Nestlé sharpens geographic focus, creates Zones North America and Greater China

[Ad hoc announcement pursuant to art. 53 SIX Listing Rules]

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Vevey, October 13, 2021

Nestlé sharpens geographic focus, creates Zones North America and Greater China

The Nestlé Board of Directors has approved the creation of new geographic Zones, as of January 1, 2022. The new architecture will strengthen the company's market-led approach and further Nestlé's ability to win in a rapidly changing environment. The structure also underscores the company's deep commitment to succeeding in all parts of the world, including its two top markets North America and Greater China.

The company will be organized into five Zones as follows:

• Zone North America (NA) is comprised of the United States, the Group's largest market, and Canada. Together they represent CHF 24.7 billion in annual sales.
• Zone Latin America (LATAM) includes Brazil and Mexico, which are among Nestlé's leading markets by sales. Zone LATAM also includes the Caribbean region and represents CHF 9.2 billion in annual sales.
• Zone Europe (EUR) continues to develop its category-focused operating model, which has led to broad-based market share gains. With CHF 17.7 billion in annual sales, Zone Europe continues to show strong momentum and innovation capabilities.
• Zone Asia, Oceania and Africa (AOA) will now include the Middle East and North Africa (MENA) Region. Zone AOA represents CHF 17.5 billion in annual sales.
• Zone Greater China (GC) is one of the fastest-moving food and beverage markets in the world and offers significant growth potential for Nestlé. Zone GC represents CHF 5.7 billion in annual sales.

 

The above sales figures exclude Nestlé's globally managed businesses Nespresso and Nestlé Health Science, which represented CHF 9.2 billion in annual sales in 2020. Nestlé will report the sales and growth numbers of the new Zone structure for the first time on April 21, 2022.

Mark Schneider, Nestlé S.A. CEO, said: "With the new Zone structure, we will significantly sharpen our geographic focus to drive sustained profitable growth everywhere we operate. This move will bring us closer to consumers and customers, unlock new business opportunities and enable us to be even more agile in a fast-moving consumer environment."

As a result of the new Zone structure, the company announces the following changes to the Executive Board, effective January 1, 2022:

Chris Johnson, Executive Vice President and CEO Zone Asia, Oceania and sub-Saharan Africa, will retire from the Executive Board on December 31, 2021. He will continue to advise the newly formed Zone AOA during the transition period and will leave the company on January 31, 2022. During his highly successful 38-year career at Nestlé, Chris has held key leadership roles in markets, businesses and global functions, including the development of Nestlé's first global information technology (IT) solution.