Newsletter Sample

Dear Colleagues

Welcome to the second Nestl Professional AOA Quarterlynewsletter 2010.

We have reached our goals for the first half of 2010. OurRIG and OG stand at all time highs and I hope we will beable to carry on this performance into the second half of2010. Also, the profitability is in line with expectations.

In this issue, you will find some interesting work done indifferent markets in AOA which can inspire us for the comingmonths. If you come across good ideas, please speak toyour colleagues to use the knowledge to accelerate growth in the next months. In 2009, wewere able to get back on our growth path after a difficult start. Therefore, I feel that the secondhalf of 2010 will be more challenging and we have to put our focus on 2011. Continued growthand acceleration are needed to succeed in today's competitive world. NP AOA will have tocontinue to deliver high growth with continued improvement of EBIT.

This year, we signed a regional agreement with ISS and just recently, we established businessrelationship with Nandos, a South African chain restaurant, to be the Global Strategic CoffeeSolution provider. This is a very exciting regional opportunity and many people, from the Globalteam and Beverage Centre with the NP AOA Regional and market teams, were involved. Iwould like to express my gratitude to them and let us successfully build the Nandos partnershipacross AOA. Certainly, this will help us find more opportunities to work with customers acrossour vast and diverse geographic region.

I hope you will continue to enjoy reading our newsletter. If you have any suggestions on howto make it more appealing or inspirational, please advise me or Ai-Khuan, who has been agreat support to me in publishing this document quarterly.

The next issue is planned for end September 2010. Thank you for your continued support andnew successful stories to build our next newsletter.

Thank you also for the great results for the first two quarters in 2010 and for the tremendouswork you and your teams have put in to deliver them.

Good luck and every success to all NP AOA staff.

With Warm Regards

AOAQuarterly

JUNE2010

1

Nestl Professional achieves businessmilestone in debut partnership withNando's

CWARLaunch of Nescaf Ginger&Spice

GCRUnique Carnation, Diverse Applications

IndoChinaMaggi Liquid Seasoning - the icon ofChinese New Year

IsraelWinning the Arab sector

JapanBeverage Business Department formedBeauty Bar adds value to customers

KoreaSpecial Agent success storyCold beverage success in local chains

MAGHREBFootball fans are spoilt in coffee shopsChannel and key account workshops

Middle EastRelaunch of Nescaf Red Mug

MYSGMaximising the intelligence of KalinaLaunch of Maggi Hainanese Chicken RiceResorts World@Sentosa, SingaporeSjora launch in Singapore

NEARNP NEAR participates in HOST exhibition

OceaniaTAG conference to kick off growthplatformsGetting the best end of Campbell'sNescaf LiquiFresh continues to win newbusinesses

PhilippinesRelaunch of Nescaf in BPO and officesNP joins first Creating Shared Value ForumNP Global CFO visitsPartnering Enderun College to buildcapabilitiesVisit to SOS Children's Village

SARCulinary Art 2010

TurkeyMcDonald's serving McFlurry with NestlLion MixNew advisory chefs

ZARSponsoring South African Chef's Villageat HostexLaunch of the Maggi Premium saucerange

Nestl Professional achieves business milestone in debut partnership with Nando's

Nestl Professional has received the "go ahead" to implement the Nescaf Milano Caf Style BeveragesSolution and its Beverage Acceleration Programme (BAP) as the Global Strategic Coffee Solution of Choice atNando's restaurants.

Nando's is a fast-casual and quick-service restaurant(QSR) group originating in South Africa (SA), with over1,100 outlets in 34 countries. It is home to theLegendary Flame Grilled Peri Peri Chicken. Theagreement to implement the Nescaf Milano Solutionbegan on 1 June 2010, with a 90-day test in 20 highvolume sites across SA, to prove the concept. In addition,the Nescaf Milano Caf Style Beverages Solution willalso be implemented in 55 stores in countries throughoutthe AOA region.

Should the 90-day trial prove successful, an additional250 stores will be implemented in SA and thesolution will be introduced into remaining stores in various countries across the AOA region. Lastly, theconcept will be introduced as from Quarter 4, 2010, in the key markets of Oceania (270 stores), the UnitedKingdom (225 Stores) and North America (35 Stores), in the context of a 5-year global agreement.

The New Nescaf Milano Solution

Nescaf Milano is a professionaldispensed coffee solution thatdelivers a variety of Caf StyleBeverages to Out-of-Home(OOH) commercial restaurantcustomers. The solution wasdeveloped by the R&D team atthe Nest l ProfessionalBeverage Centre, workingclosely with the PTC in Orbe.Milano leverages Nestlspatented turbo-chamberdispensing technology todeliver perfect crema on anespresso, the perfect milk frothon a capuccino as well asbeautifully layered lattes. Thesolution also leverages ourmanufacturing know-how toproduce new mid-y ie ldextraction soluble coffee,improving end-cup quality.

2 AOA Quarterly June 2010

Milano reduces restaurant operational complexity by dispensing high quality caf style beverages consistently,time and again. It provides operators with the opportunity to customise coffee beverages on the spot. Asa result, restaurateurs are trading up to capture the added value consumers are willing to pay for a premiumcup of coffee.

The solution creates competitive gaps generating two revenue streams: the sale of product and the sale ofan exclusive fully integrated service programme. The Nestl Professional BAP delivers a range of value-addedservices with the express aim of enabling customers to capture and accelerate incremental same-store salesgrowth.

How it all began

After a brief initial contact with the Nando's senior management inNovember 2009, a follow up meeting was arranged at the NestlProfessional Beverage Centre in February 2010. A team from the NestlProfessional Beverages Commercial Unit at the Centre, the AOA regionand the SA market decided that even though Nando's was aggressivelyseeking roast and ground coffee, the time was right for Nestl Professionalto introduce the new Nescaf Milano Solution and its BAP.

On 6 and 7 April 2010, the team, presented Nando's with Nestl Professional proprietaryindustry insights, focusing on unique accelerated growth opportunities in coffeebeverages. This was followed by a compelling pitch on how the Nescaf Milano Solutionand its BAP could deliver against key industry drivers to accelerate Nando's entryinto the premium coffee beverages arena. The group was then invited to experiencea creative coffee beverages menu developed specially for Nando's, addressing theirconsumer's specific coffee needs. The comprehensive presentation was attended bythe entire Nando's management team including their Chairman, CEO, their executiveboard and senior personnel.

The Nando's team were inspired by the new Nescaf Milano solution and its BAP, quickly understanding itsvalue, making it their Global Coffee Solution of Choice.

In less than 60 days since receiving the green light, Nestl Professional has worked tirelessly to develop,refine and implement the new Nescaf Milano and its BAP. The system is now installed, commissioned andlaunched at 20 high volume Nando's sites in SA as part of the agreed 90-day test, just in time for the 2010FIFA World Cup.

Marc Caira, Chief Executive Officer at Nestl Professional said, "This initiative is a truly exciting opportunityfor our business. We have created a lighthouse to guide our markets into the future - a clear example ofwhat can be accomplished for all to see".

Michiel Kernkamp, Head of Global Branded Beverages at Nestl Professional added, "The Nando's relationshiphas enabled us to work hand in hand with a customer to validate the BAP, a premium 10-point fully integratedservice package we sell alongside our products. This now provides our markets with a clear way forwardon their journey to becoming a valued driven service partner".

The first steps - The South African trial

The Nestl Professional team in SA worked to very tight time-lines. In fact, from the day the dispensingequipment and products arrived in the market, the team had exactly one week to deliver, install, train andcommission the new Nescaf Milano systems at 20 participating Nando's locations in Johannesburg,


Durban and Cape Town. The South African team completed the installation with just 4 hours to spare. Whenasked to comment on the initiative, Barend Minnaar, Country Business Manager at Nestl Professional SAsaid, "The concept is already delivering a strong market presence for the new Nescaf Milano Solution inmajor centres across the country. Our team has done a tremendous job and continues to work hard toensure we execute promotional plans flawlessly and make the trial a resounding success".

The initial feedback from Nando's and their franchisees has been overwhelmingly positive. Jeff Rakusin,President of Nando's trading said, "We are delighted to serve your new Nescaf Milano premium caf stylebeverages at our restaurants. In fact, this morning, I received a report from one location in Cape Town whichhas gone from no coffee sales to 185 cups in the first three days of the programme. We are truly delightedwith the response we are getting from consumers and particularly pleased to have the supportof such a great global partner as Nestl Professional to ensure the projects' success".

Nestl Professional continues to work diligently to ensure thatNando's expectations at local, regional and global levels are met."It is now crucial that we deliver the growth Nando's is expectingduring the trial by leveraging the BAP and executing the plan",says Friedrich Mahler, Regional Business Head, Nestl ProfessionalAOA. He also added, "The regional team in Singapore, will nowwork closely with markets to implement the entire solution in13 additional countries across AOA in the next three weeks. Iam looking forward to leveraging the successes of the initiativeto expand the business beyond the Nando's system and intothe business."

A bright future

Once the business is fully implemented in 2011, the new Nescaf Milano Solution willhave been extended to 34 countries, with a presence at more than 1,000 Nando'srestaurants. In addition, the business will deliver integrated accelerated growth asNando's is projecting to reach 1,600 stores by the end of 2013.

