104-568: Barry Callebaut AG is a Swiss-Belgian cocoa processor and chocolate manufacturer, with an average annual production of 2.3 million tonnes of cocoa & chocolate (fiscal year 2021/2022). It was created in 1996 through the merging of the French company Cacao Barry and the Belgian chocolate producer Callebaut . It is currently based in Zürich , Switzerland , and operates in over 30 countries worldwide. It
208-571: A US$ 2.6 billion acquisition was announced of Chef America , the creator of Hot Pockets . In the same time-frame, Nestlé entered in a joint bid with Cadbury and came close to purchasing the American company Hershey's , one of its fiercest confectionery competitors, but the deal eventually fell through. In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006, it took full ownership of Dreyer's, thus becoming
312-518: A California-based producer of plant-based foods, for an undisclosed sum. In January 2018, Nestlé USA announced it was selling its US confectionary business to Ferrara Candy Company , an Italian chocolate and candy maker and Ferrero -related company. The company was sold for a total of an estimated $ 2.8 billion. In May 2018, it was announced that Nestlé and Starbucks struck a $ 7.15 billion distribution deal, which allows Nestlé to market, sell and distribute Starbucks coffee globally and to incorporate
416-516: A New Zealand-based company that develops kiwifruit -based food products as of 2012. Nestlé sold its Jenny Craig business unit to North Castle Partners in 2013. In February 2013, Nestlé Health Science bought Pamlab, which makes medical foods based on L-methylfolate targeting depression, diabetes, and memory loss. In February 2014, Nestlé sold its PowerBar sports nutrition business to Post Holdings, Inc. Later, in November 2014, Nestlé announced that it
520-461: A barrier to small farmers, and particularly, female farmers. The primary benefits to certification include improving conservation practices and reducing the use of agrochemicals, business support through cooperatives and resource sharing, and a higher price for cocoa beans which can improve the standard of living for farmers. Fair trade cocoa producer groups are established in Belize, Bolivia, Cameroon,
624-515: A botanical basis. They are still used frequently in marketing material. Criollo has traditionally been the most prized variety. Believed to have been native to South America, by the time of the Spanish conquest they were grown in Mesoamerica. After European colonization, disease and population decrease led to the Spanish and Portuguese using different cacao varieties from South America. Different from
728-561: A chocolate factory in 1830) became partners and founded the Société générale suisse des chocolats Peter et Kohler réunis . In 1911, the company created by Peter and Kohler merged with Cailler. Alexandre Cailler (grandson of François-Louis Cailler ) had founded a chocolate factory in Broc in 1898, still used by Nestlé today; which enabled the production of milk chocolate on a large scale. In 1929, Peter, Cailler, Kohler, Chocolats Suisses finally merged with
832-604: A class action lawsuit filed by eight former child slaves from Mali who alleged that the company aided and abetted their enslavement on cocoa plantations in Ivory Coast . The suit accused Barry Callebaut (along with Nestlé , Cargill , Mars, Incorporated , Olam International , The Hershey Company , and Mondelez International ) of knowingly engaging in forced labor, and the plaintiffs sought damages for unjust enrichment, negligent supervision, and intentional infliction of emotional distress. On June 27, 2022 Salmonella contamination
936-573: A class action lawsuit filed by eight former children from Mali who alleged that the companies aided and abetted their enslavement on cocoa plantations in Ivory Coast . The suit accused Barry Callebaut , Cargill , The Hershey Company , Mars , Mondelez , Nestlé , and Olam International , of knowingly engaging in forced labour , and the plaintiffs sought damages for unjust enrichment , negligent supervision , and intentional infliction of emotional distress . In 2022, world production of cocoa beans
1040-483: A decline in suitable areas for cocoa production as global temperatures rise by up to 2 °C by 2050. Nestl%C3%A9 Nestlé S.A. ( / ˈ n ɛ s l eɪ , - l i , - əl / NESS -lay, -lee, -əl , French: [nɛsle] , German: [ˈnɛstlə] ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey , Switzerland. It has been
1144-462: A joint bid from Danone and Mead Johnson. In recent years, Nestlé Health Science has made several acquisitions: CM&D Pharma Ltd., a company that specialises in the development of products for patients with chronic conditions like kidney disease; and Prometheus Laboratories, a firm specialising in treatments for gastrointestinal diseases and cancer. It also holds a minority stake in Vital Foods,
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#17331054459941248-453: A lemonade-like taste enclosing 30 to 50 large seeds that are fairly soft and a pale lavender to dark brownish purple color. During harvest, the pods are opened, the seeds are kept, and the empty pods are discarded and the pulp made into juice. The seeds are placed where they can ferment. Due to heat buildup in the fermentation process, cacao beans lose most of the purplish hue and become mostly brown in color, with an adhered skin which includes
1352-474: A major component in the production of chocolate. The company began producing chocolate in 1911. In 1952, Cacao Barry became active from bean to gourmet chocolate. In 1992, the holding company Société Centrale d’Investissement (SCI) gained control of Cacao Barry, then transferred 49% of the company's capital to Compagnie Nationale à Portefeuille (CNP), an investment fund in financier Albert Frère 's group. SCI's management approach favoured greater penetration of
1456-444: A manufacturer of seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971), and Stouffer's (1973). Diversification came under chairman & CEO Pierre Liotard-Vogt with a shareholding in L'Oreal in 1974 and the acquisition of Alcon Laboratories Inc. in 1977 for $ 280 million. In the 1980s, Nestlé's improved bottom line allowed the company to launch further acquisitions. Carnation
