Nestle overhauls R&D operation to meet “fast-changing consumer demand”

Our take: Merger indicates Nestle looking to speed up its product innovation process... | ------

In an attempt to speed up the development of new products, food giant Nestlé is to combine its scientific research operations into a single unit.

The company will bring together its two scientific discovery units, the Nestlé Research Center and the Nestlé Institute of Health Sciences, to build "one impactful organisation" called Nestlé Research.

Nestlé suggests combining the facilities will take its research work to a new level.

Like many packaged food giants it has struggled with slowing sales growth in recent times as smaller, challenger brands increasingly provide intense competition when it comes to product innovation.

It is also under pressure to improve its performance from activist shareholder Daniel Loeb.

The new research entity will continue to be based in Lausanne, Switzerland and will employ around 800 people.

The reorganisation will be effective from 1 July 1 and will not involve job cuts or the closure of facilities.

CEO Mark Schneider said: "Nestlé's success is built on meeting fast-changing consumer demand around the world. In this dynamic environment innovation leadership is key to winning in the marketplace.

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