Nestlé (Malaysia) Berhad has been a Malaysian household name for generations. Offering a diverse range of food products, Nestlé has contributed significantly to the nutritional needs of Malaysians.
Established more than a hundred years ago, the company has established trusted household brands such as Nescafé, Milo and Maggi to name a few. “Only a fraction of Fortune 500 companies have survived these many years. This is due to the fact that we have been able to win the hearts and minds of Malaysian consumers over the years,” says Alois Hofbauer, managing director of Nestlé Malaysia.
However, producing nutritional products is just one aspect of Nestlé’s growth as a key food and nutrition corporation.
The heart of the company lies in its Creating Shared Value (CSV) initiatives, with the core principle that the development of society and businesses are mutually dependent.
“Nestlé has been nourishing Malaysians since 1912 by providing high-quality, tasty, safe and nutritious products to its consumers.
“Reflecting the company’s concept of Doing Well, by Doing Good, Creating Shared Value is the foundation of our belief that, for the company to prosper, we have to ensure the communities in which we operate prosper too,” adds Hofbauer.
The community is where the business begins. Hence, the world’s largest food manufacturer is looking for ways it can further empower the community it works with.
Nestlé is putting huge emphasis on community development by continuously investing in it and enriching people with high-quality products while creating shared value for the coming generations.
“The three key areas we focus on under our CSV initiatives are nutrition, water and environment, and rural development.
“These are core to our business strategy and vital to the welfare of the people in the countries where we operate. In Malaysia, we have touched tens of thousands of lives through our various CSV initiatives,” shares Hofbauer.
As malnutrition and undernutrition continue to be major concerns in many countries around the world, Nestlé has helmed the delivery of better nutrition for the future.
The growth and profitability of the company is galvanised by nutrition, health and wellness. In parallel, Nestlé Malaysia is encouraging Malaysians to be healthier through the Nestlé Healthy Kids (NHK) programme and MyBreakfast Study.
A global initiative to raise awareness on nutrition, health and wellness, the NHK programme aims to promote physical activity among school-age children.
Since it was established in 2010, the programme has reached 10,000 students in 177 schools, 558 food operators and 370 teachers nationwide.
MyBreakfast Study – a collaborative effort between Nestlé and the Nutrition Society of Malaysia – is the first comprehensive nationwide study on the breakfast habits of Malaysian schoolchildren.
Through this study, it was found that four out of five Malaysian schoolchildren are not getting enough whole grains in their diet.
Wholegrains are essential sources of vitamins and minerals and are associated with reducing the risk of heart disease, diabetes and obesity.
“With nutrition-related problems such as obesity, non-communicable diseases and chronic health conditions on the rise, good nutrition is becoming increasingly important.
“As a responsible corporate citizen, Nestlé is focused on offering tastier and healthier food and beverage choices as well as promoting healthy lifestyles, in line with our promise – Good Food, Good Life,” says Cher Siew Wei, corporate wellness manager of Nestlé Malaysia.
Water and environment
One of Nestlé’s priorities is to ensure accessible and clean waters for its factories, employees and suppliers.
As a vital player of food security, the lack of accessible, clean water will dramatically impact the quality of life of Nestlé’s shareholders as well as the company’s business operations.
In tandem with this, Nestlé implemented Project RiLeaf in 2011 to encourage better water stewardship and restore 2,400ha of land along the lower Kinabatangan River in Sabah.
As of today, the project has successfully planted more than 500,000 trees in 2,300ha of degraded forests in collaboration with Yayasan Sime Darby. The area is equivalent to more than 3,200 football fields.
The initiative has also expanded the number of Roundtable of Sustainable Palm Oil (RSPO)-certified smallholders. A total of 115 oil palm farmers are now certified under the RSPO Group Certification.
“Project RiLeaf is part of Nestlé’s CSV philosophy to unite the needs of people, nature and palm oil agriculture through water – the most common source of vitality.
“We are delighted that the project has made great strides in bringing life back to the Kinabatangan River. In addition, it has positively impacted the local communities in the floodplains by providing them with additional income, on top of capacity building initiatives,” explains Kertijah Abdul Kadir, agricultural officer at Nestlé Malaysia.
Rural development Nestlé understands that the overall well-being of its stakeholders, including farmers, rural communities, employees, small entrepreneurs and suppliers, is at the core of the company’s success stories and the development of the country.
Nestlé has established local farming initiatives that will benefit businesses and also improve the living quality of the local farmers by combating poverty and communicating good agricultural practices.
One of these initiatives is the Nestlé Paddy Club, which is a rice-growing sustainability project in which the company works closely with farmers to produce Nestlé infant cereals using environmentally friendly approaches.
This has allowed Nestlé to work closely with the Northern Corridor Implementation Authority and Farmers’ Organization Authority of Kelantan. As of today, more than 300 farmers have experienced improved earning by 20%.
The Nestlé Chilli Club (NCC) is a chilli contract-farming scheme initiated by Nestlé.
This 20-year-old collaborative effort between the Nestlé Agricultural Services Department and Pertubuhan Peladang Kawasan Bukit Awang has helped rural farmers grow raw materials through good agricultural practices, offering them fair market prices and a demand for their products.
In addition to doubling the monthly income of farmers, the NCC has benefited Nestlé by ensuring that the company has a sustainable supply of fresh chillies.
“I’m grateful to the NCC for teaching us many new techniques. We were taught to pluck the best chillies. We also learnt planting techniques to ensure the soil is fertile and yield top-quality chillies so that only the best produce goes into Maggi Chilli Sauce,” says Mek Zaini, a local Kelantanese farmer under the NCC.
The NCC and NPP ensure that the company is able to source and trace its raw material, especially with growing consumer concern on product traceability.
Giving consumers a greater sense of confidence in its products, these CSV initiatives not only benefit society but Nestlé business as well.
For more information, visit www.nestle.com.my/csv.