Nestlé: The secret behind the diversification that made it a world leader in food

The Origin of Nestlé and the First Steps in the Food Market Nestlé's story begins in 1866, when Swiss pharmacist Henri Nestlé developed a revolutionary product: Farine Lactée , a mixture of milk, flour and sugar intended to feed babies who could not be breastfed. This product was created in response to an urgent need of the time: to reduce infant mortality caused by malnutrition. At that time, many mothers were unable to breastfeed their children due to poverty, illness or inhumane working conditions. Farine Lactée not only saved lives, it also laid the foundation for what would become one of the largest food companies in the world. Henri Nestlé was born in Frankfurt, Germany, but moved to Vevey , Switzerland, where he set up his laboratory. He was passionate about chemistry and nutrition, and his vision was to create products that would improve people's quality of life. The success of Farine Lactée was rapid and significant. Within a few years, the product was being exported to other European countries, cementing Nestlé's reputation as an innovator in the food industry. In 1905, Henri Nestlé's company merged with Anglo- Swiss Milk Company , a company that produced condensed milk. This merger marked the beginning of Nestlé's global expansion. The Anglo- Swiss Milk Company had been founded in 1866, exactly the same year that Nestlé launched Farine Lactée , and both companies shared a similar vision: to use science and innovation to transform basic foods into affordable, nutritious products. The 1920s brought new challenges and opportunities. During the First World War, Nestlé faced shortages of raw materials and logistical difficulties. However, the company was able to adapt, diversifying its product line and investing in technology. It was during this period that Nestlé began to explore new markets, such as instant coffee, which would later become one of the pillars of its growth strategy. Practical Example: The Case of Instant Coffee A practical example of Nestlé's ability to innovate and adapt to market needs is the launch of Nescafé instant coffee in 1938. During the Great Depression, consumption of coffee beans fell dramatically due to rising costs. Nestlé identified a market opportunity and developed a process to transform liquid coffee into instant powder while preserving taste and quality. Nescafé was an instant success, especially during World War II, when it became an essential part of soldiers' rations. Today, Nescafé is one of the most recognized brands in the world, sold in more than 180 countries.

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