Countries boycott Nestle products

Countries boycott Nestle products

DANIEL SEMBERYA

Many people in different countries in the world have been boycotting products being produced by the Nestle Company in order to protect infant health and protect breast feeding and babies fed on formula practices that put profit before health.

Finding according to World Health organization, 1.5 million babies around the global every year die because they are not breast fed and instead they were being fed with Nestle milk. This being the reason, there has been great outcry from the public to the extent of labeling the Nestle Company as the worst of the baby food companies and influences standards for other companies.

What is breast feeding?

It is an ideal way of providing young infant with the nutrients they needed for healthy growth and development.

Why does WHO recommends that the perfect food for the newborn and feeding should be initiated within the first hour after birth?

This is because the clostrum’, the yellowish, sticky breast produced at the end of pregnancy is the very perfect food for the newborn.

The exclusive breast feeding is recommended up to 6 months of age. In Tanzania studies show that this kind of feeding has been difficult to most mother especially those who are employed in the different sectors and in all walks of life because of their daily schedule.

So, they tend to direct their house girls and boys as a substitute to use Nestle milk, which is regarded as the worst of the baby food. And as a result becomes one of the causes of the big rate of children deaths.

The Tanzania Nutrition Centre have cited some issues regarding the role of breast feeding that it was good for children because protecting them against many dieses and it was greatly increasing their chances of survival.





Children need other foods apart from breast milk from the age of 3-6 months. There is some evidence that exclusive breastfeeding before that time reduces the risk of transmission of HIV from an HIV positive mother. Also UNICEF recommends that women who are known not to be HIV positive and those who do not know their HIV status should exclusively breastfeed for six months.

Nestle Company is the world's largest baby food company and increases it's profits by promoting artificial infant feeding in violation of the W.H.O. code that has been signed by the US and many other nations. The company knows that once a bottle has become between a mother and her child breastfeeding is more likely to fail and the company has gained a customer.

Regarding the company’s performance as the Group sales, profitability and financial position as in the first six months of 2008, consolidated sales of the Nestlé Group amounted to CHF 53.1 billion, an increase of 3.8% over the same period last year, driven by organic growth of 8.9%, including real internal growth of 3.5%. Foreign exchange had a -8.3% impact on sales, while acquisitions net of divestitures, primarily driven by the acquisition of Novartis Medical Nutrition and Gerber, added 3.2% to sales.
The Group's EBIT grew by 6.1% to CHF 7.3 billion, resulting in an EBIT margin of 13.8%. This represents a 60 basis point improvement in constant currencies over the first half of 2007. Foreign exchange reduced the Group's EBIT margin by 30 basis points, to 30 basis points reported.
With sales of CHF 49.3 billion, Food and Beverages achieved organic growth of 8.9%, including real internal growth of 3.2%, and was the Group's main contributor to growth and EBIT margins. With an EBIT growth of 6.7%, Food and Beverages' EBIT margin was up 50 basis points in constant currencies over last year. Foreign exchange reduced Food and Beverages' EBIT margin by 20 basis points, to 30 basis points reported.
The Group's cost of goods sold increased by 190 basis points to 42.8% of sales. This reflects the impact of higher raw material costs, partially reduced by operating efficiencies. Marketing and administration costs declined by 190 basis points to 33.3% of sales, reflecting the effect of different growth rates of the company's product portfolio, efficiencies and the leverage effect from growth. In constant currencies, consumer marketing spends increased by 7%.
Net profit grew by 6.1% to CHF 5.2 billion, resulting in a net margin of 9.8%, up 20 basis points. Earnings per share grew by 8.6% to CHF 1.39.

On 30 June 2008, the Group’s operating cash flow stood at CHF 3.5 billion. This is lower than last year reflecting a higher level of inventories as a result of the increased cost of certain raw materials and the decision to selectively increase inventories of some products. The Group’s net debt, seasonally high at the half year, rose to CHF 25.8 billion. This will decline to below the level prevailing at the end of 2007, thanks partly to the proceeds received from the sale of 24.8% of Alcon to Novartis.
This performance, above-target organic growth combined with a good improvement in EBIT margins, demonstrates Nestlé's ability to grow profitably even in a difficult business environment.

Ends.