Nestle will make further cuts to the amount of sugar, salt and saturated fats in its products as it tries to improve the image of packaged foods in the eyes of health-conscious consumers, the Swiss group said on Tuesday.

Nestle and its rivals are under pressure from a shift in consumer preferences towards healthier food and away from processed products such as instant noodles and frozen pizza.

The maker of KitKat chocolate bars and Maggi soups is responding with healthier products and is also moving into higher growth categories, such as coffee, pet care, bottled water and infant nutrition.

The company said it wanted to cut the sugar by another 5 per cent, on top of the more than 34 per cent reduction achieved since 2000, and salt by another 10 per cent in addition to the more than 20 percent saved since 2005.

It also confirmed its commitment made in 2014 to reduce saturated fats by 10 per cent in all relevant products that do not meet World Health Organisation recommendations.

"The trend towards healthier foods is to be observed worldwide," Chief Executive Mark Schneider told journalists at a briefing in Vevey on Lake Geneva, where the company has its headquarters.

"We are putting a lot of resources into this," Schneider said. Nestle spent 1.72 billion Swiss francs ($1.71 billion) on R&D last year.

Food and drinks for children were a particular area of focus, Schneider said as he presented a "Nestle for Healthier Kids" campaign that also includes programmes and online services to educate parents and carers on what children should eat. Nestle said it had launched more than 1,000 new products last year to meet the nutritional needs of children and would further enhance products for kids with fruits, vegetables, fibre-rich grains and micronutrients.

Reformulating recipes to make its products healthier is part of Nestle's effort to keep its products attractive for consumers.

This year it launched a new "Milkybar" white chocolate bar that has 30 per cent less sugar.

"Combining the convenience of packaged foods with healthy good nutrition, that is where our sweet spot is," said Schneider, who took the top job at Nestle last year with the declared goal of reigniting sales growth.

To achieve this, Nestle has also been shedding underperforming businesses such as U.S. confectionery and expanded Nestle's footprint in health foods, with vitamin maker Atrium, and coffee thanks to a deal with Starbucks announced just last week.

Nestle and its rivals are under pressure from a shift in consumer preferences towards healthier food and away from processed products such as instant noodles and frozen pizza

Nestle will make further cuts to the amount of sugar, salt and saturated fats in its products as it tries to improve the image of packaged foods in the eyes of health-conscious consumers, the Swiss group said on Tuesday. Nestle and its rivals are under pressure from a shift in consumer preferences towards healthier food and away from processed products such as instant noodles and frozen pizza. The maker of KitKat chocolate bars and Maggi soups is responding with healthier products and is also moving into higher growth categories, such as coffee, pet care, bottled water and infant nutrition. The company said it wanted to cut the sugar by another 5 per cent, on top of the more than 34 per cent reduction achieved since 2000, and salt by another 10 per cent in addition to the more than 20 percent saved since 2005. It also confirmed its commitment made in 2014 to reduce saturated fats by 10 per cent in all relevant products that do not meet World Health Organisation recommendations. "The trend towards healthier foods is to be observed worldwide," Chief Executive Mark Schneider told journalists at a briefing in Vevey on Lake Geneva, where the company has its headquarters. "We are putting a lot of resources into this," Schneider said. Nestle spent 1.72 billion Swiss francs ($1.71 billion) on R&D last year. Food and drinks for children were a particular area of focus, Schneider said as he presented a "Nestle for Healthier Kids" campaign that also includes programmes and online services to educate parents and carers on what children should eat. Nestle said it had launched more than 1,000 new products last year to meet the nutritional needs of children and would further enhance products for kids with fruits, vegetables, fibre-rich grains and micronutrients. Reformulating recipes to make its products healthier is part of Nestle's effort to keep its products attractive for consumers. This year it launched a new "Milkybar" white chocolate bar that has 30 per cent less sugar. "Combining the convenience of packaged foods with healthy good nutrition, that is where our sweet spot is," said Schneider, who took the top job at Nestle last year with the declared goal of reigniting sales growth. To achieve this, Nestle has also been shedding underperforming businesses such as U.S. confectionery and expanded Nestle's footprint in health foods, with vitamin maker Atrium, and coffee thanks to a deal with Starbucks announced just last week.

