Nestle highlights the potential of Asian markets
Nestle has reported 7.2% growth for the first three months of 2012.
The Americas achieved organic growth of 6.8%, Europe delivered 3.4% and Asia, Oceania and Africa 12.2%. The business grew 13.0% in emerging markets and 3.1% in developed markets.
The company reported strong chocolate growth in Latin America, particularly in Brazil and Mexico, contributing to the region achieving double digit growth overall.
Asia, Oceania and Africa also achieved strong chocolate growth. Kit Kat performed well in Japan. The acquisition of Chinese confectionery company, Hsu Fu Chi, also contributed to growth.
This performance reflects the contrasting market conditions in the developed and emerging worlds: the trading environment in many developed markets with low consumer confidence is sluggish whilst conditions in most emerging markets remain dynamic and rich in growth opportunities.
This announcement by Nestle proves that developing countries may be the ones for manufacturers to focus on for the time being. It is likely that in the near future we will see various acquisitions with Asian companies in an attempt to break into new markets.