1560-548: A number of corporate acquisitions including Crosse & Blackwell in 1960, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, Klim in 1998, and Gerber in 2007. The company has been associated with various controversies , facing criticism and boycotts over its marketing of baby formula as an alternative to breastfeeding in developing countries (where clean water may be scarce), its reliance on child labour in cocoa production , and its production and promotion of bottled water . Nestlé's origin dates back to
1664-1194: A nutrition, health and wellness company in an effort to combat declining confectionery sales and the threat of expanding government regulation of such foods. This effort is being led through the Nestlé Institute of Health Sciences under the direction of Ed Baetge. The institute aims to develop "a new industry between food and pharmaceuticals" by creating foodstuffs with preventive and corrective health properties that would replace pharmaceutical drugs from pill bottles. The Health Science branch has already produced several products, such as drinks and protein shakes meant to combat malnutrition, diabetes, digestive health, obesity, and other diseases. It acquired British pharmaceutical company Vitaflo , which makes clinical nutritional products for people with genetic disorders , in August of 2010. In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about US$ 1.7 billion . On 23 April 2012, Nestlé agreed to acquire Pfizer Inc. 's infant-nutrition , formerly Wyeth Nutrition, unit for US$ 11.9 billion , topping
1768-557: A public-private partnership with the governments of Ghana and Côte d'Ivoire to address child labor practices in the cocoa industry. As of 2017, approximately 2.1 million children in Ghana and Côte d'Ivoire were involved in harvesting cocoa, carrying heavy loads, clearing forests, and being exposed to pesticides. According to Sona Ebai, the former secretary general of the Alliance of Cocoa Producing Countries: "I think child labor cannot be just
1872-463: A report documenting findings that Barry Callebaut purchases cocoa grown illegally in national parks and other protected forests in the Ivory Coast . The report accused Barry Callebaut of endangering the forest habitats of chimpanzees , elephants and other wildlife populations by purchasing cocoa linked to deforestation . As a result of cocoa production, 7 of the 23 Ivorian protected areas have been almost entirely converted to cocoa. Barry Callebaut
1976-443: A ship's hold or in containers, is still common. Throughout Mesoamerica where they are native, cocoa beans are used for a variety of foods. The harvested and fermented beans may be ground to order at tiendas de chocolate , or chocolate mills. At these mills, the cocoa can be mixed with a variety of ingredients such as cinnamon , chili peppers , almonds , vanilla , and other spices to create drinking chocolate . The ground cocoa
2080-511: A similar announcement followed concerning the reduction of sugar content in its breakfast cereals in the UK. The company announced a $ 20.8 billion share buyback in June 2017, following the publication of a letter written by Third Point Management founder Daniel S. Loeb , Nestlé's fourth-largest stakeholder with a $ 3.5 billion stake, explaining how the firm should change its business structure. Consequently,
2184-519: A small blood pressure lowering effect. The beans also contain theobromine and a small amount of caffeine . The tree takes five years to grow and has a typical lifespan of 100 years. Cocoa is a variant of cacao, likely due to confusion with the word coco . It is ultimately derived from kakaw(a) , but whether that word originates in Nahuatl or a Mixe-Zoquean language is the subject of substantial linguistic debate. The term cocoa beans originated in
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#17331054459942288-641: A strategic partnership with a Belgian chocolate maker, Pierre Marcolini. Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part of a broader US$ 39.3 billion offer by Novartis for full acquisition of the world's largest eye-care company. On March 2, 2010, Nestlé completed the purchase of Kraft Foods 's North American frozen pizza business for US$ 3.7 billion , which included brands such as DiGiorno , Tombstone , and California Pizza Kitchen . Since 2010, Nestlé has been working to transform itself into
2392-423: A tree rather than from the end of a branch, similar to jackfruit . This makes harvesting by hand easier as most of the pods will not be up in the higher branches. The pods on a tree do not ripen together; harvesting needs to be done periodically through the year. Harvesting occurs between three and four times weekly during the harvest season. The ripe and near-ripe pods, as judged by their colour, are harvested from
2496-502: Is 9–10% of the total weight in the pod. One person can separate the beans from about 2000 pods per day. The wet beans are then transported to a facility so they can be fermented and dried. The farmer removes the beans from the pods, packs them into boxes or heap them into piles, then covers them with mats or banana leaves for three to seven days. Finally, the beans are trodden and shuffled about (often using bare human feet) and sometimes, during this process, red clay mixed with water
2600-536: Is also an important ingredient in tejate . The first allegations that child slavery is used in cocoa production appeared in 1998. In late 2000, a BBC documentary reported the use of enslaved children in the production of cocoa in West Africa. Other media followed by reporting widespread child slavery and child trafficking in the production of cocoa. The cocoa industry was accused of profiting from child slavery and trafficking. The Harkin–Engel Protocol
2704-664: Is an effort to end these practices. In 2001, it was signed and witnessed by the heads of eight major chocolate companies, US senators Tom Harkin and Herb Kohl , US Representative Eliot Engel , the ambassador of the Ivory Coast, the director of the International Programme on the Elimination of Child Labor, and others. It has, however, been criticized by some groups including the International Labor Rights Forum as an industry initiative which falls short, as
