Nestlé to enhance prototyping to meet consumer demands
Nestlé has changed its approach to innovation in a bid to make its processes quicker, enhance rapid prototyping and create accelerators to give it a competitive advantage and keep pace with rapidly-changing consumer preferences.
The company said it has funded 50 additional fast-track innovation projects leading to product launches within six to 12 months. It has significantly reduced the average duration of centrally-led research and innovation projects.
During 2019, Nestlé shortened timelines of research projects by 30% on average. It introduced around 1400 new
products worldwide and reformulated 4000 products to improve nutritional value.
Nestlé added that alongside innovation, digitalisation is key to continued business success.
The company is moving to connect with consumers in a “relevant and personalised way”. In 2019, 20% of all consumer contacts with Nestlé were personalised. The objective is to reach 40% by the end of 2020.
Nestlé has also built a network of more than 25 e-content studios. These studios create “impactful” and locally relevant content with speed and efficiency, producing market- and consumer-specific communication materials in less than 48 hours.
Nestlé is also transforming operations by further digitalising its supply chains and manufacturing. The goal is to create a competitive edge through data, artificial intelligence, automation and predictive analytics. For example, at the end of 2019, 100 Nestlé factories were equipped with collaborative robots that interact with humans in a shared space or work safely in close proximity.
Nestlé also accelerated its climate change efforts to transition to a low-carbon economy, with a pledge to achieve zero net greenhouse gas emissions by 2050. As most of Nestlé’s carbon footprint relates to its sourcing of raw materials, Nestlé will support its farmers and develop a series of initiatives in agriculture.
Nestlé continued to work towards a waste-free future. The company inaugurated its Institute of Packaging Sciences, dedicated to the discovery and development of functional, safe and environmentally-friendly packaging solutions.
Nestlé deployed more sustainable packaging across its product portfolio. This included launching paper packaging materials, increasing the use of recycled plastic in its water brands and introducing new bulk delivery systems.