The business will generate above-average profits from both the sale of products andthe sale of services in the form of a Beverage Acceleration Programme. This initiativeis a prime example of how to create competitive gaps through the rapid implementationof relevant innovation in commercial channels, while strengthening the Nestl Professionalposition as a growth driver at Nestl, through the sale of ingredients, and systems,and service.


Nestl Professional and Nescaf Senegal have decided tobe the prime movers in the launch of African coffee in ourRegion. Jointly, we have collaborated to successfully bringNescaf Ginger&Spice to consumers.

Under the leadership of Alain Diop, NP Manager for Senegal,100 Nescaf Field Soldiers were recruited.

After taking part in a product usage workshop and a team-building session sponsored by Senegals Country Manager,each Field Soldier was presented with a sales kit, comprising:

a Nescaf case a Nescaf flask Nescaf paper cups Nescaf Ginger&Spice a Nescaf apron

On 9 March 2010, all 100 Nescaf Field Soldiers startedselling Nescaf Ginger&Spice in the assigned markets.

The response from theconsumers was positive.This was reflected in theaverage sale of 70 cupsper day for each NescafField Soldier. Moreover,it is estimated that therecruitment of anadditional 400 NescafField Soldiers will beneeded in order toachieve a total of 1,000cups by the end of 2010.

Based on this initiative,all other countries in CWAR are developing their launchplans which will be executed accordingly.

Key learnings: It is critical to develop and implementa One Brand Plan to ensure success. The benefitsare threefold:

Internally, we were able to reduce costs of developing POP materials as a result of economies of scale. Coordination and communication were also mademuch easier.

Externally, the impact on customers and consumers wasimpressive. When they heard the Nescaf jingle on the radio or watched the TVC on a billboard, they were ableto buy a cup of our aromatic Nescaf from one of our Field Soldiers on the street.

Finally, and in line with what Marc and Fritz mentioned during their visit to CWAR, by leveraging on NiM, withNP focusing on GD, we will ensure Top Line andbusiness growth.

Many thanks to Alain Diop and his team in Senegal. Wewould also like to acknowledge the support given bySenegal's Country Manager, Mr Alvaro Labarca and theNescaf team in Dakar. At the regional level, the closecollaboration between Erwan Vilfeu, BEM Nescaf, his team(Setutsi Goka and Amma Yirenkyi) and the Regional NPCBM (Patrick Stern) and NP Beverage Manager (Richard

Apaloo) also contributed greatly to this success.

All is now set for Nescaf Ginger&Spice to grow.

Nestl Professional CWAR: Launch of Nescaf Ginger andSpice Senegal -Alain Diop

Training for our Nescaf Field Soldiers.

Our Nescaf Field Soldiers hard at work.

5 AOA Quarterly

A field soldier on his way to hisassigned market.

The use of milk products in Chinese cuisine is a relativelynew phenomenon and represents an exciting new growtharea for our branded culinary milks business. With the goalsof rejuvenating the Nestl Carnation Filled Evaporated Milkbrand and stimulating increased product usage amongprofessional chefs, Nestl Professional staged the UniqueCarnation, Diverse Applications national culinary contestfrom September to December 2009 in mainland China.

The 3-month contest began in early September 2009 viacontest announcements in East Eat, the most popularprofessional chefs magazine in China, and onwww.6eat.com, the chef's website associated with EastEat.

The contest solicited recipes from two categories: Chinese-style hot dishes and Chinese-style pastries. Either NestlCarnation Filled Evaporated Milk - NP highest-volume SKUin mainland China - or Nestl Carnation Full CreamEvaporated Milk were required to be used in all recipes. Intotal, more than 1,000 recipes from around 800 chefs werereceived from all parts of the country.

Placing a clear priority on innovative recipes that havepractical applications for real life restaurant usage, the panelof food experts from Nestl Professional and East Eatselected 20 finalists to compete in a final live cook-off inBeijing. The finals were held on 16 December 2009 at theMarriott Courtyard Hotel in Beijing, in close cooperationwith the China Cuisine Association.

The competition provided a platform for energising theNestl Carnation brand while promoting the creative use ofNestl Carnation Evaporated Milks in Chinese cuisine. Theparticipating chefs produced a diverse range of innovativeNestl Carnation culinary applications in well-establishedareas such as soups, curries, dim sum and pastries, whilealso creating many new applications such as sauces,marinades and desserts.

A media event attended by leading culinary media helpedpublicise the contest and the extraordinary potential ofNestl Carnation Evaporated Milks in Chinese cuisine. Inaddition, the Nestl Professional team selected key recipesfrom the contest and created attractive recipes booklets -both on hot dishes and pastries - which were then sent tothousands of chefs throughout China, further extending theinfluence of the contest. Other chef-focused publicityactivities are also planned, including chef blogs and digitalmagazine programmes, to further enhance customerintimacy.

Judging from the enthusiasm of the participants in theUnique Carnation, Diverse Applications contest, the NestlProfessional team expects that many more chefs will beusing Nestl Carnation Evaporated Milks in their dishes -and this can only mean delicious, long-term businessopportunities for Nestl Professional.

The prize-winning dish Creamy ChineseYam Noodles With Caviar showcasesthe delicious possibilities for using NestlCarnation Evaporated Milks in Chinesesoups.

Nestl Professional GCR: Unique Carnation, Diverse ApplicationsInnovation through Application - NP Culinary competition rejuvenates Nestl CarnationFilled Evaporated Milk and serves up delicious business opportunities

-Yu Yingjie


The innovative use Of Nestl CarnationEvaporated Milk in the award-winning entryCreamy Beijing-Style Pastriesdemonstrates how the product addssmooth richness to Chinese pastries.

Presenting the Special Gold Prize: MrJeroen Pluijmers, Country BusinessManager, Nestl Professional GRC (centre);Mr. Liu Xiujun, Vice President Of ChinaCuisine Association (left).

Background of Marketing Campaign

With their long heritage, Thais and Chinese share a mutuallyclose relationship, creating a harmonised culture and anintegrated pattern of knowledge, beliefs, behaviours,traditions, including food and special occasions.

Chinese cuisine and special occasions are very importantin representing a harmonised Thai-Chinese culture. ChineseNew Year is the longest and most recognised of all Chinesespecial occasions, celebrated by Chinese communitiesthroughout Thailand. It is the time for families to reunite,not only to welcome the new lunar year, but also to feasttogether and wish each other good fortune.

Chinese cuisine is central when it comes to celebrating theChinese New Year or other special Chinese occasions. Itplays an important role not only for daily consumption, asevidenced by its extensive availability from local food stallsto high-end restaurants, but also for special occasions andcelebrations, such as wedding ceremonies.

Maggi Liquid Seasoning has been designated as one of thekey focus areas on which to build our food pillar in Thailand.NP Thailand took this opportunity to promote Maggi LiquidSeasoning's unique aroma and taste as the perfectcomplement to Chinese cuisine during Chinese New Year.

Main Objectives of the Campaign

To associate Maggi Liquid Seasoning, with its great aroma,as being part of Chinese cuisine and endorsed by professional chefs and customers.

To build Maggi Liquid Seasoning as an icon of Chinese New Year among Thai-Chinese operators in Thailand.

To generate trial and to boost up overall sales of the Maggiproduct portfolio during festive occasions.

The Big Idea

The idea was generated based on the following key points:

Using Chinese New Year as a celebratory occasion forThai-Chinese people to mutually express their sincere thanks to their beloved ones.

Using the occasion whereby food operators extend bestwishes and present Lucky Angbaos to their family membersand close relatives.

As Thai-Chinese consumers reunite and celebrate with theirloved ones over a special dinner, our idea was to combinethe two key points and extend special offers to our loyaloperators during this festive period.

Key Message

Primary message: Great Aroma, Delicious and Healthyfrom MaggiSecondary message: Get Lucky! Increase your sales andbe prosperous in the Year of the TigerTarget Customers: Nationwide operators

Integrated Marketing Activites

The campaign was divided into 2 phases.

The first was to educate users on product knowledge andusage by providing training to all NP Thailand staff. Thetraining was conducted by professional chef, ChumpolJangprai, Maggi's brand ambassador, who demonstratedthe profile and usage of Maggi Liquid Seasoning with itssignature aroma through various recipes, eg. in steamedfish, stir-fried fish and Chinese soups.

Once the NP Thailand staff were well-trained on productknowledge, all related activities were kicked-off throughkey customer touch points to generate awareness, trial,purchase, and brand relationship and preference. This wasdone through product demonstrations, wet samplings, salesblitz, promoting brand visibility in high traffic areas, 2ndshelf displays, and Lucky Angbaos promotion.

Nestl Professional IndoChina (Thailand): Maggi Liquid Seasoningbecomes the icon of Chinese New Year in Thailand

-K Piyamas Wiriya-udomphol


How We Delivered

A special package, comprising all products in the Maggirange, was offered to our operators and AEs when theymake purchases of at least Baht 1,000 from January toMarch 2010. The AEs took on the role of delivering the wellwishes and lucky Angbaos, as well as putting up lanternsat operators shopfronts in order to build closer relationships.

Campaign in Action

Product Training Session to all NP staff

Building Brand Visibility in High Traffic Areas:500 Maggi umbrellas were placed in high traffic areas in order to build brand awareness during campaign.

Product Demonstrations & Wet SamplingsThe customised workshop was conducted in the operatorspremises in order to create trial and to build credibility with potential customers. Product demonstrations and wet samplings in store also were donein key channels, i.e. at food servicewholesalers and MAKRO to generate trial and first purchase.