2808-570: Is being launched in partnership with the Global Coalition on Aging (GCOA), a consortium that includes companies such as Intel and Bank of America . In January 2017, Nestlé announced that it was relocating its US headquarters from Glendale, California , to Rosslyn, Virginia , outside of Washington, DC . In March 2017, Nestlé announced that they will lower the sugar content in Kit Kat , Yorkie and Aero chocolate bars by 10% by 2018. In July,
2912-655: Is engaged in projects around the world to support sustainable cocoa production and provide current information on the world cocoa market. Cocoa is one of seven commodities included in the EU Regulation on Deforestation-free products (EUDR), which aims to guarantee that the products European Union (EU) citizens consume do not contribute to deforestation or forest degradation worldwide. There are numerous voluntary certifications including Fairtrade and UTZ (now part of Rainforest Alliance ) for cocoa which aim to differentiate between conventional cocoa production and that which
3016-505: Is interrupted, the resulting cocoa may be ruined; if underdone, the cocoa seed maintains a flavor similar to raw potatoes and becomes susceptible to mildew . Some cocoa-producing countries distill alcoholic spirits using the liquefied pulp. A typical pod contains 30 to 40 beans and about 400 dried beans are required to make 1 pound (450 g) of chocolate. Cocoa pods weigh an average of 400 g (14 oz) and each one yields 35 to 40 g (1.2 to 1.4 oz) dried beans; this yield
3120-419: Is more sustainable in terms of social, economic and environmental concerns. As of 2016, at least 29% of global cocoa production was compliant with voluntary sustainability standards. However, among the different certifications there are significant differences in their goals and approaches, and a lack of data to show and compare the results on the farm level. While certifications can lead to increased farm income,
3224-506: Is one of the main shareholders of L'Oreal , the world's largest cosmetics company. Nestlé was formed in 1905 by the merger of the "Anglo-Swiss Milk Company", which was established in 1866 by brothers George and Charles Page, and "Farine Lactée Henri Nestlé" founded in 1867 by Henri Nestlé . The company grew significantly during World War I and again following World War II , expanding its offerings beyond its early condensed milk and infant formula products. The company has made
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3328-412: Is sprinkled over the beans to obtain a finer color, polish, and protection against molds during shipment to factories in other countries. Drying in the sun is preferable to drying by artificial means, as no extraneous flavors such as smoke or oil are introduced which might otherwise taint the flavor. The beans should be dry for shipment, which is usually by sea. Traditionally exported in jute bags, over
3432-523: Is the biggest food company in the world, with a market capitalisation of roughly 231 billion Swiss francs, which is more than US$ 247 billion as of May 2015. Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market Index . It previously had a secondary listing on Euronext . In 2014, consolidated sales were CHF 91.61 billion and net profit
3536-464: Is the dried and fully fermented seed of Theobroma cacao , the cacao tree, from which cocoa solids (a mixture of nonfat substances) and cocoa butter (the fat) can be extracted. Cacao trees are native to the Amazon rainforest . They are the basis of chocolate and Mesoamerican foods including tejate , an indigenous Mexican drink. The cacao tree was first domesticated at least 5,300 years ago by
3640-436: Is the most widely used. In 2020, global cocoa bean production reached 5.8 million tonnes, with Ivory Coast leading at 38% of the total, followed by Ghana and Indonesia . Cocoa beans, cocoa butter, and cocoa powder are traded on futures markets, with London focusing on West African cocoa and New York on Southeast Asian cocoa. Various international and national initiatives aim to support sustainable cocoa production, including
3744-435: Is the world's smallest soft commodity market. The futures price of cocoa butter and cocoa powder is determined by multiplying the bean price by a ratio. The combined butter and powder ratio has tended to be around 3.5. If the combined ratio falls below 3.2 or so, production ceases to be economically viable and some factories cease extraction of butter and powder and trade exclusively in cocoa liquor . Cocoa futures traded on
3848-560: The Ivory Coast , and processed by Barry Callebaut. Barry Callebaut presented what it calls "the fourth type of chocolate" at a private event held for industry experts in Shanghai, since the company sees China as a privileged market for its business. In January 2018, Nestlé Japan Ltd. launched a Ruby chocolate-based Ruby Sublime Kit Kat in Japan, becoming the first global brand to use the pink chocolate formula developed by Barry Callebaut. The product
3952-528: The Mayo-Chinchipe culture in South America, before it was introduced in Mesoamerica. Cacao was consumed by pre-Hispanic cultures in spiritual ceremonies and its beans were a common currency in Mesoamerica. The cacao tree grows in a limited geographical zone; today, West Africa produces nearly 81% of the world's crop. The three main varieties of cocoa plant are Forastero , Criollo, and Trinitario; Forastero
4056-417: The rind is discarded. The pulp and seeds are then piled in heaps, placed in bins, or laid out on grates for several days. During this time, the seeds and pulp undergo "sweating", where the thick pulp liquefies as it ferments. The fermented pulp trickles away, leaving cocoa seeds behind to be collected. Sweating is important for the quality of the beans, which originally have a strong, bitter taste. If sweating
4160-677: The 1860s when two separate Swiss enterprises were founded that would later form Nestlé. In the following decades, the two competing enterprises expanded their businesses throughout Europe and the United States . In the late 19th and early 20th century, Henri Nestlé and his successors participated in the development of the chocolate industry in Switzerland , together with the Peter , Kohler , and Cailler families. In 1904, Daniel Peter and Charles-Amédée Kohler (son of Charles-Amédée Kohler who founded