Nestle to cut more sugar and salt in its products

Nestle will pay Starbucks $7.15 billion as part of a global coffee alliance in which the Swiss-based food giant is getting the rights to market the US&nbsp;coffee company's products around the world outside Starbucks' coffee shops.

Starbucks said on Monday it will use proceeds to speed-up share buybacks and the deal would add to earnings per share (EPS) by 2021 at the latest. Nestle saw the deal adding to earnings by 2019.

Nestle and Starbucks are joining forces in a highly fragmented consumer drinks category that has seen a string of deals lately.

JAB Holdings, the private investment firm of Europe's billionaire Reimann family, has fueled the consolidation wave with a series of deals including Douwe Egberts, Peet's Coffee & Tea and Keurig Green Mountain, narrowing the gap with Nestle.

"This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle," said Starbucks Chief Executive Kevin Johnson.

Coffee is popular with millennials who have grown up with Starbucks and often seek out smaller brands. A willingness to pay up for exotic beans and specialty drinks means companies can brew up richer profit margins than in mainstream packaged food.

Starbucks plans to use the proceeds to accelerate share buybacks and now expects to return approximately $20 billion in cash to shareholders in the form of share buybacks and dividends through fiscal year 2020, it said.

It said the transaction was expected to add to earnings per share by the end of fiscal year 2021 or sooner, with no change to the company's currently stated long-term financial targets.

In a separate statement, Nestle said it expected the business to contribute positively to its earnings per share and organic growth targets from 2019.

Nestle, which will take on about 500 Starbucks employees as part of the deal, says its ongoing share buyback program would remain unchanged.

Starbucks said on Monday it will use proceeds to speed-up share buybacks and the deal would add to earnings per share (EPS) by 2021 at the latest. Nestle saw the deal adding to earnings by 2019

Nestle will pay Starbucks $7.15 billion as part of a global coffee alliance in which the Swiss-based food giant is getting the rights to market the US coffee company's products around the world outside Starbucks' coffee shops. Starbucks said on Monday it will use proceeds to speed-up share buybacks and the deal would add to earnings per share (EPS) by 2021 at the latest. Nestle saw the deal adding to earnings by 2019. Nestle and Starbucks are joining forces in a highly fragmented consumer drinks category that has seen a string of deals lately. JAB Holdings, the private investment firm of Europe's billionaire Reimann family, has fueled the consolidation wave with a series of deals including Douwe Egberts, Peet's Coffee & Tea and Keurig Green Mountain, narrowing the gap with Nestle. "This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle," said Starbucks Chief Executive Kevin Johnson. Coffee is popular with millennials who have grown up with Starbucks and often seek out smaller brands. A willingness to pay up for exotic beans and specialty drinks means companies can brew up richer profit margins than in mainstream packaged food. Starbucks plans to use the proceeds to accelerate share buybacks and now expects to return approximately $20 billion in cash to shareholders in the form of share buybacks and dividends through fiscal year 2020, it said. It said the transaction was expected to add to earnings per share by the end of fiscal year 2021 or sooner, with no change to the company's currently stated long-term financial targets. In a separate statement, Nestle said it expected the business to contribute positively to its earnings per share and organic growth targets from 2019. Nestle, which will take on about 500 Starbucks employees as part of the deal, says its ongoing share buyback program would remain unchanged.

Nestle to pay $7.15 billion to Starbucks in coffee tie-up

Global food conglomerate Nestle is in a battle with critics in tiny Osceola Township, Michigan where residents complain the Swiss company&#39;s water extraction techniques are ruining the environment.