In-Store Brand Visibility and 2nd Shelf DisplaysIn-store brand visibility was increased in order to reinforcebrand awareness on customers path to purchase.

Sales BlitzThe sales blitz was carried out across regions in order tocreate trial for all products in the Maggi range as well asto build team unity.

How We Won

Overall sales of the Maggi product portfolio increased by18% during January to May 2010, compared to last yearsales in the same period. This was derived mainly from sales of Maggi Liquid Seasoning, which saw an increaseof 60%.

Increased brand awareness of the Maggi product range,and enhanced customer satisfaction and relationship between current and new customers.


Israelis like food, are food connoisseurs and loveto eat. Over the years, they have developedgood taste, adopted influences from theworlds best cuisines and, in spite ofits small size, Israel has evolved intoa mini culinary power.

Israeli cuisine is characterised by aromas and flavours thatare a blend of East and West, old and new, with mainlyMediterranean influence stemming from a social fabric madeup of a Jewish population alongside an Arab population.

In the last decade, there have been many changes in thehabits of food consumption in the Israels Arab sector, themost prominent of which is the gradual shift from the customof eating at home to a culture of going out to eat.

At NP Israel, we identified this new trend and followed upby identifying the special needs of business owners andchefs. We found that there were hundreds of restaurantsand function halls out there, all in need of direct distributionof quality products in addition to a fair, competitive priceand top-notch service. Responding with alacrity, we prepareda customised solution made to fit their needs, coveringvariety, service and pricing, all especially tailored to thesebusinesses.

In order to initiate sales to clients in the Arab sector, in June2009, we recruited a sales representative who has a strongcommand of the Arabic language and is also familiar withthe Arab culture and traditions, and provided him withappropriate training and tools. This initiative turned out tobe a great success which exceeded everyones expectations.

After only 9 months since the beginningof the project, we have alreadyreached additional sales of 700,000NIS per month (versus the originaltarget of 600,000 NIS), with muchmore growth potential still to exploit.

To date, we have recruited 80 newcustomers.

The key to our success has been our Osem-NestlProfessionals very high quality service model based onpromoter, teleselling, direct logistics, advisory chefs andcustomer service units. This high quality service, in additionto our wide and unique strong portfolio of products and

solutions, havebrought a trulyinnovative way ofsatisfying the fastchanging needs ofthe foodservicecustomers in theArab sector in Israel.

Nestl Professional Israel: Winning the Arab sectorin the Israeli market -Danny Fuchs


Afteronly 9 months

we have reachedalready additionalsales of 700,000NIS per month.

Mr Attef Odi - the key person who isdriving growth in the Arab sector.

Everyone hard at work at the BBD workshop.


In line with the strategy to grow the beverage business inOOH, in particular the office channel, the Beverage BusinessDepartment (NP BBD) was recently formed. This team isresponsible for Marketing and Sales with the purpose ofcreating focus on the placement of systems into commercialchannels as well as driving growth of beverages in the officechannel. Japan has over 6 million offices and the objectiveis for NP to own the office channel.

A NP BBD kick-off meeting was held and activities werelined up in order to give the team deeper knowledge aboutthe world of beverages, new initiatives such as NescafMilano, EZ-care and Sjora, including an introduction to asimplified coffee profiling test, machine troubleshootingand team discussions on how to attain strong growth forthe systems business this year. An ongoing programme isin place to further develop people to drive the business andobtain long-term sustainable growth in beverages.

Nestl Professional Japan:NP Japan forms BeverageBusiness Department todrive growth

Nestl Professioal Japan: Nestl Beauty Bar adds valueto NP Japan customersNestl Beauty Bar was created in 2009 as a new range ofhealthy and refreshing beverages specially made for womenwho want to feel naturally beautiful from inside out. NestlBeauty Bar comes in three varieties: Jasmine & Oolong +Dietary Fibre, Karin & Yuzu + CoQ10 and Rose Hibiscus +Collagen.

NP Japan was successful in introducing these products tohotels as well as cafs, amenity catalogues and beautysalons. So far, 40 machines have been installed and anaverage of 40 cups per day are sold.

Nestl Beauty Bar is also available in city hotels and resorthotels, presented as one of the services only for women,as beverages in buffets, and as welcome drinks at the lobby.This concept matches the needs of these hotels as theyfocus their attention on attracting more women to theirestablishments.

In addition, we have received requests from hotels to putthe Nestl Beauty Bar brand in their advertisements inmagazines and on the trains, as well as on their websites.

We are pleased that our brand value is increasing and thisin turn adds value to our customers' businesses.

The Nestl Beauty Bar variants and sachets.

-Jet Cornejo

-Tomoyuki Kokuhoh

Up till mid 2008, Nestl Professional Korea did not have anexclusive solution partner, and therefore, we did not havea pool of loyal users and customers from which to develop.We also had difficulties controlling our machines.

Nestl Professional introduced the Special Agentprogramme in mid 2008 to resolve these issues and toexpand our Solution business.

These Special Agents work as Nestls exclusive solutiondistribution partners.

We focused on newly growing channels with our Solutionprogramme, by promoting EZ-care and Kalina in PC Bang(internet caf) and leisure channels as well as FD mini vending in the office channel.

We provided machines to agents with the Free-on-Loanscheme, although collateral was received in exchange so that attention will be paid to managing the machines effectively and properly.

The performance of the machines was measured regularly and we continued to improve its efficiency.In order to enhance the programme,supportive programmes such as vehicle branding, sales staff uniforms, quality assurance trainingsand POP materials were introduced.

With the implementation of thisprogramme, we witnessed a significantsales growth and this was contributedby:- a widely expanded machine

installation network- established and stronger loyalty

from customers- direct management of end

customers

By the end of the first year since its launch, we expect over70% sales growth with over 4,200 machines deployedworking with 30 exclusive solution partners.

Nestl Professional Korea: Special Agent success story-JM Ryu


Special Agent P&J.We

expect over70% sales growth

with over 4,200machines deployed

working with 30exclusive solution

partners.

The Special Agent kick-off.

Nestl Professional Korea: Cold beverage success in localcaf chains

Davinci and Tom N Toms outlets which are popular with the locals.


Caf chains are one of the biggest and growing channelsin Korea. There are 1,400 cafes from the top 10 chains.While there are limited opportunities in coffee, opportunitiesabound in the cold beverages segment. However, over thelast few years, NP Korea has been facing difficulties inpenetrating this segment.

This is so as global chains like Starbucks and Coffee Bean& Tea Leaf are using only globally sourced ingredients andapproval from their headquarters is needed for all of theitems on their menus.

As such, since 2009, our sales have been focusing on localcaf chains which have the authority to make their owndecisions quickly pertaining to menu items and ingredients.

We started with the Angel-in-Us chain which already has235 outlets and is still growing fast. For the iced tea itemat this chain, all Lipton products were replaced with Nestea.The expected sales is 61.5 MM per year.

The second success story, which took more than 5 monthsof negotiation, came from the Davinci chain which has105 outlets. Expected sales is 97.5 MM KRW per year.

This summer, on top of Nestea & Nestl Lemonade, we alsostarted selling Sjora in Tom N Toms (166 outlets) andSleepless in Seattles(70 outlets). The expected salesvolume is 152.8 MM KRW per year.

The most difficult hurdle was their perception of and brandloyalty towards the Lipton brand, which is a market leaderin Korea, and is perceived as the tea specialist with a widerange of leaf teas, iced teas and RTD. However, through ablind tasting test with their staff and consumer tests at theiroutlets, they could see the results for themselves and finallyaccepted Nestea & Nestl Lemonade.

The key to success:(1) Continuous and relentless approach with purchasing

team(2) Blind tasting with R&D & marketing(3) Consumer tests at limited stores (where possible)(4) Annual contract price proposals

And, of course, this success of this cold beverage is onlypossible because of our endless fire & passion.

-GH Jo


Nestl Professional MAGHREB: Nescaf spoiling football fansin coffee shops in Tunisia -Fethi Rejeb

During the African Football Cup held in Angola from 10 to31 January 2010, Nestl Professional in Tunisia launcheda big promotion in more than 50 selected coffee shops inthe biggest cities of the country (Tunis, Bizerte, Sousse,Monastir and Sfax). The objectives were either to increasemarket share (inside the coffee shop) or to improvepenetration and brand awareness in this channel.

This operation was codenamed Live the Best FootballMoments with Nescaf. The concept was to invite theconsumers in these coffee shops to order a cup of Nescaf

during the most important matches and they will then receivean immediate gift (a Nescaf branded pen) and stand towin a more important gift (a Nescaf premium set) byparticipating in a lottery held at the end of the first half.

This event was organised by the NP team in Tunisia withthe assistance of an operational Marketing Agency. Infact,a dynamic duo, a hostess and a supervisor, was placed ineach coffee shop with a clear mission: to welcomeconsumers and encourage them to order a Nescaf (insteadof R&G coffee or other beverages) before and during thematch.

Key objectives of thispromotion were:

To increase Nescafconsumption in the coffee shopchannel, one of the key channels forthe NP Business Development inTunisia.

To develop the relationship with themain influencers in the coffee shops we

work with (owners & managers, barmen& waiters and consumers).

