On February 22, the international food giant Nestlé released its 2023 annual performance report. The data showed that Nestlé’s total sales in 2023 were nearly 93 billion Swiss francs, with an organic growth rate of 7.2% and a net profit increase of 20.9%. Reaching 11.2 billion Swiss francs, Nestlé expects Nestlé’s total sales to increase by about 4% in 2024.

< p>In terms of categories, Nestlé pointed out in its financial report that Purina pet care business is the largest contributor to its organic growth. The business has shown strong momentum in various channels, and its total sales in 2023 reached 18.8 billion Swiss francs (equivalent to RMB 153.5 billion), and net profit was 3.9 billion Swiss francs (equivalent to RMB 31.8 billion).

< p> Among them, the sales of Purina ONE, Purina Crown and Xiyue have all achieved double-digit growth. Purina Crown’s sales are close to 3 billion Swiss francs (approximately RMB 24.5 billion yuan).

By region, Nestlé’s organic growth rate in North America was 7.3%, and its organic growth rate in Europe was 8.2%. Purina Pet Care was the largest contributor to growth in these two regions;

Nestle North Performance in the Americas↑

Performance in the Europe↓

Nestlé's Asia, Oceania, and Africa regions achieved an organic growth of 8.3%, and the Latin America region achieved an organic growth of 9.2%. The pet business grew in these two divisions. The region achieved single-digit growth;

Performance in Asia, Oceania and Africa↑

Performance in Latin America↓

Nestlé Greater China achieved an organic growth of 4.2%. Officials said that in new products The pet care business achieved double-digit growth, driven by the launch of and strong e-commerce.

< p>Nestlé Greater China performance↑

By channel, the organic growth rate of Nestlé’s retail business was 6.5%, maintaining a continued strong trend; e-commerce sales increased by 13.4%, reaching the group’s total sales 17.1% of the amount.

< p> Nestlé’s double-digit growth in its pet business in the Greater China region is inseparable from its localized layout and its efforts in the Greater China region throughout 2023.

In fact, from the second half of 2022, Nestlé has begun to focus on the Chinese market. In 2022, Nestlé's Guannengchangfu series of cat food officially entered the Chinese market. It is reported that this is the world's first cat food that can Cat food that solves the problem of cat allergies for pet owners.

In September 2022, Nestlé Purina held a press conference for the upgrade of the Guanneng brand strategy, and innovatively proposed a new concept of "Guanneng Pagoda Nutrition" to think about comprehensive and balanced nutrition for pets.

< p>In December 2022, Nestlé Group announced a strategic investment in Xinruipeng Pet Medical Group. The two parties will collaborate to deeply explore the Chinese pet market and provide more complete and domestic first-class products and services for pet lovers.

In April 2023, Nestlé introduced its Zhenzhi cat staple food canned product, which has been popular overseas for more than 40 years and has ranked first in global cat wet food retail sales, into the domestic market, increasing its investment in the cat staple wet food market.

< p>In May 2023, Nestlé Purina announced another new upgrade of the Crown Energy brand. It officially announced that it will adopt "scientific nutrition for life-long immunity" as its new brand concept and further develop refined preventive nutrition.

< p> Nestlé’s series of actions also demonstrate Nestlé Purina’s determination to deeply explore the domestic market and provide good services to every Chinese. At the same time, it has increased local R&D and production layout, established and improved the local supply chain system, and satisfied the Chinese consumer market. Many actions to diversify demand will also further increase its market visibility and share.

< p> It is worth noting that Nestlé CEO Mark Schneider said at the Nestlé performance meeting that looking forward to 2024, Nestlé will provide consumers with higher-end and better products and services through active innovation and improvement. , more affordable and nutritious choices, etc., to enhance value for consumers, combined with more brand support, to achieve sales- and portfolio-led growth.

< p>Mark Schneider

To increase market share, Nestlé’s key focus will be on bringing pleasure and satisfaction to consumers through differentiated products and services, while focusing on excellence implement.

In terms of capital allocation, Nestlé’s focus in 2024 will continue to be on those fast-growing “Billion Club” brands, thereby achieving stable growth while enhancing brand loyalty.

Pet industry experts will continue to pay attention to what developments Nestlé will have in its pet business in the future.