4264-507: The 1950s, Callebaut, which was still a family-run business, began exporting its products to other European and North American markets, leveraging the fact that Belgian chocolate had earned an excellent reputation for its quality. In 1981, Interfood , a subsidiary of Tobler-Suchard, bought the company. Bernard Callebaut, heir of the founding family, moved to Canada, where he opened a new chocolate factory named Chocolaterie Bernard Callebaut. In 1983, Klaus Jacobs acquired full control of Interfood,
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4368-575: The 19th century; during the 18th century they were called chocolate nuts , cocoa nuts or just cocoa . The cacao tree is native to the Amazon rainforest. It was first domesticated at least 5,300 years ago, in equatorial South America from the Santa Ana-La Florida (SALF) site in what is present-day southeast Ecuador ( Zamora-Chinchipe Province ) by the Mayo-Chinchipe culture, before being introduced in Mesoamerica. More than 4,000 years ago, it
4472-704: The Barry Callebaut brand for industrial use, including cocoa powder , cocoa butter , liqueur and chocolate. In 1999, the company acquired the US-based confectionery company Van Leer Chocolate and, the following year, it acquired the Swiss Carma-Pfister AG. That same year, Barry Callebaut gained access to the South American market when it bought the Brazilian company Chadler Industrial de Bahia. In 2002, under
4576-606: The Congo, Costa Rica, the Dominican Republic, Ecuador, Ghana, Haiti, India, Ivory Coast, Nicaragua, Panama, Paraguay, Peru, Sierra Leone, and São Tomé and Príncipe. In 2018, the Beyond Chocolate partnership was created between multiple stakeholders in the global cocoa industry to decrease deforestation and provide a living income for cocoa farmers. The many international companies are currently participating in this agreement and
4680-668: The Criollo beans, these new beans were named Forastero, which can be translated as strange or foreign . They are generally of the Amelonado type and are associated with West Africa. Any hybrid between Criollo and Forastero. The Nacional is a rare variety of cocoa bean found in areas of South America such as Ecuador and Peru. Some experts in the 21st century had formerly considered the Nacional bean to be extinct after an abrupt end in 1916, when an outbreak of witch's broom disease devastated
4784-533: The European countries that supported the nutritional label. In 2020, Nestlé USA's and Nestlé Canada's ice cream divisions were acquired by Froneri . Also during that year, Nestlé announced that the company wants to invest in plant-based food, starting with a "tuna salad" and meat-free products to engage and reach younger and vegan consumers. Nestle is expanding manufacturing capacity in India and increasing investments —
4888-598: The ICE Futures US Softs exchange, are valued at 10 Tonnes per contract with a tick size of 1 and tick value of US$ 10. Multiple international and national initiatives collaborate to support sustainable cocoa production. These include the Swiss Platform for Sustainable Cocoa (SWISSCO), the German Initiative on Sustainable Cocoa (GISCO), and Beyond Chocolate, Belgium. A memorandum between these three initiatives
4992-517: The Nacional variety throughout these countries. Pure genotypes of the bean are rare because most Nacional varieties have been interbred with other cocoa bean varieties. A cocoa pod (fruit) is about 17 to 20 cm (6.7 to 7.9 in) long and has a rough, leathery rind about 2 to 3 cm (0.79 to 1.18 in) thick (varying with the origin and variety of pod) filled with sweet, mucilaginous pulp (called baba de cacao in South America) with
5096-670: The Nestlé group. An earlier alliance in 1904 between Peter and Nestlé also allowed the production of milk chocolate in the United States, at the Fulton plant. In 1905, Nestlé and Anglo-Swiss merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947 when the name 'Nestlé Alimentana SA' was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA, of Kempttal, Switzerland. The company's current name
5200-745: The Swiss Platform for Sustainable Cocoa (SWISSCO), the German Initiative on Sustainable Cocoa (GISCO), and Belgium's Beyond Chocolate. At least 29% of global cocoa production was compliant with voluntary sustainability standards in 2016. Deforestation due to cocoa production remains a concern, especially in West Africa. Sustainable agricultural practices, such as agroforestry , can support cocoa production while conserving biodiversity. Cocoa contributes significantly to economies such as Nigeria 's, and demand for cocoa products continues to grow steadily at over 3% annually since 2008. Cocoa contains phytochemicals like flavanols , procyanidins , and other flavonoids , and flavanol-rich chocolate and cocoa products may have
5304-614: The UK market with the consequent opening of a new production site in the United Kingdom. In 1994, shortly before the merger of 1996, they launched the Pure Origine of Cacao Barry brand. Callebaut was a Belgian company, founded by Eugenius Callebaut as a brewery in Wieze , Belgium , in 1850. The brewery began producing chocolate bars in 1911 and soon switched entirely to chocolate production. They began producing chocolate couverture in 1925. In
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#17331054459945408-405: The application of pyrenoids , as well as hermetic storage in sealed bags or containers with lowered oxygen concentrations. Safe long-term storage facilitates the trading of cocoa products at commodity exchanges. Cocoa beans, cocoa butter and cocoa powder are traded on futures markets. The London market is based on West African cocoa and New York on cocoa predominantly from Southeast Asia. Cocoa
5512-523: The brand's coffee varieties into Nestlé's proprietary single-serve system, expanding the overseas markets for both companies. Nestlé set a new profit target in September 2017 and agreed to offload over 20 of its US candy brands in January 2018. However, sales grew only 2.4% in 2017, and as of July 2018, the share price declined more than 8%. While some suggestions were adopted, Loeb said in a July 2018 letter that