Results are very encouraging. Nescaf turnover in thesecoffee shops increased by almost 80% and this was verymuch appreciated by the coffee shop owners and managers.Sales have also increased by 60% in the targeted coffeeshops. The event created much excitement in severalneighbourhood coffee shops and they soon became ournew customers.

Considering the huge success of this promotion, it has beendecided it will be relaunched during the World Cup from 11June to 11 July 2010 in South Africa.

Customers placing their orders. The lucky winner receiving the Nescaf premium set.

The promotional poster.

From 26 to 30 April 2010, 11 participants attended theNestl Professional workshop: Managing Customer Profitably(MCP) in Tangier, Morocco.

During the five days, five participants from Tunisia, five fromMorocco and one from Algeria, received training on howto present a structured commercial proposition to a keyaccount, following all the steps of selling & negotiation.They were also given financial notions & financialtemplates that will help them to come out with a win-win agreement with key accounts.

This workshop was facilitated by Anthony Fiorenza, SalesCapability Development Manager, Nestl Professional ZoneAOA. MCP falls under the NP Commercial Framework whichwas created to support the markets and to enable them tobuild their peoples capabilities.

The key objectives of this trainingwere:

(1) To provide participants with the necessary tools that will allow themto reach a profitable hand-shaking with the customers.

(2) To upgrade their approach with their customers by having a structured commercial propositionbased on convincing financial figures.

MCP also helped the participants toreinforce their negotiation skills bylearning the best tactics on how totrade variables with the customer. Allparticipants left with the requiredknowledge that will allow them to deal

successfully with their keyaccounts.

This event wasorganised by theMoroccan NP Team,with the support andcoordination of MrFiorenza, in compliance

with the annual trainingprogramme for Zone AOA.

Nestl Professional MAGHREB: Channel & key accountworkshops in the MAGHREB region -Mahmoud Khalfallah


Participants at the Managing Customer Profitability (MCP) workshop.MCP

also helped theparticipants toreinforce their

negotiation skills bylearning the best tactics

on how to tradevariables with the

customer.

With 2009 NPS of 5.5 mio, Nescaf Red Mug is one of theleading categories in the Nestl Professional Middle EastBeverages portfolio.

In 2009, however, sales of the leading 200g SKU starteddeclining, while the Red Mug 2g single serve solutionwitnessed a growth of 50%. Based on customer insight,we realised the need for a high quality coffee with a more

affordable price per kg versus the current 200g jar, targetinghigh traffic locations. In conjunction, to enable us to furtherleverage on the growth trend of the single serve solution,an improvement in packaging and blend was required.

Within nine months, we wereable to launch 2 new SKUswith a 60/40 winning blendfrom Brazil.

The kick-off of the re-launchwas through the Ingredientsof Success road show whichwas held in 7 countries andaddressed 120 people fromdifferent levels of the salesorganisation. In line with theroadmap for our new trainingplatform, we aspired totransfer tangible and technicalknow-how of our products,

enabling oursales force to

truly understand and present the essenceof our value propositions to our customers.

We included key stakeholders from the retailorganisation to ensure full transparency aswell as full support on the launch in sharedroute-to-market channels such as ModernTrade and Wholesalers.

Ingredients of Success refers to all theelements in the value chain that NestlProfessional Middle East offers to its

customers; the right people that are extensively trained onour products, selling brands and products that address theneeds of our customers and their consumers.

In an exciting and interactive 3-hour session, we coveredthe following topics:

Product Knowledge - Understanding how our products are made and what makes them so great.

Introduction of the new SKUs - Understanding the valueproposition and FABs.

Presentation of the newly developed Nescaf Red Mug sales presenter.

Presentation of the re-launch activities.

The re-launch was supported by several activities with theobjective to aggressively fill the pipeline in Key Channels(B&I, Hotel and Street) with promotions that truly drive ourroute-to-market partners to push the product in order tostart creating a pull.

The Big Buy, Big Reward promotion - A 3-month progressive promotion that allows key selected wholesalersto earn up to 15% of total purchased value in customisedrewards.

Modern Trade Activation Activities - 1 off-shelf awarenesscampaign and 2 on-shelf on-pack promotions.

Stickbox promo - A luxury leather box with our range of single serve solutions sent as a direct mailer to key decision makers in 4 and 5 star hotels, followed up by our sales force with a customised combo offer.

It is foreseen that the new SKUs will have a combined NPSof 3 mio USD in the first seven months of sales, furtherboosting the Nescaf Red Mug category to 7 mio in 2010and double digit sustainable growth in years to come.

Nestl Professional Middle East: Adding value back intothe value proposition.

Nestle Professional Middle East: Relaunch of Nescaf Red Mug,introduction of 2 new SKUs instant success -Paul Nagelkerken


Red Mug-Ingredients of Success.

The group photo of the roadshow in Dubai.

Nescaf Red Mug 1.8g stickpack and Nescaf Red Mug

475g tin.

Theres only somuch you cando, this phrasemight befamiliar to mostpeople but notto the NestlProfessionalcommunity inMalaysiawhen itcomes to

maximising theresources wehave. The

Kalina machines in KFC have been installed throughout its400 plus outlets, and since then, about 100,000 cups ofNestl hot drinks, using products like Nescaf Alta Rica,Milo Hot Mix, Nestea Teh Tarik, Nestl Cappuccino Toppingare dispensed from the machines every month. All canistersin the machines are fully utilised.

The way forward is to introduce more new beverages forKFC, and Nestl Professional responded with the perfectsolution...the birth of Nescaf Cham. Kopi Cham is a locallyconcocted drink available in various eateries throughoutMalaysia, especially coffee shops.

It is a mixture of Coffee, Tea and Creamer. Nestl Professionalconcocted the perfect Cham for KFC Malaysia, maximising

the capability of the Kalina machine to thebrim, going through various dosage

combinations of Nescaf Alta Rica,Nestea Teh Tarik and Nestl CappuccinoTopping, thus, giving birth to NescafCham.

Nescaf Cham was launchednationwide in KFC through the KFC

Afternoon Cravers, from November toDecember 2009. KFC Afternoon Cravers

caters to patrons lookingfor a quick break fromwork in the afternoon,between 3pm and 6pm.

To add excitement to thepromotion, everypurchase of NescafCham came with 2 FREEpieces of Nestl Crunchchocolates (5g). Sales ofNescaf Alta Rica,Nestea Teh Tarik andNestl CappuccinoTopping increased by amassive 50% from AMSand this indirectly droveup sales of Teh Tarik (MilkTea) in KFC as well.

The success of this is a result of the hard work, creativityand perseverance of the colleagues in Nestl ProfessionalMalaysia and hopefully, Nescaf Cham will become apermanent feature in KFC Malaysia.

-Linus Chow


The print advertisementannouncing the Nescaf Champromotion.

The counter poster displaying the NescafCham promotion in KFC outlets.

Nestl Professional MYSG: Maximising the intelligence of Kalina

Salesincreased by a

massive 50% fromAMS and this

indirectly drove upsales of Teh Tarik(Milk Tea) in KFC

as well.

Creative buy for Nescaf Cham in The Sun.

Nestl Professional MYSG: Launch of Maggi HainaneseChicken Rice - Malaysia's favourite dish

Chicken rice isundoubtedly Malaysiasmost popular dish. Thedish is popularly servedwith either steamed orroast chicken, piping hotchicken broth, fiery chillisauce and freshcucumber. Affordable,filling and mouth-watering, Hainanesechicken rice is often thebest selling dish in thefast growing out-of-homesector such as full servicerestaurants, hawker stallsand food courts.

In February 2010, Nestl Professional Malaysia launchedMaggi Hainanese Chicken Rice Paste. The paste isconveniently packed in a compact and recognisable yellowMaggi tub. Once opened, the paste exudes the fresh aromaof ginger and garlic, guaranteed to amaze any chicken ricechef or connoisseur. In line with Nestl's commitment tonutrition, health and wellness, Maggi Hainanese ChickenRice Paste has no added MSG. The traditional method inrice preparation involves cooking the rice in stock that hasbeen simmering for several hours with chicken meat andcarcass. Maggi is now offering value and providing a handyone step solution for food operators.

Hainanesechicken ricewas alsofeatured inhigh profileevents suchas NestlsNourishingMalaysiaShowcasein April 2010and LIMA(LangkawiInternationalMaritime &

Aerospace Exhibition) 2009. The paste was used to makethe fragrant rice and proved to be popular amongst localand international guests.

The paste can also be used to make traditional chicken riceballs; made by skillfully shaping cooked chicken rice intobite-size balls. A total of 7,000 chicken rice balls were madeto complement healthy dishes and products featured duringNourishing Malaysia, to encourage healthier diets and activelifestyles among Malaysians.Meritus Pelangi Beach Resort & Spa Executive Chef,Mohammad Shamsul Azham said, Maggi HainaneseChicken Rice Paste provides the user with a base that canbe extended into a signature product depending on the

chefs creativity. It was the best seller during LIMA 2009,during which Meritus Pelangi Beach Resort & Spa was ableto promote Malaysia's most popular dish to internationalconsumers.

The quality, convenience and taste of our Maggi HainaneseChicken Rice Paste has given Nestl Professional Malaysiathe opportunity to prove its commitment in providingauthentic food solutions to localout-of-home operatorswhilst sharing our brandand local creation withNestl Professionalworld-wide.

-Wan Alleena Faiza Abdullah


The newly-launched MaggiHainanese Chicken Rice Pastein a signature yellow tub.