Maryann Borden, a retired teacher who has lived in the western Michigan town since 1953, has photos documenting changes in the Twin Creek river since Nestle began pumping water in the region in the early 2000s for its &quot;Ice Mountain&quot; brand of bottled water.

&quot;It&#39;s not the same creek,&quot; Borden, 73, told AFP. &quot;It&#39;s narrower and deeper and therefore warmer,&quot; compared with the &quot;biting cold&quot; water of her youth.

&quot;The trout can&#39;t survive in it because the water is warmer,&quot; she added.

Located about four hours north of Detroit and with a population of just 900, Osceola Township is a sleepy rural community whose biggest employer is SpringHill Camp, a Christian-oriented program for kids.

The town opposes granting Nestle a permit to build a pumping booster station along a water pipeline that feeds a tanker load dock in Evart, another small town nearby.&nbsp;

The booster station would help the company pump more water from a controversial Osceola County wellhead if the Michigan Department of Environmental Quality approves the project. Nestle wants to pump 400 gallons of water a minute, up from the 250 a minute currently.

Town officials voted in January to appeal a county court&#39;s ruling in Nestle&#39;s favor, portending a judicial saga.

&quot;If you look at the culverts, they provide an historic landmark,&quot; said Tim Ladd, manager of Osceola Township.&nbsp;

&quot;You don&#39;t have to be a geologist or a hydrologist to see those water levels,&quot; he added. &quot;The water lake tables are lower today than what they were two years ago.&quot;

Nestle rejects this argument and also has some backing among supporters who praise the company for keeping water rates low.&nbsp;

&quot;There&#39;s been no measurable changes to the streams, the aquatic life there,&quot; said Arlene Anderson-Vincent, natural resource manager at Nestle Waters North America, who notes that dams in the area &quot;can affect those streams.&quot;

Nestle points to company-sponsored research that backs up its stance, but there has been no independent scientific review of the matter.Much of the anger in Osceola Township, that voted heavily for President Donald Trump in the 2016 US election, is due to a sense the town is being exploited by a powerful multinational blinded by profit.

Nestle pays just $200 a year to the state of Michigan to pump more than 130 million gallons (590 million liters) of water.

Other US states have struck similar arrangements with big companies, authorizing them to pump as much water as they wish for a pittance as long as they build the infrastructure themselves. This includes the beverage giants Coca-Cola and PepsiCo, which sell water under the Dasani and Aquafina brands.&nbsp;

&quot;Nestle has a reputation worldwide of going to poor rural communities, offering all kinds of economic benefits to the community that never really materialize, and taking as much water as they can get and when the stream runs dry they leave,&quot; said Peggy Case, president of the Michigan Citizens for Water Conservation.

Nestle said it spends $18 million a year in Michigan, including $2.4 million in taxes in 2016. The company employs 280 people at its factory in Mecosta County, about 40 minutes away from Osceola Township where about 50 Nestle workers live.

Nestle is turning to Twin Creek River as demand for bottled water rises. Wholesale bottled water sales hit a total of $16.4 billion in 2016, surpassing soda sales of $12.5 billion for the first time, according to the Beverage Marketing consultancy.

Nestle&#39;s water brands in the US, which includes Poland Springs and Pure Life in addition to Ice Mountain, garnered 55.3 per cent of the company&#39;s total worldwide water sales in 2016.Zackary Szakacs, city manager of Evart, credited Nestle with keeping water rates low in the region. The average income in Osceola Township is just $20,000 per year, around the poverty level for a family of three.&nbsp;

&quot;Thank God we have two of those wells in the city of Evart because I would have to lay people off,&quot; Szakacs said.

&quot;They help maintain and keep our water rates low so our residents that are poor that live in this community can afford to pay their monthly water bill.&quot;

After finding the chemical perchlorate at some wells in 2015, Nestle financed the cleanup.

Evart is only a couple of hours drive from Flint, where a major water contamination scandal has drawn national attention.

