Nestlé Business Model Analysis

Nestlé is a powerhouse of consumer brands spanning baby foods, bottled waters, powdered drinks, cereals, coffee, drinks, pet care, and more. The company made over 94 billion Swiss Francs in 2022 (over $100 billion), with high margins on its powdered and liquid beverages (coffee, cocoa, and malt beverages and tea categories).

While many people might not relate directly to Nestlé as a brand, billions of people across the world relate to the brands it owns. You might be surprised by the portfolio of brands that Nestlé has, spanning from baby foods to pet care.

Nestlé origin story

Nestlé history dates back to the late 1860s when the Anglo-Swiss Condensed Milk Company was founded.

Henri Nestlé, the founder, worked out an instant formula powdered milk product, which would become the company’s core product.

By 1905 a merger with Anglo-Swiss would form the Nestlé Group ever.

Since the company has managed to pass two World-Wars and several economic crises successfully.

What brands does the company own?

A powerhouse of consumer brands

Although not many might relate directly to the Nestlé brand, in many countries worldwide, most people can relate to the portfolio of brands owned by the company, which spans from baby foods to pet care.

Baby foods brands


Nestlé Brand Website

Nestlé baby foods brands comprise:

  • Cerelac.
  • Gerber.
  • Gerber Graduates.
  • NaturNes.
  • Nestum.

Bottled water brands


Nestlé Brand Website

Nestlé water brands comprise:

  • Nestlé Pure Life.
  • Perrier.
  • Poland Spring.
  • S.Pellegrino.

Cereals brands

Nestlé Brand Website

Nestlé cereal brands comprise:

  • Chocapic. 
  • Cini Minis.
  • Cookie Crisp.
  • Estrelitas.
  • Fitness.
  • Nesquik Cereal.

Chocolate & confectionery brands

Nestlé Brand Website

Nestlé chocolate and confectionery brands comprise:

  • Aero.
  • Cailler.
  • KitKat. 
  • Milkybar.
  • Nestlé Les Recettes de l’Atelier. 
  • Orion.
  • Quality Street.
  • Smarties.
  • Toll House.

Coffee brands

Nestlé Brand Website

Nestlé coffee brands comprise:

  • Nescafé.
  • Nescafé 3 in 1.
  • Nescafé Cappuccino. 
  • Nescafé Classic.
  • Nescafé Decaff.
  • Nescafé Dolce Gusto.
  • Nescafé Gold.
  • Nespresso.

Culinary, chilled and frozen food

Nestlé culinary brands comprise:

  • Buitoni.
  • Herta.
  • Hot Pockets.
  • Lean Cuisine.
  • Maggi.
  • Stouffer’s.
  • Thomy.


Nestlé Brand Website

Diary brands comprise:

  • Carnation.
  • Coffee-Mate.
  • La Laitière. 
  • Nido.


Nestlé Brand Website

Drinks brands comprise:

  • Milo. 
  • Nesquik.
  • Nestea.

Food service

Nestlé Brand Website

Food service brands comprise:

  • Chef.
  • Chef-Mate.
  • Maggi.
  • Milo.
  • Minor’s.
  • Nescafé.
  • Nestea. 
  • Sjora. 
  • Lean Cuisine. 
  • Stouffer’s.

Healthcare nutrition

Nestlé Brand Website

Healthcare brands comprise:

  • Boost. 
  • Nutren Junior. 
  • Peptamen. 
  • Resource.

Ice cream

Nestlé Brand Website

Ice cream brands comprise:

  • Dreyer’s. 
  • Extrême.
  • Häagen-Dazs. 
  • Mövenpick.
  • Nestlé Ice Cream.


Nestlé Brand Website

Petcare brands comprise:

  • Alpo.
  • Bakers Complete.
  • Beneful.
  • Cat Chow.
  • Chef Michael’s Canine Creations.
  • Dog Chow.
  • Fancy Feast. 
  • Felix.
  • Friskies.
  • Gourmet. 
  • Purina. 
  • Purina ONE.
  • Pro Plan.

A business model still, in part, powered by powder

Nestlé is a powerhouse in the consumer space, owning multiple brands. In 2022, most of the company’s revenue came from the powdered and liquid beverages segment, followed by pet care, nutrition & health science, and prepared dishes.

As highlighted in its financial statements:

Powdered and Liquid Beverages covers our coffee, cocoa and malt beverages and tea categories. This business features some of our most iconic brands, such as: Nescafé, the world’s favorite coffee brand; Nespresso, our premium coffee experience; and Milo, the world’s most popular chocolate malt drink

What’s next for Nestlé?

Nestlé business strategy

As the ‘Good Food, Good Life’ company, we enhance quality of life and contribute to a healthier future. Winning with consumers is the source of our sustainable financial performance and our way to earning trust and maintain our market leadership. Based on a compelling Nutrition, Health and Wellness strategy, our company delivers sustainable value over the short term and the long term.

That is how Nestlé highlights its strategy by emphasizing how it moves around three key points:

  • Increasing growth through innovation, differentiation and by being relevant to our consumers. We have committed to reach mid single-digit organic growth by 2020.

  • Improving operational efficiency with the goal to increase our underlying trading operating profit margin to between 17.5% and 18.5% (from 16.0% in 2016), and

  • Allocating our resources and capital with discipline and clear priorities, including through acquisitions and divestitures.

In short, Nestlé focuses on generating demand for its current brands while improving its operational efficiency and allocating massive amounts of capital to buy and sell relevant consumer brands, which helps the company to keep its dominance in the consumer food and beverage industry.

Related Visual Stories

Who Owns Nestlé


Nestlé Revenue

Nesté generated CHF 94.4 billion in 2022, compared to CHF 87 billion in 2021 and over CHF 84 billion in 2021.

Nestlé Profits

Nestlé generated CHF 13.9 billion in operating profits in 2022, compared to CHF 12.16 in 2021 and CHF 14.23 billion in 2020.

Nestlé Revenue Breakdown

Nestlé is a powerhouse in the consumer space, owning multiple brands. In 2022, most of the company’s revenue came from the powdered and liquid beverages segment, followed by pet care, nutrition & health science, and prepared dishes.

Nestlé Cost Structure

Nestlé’s cost structure is skewed toward marketing and distribution for its consumer brands. Its most substantial segment is the powder and liquid beverages business, which in 2022, for instance, on an over 25 billion Swiss Franc revenue, generated over 5 billion in operating profits.

Nestlé Employees

Nestlé had 275,000 employees in 2022, compared to 276,000 in 2021 and 273,000 in 2020.

Nestlé Revenue Per Employee

Nestlé generated over 340K Swiss Francs per employee in 2022, compared to over 315K in 2021 and over 308K in 2020.

Nespresso Revenue

Nespresso is one of the key brands part of the Nestlé family of consumer brands. Nespresso generated over 6.4 billion Swiss Franc revenue in 2022 (over $7 billion).

Nespresso Profits


About The Author

Leave a Reply

Scroll to Top