NESTLÉ NESVITA Cereal Milk Drink
By Ma. Cristina Villanueva
In 1994, NESTLÉ launched the first of its kind instant cereal beverage under the brand NESVITA
in the Philippines. This was the first product launched by NESTLÉ under the NESVITA brand name.
NESTLÉ NESVITA Cereal Milk Drink truly was a revolutionary product back then since it was harping
towards the benefits of convenience and healthy nutrition.
Since 1994 until the late 90’s, NESTLÉ NESVITA Cereal Milk Drink was the only instant cereal
beverage in the market. The NESVITA brand name has been synonymous already with instant cereal
beverage similar to that of Coca-Cola (or Coke) to soft drinks. However in ...view middle of the document...
The primarily role of the brand is to shift current Energen users to BEAR BRAND Busog Lusog and attract
new users into the category. In the first 6 months of the launch of BEAR BRAND, it has been able to grab
share from Energen but it has also cannibalized a portion of NESVITA Cereal Milk Drink’s market share.
Since NESVITA Cereal Milk Drink is the biggest contributor and profit driver for the total NESVITA
business, the challenge that the NESTLÉ Management posed to the NESVITA team is how it can grow the
business further without changing its positioning as a “premium” cereal beverage brand targeted mainly
to Filipino adults who are into a healthy lifestyle.
* Energen has the same distributor as Kopiko (which is an emerging player in the pure soluble coffee category)
NESTLÉ was founded in 1866 by Henri NESTLÉ, a Swiss pharmacist who developed a food for
babies who were unable to breastfeed. His first success was a premature infant who could not tolerate
his mother's milk or any of the usual substitutes. NESTLÉ's new formula saved the child's life. People
quickly recognized the value of this new product, and soon after, it was being sold in much of Europe.
Today, NESTLÉ is the world's leading nutrition, health and wellness company. It is the biggest food
company in the world with sales of CHF 107.6 billion in 2007, and net profit of CHF 10.6 billion. It has
factories and operations in almost every country in the world.
NESTLÉ in the Philippines
Although NESTLÉ products were already available in the Philippines as far back as 1895, it was
not until 1911 that the NESTLÉ and Anglo Swiss Condensed Milk Company was established in the
country, with its first sales office in Binondo, Manila. The Company was forced to suspend its operations
during World War II, but soon made a comeback after Liberation, under a new name: Filipro, Inc. In
1960, NESTLÉ S.A. and San Miguel Corporation entered into a partnership resulting in the formation of
Nutritional Products, Inc. (Nutripro). In 1962, Nutripro’s first factory started operations in Alabang,
Muntinlupa to manufacture NESCAFE. Through the years, other manufacturing facilities were
established in Cabuyao, Cagayan de Oro, Lipa, Quezon City, and Marikina to meet the growing demand
for NESTLÉ products in the country. In 1977, Filipro, Inc., the trading company, and Nutripro Inc., the
manufacturing company, merged under the name Filipro, Inc. In 1986, Filipro, Inc. changed to its
present name as NESTLÉ Philippines, Inc. In 1991, NESTLÉ pioneered food production and distribution in
the AIJV (ASEAN Industrial Joint Venture), a regional trade complementation program. The Company
participated in this program with the manufacture of breakfast cereals at the NESTLÉ Lipa Factory2, for
export to the ASEAN markets. In late 1998, NPI became a wholly owned subsidiary of NESTLÉ S.A.,
following the latter’s purchase and acquisition of San Miguel...