5616-554: The company will invest between ₹ 60-65 billion ($ 723-783 million) from 2020 to 2025. On 16 February 2021, Nestlé announced that it had agreed to sell its water brands in the US and Canada to One Rock Capital Partners and Metropoulos & Co . The sale would include the spring water and mountain brands, the purified water brand and the delivery service. The plan did not include the Perrier, S.Pellegrino and Acqua Panna brands. In early April 2021,
5720-660: The company's growth that quarter came from "vitamins, minerals, and supplements that support health and the immune system". Bountiful's brands included Nature's Bounty, Solgar, Osteo Bi-Flex, and Puritan's Pride. In July 2021, Vitaflo International Ltd. (subsidiary to Nestlé Health Science since 2010) acquired the Dr. Schär brands, Mevalia and ComidaMed, which are used for the dietary management of IEM and cow’s milk protein allergy to complement Vitaflo’s existing IEM product portfolio. In January 2022, Nestlé will pay cocoa farmers cash if they send their children to school. In May 2022, it
5824-479: The company's second most important activity; white chocolate was created in the following decade. Louis Dapples was CEO till 1937 when succeeded by Édouard Muller till his death in 1948. Nestlé felt the effects of the Second World War immediately. Profits dropped from US$ 20 million in 1938 to US$ 6 million in 1939. Factories were established in developing countries, particularly in South America. Ironically,
5928-524: The dried remains of the fruity pulp. This skin is released easily by winnowing after roasting. White seeds are found in some rare varieties, usually mixed with purples, and are considered of higher value. Cacao trees grow in hot, rainy tropical areas within 20° of latitude from the Equator . Cocoa harvest is not restricted to one period per year and a harvest typically occurs over several months. In fact, in many countries, cocoa can be harvested at any time of
6032-403: The educational and financial resources provided are more readily available to male farmers versus female farmers. Access to credit is important for cocoa farmers, as it allows them to implement sustainable practices, such as agroforestry, and provide a financial buffer in case disasters like pest or weather patterns decrease crop yield. Cocoa production is likely to be affected in various ways by
6136-440: The expected effects of global warming . Specific concerns have been raised concerning its future as a cash crop in West Africa, the current centre of global cocoa production. If temperatures continue to rise, West Africa could simply become unfit to grow the beans. The International Center for Tropical Agriculture warned in a paper published in 2013 that Ghana and Côte d'Ivoire, the world's two top cocoa growers, will experience
6240-663: The felling of trees by logging companies. This trend has decreased as many governments and communities are beginning to protect their remaining forested zones. However, deforestation due to cocoa production is still a major concern in parts of West Africa. In Côte d'Ivoire and Ghana, barriers to land ownership have led migrant workers and farmers without financial resources to buy land to illegally expand their cocoa farming in protected forests. Many cocoa farmers in this region continue to prioritize expansion of their cocoa production, which often leads to deforestation. Sustainable agricultural practices such as utilizing cover crops to prepare
6344-517: The firm will reportedly focus investment on sectors such as coffee and pet care and will seek acquisitions in the consumer health-care industry. In 2016, Nestlé and PAI Partners establish a joint venture, Froneri , to combine the two companies' ice cream activities throughout Europe and other international countries. In July 2017, Nestlé introduced a new type of infant formula in Spain, containing two human milk oligosaccharides . Oligosaccharides are
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#17331054459946448-533: The flavor of the cacao seed (or bean) became popular, the sweet pulp of the chocolate fruit, used in making a fermented (5.34% alcohol) beverage, first drew attention to the plant in the Americas. The cocoa bean was a common currency throughout Mesoamerica before the Spanish conquest. The bean was utilized in pre-modern Latin America to purchase small items such as tamales and rabbit dinners. A greater quantity of cocoa beans
6552-402: The following voluntary certification programs are also partners in the Beyond Chocolate initiative: Rainforest Alliance, Fairtrade , ISEAL, BioForum Vlaanderen. Many major chocolate production companies around the world have started to prioritize buying fair trade cocoa by investing in fair trade cocoa production, improving fair trade cocoa supply chains and setting purchasing goals to increase
6656-510: The food and beverage industry to the board. In September 2018, Nestlé announced that it would sell Gerber Life Insurance for $ 1.55 billion. In October 2018, Nestlé announced the launch of the Nestlé Alumni Network, through a strategic partnership with SAP & EnterpriseAlumni , to engage with their over 1 million alumni globally. In 2019, the company announced that it would publish Nutri-Score on all of its products sold in
6760-410: The goal to eliminate the "worst forms of child labor" from cocoa production by 2005 was not reached. The deadline was extended multiple times and the goal changed to a 70% child labor reduction. Child labour was growing in some West African countries in 2008–09 when it was estimated that 819,921 children worked on cocoa farms in Ivory Coast alone; by 2013–14, the number went up to 1,303,009. During
6864-520: The gods") cacao . Cocoa was an important commodity in pre-Columbian Mesoamerica. A Spanish soldier who was on Hernan Cortés ' side during the conquest of the Aztec Empire tells that when Moctezuma II , emperor of the Aztecs , dined, he took no other beverage than chocolate , served in a golden goblet. Flavored with vanilla or other spices , his chocolate was whipped into a froth that dissolved in
6968-417: The holding company that controlled Callebaut, and became an international confectionery leader. After a series of acquisitions in the industry, the company merged with the US company Kraft in 1987, creating Kraft Jacobs Suchard . Klaus Jacobs retained Callebaut business. French chocolate company Cacao Barry and Belgian chocolate company Callebaut merged in 1996 to form Barry Callebaut. In 1998, Barry Callebaut