Access to affordable drinking water is becoming more problematic, and as many as 36 per cent of US households may be unable to afford water within five years, according to a 2017 study by Michigan State University scholar Elizabeth Mack. 
&nbsp;

The town opposes granting Nestle a permit to build a pumping booster station along a water pipeline that feeds a tanker load dock in Evart

Global food conglomerate Nestle is in a battle with critics in tiny Osceola Township, Michigan where residents complain the Swiss company's water extraction techniques are ruining the environment. Maryann Borden, a retired teacher who has lived in the western Michigan town since 1953, has photos documenting changes in the Twin Creek river since Nestle began pumping water in the region in the early 2000s for its "Ice Mountain" brand of bottled water. "It's not the same creek," Borden, 73, told AFP. "It's narrower and deeper and therefore warmer," compared with the "biting cold" water of her youth. "The trout can't survive in it because the water is warmer," she added. Located about four hours north of Detroit and with a population of just 900, Osceola Township is a sleepy rural community whose biggest employer is SpringHill Camp, a Christian-oriented program for kids. The town opposes granting Nestle a permit to build a pumping booster station along a water pipeline that feeds a tanker load dock in Evart, another small town nearby. The booster station would help the company pump more water from a controversial Osceola County wellhead if the Michigan Department of Environmental Quality approves the project. Nestle wants to pump 400 gallons of water a minute, up from the 250 a minute currently. Town officials voted in January to appeal a county court's ruling in Nestle's favor, portending a judicial saga. "If you look at the culverts, they provide an historic landmark," said Tim Ladd, manager of Osceola Township. "You don't have to be a geologist or a hydrologist to see those water levels," he added. "The water lake tables are lower today than what they were two years ago." Nestle rejects this argument and also has some backing among supporters who praise the company for keeping water rates low. "There's been no measurable changes to the streams, the aquatic life there," said Arlene Anderson-Vincent, natural resource manager at Nestle Waters North America, who notes that dams in the area "can affect those streams." Nestle points to company-sponsored research that backs up its stance, but there has been no independent scientific review of the matter.Much of the anger in Osceola Township, that voted heavily for President Donald Trump in the 2016 US election, is due to a sense the town is being exploited by a powerful multinational blinded by profit. Nestle pays just $200 a year to the state of Michigan to pump more than 130 million gallons (590 million liters) of water. Other US states have struck similar arrangements with big companies, authorizing them to pump as much water as they wish for a pittance as long as they build the infrastructure themselves. This includes the beverage giants Coca-Cola and PepsiCo, which sell water under the Dasani and Aquafina brands. "Nestle has a reputation worldwide of going to poor rural communities, offering all kinds of economic benefits to the community that never really materialize, and taking as much water as they can get and when the stream runs dry they leave," said Peggy Case, president of the Michigan Citizens for Water Conservation. Nestle said it spends $18 million a year in Michigan, including $2.4 million in taxes in 2016. The company employs 280 people at its factory in Mecosta County, about 40 minutes away from Osceola Township where about 50 Nestle workers live. Nestle is turning to Twin Creek River as demand for bottled water rises. Wholesale bottled water sales hit a total of $16.4 billion in 2016, surpassing soda sales of $12.5 billion for the first time, according to the Beverage Marketing consultancy. Nestle's water brands in the US, which includes Poland Springs and Pure Life in addition to Ice Mountain, garnered 55.3 per cent of the company's total worldwide water sales in 2016.Zackary Szakacs, city manager of Evart, credited Nestle with keeping water rates low in the region. The average income in Osceola Township is just $20,000 per year, around the poverty level for a family of three. "Thank God we have two of those wells in the city of Evart because I would have to lay people off," Szakacs said. "They help maintain and keep our water rates low so our residents that are poor that live in this community can afford to pay their monthly water bill." After finding the chemical perchlorate at some wells in 2015, Nestle financed the cleanup. Evart is only a couple of hours drive from Flint, where a major water contamination scandal has drawn national attention. Access to affordable drinking water is becoming more problematic, and as many as 36 per cent of US households may be unable to afford water within five years, according to a 2017 study by Michigan State University scholar Elizabeth Mack.

