WHO Code of Marketing fir Breast Milk Substitutes
-Methodist Task Force on Infant Formula validated Nestle’s conformity
with the code
-The most effective effort was the Nestle Infant Formula Audit
Commission (NIFAC) gained creditability with Edmund S. Muski

26. Result of Efforts
 Muskie Commission collaborated with WHO, International
Nestle Boycott Committee(INBC), and UNICEF to solve the
controversy of the WHO code
-Nestle agreed to address that breast milk vs. bottle feeding
- Labels would state the dangers of using contaminated water
-Personal gifts to health officials were banned
-Free samples were only provided to Mothers who were not
able to breast-feed
 Nestle acknowledged their mistake President of Nestle
Coordination Center for Nutrition Rafael D. Pagan Jr.
said this “ We have all learned a lesson…”
Boycotters and protesters agreed to suspend their boycotting
in early 1984

28. Works cited
http://www.research.nestle.com/tools/mission_statement.html
http://www.nestle.com/AllAbout/History/AllHistories/1866-1905.htm
http://www.weblo.com/property/Groceries_Food_/Nestle/486032/
http://www.flickr.com/photos/28056346@N06/3761642955/
http://www.research.nestle.com/tools/mission_statement.html
http://www.nestle.com/MediaCenter/PressReleases/AllPressReleases/HYres
ults2009.htm