Sampling of sumptuous chicken rice ballsduring Nestls Nourishing MalaysiaShowcase in April 2010.

LIMA 2009 international guests enjoying Hainanese chickenrice made with Maggi Hainanese Chicken Rice Paste.

The quality,convenience and taste

of our Maggi HainaneseChicken Rice Paste has given

us the opportunity to prove ourcommitment in providing

authentic food solutions tolocal out-of-home operators

whilst sharing our brandand local creation.


Resorts World@Sentosa (RWS), one of the two integratedresorts in Singapore, opened its doors on 14 February 2010at an auspicious time of 12:18pm.

The RWS property includes6 hotels as well as 2 firsts- the first casino inSingapore and the firstUniversal Studios inSoutheast Asia.

Nestl ProfessionalSingapore is proud to bepart of this exciting project,working with RWS CasinoOperations to provide24-hour free flow hotbeverages to casinoguests, as well asrefreshing guests atUniversal Studios with ourMilo and Nestea range of

cold beverages. To date, we have installed a total of 68dispensers in RWS with more opportunities on the horizon.

A stroll in Universal Studios will allow one to see our 21 EZ-care machines and 14 Milano machines in 12 unique F&Boutlets. Our wide range of Nestea beverages provides theperfect solution to visitors in our warm tropical climate while

our coffee eases the mind of visitorswho seek respite from the buzzingexcitement.

Since the opening of both the casinoand Universal Studios, we have soldover 1,000,000 cups of beverages inRWS. This translates to 17,000 cupsconsumed per day and this is just thebeginning.

Our presence is furtherestablished in thefamily-themedFestive Hotel andartistic HotelMichael with ourcheery Kit Kat 4-

Finger bars, MiloReady-to-Drink cans,

Milo sachets and NescafGold Blend coffee stick packs.

The management and operational staff of RWS also havethe opportunity to recharge themselves with our selectionof hot and cold beverages round-the-clock in the staffcanteens. In addition, there are 2 staff convenience storeswhich cater to staff breaks. They are branded with ourvery own Kit Kat and Milo/ Nescaf Frappe, in sync withthe fun and colourful ambience of RWS. Kit Kat bars,together with our beverages are readily available in bothconvenience stores.

The staff and leadership team in RWS have given theirutmost support in the past 2 years leading up to the 2010opening. The strong partnership between Nestl and RWSwould not have been possible without their support. Andit is certainlythe greatestcommitmentanddedication ofthe NestlProfessionalKey Accountteam thathas pavedthe path forour successin RWS.

Nestl Professional MYSG: Integrated Resorts, Singapore -Resorts World@Sentosa -Jeremy Lee

Kit Kat branded staffconvenience store.

Sincethe opening of

both the casino andUniversal Studios, we

have sold over1,000,000 cups of

beverages inRWS.

Universal Studios Sentosa Mels Drive-In Manager,Steven, delighted with our Milo EZ-care single

machine.

Universal Studios Sentosa Celebrity Cafe staff showcasing our Milano machine.

Sjora in FSRs.Sjora in drink kiosks.Sjora as part of the bundle meal.

The new Nestl Sjora was officially launched in Singaporeon 15 January 2010 at Park Hotel. The internal launch tothe NPSG sales team was held the year before on 3December and the January event was to launch tothe distributors.

Conducting a separate launch for the distributor sales teamallowed for a more detailed briefing as well as a workshopto ensure the distributor teams have a very good grasp ofthe product. In addition, it also helped motivate them further,as they truly felt part of Team Sjora SG.

The journey of Sjora in Singapore to date has undergone3 major phases:

1) Market AssessmentResearch was done on the needs of consumers as wellas operators prior to the launch to fully ascertain the opportunities available. A Consumer Acceptance Test, acentral-location testing quant study, was conducted first,and overall, acceptance results indicated 78% Top 2 Boxscores. The team then approached selected key accountsto validate the emerging NutriRefresh opportunity - andthe feedback was likewise positive - customers did thinkthat there was a growing need for beverages that are both good for you, but still taste great.

2) Sales and Distributor LaunchArmed with positive consumer research and operator feedback, two launches were then conducted. It was decided that it would be best to separate the NP SalesTeam and Distributor Sales Team launches as each catersto a different audience. The former was more strategic,covering points such as consumption patterns and NutriRefresh. The latter was simpler, more to ensure theproduct proposition could be clearly explained.

3) Marketing ActivationThe last phase was all about broadening the top end ofthe brand funnel - generating awareness and trial. The most cost-efficient manner was to work with specific customers and develop bundle meal programmes.

This strategy proved very effective because the resultshave shown that once Sjora was bundled, there was verylittle swapping-out, i.e. consumers were happy to takeSjora as the default drink and did not see the need toask that it be changed to CSD or iced tea. The cuppageper day was also very encouraging; on some days, asmuch as100 cups were shifted.

Sell-in really began in earnest in February and within abouttwo months, the total NPS was already S$121,000 (CHF93,000) and distribution points hit 100. Penetration willcontinue in Q2, and we will be moving into MOP andEducation channels.

To sustain the momentum, the brand will move into the 4thPhase of the journey: Consumer Engagement. Team SjoraSG is working with some agencies for simple guerillamarketing initiatives, so consumers can really get up closeto the brand and this serves to plant the seeds of affinity.So watch this space for more updates!

Nestl Professional MYSG: Sjora launch in Singapore-Jazzy Javier


Nestl Professional NEAR participated in HOST 2010, thebiggest exhibition meant only for hotel suppliers. Held atHotel Savoy at Sharm-el-Sheikh, the exhibition lasted from10 May to 13 May 2010.

During the exhibition, Nestl Professional NEAR had around50 footfalls per day. Most of the Food and Beveragemanagers from big hotels and resorts in Sharm-el-Sheikhvisited our booth. Even managers from some other smallercities paid our booth a visit to find out more about what wehad to offer.

The exhibition was a success for us. We received ordersof 31 Hot Vending Machines which will be distributed inhotels and resorts of 10 major chains.

Nestl Professional NEAR: Participation of NP NEARin HOST exhibition -Haidi Rihan


The Nestl Professional booth at the exhibition.

Visitors to the booth.

The 2010 Conference was one of the biggest gatherings ofsales and marketing teams across all of the businesses andthe key to motivating everyone to grow the business further.

Held at the Manly Pacific in Sydney, it went for two and halfdays and unlike previous conferences, there wasrepresentation not only from the Catering Team but fromthe Beverage Solutions, CDS Gourmet Foods and NewZealand teams.

We introduced the theme TAG - Teamwork, Acceleration,Growth - a theme that we reinforced in various waysthroughout the conference.

One of the most important items on the agenda was theintroduction and clarification of the six growth platformsthat had been identified as drivers of our future growth:1) Nescaf2) Maggi3) Beverage Solutions4) Bakery Solutions5) Top 100 Platinum Customers6) Cold Beverages

These growth platforms were presented via an interactivetrade expo - adding a much appreciated visual stimulus tothe conference. It provided extra enthusiasm to an alreadyhigh level of excitement.

And while growth was the ultimate goal, we realised that toreach that goal, it was imperative that we also talked aboutbehaviours and attitudes, like teamwork, a sense of urgencyand passion, to achieve the growth we really wanted.

The 2010 conference was a huge success with motivated,enthusiastic people leaving the next day to take our TAGmessage back to their teams and in their day-to-day work.

Nestl Professional Oceania: A TAG conference to kick offour six growth platforms

The 2010 Nestl Professional Oceania Team at Manly Pacific.

-Editha Del Carmen and Sally Brennan


Trade show of the 6 growth platforms.

Nestl Professional TAG Logo.

Campbells Cash nCarry is unique in thatas well as being adistributor, it is also aretail outlet.

For about four months,we have been buildingup a strong relationship,helping with the site,advising on how thebusiness could runmore efficiently andgenerally looking foropportunities fromwhich we could bothbenefit.

When the Nescaf Blend 43s Red Balloon and Milo'sSummer of Cricket campaigns launched their promotions,it was identified that this could be a real opportunity to getvolume stock on display in Campbell's and strengthen ourrelationship with the local branch even more.

We suggested a jointpromotion displayusing a gondolaend. Campbell'shad never donethis before withus but becausethey trustedNestlProfessionalenough, theydecided to give us anaisle end for free.

A gondola wasconstructed displayingNescaf Blend 43 andMilo, using 7.5kg tubs

of Maggi Rich Gravy to visually separate the promotionsand as a way of giving Maggi exposure.

With this display, 1.5 pallets of Milo, 1 pallet of NescafBlend 43 and half a pallet of Maggi Rich Gravy was soldon this basis. This equated to between A$15,000 - A$18,000worth of stock.

The gondola nowtakes pride of placeat Campbells andwill remain there forapproximately eightweeks.

The success isattributed to havingbuilt up a strongrelationship with theaccount and itclearly yieldedbenefits for bothsides. A win allround.

Nestl Professional Oceania: Getting the best end of Campbell's-Norman Tilbrookt


Nescaf Red Balloonspromotions tin.

Thesuccess is

attributed to havingbuilt up a strong

relationship with theaccount and it clearly

yielded benefits forboth sides.

Display at Campbell'sCash n Carry.

Milo's Summer of Cricketpromotion flyer.