Tiny Michigan town in water fight with Nestle

&nbsp;In the wake of recent reports of ash content found in popular instant noodle, Maggi, Nestle India while rubbishing the same clarified that the product is 100 percent safe for consumption.

&quot;We wish to reassure our consumers that Maggi Noodles are 100 per cent safe for consumption. We strongly reiterate that at no stage of the manufacturing process, ash is added to Maggi Noodles. It is a case of applying standards basis an old advisory issued in 2015. Now, Food Safety and Standards Authority of India (FSSAI) has laid standards for Instant Noodles, Pasta and Seasoning. MAGGI noodles are fully compliant with this,&quot; a Nestle India spokesperson clarified.

&quot;In the spirit of complete transparency and basis information available, we are sharing with this statement a summary comparison of the analysis reports (which appeared to have been used by the adjudication officer). As you will notice, Maggi Noodles is fully compliant with the standards set by FSSAI. Maggi Noodles have always been safe for consumption and will continue to be,&quot; the spokesperson added.

Earlier last week, the Shahjahanpur district administration imposed a fine of Rs 45 lakh against the Nestle India after its Maggi product samples collected from here were found to be of &quot;sub-standard&quot; quality.

The samples were collected late last year and Rs 17 lakhs fine was imposed on three distributors too.

&quot;There were seven cases where the product was found to be sub-standard. The samples were tested by the food and safety department of the district,&quot; Shahjahanpur Additional District Magistrate Jitendra Kumar Sharma told ANI.

The district administration said the fine was being imposed nearly two years later, as it had been hearing representations from Nestle officials and distributors during the period.

In the wake of recent reports of ash content found in popular instant noodle, Maggi, Nestle India while rubbishing the same clarified that the product is 100 percent safe for consumption

In the wake of recent reports of ash content found in popular instant noodle, Maggi, Nestle India while rubbishing the same clarified that the product is 100 percent safe for consumption. "We wish to reassure our consumers that Maggi Noodles are 100 per cent safe for consumption. We strongly reiterate that at no stage of the manufacturing process, ash is added to Maggi Noodles. It is a case of applying standards basis an old advisory issued in 2015. Now, Food Safety and Standards Authority of India (FSSAI) has laid standards for Instant Noodles, Pasta and Seasoning. MAGGI noodles are fully compliant with this," a Nestle India spokesperson clarified. "In the spirit of complete transparency and basis information available, we are sharing with this statement a summary comparison of the analysis reports (which appeared to have been used by the adjudication officer). As you will notice, Maggi Noodles is fully compliant with the standards set by FSSAI. Maggi Noodles have always been safe for consumption and will continue to be," the spokesperson added. Earlier last week, the Shahjahanpur district administration imposed a fine of Rs 45 lakh against the Nestle India after its Maggi product samples collected from here were found to be of "sub-standard" quality. The samples were collected late last year and Rs 17 lakhs fine was imposed on three distributors too. "There were seven cases where the product was found to be sub-standard. The samples were tested by the food and safety department of the district," Shahjahanpur Additional District Magistrate Jitendra Kumar Sharma told ANI. The district administration said the fine was being imposed nearly two years later, as it had been hearing representations from Nestle officials and distributors during the period.

Maggi noodles '100 per cent safe': Nestle India

The US food giant Kraft Heinz has dropped its bid to buy Unilever days after it rejected a $143 billion buyout offer, the companies said on Sunday.

Kraft Heinz had signaled on Friday that it would press ahead with its campaign after the British-Dutch consumer products manufacturer said the initial proposal &quot;fundamentally undervalues&quot; its worth.

However, strong resistance from Unilever reportedly persuaded Kraft Heinz over the weekend to back out.

&quot;Unilever and Kraft Heinz hereby announce that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies,&quot; they announced in a joint statement.