7072-895: The largest publicly held food company in the world, measured by revenue and other metrics, since 2014. It ranked No. 64 on the Fortune Global 500 in 2017. In 2023, the company was ranked 50th in the Forbes Global 2000 . Nestlé's products include coffee and tea, candy and confectionery, bottled water, infant formula and baby food , dairy products and ice cream, frozen foods, breakfast cereals, dry packaged foods and snacks, pet foods, and medical food . Twenty-nine of Nestlé's brands have annual sales of over 1 billion CHF (about US$ 1.1 billion ), including Nespresso , Nescafé , Kit Kat , Smarties , Nesquik , Stouffer's , Vittel , and Maggi . Nestlé has 447 factories, operates in 189 countries, and employs around 339,000 people. It
7176-412: The last decade, beans are increasingly shipped in "mega-bulk" parcels of several thousand tonnes at a time on ships, or standardized to 62.5 kilograms (138 lb) per bag and 200 (12.5 metric tons (12.3 long tons; 13.8 short tons)) or 240 (15 metric tons (15 long tons; 17 short tons)) bags per 20 feet (6.1 m) container. Shipping in bulk significantly reduces handling costs. Shipment in bags, either in
7280-689: The leadership of its new CEO, Patrick G. De Maeseneire, Barry Callebaut acquired the German company Stollwerck for $ 225 million, thereby taking over the 17 brands under its control, including Sarotti . The following year, it bought Brach's through the assumption of $ 16 million worth of debt. In 2004, it acquired AM Foods K/S, a company based in Denmark and specialised in croissanterie and chocolate. In 2007, Barry Callebaut signed an agreement with fellow Swiss brand Nestlé to buy its French site in Dijon , plants for
7384-572: The mouth. No fewer than 60 portions each day reportedly may have been consumed by Moctezuma II, and 2,000 more by the nobles of his court. Chocolate was introduced to Europe by the Spaniards, and became a popular beverage by the mid-17th century. Venezuela became the largest producer of cocoa beans in the world. Spaniards also introduced the cacao tree into the West Indies and the Philippines. It
7488-586: The premium price paid for certified cocoa by consumers is not always reflected proportionally in the income for farmers. In 2012 the ICCO found that farm size mattered significantly when determining the benefits of certifications, and that farms an area less than 1ha were less likely to benefit from such programs, while those with slightly larger farms as well as access to member co-ops and the ability to improve productivity were most likely to benefit from certification. Certification often requires high up-front costs, which are
7592-529: The production of amaretto biscuits, confectionery decorations and similar products. In September 2017, the Swiss company launched a new type of chocolate, Ruby , named for its reddish pink color. The pink hue is not created by adding artificial colouring or through chemical manipulation, but is the result of the color of the cocoa beans used to produce the chocolate, Ruby cocoa beans, cultivated in countries with specific climatic conditions, like Ecuador , Brazil and
7696-694: The production of cocoa and liquid chocolate in bulk at the Italian site in San Sisto ( Perugia ), and to supply Nestlé with 43,000 tonnes of chocolate products per year in France, Italy and Russia. Before the year was out, it had acquired FPI-Food Processing International in the United States and KL Kepong Cocoa Products Sdn Bhd in Port Klang Malaysia . In 2009, Barry Callebaut bought the Spanish chocolate producer Chocovic S.A. These international acquisitions took place in
7800-704: The proportion of fair trade chocolate available in the global market. The Rainforest Alliance lists the following goals as part of their certification program: The UTZ Certified-program (now part of Rainforest Alliance) included counteracting against child labor and exploitation of cocoa workers, requiring a code of conduct in relation to social and environmentally friendly factors, and improvement of farming methods to increase profits and salaries of farmers and distributors. The relative poverty of many cocoa farmers means that environmental consequences such as deforestation are given little significance. For decades, cocoa farmers have encroached on virgin forest, mostly after
7904-477: The responsibility of industry to solve. I think it's the proverbial all-hands-on-deck: government, civil society, the private sector. And there, you really need leadership." As Reported in 2018, a 3-year pilot program , conducted by Nestlé with 26,000 farmers mostly located in Côte d'Ivoire, observed a 51% decrease in the number of children doing hazardous jobs in cocoa farming. In 2021, several companies were named in
8008-484: The sale was concluded. The COVID-19 pandemic did not affect Nestlé negatively. Due to lockdowns, people bought more packaged foods, not only coffee and dairy products, but also pet products, which increased the company's sales. Nestlé is recording its strongest quarterly sales growth in 10 years. In April 2021, Nestlé agreed to purchase the vitamin manufacturing Bountiful Company , formerly known as The Nature's Bounty Co., for $ 5.75 billion, noting as well that much of
8112-534: The same period in Ghana, the estimated number of children working on cocoa farms was 957,398 children. The 2010 documentary The Dark Side of Chocolate revealed that children smuggled from Mali to the Ivory Coast were forced to earn income for their parents, while others were sold as slaves for €230. In 2010, the US Department of Labor formed the Child Labor Cocoa Coordinating Group as
8216-760: The shifts are too small and too slow. In a statement, Nestlé wrote that it was "delivering results" and listed actions it had taken, including investing in key brands and its global coffee partnership with Starbucks. However, activist investors disagreed, leading Third Point Management to launch NestleNOW, a website to push its case with recommendations calling for change, accusing Nestlé of not being as fast, aggressive, or strategic as it needs to be. Activist investors called for Nestlé to divide into three units with distinct CEOs, regional structures, and marketing heads - beverage, nutrition, and grocery; spin off more businesses that do not fit its model such as ice cream, frozen foods, and confectionery; and add an outsider with expertise in
