Chocs away for Nestlé UK as firm boasts ‘particularly positive’ 2010 results

By Elaine Watson

- Last updated on GMT

Related tags: New product development, Organic growth

Chocs away for Nestlé UK as firm boasts ‘particularly positive’ 2010 results
Nestlé’s performance in the UK was ‘particularly positive’ in 2010, trumping ‘resilient’ performances in Germany, Iberia, Italy and Switzerland, bosses have revealed.

Nestlé, which posted a 3.7% rise in organic sales growth in Europe in calendar year 2010, reported strong UK sales of instant coffee, Aeros, KitKats and Quality Street, while Nestlé Waters also posted double-digit growth in the UK.

Nestlé does not provide detailed breakdowns of its sales on a country-by-country basis, but said Nestlé instant coffee outperformed the UK market and increased its value share from 55.3% to 55.5%, while Nesquik increased its value share from 65.2% to 66.7%.
Nestlé Confectionery (UK & Ireland) also "outperformed the market growing share for the third consecutive year, making us the fastest growing of the big three UK confectionery companies"​, claimed the firm.

"Overall sales for the Kit Kat brand were up 3% in 2010 with Aero and Rowntrees both up 8%, Milkybar up 14% and Quality Street up 9% thanks to strong promotional programmes and new product development, including Milkybar Raisin and Biscuit and Rowntrees Randoms hanging bags."

Profit margins also increased as efficiency gains and strong sales offset increased investment in new product development and marketing, said the firm.

“Our efficiency and effectiveness also contributed to an improved environmental performance in areas such as energy, water and packaging usage.”

While commodity prices remained volatile, bosses were confident of achieving organic growth of 5-6% at group level in 2011 and improving operating margins.

At a group level, organic sales growth was strongest in powdered and liquid beverages (up 8.5%), followed by confectionery (up 7%), nutritional products (up 6.7%), milk products and ice cream (up 6.6%) and prepared dishes and cooking aids (up 2.6%).

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