&quot;Unilever and Kraft Heinz hold each other in high regard,&quot; it added. &quot;Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever.&quot;

The deal would have created a giant in global food, second only to Nestle, joining the maker of Kraft cheese and Heinz ketchup to its European counterpart, whose products include Q-tips, Hellmann&#39;s mayonnaise and Ben &amp; Jerry&#39;s ice cream.

Analysts had said the potentially massive merger,which would have been one of the largest corporate deals in history, could have raised red flags for antitrust regulators over the effect on consumers, and for politicians given the possibly large job cuts.

Kraft&#39;s pursuit of Unilever came as global food companies struggle with anemic economic growth in many key markets.

Kraft Heinz is the fifth-biggest food and beverage company in the world and the third-biggest in North America. It was formed by the 2015 merger struck between Heinz&#39;s controlling shareholders, US billionaire Warren Buffet&#39;s Berkshire Hathaway, and 3G Capital of Brazil.

(AFP)

The merger would have been one of the largest corporate deals in history and would have created a giant in global food, second only to Nestle

The US food giant Kraft Heinz has dropped its bid to buy Unilever days after it rejected a $143 billion buyout offer, the companies said on Sunday. Kraft Heinz had signaled on Friday that it would press ahead with its campaign after the British-Dutch consumer products manufacturer said the initial proposal "fundamentally undervalues" its worth. However, strong resistance from Unilever reportedly persuaded Kraft Heinz over the weekend to back out. "Unilever and Kraft Heinz hereby announce that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies," they announced in a joint statement. "Unilever and Kraft Heinz hold each other in high regard," it added. "Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever." The deal would have created a giant in global food, second only to Nestle, joining the maker of Kraft cheese and Heinz ketchup to its European counterpart, whose products include Q-tips, Hellmann's mayonnaise and Ben & Jerry's ice cream. Analysts had said the potentially massive merger,which would have been one of the largest corporate deals in history, could have raised red flags for antitrust regulators over the effect on consumers, and for politicians given the possibly large job cuts. Kraft's pursuit of Unilever came as global food companies struggle with anemic economic growth in many key markets. Kraft Heinz is the fifth-biggest food and beverage company in the world and the third-biggest in North America. It was formed by the 2015 merger struck between Heinz's controlling shareholders, US billionaire Warren Buffet's Berkshire Hathaway, and 3G Capital of Brazil. (AFP)

Kraft Heinz withdraws $143 billion Unilever bid

Nestle became the latest company to be hit by the global slowdown affecting food manufacturers after posting its weakest underlying sales growth in more than a decade.

The Swiss food giant on Thursday cut its outlook for the year, saying it now expected its full-year sales to rise by 3.5 per cent after posting an increase of 3.3 per cent for the first nine months. It previously said it expected full-year organic sales to rise by around 4.2 per cent.&nbsp;Its shares were indicated 1.7 per cent lower in pre-market activity.

Like other food manufacturers, the maker of KitKat chocolate bars and Nescafe soluble coffee has been struggling with price deflation for its products in Europe amid fierce competition among supermarkets and weak commodity prices.

Tough conditions have also persisted in key markets like China and Brazil.&nbsp;Rivals like Unilever have increased prices to compensate for currency weaknesses in some markets like Britain.&nbsp;Nestle said it continued to prioritise volume increases in what it described as a soft environment, but saw some improvement in pricing.

&quot;In an environment marked by deflation and low raw material prices, we continued to privilege volume growth,&quot; Chief Executive Paul Bulcke said in a statement. &quot;Pricing remained soft but increasing.&quot;

Nestle&#39;s 9-month sales rose to 65.51 billion Swiss francs ($66.19 billion) from 64.86 billion Swiss francs a year earlier, Vevey-based Nestle said. The figure lagged the average analyst estimate of 66.00 billion francs in a Reuters poll.

Analysts polled by Reuters had on average expected organic growth,&nbsp;which strips out the impact of acquisitions and currency swings,&nbsp;of 3.7 per cent.

