Nestlé Growth Strategy – Overview
- Nestlé prefers RIG-led (real internal growth) growth, which focuses on volume, not pricing.
- Coffee and confectionery lead performance with strong volume momentum
- Emerging markets drive growth while developed markets remain weak
- Marketing investments increase to rebuild brands and improve effectiveness
- Portfolio streamlining focuses on key high-growth categories
After years of price hikes, portfolio shuffling and no drawdown scamsNestlé is changing the conversation. At the dbAccess Global Consumer Conference in Paris this week, C.E.O. philip navratil It made it clear that the focus is firmly on growth.
nestle development
“We are focused on growth,” Navratil says, explaining “RIG-led growth.” In other words, the food and beverage giant is looking to grow volumes and product mix through strong execution, innovation and brand investment rather than relying on price increases. He says this will “solve” the growth and performance problems currently experienced by multinationals.
He further said that the company was affected by “distractions” at the beginning of his tenure, referring to brands that the company has since started selling off, including ice cream And Waters.
Interestingly, Navratil again referred to the company as a “water disposal” rather than part of the Waters business, raising questions about whether Nestlé is preparing to exit the category entirely. We’ll have to wait and see, although the fact that the company keeps referencing the sale indicates that we won’t need to wait long.
Nestlé’s recent announcement to refocus its portfolio reinforces four pillar strategyPrioritizing meals and snacks, coffee, nutrition and pet care.
But, even among those four categories, two categories still stand out – confectionery and coffee.
Confectionery and Coffee
Confectionery and coffee are emerging as clear standouts in Nestlé’s streamlined portfolio.
both categories are Providing strong volume momentum Compared to the group average, this was helped by high brand recognition, repeat consumption opportunities and continued headroom for premiumisation. Confectionery, in particular, is benefiting from resilient demand from global power brands such as kitkatWith product updates and new formats that aim to remain affordable while nudging buyers towards higher-value options.
Meanwhile, coffee remains Nestlé’s biggest growth engine. From mass market to premium, the category is performing strongly with Nescafé driving scale and reach, and Nespresso encouraging consumers to trade up.
“Coffee has become a real playground for expansion,” Navratil says, adding that he describes it as a place where he sees “long-term structural growth.”
emerging markets
Growth for Nestlé, like many other CPGs, is coming primarily from emerging markets, where rising incomes, population growth and expanding middle classes continue to support demand. These sectors are delivering strong volume growth, helping to balance slower growth in developed markets, where consumers remain cautious and spending is under pressure.
As a result, Nestlé’s growth story is becoming more emerging-market-led, with developed markets requiring better-value offerings, fresh innovation and marketing that delivers clear returns.
The shift reflects a broader industry trend, as larger companies move away from value-based growth and back toward volume.
Marketing investment and brand rebuilding
Marketing also featured prominently in Navratil’s comments, with the CEO emphasizing that strong brand building is central to unlocking RIG-led growth. Nestle is increasing investment behind its biggest brands, while also thinking about how and where that money is spent.
“We are upgrading our marketing strength and our marketing machinery. We want to be a company that inspires consumers and drives trends,” says Navratil.
Rather than simply increasing budget, the focus is on improving effectiveness – making marketing tougher through better execution, clearer messaging and more disciplined measurement of returns. There is a greater emphasis on digital channels and data-driven campaigns as well as refreshing brands to keep them relevant to young consumers.
“We are not known as the best brand builders in the industry,” says Navratil. “We need to be the best brand builders in the industry.”
to organize
Navratil underlined the need for a simpler, more focused Nestlé. Having already exited or begun exiting several non-core businesses, the company is keen to reduce complexity and focus resources on areas with the strongest growth and margin potential.
By sharpening its portfolio and organizational focus, Nestlé believes it can move faster, allocate capital more effectively and prioritize its largest brands and categories.
What’s next for Nestlé?
Although some aspects of Nestlé’s future remain unclear – notably its Waters business – its primary focus is unambiguous.
After several years of price increases, portfolio changes and external disruption, the focus is coming back to basics – growing volumes, strengthening brands and improving execution. That means a simpler business built around fewer, larger categories, more investment behind the most important brands and a heavier reliance on emerging markets to drive momentum.
If successful, this could help reset growth metrics that are under pressure and reassess Shareholders whose trust is challenged. It could also provide a blueprint for other large CPGs facing similar struggles.
Now the work is of delivery. RIG-based growth is harder to achieve than value-based profits, requiring rapid innovation, strong marketing and close alignment with increasingly cautious consumers.
If successful, Nestlé’s strategy could pave the way for growth across all food and beverages.