8320-475: The soil before planting and intercropping cocoa seedlings with companion plants can support cocoa production and benefit the farm ecosystem. Prior to planting cocoa, leguminous cover crops can improve the soil nutrients and structure, which are important in areas where cocoa is produced due to high heat and rainfall which can diminish soil quality . Plantains are often intercropped with cocoa to provide shade to young seedlings and improve drought resilience of
8424-541: The soil. If the soil lacks essential nutrients, compost or animal manure can improve soil fertility and help with water retention. The use of chemical fertilizers and pesticides by cocoa farmers is limited. When cocoa bean prices are high, farmers may invest in their crops, leading to higher yields which, in turn tends to result in lower market prices and a renewed period of lower investment. While governments and NGOs have made efforts to help cocoa farmers in Ghana and Côte d'Ivoire sustainably improve crop yields, many of
8528-722: The space of a few years, leading CEO De Maeseneire to announce, "We did not want Barry Callebaut to be merely European, we wanted it to become a global company". Two years later, the company decided to transfer the Stollwerck division to the Belgian Baronie Group, in turn controlled by the Sweet Group private equity firm, disposing of most of its retail operations in European markets. In 2017, Barry Callebaut acquired D’Orsogna Dolciaria, an Italian company based in Abruzzo and specialised in
8632-563: The third most abundant components of breast milk with various health benefits, but previously were not part of infant formula. In September 2017, Nestlé S.A. acquired a majority stake of Blue Bottle Coffee . While the deal's financial details were not disclosed, the Financial Times reported "Nestlé is understood to be paying up to $ 500m for the 68 per cent stake in Blue Bottle". In September 2017, Nestlé USA agreed to acquire Sweet Earth,
8736-794: The tree in these areas since long before the Spanish arrived. As of 2018, evidence suggests that cacao was first domesticated in equatorial South America, before being domesticated in Central America roughly 1,500 years later. Artifacts found at Santa-Ana-La Florida, in Ecuador, indicate that the Mayo-Chinchipe people were cultivating cacao as long as 5,300 years ago. Chemical analysis of residue extracted from pottery excavated at an archaeological site at Puerto Escondido, in Honduras , indicates that cocoa products were first consumed there sometime between 1500 and 1400 BC. Evidence also indicates that, long before
8840-424: The trunk and branches of the cacao tree with a curved knife on a long pole. Care must be used when cutting the stem of the pod to avoid damaging the junction of the stem with the tree, as this is where future flowers and pods will emerge. One person can harvest an estimated 650 pods per day. The harvested pods are opened, typically with a machete , to expose the beans. The pulp and cocoa seeds are removed and
8944-490: The war helped with the introduction of the company's newest product, Nescafé ("Nestlé's Coffee"), which became a staple drink of the US military. Despite that, Nestlé actually supplied both sides in the war: the company had a contract to feed the German army. Nestlé's production and sales rose in the wartime economy. The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and numerous companies were acquired. In 1947 Nestlé merged with Maggi ,
9048-700: The world's largest ice cream maker, with a 17.5% market share. In June 2006, Nestlé purchased weight-loss company Jenny Craig for US$ 600 million . In July 2007, completing a deal announced the year before, Nestlé acquired the Medical Nutrition division of Novartis Pharmaceutical for US$ 2.5 billion and also acquiring the milk-flavoring product known as Ovaltine , the "Boost" and "Resource" lines of nutritional supplements, and Optifast dieting products. In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer Gerber for US$ 5.5 billion . In December 2007, Nestlé entered into
9152-405: The year. Pesticides are often applied to the trees to combat capsid bugs , and fungicides to fight black pod disease . Immature cocoa pods have a variety of colours, but most often are green, red, or purple, and as they mature, their colour tends towards yellow or orange, particularly in the creases. Unlike most fruiting trees, the cacao pod grows directly from the trunk or large branch of
9256-403: Was 5.87 million tonnes , led by Ivory Coast with 38% of the total, while secondary producers were Ghana and Indonesia (table). Cocoa beans are traditionally shipped and stored in burlap sacks , in which the beans are susceptible to pest attacks. Fumigation with methyl bromide was to be phased out globally by 2015. Additional cocoa protection techniques for shipping and storage include
9360-895: Was acquired for US$ 3 billion in 1984 and brought the evaporated milk brand, as well as Coffee-Mate and Friskies , to Nestlé. In 1986, the company founded Nestlé Nespresso S.A. The British confectionery company Rowntree Mackintosh was acquired in 1988 for $ 4.5 billion, which brought brands such as Kit Kat , Rolo , Smarties , and Aero . The first half of the 1990s proved to be favourable for Nestlé. Trade barriers crumbled, and world markets developed into more or less integrated trading areas. Since 1996, there have been various acquisitions, including San Pellegrino (1997), D'Onofrio (1997), Spillers Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002 – in June, Nestlé merged its US ice cream business into Dreyer's , and in August,
9464-481: Was adopted in 1977. By the early 1900s, the company was operating factories in the United States, the United Kingdom, Germany, and Spain. The First World War created a demand for dairy products in the form of government contracts, and by the end of the war, Nestlé's production had more than doubled. In January 1919, Nestlé bought two condensed milk plants in Oregon from the company Geibisch and Joplin for $ 250,000. One
