Nestlé USA advertising & marketing assignments

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Selected Nestlé advertising

Nestlé's profile in the US is quite different from other markets, with a focus on acquired local-only brands in addition to its traditional global pillar of pet food. More perhaps that in any other market, Nestlé's US business has been built through local acquisition: from Stouffer's in 1973 through Carnation, Purina, Haagen-Dazs (in the US only), Dreyer's, Hot Pockets, Gerber and DiGiorno among others. With the exception of Purina and perhaps Carnation, few of those acquired brands have travelled much further than the Americas, while other well-established Nestlé brands - not least global powerhouses Nescafe or Maggi - have struggled to carve out a foothold in the US. At the same time, several of the products for which Nestlé is known elsewhere are not sold in the States. After years as America's #4 confectionery company, Nestlé called it quits in 2018, selling the business to Ferrero. As a result, the US is now virtually the only country where Nestlé doesn't market confectionery (or breakfast cereals). Until 2020 it was also the only major market where it did still market ice cream. However, here too, it agreed at the end of 2019 to transfer its substantial local ice cream operations into Froneri, the part-owned but independent company that already managed the group's other ice cream subsidiaries around the globe. Another disposal was the pasta brand Buitoni, sold to private equity firm Brynwood Partners in 2020. Another sale was the group's large collection of locally sourced bottled waters, all of which were sold to private equity investors in 2021 for $4bn. Yet despite these disposals, the US remains a major market for the Swiss food giant. In 2020, it accounted for almost 31% of global revenues - or around $29.5bn - more than the next seven countries combined. Petfoods alone accounted for almost $8bn, frozen and prepared foods for $4bn, and bottled water for $4.5bn. (The latter figure will be cut by more than $3bn following the sale of locally sourced water brands in 2021). The group is continuing to build its presence here with selective key acquisitions. Coffee - traditionally a US weak spot for Nestlé - has been bolstered by a mammoth deal to acquire perpetual rights for Starbucks packaged coffee, as well as niche brands Blue Bottle and Chameleon Cold-Brew. Other bolt-ons include Freshly meal kits, Sweet Earth vegan options and Nature's Bounty and other vitamins and supplements. Nestlé USA is the main corporate entity for culinary foods. Steve Presley is chairman & CEO. The local outpost of Nestlé Purina Pet Care and Nestlé Health Science operate separately.

Capsule checked 7th May 2021

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See also

Nestle Purina Petcare
Nestle Waters
Maggi
Nescafe
Nestle Confectionery
Nestle

Which agencies handle advertising & marketing for Nestlé? Find out more from Adbrands Account Assignments

Who are the competitors of Nestlé? See Foods Sector index for other companies 

Historical profile information for Nestlé USA

Recent stories from Adbrands Update:

Adbrands Daily Update 10th May 2021: In yet another addition to its Health Science division, Nestlé signed off on the acquisition of US functional nutrition developer Nuun. No terms were disclosed. The company makes a broad range of electrolyte replacement and other effervescent tablets and powders to boost energy, and aid relaxation and overall well-being.

Adbrands Daily Update 30th Apr 2021: Nestlé continues to pivot away from traditional foods and beverages towards health and wellness products. As first reported earlier this week, it confirmed today the acquisition of the core brands of The Bountiful Company, the US-based maker of vitamins and supplements under brands including Nature's Bounty, Solgar and Osteo Bi-Flex. It is the leading marketer of nutritional supplements in the US and also has a presence in the UK and other global markets. The business is currently owned by investment firm KKR which had filed plans for an IPO earlier this year at a valuation of around $6bn. Nestlé agreed a purchase price of $5.75bn. It will acquire only Bountiful's vitamins and supplements, which will be absorbed into its existing Nestlé Health Science division. Combined sales last year for those brands were almost $1.9bn. Bountiful will retain its sports and active nutrition brands such as Pure Protein and Body Fortress.

Adbrands Daily Update 12th Apr 2021: Following completion of its buyout from Nestlé, the former Nestlé Waters North America business unveiled its new name: the rather grandiose-sounding BlueTriton Brands. "Triton is a god of the sea in classical Greek mythology," explained the newly independent business. "Combined with the color blue, representing water, the new name reflects the Company's role as a guardian of sustainable resources and a provider of fresh water." Dean Metropoulos, principal of investment firm Metropoulos & Co, which acquired the business with backing from One Rock Capital, was named as interim CEO.

Adbrands Daily Update 8th Mar 2021: Within days of dumping its (lower priced) regional bottled water brands, Nestlé doubled down on the premium water segment with the purchase of ionized alkaline water Essentia. Terms were not disclosed but previous estimates have valued Essentia at as much as $500m. The brand had sales of $192m in 2020, said Nestlé. It will sit alongside Perrier, San Pellegrino and Acqua Panna in the company's slimmed down portfolio.

Adbrands Daily Update 17th Feb 2021: As first indicated last summer, Nestlé has finalised terms for the sale of all its regional bottled water brands in the US and Canada. The buyers are the investment firms One Rock Capital and Metropoulos & Co, at a price of $4.3bn. Nestlé will continue to sell premium waters Perrier, S Pellegrino and Acqua Panna in the US, but all its other brands - including Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead and Pure Life - will transfer to the new owners. The sale price is roughly $1bn higher than those brands combined annual revenues. The disposal will reduce Nestlé's combined sales from bottled water by more than half.

More about Nestle from Adbrands Weekly Update


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