Nestl é, which sells coffee, does medical treatment across the border.-it has accepted a company with dysphagia.
Nestl é, which is slowing down, is getting supplies from acquired medical companies and exploring new sources of growth. However, no matter how strong the development momentum of the nutrition business is, it has always been a sideline outside Nestle's food business, which does not represent its entry into the medical industry. The "real hammer" that really marks Nestl é's foray into medical health comes from actions in the field of skin health and medical beauty.
In 2014, Nestl é announced its foray into skin health care. This is a fast-growing industry that is more profitable than food, beverages and nutrition. The layout in this area starts with Nestl é's acquisition of dermatology drug company Gao Demi in 2014.
It turned out that L'Or é al and Nestl é had a joint venture called Gao Demei, each with a 50% stake. Since then, Nestl é traded its original 8% stake in L'Or é al for 50% of L'Or é al's shares, and then Gao Demei became a wholly owned subsidiary of Nestl é. It has the three major businesses of prescription drugs, self-medical department, cosmetology and plastic surgery. This acquisition not only marked Nestle's determination to enter the skin health industry, but also became one of the top 10 mergers and acquisitions in the world's pharmaceutical industry that year.
It is difficult to rise to fame quickly in a traditional industry. Nestl é, which has a history of 150 years, knows this better than anyone else. Therefore, its layout in the medical industry does not pursue one step in place, but step by step.
Nestl é bought a business owned by Novartis Pharmaceuticals for $2.5 billion in 2007 and has been expanding its healthcare footprint through mergers and acquisitions in the years that followed. At that time, the main focus was nutrition, and in 2011, Nestl é formally established a subsidiary around the business, Nestl é Health Technology.
It would be appropriate for Nestl é to start with nutrition. First, Nestl é itself gets rich from baby milk powder families, and its industry experience and sales channels are ready-made, so it does not need to spend too much effort on new business; second, nutrition regulation is much more relaxed than drugs, and it does not need to go through complex clinical trials to realize the new business.
The food giant tactfully positioned itself as the first stop in medical care, positioning itself in the market between food and medicine, and quickly saw the results.
As can be seen from the chart below, although Nestl é's main business is still powder and liquid beverages, accounting for about 20%, the proportion of nutrition and health technology business is increasing year by year, reaching 17% from about 14% in 2014 to the first half of 2016.
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