Nestle to buy majority of Canadian pet food maker- Champion Petfoods, for $2 billion dollars.
Last year Nestle pledged to invest in pet care, bottled water, coffee, and infant nutrition. They already own Purina pet food, and have a licensing deal with Starbucks to market their products globally. Activists have pushed Nestle to move faster in its efforts to strategize their business. Investor Daniel Loeb suggests that Nestle split into three sectors: beverages, nutrition, and groceries. Loeb owns 1.25% of Nestle – roughly $3 billion dollars. He urges them to reinvent themselves and reposition the company to be more organized and capitalize on opportunities that they are missing. He suggests divesting less profitable brands. His claims prove that Nestle is not focused on their stakeholders wellbeing.
Big businesses need to keep their stakeholders and consumers in mind when making decisions. While our and our pet’s health are both important, Nestle should be focusing on both not just one. By ignoring our need for more nutritious and authentic food, Nestle is sending the consumers a clear message about their commitment to our health (or lack thereof). Why are we ignoring this message? I think that this is inexcusable on Nestle’s part. I am just surprised that only one major investor is vocal about Nestle’s need to reinvent and reposition, as it is so important. At the end of the day, it’s all about the MONEY, not the QUALITY of the products you sell. They really should reverent themselves to care about their consumer’s health and not just their pocketbook. Unfortunately, the public is not educated on healthy eating so they continue to support such low quality products that are loaded with fat, sugar, and chemicals. The food industry will NEVER change. Unless the consumer changes and finally decides to demand QUALITY over JUNK!