Nestle’s Success in the Australian Biscuit Market
1. Introduction: Nestle Company
Nestle is a Swiss multinational food and beverage company headquartered in Vevey, Switzerland. It is the largest food company in the world, with a turnover of about 92 billion Swiss francs (about US$88 billion) in 2018.
The company was founded in 1866 by Henri Nestle, who developed a new infant food product from condensed milk, which soon became very popular.
In 1905, the Anglo-Swiss Milk Company was formed to supply condensed milk to Britain and Ireland.
In 1947, Nestle acquired the American company Carnation, which supplied evaporated milk to the US market.
Nestle’s involvement in the Australian biscuit industry began in 1955 when it acquired a controlling interest in the Victorian biscuit manufacturer, Hoadley’s Ltd.
In 1968, Nestle merged with another Swiss food company, Maggi AG.
The company has been very successful in Australia and has become one of the leading manufacturers of biscuits and related products.
In 2013, Nestle Australia had sales of about $1.6 billion and employed about 5,500 people.
2. The Biscuit Market in Australia: Nestle Company
2.1 The First Biscuits in Australia
Biscuits were first manufactured in Australia in 1839 by convict labour at Newcastle gaol. These biscuits were hard and dry and not very popular with the prisoners.
In 1848, a Scottish immigrant named John McVittie arrived in Sydney and set up a small bakery business. He soon began to produce a range of biscuits which were much more popular than those made at Newcastle gaol.
McVittie’s biscuits soon became very popular with settlers and immigrants all over Australia.
2. 2 The Development of the Australian Biscuit Industry
The Australian biscuit industry began to develop rapidly during the 1850s and 1860s as more and more people arrived in Australia from all over the world.
Scottish, English and Irish immigrants brought with them their own traditional recipes for biscuits which were soon being produced all over Australia.
Different types of biscuits became popular in different regions of Australia depending on the local climate and the availability of ingredients. In hot climates, lightweight gingerbreads and wafer-thin creams were popular while in cooler climates, heavier fruitcakes and shortbreads were preferred. manufacturing companies appeared including Peek Freans (1861), Arnotts (1864)and Willards (1866). By 1891 there were over 100 biscuit manufacturers operating in Australia. During the early years of the 20th century, there was consolidation within the industry as large companies bought up smaller ones. In 1912 Arnotts acquired Willards and then absorbed Peek Freans in 1929. Arnotts became the dominant player in the Australian biscuit industry and remained so for many years. 2. 3 Nestlé’s Involvement in the Australian Biscuit Industry Nestlé first became involved in the Australian biscuit industry in 1955 when it acquired a controlling interest in Hoadley’s Ltd, a Victorian biscuit manufacturer. In 1968, Nestlé merged with another Swiss food company, Maggi AG. The company has been very successful in Australia and has become one of the leading manufacturers of biscuits and related products. In 2013, Nestlé Australia had sales of about $1.6 billion and employed about 5,500 people.
2. 4 The Success of Nestle’s Product Research in Australia
Nestle’s success in the Australian biscuit market is due in part to its investment in product research. In the early 1960s, Nestle established a research facility in Sydney to develop new products for the Australian market. The company has developed a number of successful products which have become popular with consumers. These include Kit Kats, Milo, family-sized blocks of chocolate and Twisties chips.
3. Conclusion
The biscuit market in Australia has undergone lots of transformation since the first time biscuits were manufactured in Australia. The industry has consolidated over the years as large companies have acquired smaller ones. Nestle has been very successful in the Australian biscuit market due to its investment in product research.