The main products of multi product plants include processed milk, yogurt, juices, infant formula cereals and bottled water.
The company has a vast sales and distribution network throughout the country to ensure that it’s products are made available to consumers throughout the country.
“A lot of companies are coming up to tap Pakistan’s” food market where 95 percent of the products are sold unpackaged, said Misbah Iqbal, an analyst at AKD Securities Ltd. “That is certainly creating some challenges for established names.
But I don’t see a big threat for Nestle in the next two years as the size of the cake is still big enough.
Nestle Pure Life is now number 1 brand in the world in bottled water brand category.
Nestle Pakistan today is the leading Food & Beverage Company in Pakistan with a key focus on Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to serve the consumers.There are 190,000 small farmers associated with Nestle Pakistan across the Punjab and Sindh, providing quality milk through an integrated network.The biggest challenge for the company is the increase in prices of commodities and how to absorb the price increases and not to pass the end consumers.Nestle Pakistan brands are the main flag bearers of the company’s image.Nestle Pakistan now operates the biggest milk collection operation in Pakistan, Currently; Nestle Pakistan collects milk from an estimated 190,000 farmers spread over 146,000 sq Km’s in the province of Punjab and Sindh.Nestle Pakistan has announced that the company is introducing their juices brand Fruita Vitals in prisma packaging format of Tetra Pack which will enable them to distribute their juices in distant markets without refrigerator and without preservatives.Nestle Pakistan has realized that by keeping their profits margins high over a long period of time they have allowed lot of companies to become their strong competitors and no one is more threatening than Engro foods and their brands in the processed milk category.Innovation & renovation remained an integral part of the Nestle Pakistan Limited operational strategies and vision for growth.Nestle Pakistan is also exporting their products and in the current year the company has experienced 25% growth in exports to Afghanistan The major new product launches during 20 included: MAGGI Umda Maza, MAGGI Noodles (Bar-B-Q, Masala & Karara), NESTLE Peach Nectar, LACTOGEN low lactose, & NESTLE Pure Life–5 liters.Despite energy crises, very tense security situation, devastating floods and high inflation in the country, Nestle Pakistan achieved a strong growth of 25% in the previous year 2010 and net profit increased by 37%.Market is expecting even better results in 2011 as the indicators are all very positive About 60 per cent ingredients in beverages and cereals are acquired from local sources while dairy products are processed from 100 per cent locally available raw milk.