&quot;Europe looks like it was under pressure during the quarter while China weakness is weighing on Asia despite the recovery in India,&quot; said analyst Jon Cox at Kepler Cheuvreux.&nbsp;&quot;The cut in guidance is disappointing although all of the staples companies looked like they have had a tough quarter &ndash; they need to find relevance with consumers,&quot; he added.

Unilever said its underlying sales increased 4.2 per cent for the first nine months of 2016, supported by a 2.7 per cent rise in pricing, when it published third-quarter results last week, while French rival Danone this week posted a 2.1 increase in sales during its third quarter.

($1 = 0.9897 Swiss francs)

(Reuters)

The food and bottled water giant expected full-year organic sales to rise by 4.5%, but revised it now to 3.5%

Nestle became the latest company to be hit by the global slowdown affecting food manufacturers after posting its weakest underlying sales growth in more than a decade. The Swiss food giant on Thursday cut its outlook for the year, saying it now expected its full-year sales to rise by 3.5 per cent after posting an increase of 3.3 per cent for the first nine months. It previously said it expected full-year organic sales to rise by around 4.2 per cent. Its shares were indicated 1.7 per cent lower in pre-market activity. Like other food manufacturers, the maker of KitKat chocolate bars and Nescafe soluble coffee has been struggling with price deflation for its products in Europe amid fierce competition among supermarkets and weak commodity prices. Tough conditions have also persisted in key markets like China and Brazil. Rivals like Unilever have increased prices to compensate for currency weaknesses in some markets like Britain. Nestle said it continued to prioritise volume increases in what it described as a soft environment, but saw some improvement in pricing. "In an environment marked by deflation and low raw material prices, we continued to privilege volume growth," Chief Executive Paul Bulcke said in a statement. "Pricing remained soft but increasing." Nestle's 9-month sales rose to 65.51 billion Swiss francs ($66.19 billion) from 64.86 billion Swiss francs a year earlier, Vevey-based Nestle said. The figure lagged the average analyst estimate of 66.00 billion francs in a Reuters poll. Analysts polled by Reuters had on average expected organic growth, which strips out the impact of acquisitions and currency swings, of 3.7 per cent. "Europe looks like it was under pressure during the quarter while China weakness is weighing on Asia despite the recovery in India," said analyst Jon Cox at Kepler Cheuvreux. "The cut in guidance is disappointing although all of the staples companies looked like they have had a tough quarter – they need to find relevance with consumers," he added. Unilever said its underlying sales increased 4.2 per cent for the first nine months of 2016, supported by a 2.7 per cent rise in pricing, when it published third-quarter results last week, while French rival Danone this week posted a 2.1 increase in sales during its third quarter. ($1 = 0.9897 Swiss francs) (Reuters)

Nestle posts weakest underlying sales growth in 10 years

Nestle, the world&#39;s biggest food company, is stepping up its push into medicine with a global deal worth up to 100 million euros ($111 million) to develop and market an experimental milk allergy test for infants.

The Swiss group will pay DBV Technologies 10 million euros upfront for rights to its skin patch test for cow&rsquo;s milk protein allergy (CMPA), with the balance depending on successful development, the two companies said on Tuesday.

Shares in the French biotech company rose 5 percent on the news.

The deal underscores Nestle&#39;s ambitions for its&nbsp;Health&nbsp;Science division, which it believes could eventually generate more than 10 billion Swiss francs ($10 billion) in annual sales.

It also complements the company&#39;s market-leading infant formula business and could help lift sales of products designed for babies with food intolerance.

Nestle has signed a series of similar deals with other small companies in its bid to create a new kind business that is midway between food and pharmaceuticals. The goal is to find new ways to treat, diagnose and prevent a range of diseases, from gastrointestinal problems to Alzheimer&#39;s.

CMPA affects up to 2 or 3 percent of infants and toddlers, according to the companies. Many others, however, have symptoms suggestive of the condition, creating a need for a simple diagnostic test.