Nestle Professional Oceania: Nescaf LiquiFresh continuesto win new businesses

LiquiFresh Liquid Coffee Machines are fantastic. Theydeliver a great cup of coffee; theyre efficient, easy to use,they save our staff time, us labour costs and because thereis little wastage, the overall savings to our sites is impressive.- Kim B. Chilcott, Food & Beverage Manager, Twin TownsServices Club

Twin Towns is the largest Services Club in Australia,occupying almost five square kilometres of property spreadacross four sites, straddling Coolangatta on the Queenslandborder and Tweed Heads in New South Wales.

For 20 years, the Twin Towns Group had been supplied byAmore Coffee, a local coffee company based in the GoldCoast. However, in late 2008, with the help of Wally Carstens,Beverage Operations Manager for Queensland/NorthernTerritories, we secured the trial of two of our LiquiFreshLiquid Coffee Machines in the Outrigger Twin Towns Resort"Signatures" Restaurant.

These machines replaced the DE liquid coffee equipmentat back of house. For the staff, they were simple to use andmeant that they no longer had to run back and forth to thekitchen trying to keep the jugs of coffee up with demand.For the management, they freed staff up for other tasks,reducing the cost of overtime and as there was minimalwastage, saved the site money.

The Food & Beverage Manager was so impressed with thetrial results that we achieved placement of two moreLiquiFresh Machines, one in Flame, a busycaf where a free-flow of coffee is includedin the breakfast offer, and the other intheir Stars auditorium.

We were now on a roll. Everyfew months we successfullygained placements on siteof more machines. Weinstalled two machines inBreezes, a busy bar areaon the Gaming Floor wherearound 500 hot beveragesare offered to patrons everymorning free of charge.Two more LiquiFreshmachines went into the TwinTowns Club Banora and asoluble machine into theTwin Towns Juniors LeaguesClub. We also now havemachines in the ServicesClubs dedicated FoodCourt area and two portableLiquiFresh machines havebeen set up on a cart to bemoved around the site.

To date, in total there are 11 LiquiFresh machines installedthroughout the Twin Towns Services Club & Resort. Andthe story is always the same: great coffee, easy to use,more time, minimal wastage and saves money. We continueto look at more opportunities as other contracts come upfor review.

It is great to work in partnership with major clients whorecognise the benefits of the service and solutions we

provide.


-Kerryn Holmes

The fantastic LiquiFreshMachine.

Todate, in total thereare 11 LiquiFresh

machines installedthroughout the Twin TownsServices Club & Resort. Andthe story is always the same:

great coffee, easy to use,more time, minimalwastage and saves

money.

Channel Focus

In the Philippines, the biggest coffee sales volume (Nescafand Coffee-Mate combined) is from the Business andIndustry channel. This includes the vending solution businesswherein we have been partnering with the No. 1 vendingoperator for the past 15 years, Philippine VendingCorporation.

Currently, the largest contributor in this channelcomes from the growing Business ProcessOutsourcing (BPO) companies whereinpenetration is at 95% of current moving universeor 206,900 seats (390 accounts). The secondlargest is Offices with 647 accounts and wherewe see a big potential for growth. To date, wehave deployed 2,212 hot coffee machines inthese two sub channels. The nature of thischannel is that hot coffee is a standard employeebenefit usually given for free or subsidised bythe HR department for all employees.

Our Consumer

Validated throughconsumer research andactual vended cupreadings in 2009,Filipinos prefer to drinka hot creamy and sweetcoffee cup. They mainlydrink coffee to perk-upbut the average coffeecup consumed percapita is still below 1 cupper day. One of thereasons of lowconsumption is the bittertaste of coffee. Aconsumer test was alsoconducted to test thecurrent most vendedwhite coffee cup andresults showed room fortaste improvement.

The Opportunity

Last March 2010, Philippines launched the new NescafBurgundy framework to support its fundamental objective:To increase coffee consumption by uplifting the perceptionof Nescaf out-of-home from simply free coffee to coffeeconsumers will be willing to pay for.The first step was to improve the most vended white cup

recipe leveraging on Nestle in the market with its new ICEQtechnology for Nescaf. This new preferred recipespearheaded the launch of the new burgundy designs andhot coffee machines. A shift from ingredient-focused tomore descriptive and coffee shop-like machine selectionswere also introduced, such as Creamy and Sweet CoffeeBrew as the new most vended white cup. Another additionto the selections was the new Espresso shot which wasmade specifically for stronger coffee drinkers who can drinkit as it is or add to any of the other machine selections ifdesired. Initially, the launch took place internally in MakatiNestl Centre and NBS-AOA as a dry run for roll-out toBPO's and offices nationwide this year.

Our Next Step

All the hot coffee machines in BPOs and offices will betransitioned to the new Nescaf Burgundy framework withinthe year.

Also within mid 2010, the new Nescaf Burgundy frameworkwill support a new channel venture: launch of coffee in thecommercial segment through convenience stores. This willinclude a locally developed new product, Nescaf CaramelMacchiato, which will be tested for preference versus thewell-known Starbucks version.


Nestl Professional Philippines: Relaunch of Nescafin BPO and offices

Nescaf Burgundy menu tent cardin the pantry area.

Nestl Centre: Coffee cornersredesigned.

The Nescaf relaunch in Makati Nestl Centre, led By CBM Zander Taningco.

-Alex De Col and Carla Carballo

On 23 April 2010, Nestl Philippines, in partnership withthe Philippine Business for Social Progress (PBSP), theAsian Institute of Management, RVR Center for CorporateSocial Responsibility and the Asian Development Bank(ADB), held the first Creating Shared Value Forum in theAOA region. The theme for the forum was Creating SharedValue: Beyond CSR. About 260 people from governmentaland non-governmental organisations, business institutions,the Academe, media, businesses, bilateral and multilateralaid agencies, and a number of Nestl employees activelyparticipated in this forum.

The Philippine CSV Forum aimed to engage a diverse groupof stakeholders - governmental and non-governmentalorganizations and the private sector - in a pubic discussionof the evolving concept of Creating Shared Value or CSV.The forum was also a platform for the diverse group to hearan experts focused discussion on our country's problems,pertaining to Nutrition, Water and Rural Development.

Mr John Martin Miller, Chairman and CEO of NestlePhilippines, opened the forum, encouraging the businesscommunity and other sectors of society to form an era ofcollaboration and to reinforce theincreasing role of the private sector,particularly the multinationalsin development.

Professor Mark Kramer, Senior Fellow atHarvard Universitys Kennedy School ofGovernment, who in collaboration withMr Michael Porter, also a Senior Fellowat Harvard, coined the term CSV, was thekey note speaker for this event. Mr. Kramerexplained the need for transition fromCorporate Social Responsibility to CSV.He emphasised the importance ofstrengthening collaborative ties withdifferent sectors of society. He mentionedthe importance of providing competitivesuccess and at the same time reallymaking a material difference.

Following Professor Kramers lecture, DrMario Capanzana, Director of the Foodand Nutrition Research Institute discussedthe topic of Nutrition. He emphasised theneed for promoting affordable but healthy

food innovations accessible to the bottom of the pyramid.Mr Arjun Thapan, Special Senior Advisor to the Presidenton Infrastructure and Water from the Asian DevelopmentBank, then spoke on the topic of water. In his speech, hementioned that Managing our waters future is very mucha function of the choices we make today.Rounding off the event was Mr Tony Meloto, Chairman ofGawad Kalinga, who spoke on the topic of Rural andCommunity Development. He said, I am happy that wetalk now about creating shared value because that is lasting...CSV must help Filipinos end poverty in the Philippines,Asians end poverty in Asia. It goes beyond profit and self-interest. Some call it enlightened self-interest; Bill Gatescalls it Creative Capitalism. I just call it patriotism as aFilipino.

The event was moderated by Ms Gang Badoy, ExecutiveDirector of Rock Ed Philippines. In closing, Gang said, Irealised the Philippines is actually this room. We haveeducators, people in business who have consciences,people who prioritise social impact, sometimes over profitbut for the most part, a balance of it, this is the Philippines.Thank you very much and please, I beg you, continuecreating shared value.


Nestl Professional Philippines: Nestl Professional joins 1stCreating Shared Value Forum in the Philippines

From left to rightDr Mario Capanzana, Director of Food&Nutrition Research Institute; Mr Arjun Thapan,Special Senior Advisor to the President on Infrastructure and Water from the AsianDevelopment Bank; Mr John Martin Miller, Chairman and CEO of Nestl Philippines;Professor Mark Kramer, Senior Fellow at Harvard University's Kennedy School ofGovernment; Mr Tony Meloto, Chairman of Gawad Kalinga; and Ms Edita De Leon Headof Corporate Affairs.

-Misha Rabat and Sunny Yu

Lukas Paravicini, CFO of Nestl Professional, visited thePhilippines in April 2010. He spent two days with the team.

6 April 2010 was devoted to trade checks of the variouschannels and key accounts of NP. This included visiting theBusiness-On-Wheels (BOW) model catering to the streetoutlets such as Carinderias (Street Food Stalls) and Kapihans(Street Coffee Stalls). He also visited BPOs (call centres),foodcourt clusters, FSRs and key accounts namely Jollibeeand Chowking. The trade visit was headed by NP NSM PatDino.

On 7 April, the NP Mancom Team headed by CBM MrZander Taningco presented plans and updates for 2010.

