In 2024, Nestle SA faced challenges in North America due to underperformance in frozen food and coffee creamer capacity constraints. The company’s Zone North America sales for the year were 25.3 billion Swiss francs ($28 billion), down 2.5% compared to the previous year. Despite the setbacks, there were bright spots in confectionery and pet care, which experienced growth driven by specific products and pricing strategies.
During a conference call discussing full-year results, Nestle executives acknowledged the difficulties faced in the region. Price gaps with a major competitor affected frozen food sales, but efforts to lower prices and introduce new products have shown promising results. The company is also focused on cost savings, aiming to generate 2.5 billion Swiss francs ($2.8 billion) by 2027 to fuel growth.
Through initiatives such as leveraging artificial intelligence tools for procurement and digitalization in manufacturing and logistics, Nestle is making progress towards achieving its cost-saving goals. The company is also optimizing its operating model to improve efficiency across functions.
Overall, Nestle’s company-wide sales for 2024 were 91.4 billion Swiss francs, reflecting a 1.8% decrease from the previous year. Pricing, organic growth, and foreign exchange had varying impacts on the overall sales performance.