Nestlé

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Nestlé S.A.
Type Société Anonyme
Traded as SIXNESN
EuronextNESTS
Industry Food processing
When it was created Anglo-Swiss Condensed Milk Company
(1866)
Farine Lactée Henri Nestlé
(1867)
Nestlé and Anglo-Swiss Condensed Milk Company
(1905)
People who started it Henri Nestlé, Charles Page, George Page
Headquarters Vevey, Switzerland
Area served Worldwide
Key people Peter Brabeck-Letmathe (Chairman)
Paul Bulcke (CEO)
Wan Ling Martello (CFO)
Things made Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods (list...)
Money earned Increase CHF 92.18 billion (2012)[1]
Operating income Increase CHF 14.44 billion (2012)[1]
Profit Increase CHF 10.61 billion (2012)[1]
Total assets Increase CHF 126.22 billion (2012)[1]
Total equity Increase CHF 62.60 billion (2012)[1]
Employees 339,000 (2012)[1][2]
Website www.nestle.com
Nestlé's headquarters in Vevey, Switzerland

Nestlé is the world's largest food producer, by revenue. It was formed in the 1950s, when two companies merged. At the start in the 1860s, the company produced soluble milk that could be given to infants and babies. From about the 1930s, Nestlé also produced soluble coffee. In 2010, Nestle's revenue was about 109 billion Swiss Francs, and its net profit was about 32 billion Swiss Francs.

Controversies[change | change source]

Infant formula products[change | change source]

Food that is made to be used instead of breast milk is known as infant formula. There are many laws that regulate how infant formula products should be marketed. Nestlé's soluble milk is a product that falls under this definition. In the 1970s, Nestlé marketed its soluble milk to mothers with infants. This was also done in developing countries. The marketing campaign led to a boycott known as Nestlé boycott, which is still ongoing.[3] In 1981, the World Health Organisation published a guideline for advertising infant formula products.[4] Nestlé is being critizised because supposedly it does not respect this code of conduct. Nestlé's policy[5] states that breast-milk is the best food for infants, and that women who cannot or choose not to breast feed need an alternative to ensure that their babies are getting the nutrition they need. The problem is that stop breastfeeding will not be able to start again, after some time. They will become dependent on infant formula products to feed their babies.

Child Labour[change | change source]

The 2010 documentary The Dark Side of Chocolate[6] found that Nestlé purchases cocoa beans from Ivory Coast plantations that use child slave labour. Most children are between twelve and fifteen years old. Some are trafficked from nearby countries.[7] The first allegations that child slavery is used in cocoa production appeared in 1998.[8] In late 2000, a BBC documentary reported the use of enslaved children in the production of cocoa in West Africa.[8][9][10] Other media also reported widespread child slavery and child trafficking in the production of cocoa.[11][12] In September 2001, Bradley Alford, Chairman and CEO of Nestlé USA, signed the Harkin-Engel Protocol. The Harkin-Engel Protocol is an international agreement aimed at ending child labour in the production of cocoa.[13] It is commonly called the Cocoa protocol.

In convention 182, the International Labor Organization defines what it calls the "worst forms of child labour". The Harkin-Engel protocol specified a deadline in 2005, to eliminate these from cocoa production. Because the cocoa industry did not meet this deadline, a lawsuit was filed against Nestlé and others on behalf of three Malian children. The suit alleged the children were trafficked to the Ivory Coast, forced into slavery, and were frequently beaten on a cocoa plantation.[14][15]

In September 2010, the US District Court for the Central District of California found that corporations cannot be held liable for violations of international law and dismissed the suit. The case was appealed to the US Court of Appeals.[16][17]

A 2009 joint police operation conducted by INTERPOL and Ivorian law enforcement officers resulted in the rescue of 54 children and the arrest of eight people involved in the illegal recruitment of children.[18]

References[change | change source]