Lukas was visibly impressed with the performance of theNP Philippines team. Presentations covered an overviewof the business which included key drivers in Category,CCSD, Sales and Finance. Also discussed were thechallenges and issues faced in food and beverages, as wellas the short to medium term plan in addressing these.

In the end, Lukas congratulated the NP Philippines teamfor a job well done and for having very clear plans and focuson actual execution. He likewise challenged us to acceleratethe OOH business.

The following day, Lukas joined the rest of the market CFOsfor the Key Market F&C Conference which took place from8 and 9 April.

Some CSV best practices programmes were featuredthrough booth exhibits right outside the plenary hall. NestlCSV programmes included the following: Ice-creams carrito programme Pulilan and Lipa factorys cut and sew programme SH&E and SCM featuring their Water, Environment and

Greening the Supply Chain programmes Corporate Affairs featuring the Nestl Healthy Kids

programme Sales featuring the Micro distributor programme Nestl Professional featuring their BOW programme Nescafs Coffee Farming Initiatives and Adopt a Lil

Beanie Initiative, Bear Brand's Laki sa Gatas and MilosChamp Camp.

With this forum, we are hopeful that businesses willremember their role in our countrys development, createpartnership with different sectors of society, develop focuson the causes they choose to undertake, and thereby trulymake a social difference in the years to come.


Nestl Professional Philippines: NP Global CFO visitsthe Philippines

NP CBM ZanderTaningco shows Lukas

outlets in the streetchannel.

Street Channel Manager, Liezl Lumbuan, and CCSD head, SunnyYu, together with CBM Zander Taningco (centre) at the Business-On-Wheels (BOW) display at the CSV Forum.

-Cindy C Banaria

Lukas greets the Philippines NP Team during the market visit.

Nestl Professional in the Philippines will embark on ajourney towards transforming its team to become expertsin foodservice management by entering into a partnershipwith a hotel and business school in Manila - Enderun College.

Enderun is a very prestigious culinary and managementschool located at Fort Bonifacio, Makati. It has academicpartnership with the world famous Les Roches InternationalSchool of Hotel Management in Switzerland.

The full curriculum will run for 153 hours. It features twomajor training dimensions: Technical Skills andSoft/Behavioural Skills. The Technical Skills training focuseson increasing one's knowledge and understanding of thehospitality and restaurant business and operations. Usingclassroom teaching methodology, participants will beexposed to industry-related subjects which allow them tothink and speak F&B with ease.

The subjects that will be taught include the following: Introduction to Hospitality Industry Introduction to Restaurant Operation Kitchen Management Introduction to Culinary Arts Beverage Management Personality Development Platform Skills and Presentation Training Solutions Selling Customer Service Training

The graduates of this curriculum will receive the PostGraduate Professional Certificate Course in Food ServiceManagement.

To kick-off the partnership, NestlProfessional held its national teambuildingactivity in February 2010. NestlProfessionals Competency Head, BingRubia, together with NP HR partner, FaridMohd, organised the activity for NP.NP was grouped into 8 teams and eachteam was assigned to complete a specificdish which will eventually be served for lunch.Judges from Enderun rated the participantsin terms of teamwork, Claygo, taste andpresentation of dish. There was also a timelimit given to each team.

In the end, the NP team who prepared theVietnamese roll bagged the overall prize.

Each participant was presented with a Certificate ofParticipation, signed by Chef Thomas Wenger, SeniorCulinary Head of Enderun.

Nestl Professional Philippines: Nestl Professional partnersEnderun College to build capabilities


The Nestl Professional Team.

A NP staff member races to finish the dish assigned to themduring the Enderun Team Building Activity.

-Bing Rubia


On 15 February 2010, in keeping with NPIs commitmentto CSV, the entire Nestl Professional Mancom visited theSOS Childrens Village Philippines. The group wasaccompanied by David Laurel and Patricia Rabat ofCorporate Affairs.

SOS Childrens Village Philippines, founded by Dr GeorgeWinternitz and his wife Susie in 1964, is a private, non-political, non-denominational organisation providing long-term family-based care and education to children in need.

SOS aims to provide a home and family for orphaned,abandoned and neglected children in extreme difficultcircumstances. Here, competent and responsibleSOS Mothers and co-workers provideunconditional love, inspiration, support andencouragement for these children to taketheir place in society, enriched with theirGod-given talents and contributetheir share to the progress ofthe human family.

The key to thesuccess of SOSChildrens Village is the SOS Mother. The SOSmother builds a close relationship with every child entrustedto her, and provides the security, love, and stability thateach child needs. As a child care professional, she livestogether with her children, guides their development, andruns her household independently. She recognises andrespects each childs family background, cultural roots, andreligion. To run the household, each SOS mother is provideda monthly allowance to purchase food and other items forthe household.

A Truly Inspiring Experience

During the visit, it was evident that the children in the SOSHomes we entered were full of confidence and warmth.During interviews, some children eagerly shared their dreamsand aspirations.

As SOS Childrens Village National Director BienvenidoDelgado pointed out, we believe the measure of successis not academic achievement but rather self-sufficiency.Once the children are in our care, we work to make themstand on their own two feet. We provide food and clothing.We provide shelter and schooling. Most importantly, we

provide each child with a mother who will care and nurturethe child to adulthood. What we strive to provide

is a path to independence. We help them todayto make sure they will not need help tomorrowas they grow to become mature, responsibleadults.

The Heroes

The Archbishop of Manila, Gaudencio B. CardinalRosales, attested to the brilliance of the SOS model.

In a moving letter addressed to would-be supporters,he said The genius in the SOS Childrens Village philosophyis to place kindness, respect and trust, as it were nestling,in the house mother, at many times assisted by an auntie,in order that through and from them the children imbibe therest of the virtues. In this regard, the SOS Mothers, whoare single women volunteers who go through a rigorousscreening process and intensive 2-year training programme,are the real heroes.

NP & SOS: Winning Lives together

What are the plans of NP in achieving CSV together withSOS? As a start, NP will be focusing on Rural Developmentof the CSV framework.

Rural Development:

One of the key strategies for NP is to strengthen the route-to-market programme called Business On Wheels (BOW)for the Out-of-Home Street Channel. A key element is tohave a steady supply of BOWers. In partnering with SOS,NP can offer the BOWer programme as a livelihoodopportunity to SOS family members who have graduatedfrom the SOS Programme, providing them with a positive

Nestl Professional Philippines: Nestl Professional visitsSOS Childrens Village

NP MANCOM together with Misha Rabat and Dave Laurel visitkey members from the SOS Village.

-Sunny Yu and Zander Taningco


path towards their journey to self-sufficiency. This canalso complement SOS Family StrengtheningProgramme where livelihood opportunities are offeredto families outside the SOS village and in areas whichSOS supports.

For NP, this will be an excellent source/pool of potentialBOWers and even Business Development Officers aswe accelerate our expansion nationwide, helping fellowFilipinos improve their lives in the process.

Positive Small Steps Forward

As an initial step, we have agreed to startwith a recruitment roadshow across allSOS Childrens Village sites andcommunities nationwide in May.

Another inititative is to expose moreNP staff to SOS and CSV. In ourMarch Nestl ProfessionalOperations Meeting (NPOM), weorganised a visit to SOS ChildrensVillage in the morning and held themeeting in the afternoon. Already anumber of ideas are being shared andpossible synergies are beginning to sprout. As wedialogue further, we become inspired and motivated to trulyWIN LIVES together!

NP CBM Zander Taningco (5th from right) togetherwith SOS MOM Mama Beth (encircled in red)and 4 of her 10 beloved children in their home.

ForNP, this will be an

excellent source/poolof potential BOWers and

even Business DevelopmentOfficers as we accelerate our

expansion nationwide,helping fellow Filipinos

improve their lives inthe process.

The Event

Culinary art is Sri Lankas largest food exhibition for theF&B fraternity which is organised by the Chefs Guild ofLanka once every two years. This year, the 13th CulinaryArt exhibition was held at the BMICH, Colombo from 5 to8 February with the participation of over 1600 entrantsincluding 900 chefs.

The participantsrepresented fivestar hotels,resorts, hotels inthe MaldivesIslands, hotelschools,restaurants,airline cateringestablishments,Sri Lanka AirForce andHospitals.

Culinary Art2010showcased thetalents of localchefs, mainlyyoung chefsfrom 130 hotelsand gave themthe opportunityto berecognized.This year it hadover 6,000dishes to pleasethe palate andthe eye.

Internationallyqualified judgesthat are alignedto the WorldAssociation ofCooks Societies(WACS) were flown in from all over the world to judge thisprestigious event. We were privileged to have the advisorychef of Nestl Professional Middle East - Mr Zain Sidhu asone of the key judges for the event.

Nestl s participation

In consideration of the anticipated growth and the positivesigns in the tourism industry, Nestl stepped forward to co-sponsor this mega event in order to further strengthenrelationships with the hotel industry.

A Nestl Chefs Corner was created at the entrance whereall participants were given the opportunity to taste Nestlsrange of hot beverages. More than 2000 chefs & hotelierssampled Nescaf and Nestea during this event.

The Sri Lankan cookery competition, the most prestigiousevent, was sponsored with the theme of You & Maggi maketastier meals.

All recipes during the contest had to include a Maggi product.Maggi Coconut Milk Powder, and Maggi Chicken Stockusage and its superior taste were thus established amongstthe chefs.