9568-564: Was also introduced into the rest of Asia, South Asia and into West Africa by Europeans. In the Gold Coast , modern Ghana , cacao was introduced by a Ghanaian, Tetteh Quarshie . Cocoa beans are traditionally classified into three main varieties : Forastero, Criollo and Trinitario. Use of these terms has changed across different contexts and times, and recent genetic research has found that the categories of Forastero and Triniario are better understood as geohistorical inventions rather than as having
9672-532: Was also launched in April of the same year in the UK, the first Western nation to test the pink Kit Kat created using Barry Callebaut's Ruby cocoa beans on a commercial scale. In 2005, Barry Callebaut introduced a "healthy" chocolate product called ACTICOA, which contains higher levels of polyphenol antioxidants (cocoa flavanols ) than any other chocolate; some evidence indicates these flavanols have particular health benefits. On 13 September 2017 NGO Mighty Earth released
9776-808: Was announced Nestlé had acquired a majority stake in the Extrema, Minas Gerais -headquartered premium chocolate manufacturer, Grupo CRM for an undisclosed amount. Following the 2022 Russian invasion of Ukraine , the company continued doing business in Russia; therefore in November 2023, Ukraine's National Agency on Corruption Prevention listed Nestlé as an International Sponsor of War . Nestle stated that it had already "halted all non-essential imports and exports to and from Russia". In August 2024, Nestlé announced Schneider would leave his position as CEO and be replaced by Laurent Freixe on September 1, 2024.. Capital ownership of Nestlé by country of origin as of 2023: Nestlé
9880-603: Was announced Nestlé's Health Science unit had acquired the Brazilian organic, natural, plant-based food maker Puravida. In May 2022, Nestlé was sending baby formula supplies to the U.S. from European air bases to ease the 2022 United States infant formula shortage . These relief shipments included products from the Gerber baby food formula brand from the Netherlands and Alfamino baby formula from Switzerland . In September 2023, it
9984-605: Was consumed by pre-Hispanic cultures along the Yucatán, including the Maya, and as far back as Olmeca civilization in spiritual ceremonies. It also grows in the foothills of the Andes in the Amazon and Orinoco basins of South America , in Colombia and Venezuela . Wild cacao still grows there. Its range may have been larger in the past; evidence of its wild range may be obscured by cultivation of
10088-488: Was created in its present form by Klaus Johann Jacobs . Its customers include multinational and national branded consumer goods manufacturers and artisanal users of chocolate ( chocolatiers , pastry chefs , bakeries, and caterers). Cacao Barry was founded in Hardricourt , France, by Charles Barry, an Englishman with a passion for exploring Africa in 1842. During Barry's travels to Africa he came in contact with cocoa beans,
10192-627: Was detected in a batch of chocolates at the Wieze, Belgium plant halting production. Production was resumed gradually after August 8, going back to full capacity by October 20, 2022 In January 2024 Barry Callebaut was added to the list of International Sponsors of War for continuing to operate 3 factories in Russia, and having their products used in dry rations of the Russian army. Cocoa bean The cocoa bean , also known simply as cocoa ( / ˈ k oʊ . k oʊ / ) or cacao ( / k ə ˈ k aʊ / ),
10296-708: Was exploring strategic options for its frozen food subsidiary, Davigel. In December 2014, Nestlé announced that it was opening 10 skin care research centres worldwide, deepening its investment in a faster-growing market for healthcare products. That year, Nestlé spent about $ 350 million on dermatology research and development. The first of the research hubs, Nestlé Skin Health Investigation, Education and Longevity Development (SHIELD) centres, will open mid 2015 in New York, followed by Hong Kong and São Paulo, and later others in North America, Asia, and Europe. The initiative
10400-642: Was in Bandon , while the other was in Milwaukie . They expanded them considerably, processing 250,000 pounds of condensed milk daily in the Bandon plant. After the World War I , government contracts dried up, and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate-manufacture becoming
10504-618: Was listed on the SIX Swiss Exchange . From a business standpoint, the new Franco-Belgian confectionery company continued to grow, with Jacobs Suchard assigning it the management of Van Houten, the Dutch chocolate and cocoa powder maker founded in 1815 in Amsterdam, which Jacobs Suchard had acquired in 1986. Barry Callebout also expanded its range of products, launching new brands on the market, like Bensdorp (cocoa powder), The Barry and Callebaut (gourmet chocolate and cocoa-based products) and new lines under
10608-453: Was notified of the findings of Mighty Earth's investigation and did not deny that the company sourced its cocoa from protected areas in the Ivory Coast. A follow-on report by Mighty Earth dated 7 December 2018 indicated little to no progress had been made in the year since Barry Callebaut and other signatories had committed to the Cocoa and Forests Initiative. In 2021, Barry Callebaut was named in
10712-601: Was signed in 2020 to measure and address issues including child labor, living income, deforestation and supply chain transparency. Similar partnerships between cocoa producing and consuming countries are being developed, such as the cooperation between the International Cocoa Organization (ICCO) and the Ghanaian Cocoa Authority , who aim to increase the proportion of sustainable cocoa being imported from Ghana to Switzerland to 80% by 2025. The ICCO
10816-459: Was used to purchase turkey hens and other large items. Cacao trees grow in a limited geographical zone, of about 20° to the north and south of the Equator. Nearly 70% of the world crop today is grown in West Africa. The cacao plant was first given its botanical name by Swedish natural scientist Carl Linnaeus in his original classification of the plant kingdom, where he called it Theobroma ("food of
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