CONSUMER STAPLES INDUSTRY: DAY 1
What I read: Letters to Shareholders and MD&A - Nestle 1) How does the company make money? Nestle has multiple product lines and it currently focuses on 4 major sectors: -Pet food -Healthcare consumables (like protein powders etc) -Food and snacks -Coffee Of all of these currently confectionary and coffee are its crown jewels closely followed by pet food. Its product lines are currently quite vast. 20% of its total sales comes from over 18 business units, all of which are very mature in their life cycle. This means that they do not have much scope for 'real internal growth', which is growth by volume and not price. 2) Who are its customers and how loyal are they? Nestle sells to retail stores, off the home outlets (to restaurants, cafetarias etc) and digital marketplaces. Customers are not very loyal except in certain categories like coffee. In 2025, the company did have to increase prices due to increasing ra...