  1. 1.0 1.1 1.2 1.3 1.4 1.5 "Annual Results 2012" (PDF). Nestlé. http://www.nestle.com/asset-library/documents/library/documents/annual_reports/2012-annual-report-en.pdf. Retrieved 17 February 2013.
  2. Jobs Nestlé, global info
  3. Tran, Mark. "Blogs.guardian.co.uk". London: Blogs.guardian.co.uk. http://blogs.guardian.co.uk/businessinsight/archives/2005/09/01/branded.html. Retrieved 8 January 2010.
  4. . http://www.who.int/nutrition/publications/code_english.pdf. Retrieved 24 November 2010.
  5. . New York. http://www.babymilk.nestle.com/. Retrieved 13 June 2010.
  6. thedarksideofchocolate.org
  7. Romano, U. Roberto & Mistrati, Miki (Directors). The Dark Side of Chocolate [Television Production]. Denmark: Bastard Films. Retrieved on 28 Apr 2011.
  8. 8.0 8.1 Sudarsan Raghavan and Sumana Chatterjee (24 June 2001). "Slaves feed world's taste for chocolate: Captives common in cocoa farms of Africa". Milwaukee Journal Sentinel. Archived from the original on 17 September 2006. http://web.archive.org/web/20060917014323/http://vision.ucsd.edu/~kbranson/stopchocolateslavery/atasteofslavery.html. Retrieved 25 April 2012.
  9. "Combating Child Labour in Cocoa Growing". International Labor Organization. 2005. http://www.ilo.org/public//english//standards/ipec/themes/cocoa/download/2005_02_cl_cocoa.pdf. Retrieved 26 April 2012.
  10. David Wolfe and Shazzie (2005). Naked Chocolate: The Astonishing Truth about the World's Greatest Food. North Atlantic Books. p. 98. ISBN 1556437315. http://books.google.com/books?id=i2WeACR-WIYC&pg=PA98&lpg=PA98&dq=bbc+documentary+children+chocolate+2000&source=bl&ots=0YShJcw7s9&sig=O3Qimse-Nc6xHW_Iu_nx_3KIcHE&hl=en&sa=X&ei=_Y_qTvmNEe--2AWT-L2zCA&ved=0CFsQ6AEwBw#v=onepage&q=bbc%20documentary%20children%20chocolate%202000&f=false. Retrieved 15 December 2011.
  11. Humphrey Hawksley (12 April 2001). "Mali's children in chocolate slavery". BBC News. http://news.bbc.co.uk/1/hi/world/africa/1272522.stm. Retrieved 2 January 2010.
  12. Humphrey Hawksley (4 May 2001). "Ivory Coast accuses chocolate companies". BBC News. http://news.bbc.co.uk/2/hi/africa/1311982.stm. Retrieved 4 August 2010.
  13. "Protocol for the growing and processing of cocoa beans and their derivative products in a manner that complies with ILO Convention 182 concerning the prohibition and immediate action for the elimination of the worst forms of child labor". International Cocoa Initiative. 2001. http://www.cocoainitiative.org/images/stories/pdf/harkin%20engel%20protocol.pdf. Retrieved 25 April 2012.
  14. Tex Dworkin (12 February 2007). "Delicious idea: End child slavery by eating chocolate". Houston Chronicle. http://www.chron.com/opinion/outlook/article/Delicious-idea-End-child-slavery-by-eating-1837193.php. Retrieved 30 April 2012.
  15. "On Halloween, Nestlé Claims no Responsibility for Child Labor". International Labor Rights Forum. 30 October 2006. http://www.laborrights.org/stop-child-labor/cocoa-campaign/news/10993. Retrieved 30 April 2012.
  16. "Amicus Brief in Doe v. Nestle". EarthRights International. http://www.earthrights.org/publication/amicus-brief-doe-v-nestle. Retrieved 30 April 2012.
  17. Gwendolyn Wilber Jaramillo (19 September 2010). "Second Circuit Holds that Corporations are not Proper Defendants under the Alien Tort Statute". Foley and Hoag LLP. http://www.csrandthelaw.com/2010/09/articles/litigation/alien-tort-statute/second-circuit-holds-that-corporations-are-not-proper-defendants-under-the-alien-tort-statute/. Retrieved 30 April 2012.
  18. "Scores of children rescued from organized slave labour in INTERPOL-led operation conducted by Côte d’Ivoire police". INTERPOL. 3 Aug 2009. http://www.interpol.int/Public/News/2009/CotedIvoire20090803.asp. Retrieved 28 Apr 2011.