There were more than 150 participants at the Maggi LiveCooking Competition and Colombo Hilton won the Maggitrophy for the Best Sri Lankan Meal.

More than 21 companies were represented at the event.The show was dominated by Nestl due to the heavybranding and visibility of Nescaf and Maggi. This was onlypossible due to the strong relationships the NestlProfessional team has developed with the Chefs Guild ofLanka.

Other Activities

Milkmaid Trophy was awarded for the Best Creative Bakery Show Piece

Karapincha Soup Sampling - it was a great opportunity to let the hoteliers taste Maggi Karapincha soup.

Nestl stall - to establish new customer contacts.


Nestl Professional SAR: Reaching out to the Chefs -Culinary Art 2010 -Deepal Abeywickreme and Jagath Wedage

Enjoying a cuppa at the NescafChefs Corner.

Maggi Live Cooking Competition.

Eager consumers at our soupsampling booth.

After a long periodof negotiation tointroduce Nestlproducts on themenu, to jump startthis year's summerseason we havesuccessfullymanaged tointroduce NestlLion Mix as one ofthe four summertoppings consumerscan choose from fortheir McFlurry icecream in any one oftheir restaurants.

In Turkey, McDonalds is the second biggest global fastfood chain and has been operating for the last 24 yearswith the Anadolu Group. It has more than 130 restaurantsacross the country, employs 4000 people and serves around73 million consumers.

With the intense competition in QSR channel, McDonald'shas diversified and adapted some of their meal offersaccording to local taste, always searching for differentiatedproducts targeting the different consumer segments suchas breakfast menus, traditional menus, salads, and theirrange of deserts.

With the strategy to have a differentiated offer in the dessertrange, Nestl Professional has searched for numerouspossibilities that will provide McDonalds the opportunityto delight their consumers with a special treat. Seeing astheir expectation was to have a differentiated product notreadily available on the local market, welooked around for opportunities thatwould suit both theirmanagement as well as theTurkish consumers taste.

Imported from Germany, as of the beginning of April theirconsumers have two options of enjoying Nestl LionMcFlurry, with the established dosage or with a slight upcharge, a double dose of topping is given for those chocolatelovers looking for more intense flavor. Initial volume forecastshave already been increased twice due to a very good start,projecting very promising results with this new introduction!

Perfect harmony of caramel, wafer crumbles and chocolateof Nestl Lion are now in all McDonalds restaurants invitingconsumers to refresh themselves on this years hot summerdays and nights.


Nestl Professional Turkey: McDonald's Turkey servingMcFlurry with Nestl Lion Mix! -Elif Yonca & Petek Boyacigil

POP branding for Nestl Lion McFlurry.

Nestl Lion branding in one of theMcDonalds outlets.

Initialvolume

forecasts havealready been increased

twice due to a very goodstart, projecting very

promising results withthis new

introduction!

With the aim to reposition the culinary business in Turkeythrough an improved image and product offering, workbegun some time ago to review our product range, brandimage, sales information and necessary tools required toconquer the kitchens of the numerous high quality hotelsand restaurants thriving in Turkey, delighting both nationaland international consumers daily.

Eyp Kemal Sevin was born in Istanbul on 28 May 1976.He is a member of the European Cooks Association, WorldCooks Confederation, an executive member of EuroasiaCooks Association and Kitchen Professionals Association.He is also a member of the Kitchen Cultures research groupof IOV supported by UNESCO. He has won more than 80awards from almost 100 national and international cookingcompetitions and has participated in cooking shows forvarious national TV broadcasting channels since 2001.

Nestl Professional Turkey has signed an annual agreementwith Chef Sevin and his team to assist us in achieving thischallenging objective through product demonstrations andsales team trainings. We will also leverage on their experienceand know-how in our I & R research exploring new customerneeds and opportunities.

Chef Sevin and his team have begun presenting anddemonstrating our current product range to keycustomers and opinion leaders in the gastronomyfield. Through this and the sampling of a variety ofour future range of products, they have gained keyinsights into new product developments targeted atthe premium culinary segment. They have also startedculinary and product trainings for the whole NestlProfessional sales team, giving them insights on thepreparation of gourmet dishes with products theyhave been selling for numerous years.

With the arrival of Chef Sevin and his team, NestlProfessional has experienced increased support inproduct demonstrations and from important andexclusive culinary organizations. We are now able toleverage the Nestl brand across numerous channelsconveying a coherent message from one professionalto another.


Nestl Professional Turkey: New Advisory Chefs with NestlProfessional Executive Chef Eyp Kemal Sevin, one of Turkeysmost successful and awarded chefs, and his team

-Elif Yonca & Petek Boyacigil

Executive Chef Eyp Kemal Sevin, one of Turkeys mostsuccessful and awarded chefs, and his team.

Culinary workshop with the sales team.

Hostex took place in Cape Town from 8 to 10 March 2010at the Cape Town International Conference Centre. It is thelargest and longest running exhibition of its kind in Africa,and the only one endorsed by the South African ChefsAssociation.

There were over 220 exhibitors and the South African ChefsVillage was once again the highlight of the 3-day show.Hostex Cape Town was ideally timed to assist the industryin meeting the demands of tourists, giving visitors a one-stop destination from which to source the products andservices to meet the demands for the FIFA 2010 World Cup.

Nestl Professional was the proud naming rights sponsorsof the South African Chefs village and used this opportunityto launch the new range of Maggi Premium sauces, as wellas to create product awareness for Sjora and Milo coldbeverages. Sampling in the past has always proven to besuccessful in this product category as it allows the customersto sample at their leisure. This same methodology wasemployed at the event and it was a success!

The South African Chefs Village was filled with activity, withdemonstrations on the latest culinary products and trends,competitions, and of course, the much anticipated launchof the Maggi Premium sauces.

The Liven Up Your Menu campaign showed the 4 newMaggi sauces in various applications with top chefs MartinKobald (Nestl Professional Corporate Executive Chef) andStephen Billingham (President of South African ChefsAssociation) battling it out to try to present the best tastingmeal to the audience. The new sauces are available inWasabi Flavoured Plum, Teriyaki, Zesty Citrus and SpicyHot and Sour. Many chefs commented on the originality ofthe flavours and the authenticity of the range which wouldadd excitement and new flavours to menus around thecountry.

All in all, it was deemed a huge success and 6,000 visitorshad a chance to interact and experience the start of anexciting innovation pipeline from Nestl Professional in2010.


Nestl Professional ZAR: Nestl Professional sponsors the SouthAfrican Chef's Village at Hostex in Cape Town

-Tracey Felicidade Jones

Spectators look on while chefs demonstrate the latest culinary products.

Nestl Professionallaunched the newMaggi Premium saucerange at Hostex inCape Town from 8 to10 March 2010.

The range consists offour sauces which areauthentic in taste andintense in flavour,allowing chefs to createsophisticated flavourson the menu.

The first sauce is aTeriyaki sauce which ismade from anauthentic Japaneserecipe using a blend ofsoy and selected

spices. Spicy hot and sour sauce is a true taste sensationand chefs relish the flavour hit of spicy chilli, coriander,garlic, capsicum and lemongrass. Wasabi Flavoured Plumsauce is an essential blend that merges sweet, spicy andsavoury to perfection whilst the Zesty Citrus sauce is atangy blend combining the sweetness of citrus with garlic,soy and ginger.

The sauces were launched in response to the need forpremium authentic tasting products which chefs can usein their kitchens to create a base to creating innovativerecipes.

The sauces are ready to use and can be used in variousapplications from marinating to stir-frying as well as beingused as a dip or dressing. A small amount of Maggi Premiumsauces is all one needs to experience intense flavour andmaximum enjoyment.

The sauces are also cook-chill stable, bain-marie stableand Halal. They are sold in 500ml bottles as this squeezebottle allows the chef to handle the bottle with ease in a

busy kitchen. It also aids in portion control as these saucesare intense in flavour, so only a small amount needs to beadded to any meal.

The best part about the new sauces is that our customerslove them. KFC, current sponsors of the national Proteacricket team, love the Zesty Citrus sauce so much that theymade a Caribbean burger around the sauce, to show supportfor our cricket team while they are playing cricket in theWest Indies. This burger was launched on 5 May and willrun as a promotion until the end of June 2010, promisinga volume of 14.6 tons.

We are confident that we will get great support for this newsauce range as it brings a new flavour dimension into SouthAfrican professional kitchens!


Nestl Professional ZAR: Nestl Professional launches the MaggiPremium sauce range -Tracey Felicidade Jones

StephenBillingham,Current Presidentof the SouthAfrican Chef'sAssociation, lookson while MartinKobalddemonstrates theMaggi sauces.

Martin Kobald, Nestl ProfessionalCorporate Executive Chef and PastPresident of SACA, demonstratingthe use of the Maggi sauces.

How to reduce,prevent and cope with stress


Strategy 1:Avoid unnecessary stress- Learn to say no- Avoid people who stress you out- Take control of your environment- Avoid hot-button topics- Pare down your to-do list

Strategy 2:Alter the situation- Express your feelings instead of bottling

them up- Be willing to compromise- Be more assertive- Manage your time better

Strategy 3:Adjust your attitude- Reframe problems- Look at the big picture- Adjust your standards- Focus on the positive

Strategy 4:Accept the things you cant change- Don't try to control the uncontrollable- Share your feelings- Learn to forgive

Strategy 5:Make time for fun and relaxation andadopt a healthy lifestyle

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