Under the terms of the agreement, DBV will be eligible to receive up to 90 million euros in development, regulatory and commercial milestones - on top of the upfront payment - and will also collect royalties on eventual product sales.

&ldquo;This innovation can become the breakthrough diagnostic for CMPA,&quot; said Greg Behar, chief executive of Nestl?&nbsp;Health&nbsp;Science.

The new test will need to go through extensive clinical trials before it is cleared for sale and DBV expects it to be submitted for approval to regulators worldwide by 2021.

Behar&#39;s division, which employs around 3,000 people, is an expanding part of Nestle&#39;s operations.

Given ageing populations around the world and spiralling cases of lifestyle diseases, the Swiss group sees big opportunities in&nbsp;health&nbsp;- but the initiative also poses new challenges by taking it into the highly regulated medical field.

Strategically the shift towards&nbsp;health&nbsp;offers Nestle a hedge against slowing growth in packaged foods and may also offset crackdowns on unhealthy foods blamed for obesity and other lifestyle problems.

The milk allergy test dovetails with Nestle&#39;s presence in infant formula, where it had 22 percent of the market in 2015, according Euromonitor International. It already has a range of products called Althera, Alfare and Alfamino that are designed for infants allergic to cow&rsquo;s milk.

For DBV, the deal is a vindication of its Viaskin patch technology. The company also has a patch to treat peanut allergy in clinical trials, as well as an earlier-stage programme for egg allergy.

Nestle, the world's biggest food company, is stepping up its push into medicine with a global deal worth up to 100 million euros ($111 million) to develop and market an experimental milk allergy test for infants

Nestle, the world's biggest food company, is stepping up its push into medicine with a global deal worth up to 100 million euros ($111 million) to develop and market an experimental milk allergy test for infants. The Swiss group will pay DBV Technologies 10 million euros upfront for rights to its skin patch test for cow’s milk protein allergy (CMPA), with the balance depending on successful development, the two companies said on Tuesday. Shares in the French biotech company rose 5 percent on the news. The deal underscores Nestle's ambitions for its Health Science division, which it believes could eventually generate more than 10 billion Swiss francs ($10 billion) in annual sales. It also complements the company's market-leading infant formula business and could help lift sales of products designed for babies with food intolerance. Nestle has signed a series of similar deals with other small companies in its bid to create a new kind business that is midway between food and pharmaceuticals. The goal is to find new ways to treat, diagnose and prevent a range of diseases, from gastrointestinal problems to Alzheimer's. CMPA affects up to 2 or 3 percent of infants and toddlers, according to the companies. Many others, however, have symptoms suggestive of the condition, creating a need for a simple diagnostic test. Under the terms of the agreement, DBV will be eligible to receive up to 90 million euros in development, regulatory and commercial milestones - on top of the upfront payment - and will also collect royalties on eventual product sales. “This innovation can become the breakthrough diagnostic for CMPA," said Greg Behar, chief executive of Nestl? Health Science. The new test will need to go through extensive clinical trials before it is cleared for sale and DBV expects it to be submitted for approval to regulators worldwide by 2021. Behar's division, which employs around 3,000 people, is an expanding part of Nestle's operations. Given ageing populations around the world and spiralling cases of lifestyle diseases, the Swiss group sees big opportunities in health - but the initiative also poses new challenges by taking it into the highly regulated medical field. Strategically the shift towards health offers Nestle a hedge against slowing growth in packaged foods and may also offset crackdowns on unhealthy foods blamed for obesity and other lifestyle problems. The milk allergy test dovetails with Nestle's presence in infant formula, where it had 22 percent of the market in 2015, according Euromonitor International. It already has a range of products called Althera, Alfare and Alfamino that are designed for infants allergic to cow’s milk. For DBV, the deal is a vindication of its Viaskin patch technology. The company also has a patch to treat peanut allergy in clinical trials, as well as an earlier-stage programme for egg allergy.

Nestle, on health kick, moves into milk allergy testing

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