Nestle has a new way of thinking about accelerating innovation.
Today, Nestle officially announced that it has injected $30 million into the Tiantu investment dollar fund (tcuf), becoming the cornerstone investor of the above fund. This confirms the news that xiaoshidai learned when communicating with Pan Pan Pan, partner of Tiantu investment management, that is, Nestle is the largest cornerstone investor of this Tiantu fund.
Nestle’s capital injection is the company’s first investment fund in Asia, Oceania and sub Saharan Africa (AOA), according to nestle in a circular today. Next, the fund will continue to raise $120 million from other institutional investors.
Nestle also said the fund focuses on investing in growth companies, “which have the potential to develop into industry leading brands to cater to the future lifestyle of China’s younger generation and emerging middle class.” Pan Pan said through the circular that the three key investment directions of the fund are food and beverage, beauty and personal care and consumer medical care.
However, Nestle is still more concerned about food and beverage, and hopes to use the resources of start-ups to accelerate innovation.
According to Nestle, the investment “aims to provide sustained growth momentum for related businesses in China’s food industry” and will help it expand its knowledge and external network in brand, channel and technology research and development in China’s emerging food and beverage sectors.
“With more and more people paying more attention to healthy eating habits, the food and beverage industry is undergoing an unprecedented transformation. Therefore, it is essential for Nestle to continue to innovate in terms of product differentiation and brand competitiveness. ” The world’s largest food company said.
As for the reasons for choosing Tiantu, there is no doubt that the company is good at mining the advantages of “good seedlings”. According to the introduction of snack agency, Tiantu has invested in many excellent food and beverage start-ups, including Santon and a half, Zhong Xuegao, Naixue tea, chayan Yuese, jiangxiaobai, etc.
Pan Pan said that Nestle and Tiantu will carry out in-depth cooperation in the fields of brand operation, resource coordination and technological innovation in the future. Previously, he disclosed to the snack agent that the investment decision of the fund is confirmed by Tiantu. After the investment is completed, Nestle will not only conduct in-depth exchanges with the invested enterprises, but also maintain long-term contact.
“This time the investment with Tiantu is just the beginning.” “In the future, we will continue to increase investment, better meet the needs of consumers, and contribute more to the development and transformation of China’s food industry,” Nestle Greater China Chairman and chief executive officer Rosedale said in a circular today
He also said that China has become Nestle’s second largest market and Nestle will continue to invest in the Chinese market and promote market innovation through this investment. As previously mentioned, Nestle’s Greater China region earned about 48.1 billion yuan last year.
In fact, Nestle has done a lot to accelerate the pace of innovation in China.
Part of the results of the Henry @ Nestle project
Early last year, Nestle global open innovation project “Henry @ Nestle”（ HENRi@Nestl é) landed in China and openly “recruited” China’s entrepreneurial teams and entrepreneurs to provide solutions for their designated challenges. At present, the second phase of the project has been started.
In early 2018, Nestle set up an innovation incubator team in China, making China the second market for Nestle to accelerate innovation. It is reported that the incubator is mainly to find the “blank area” of Nestle business, to quickly respond to the demand of the Chinese market and develop new products.
Behind a series of actions, Nestle is determined to develop rapid and meaningful innovation into a “new normal” to cope with the challenges of pricing pressure and emerging brands seizing market space.
Xiaoshidai has introduced that at the third quarter performance meeting in 2018, Nestle CEO Mark Schneider said that one of the ways to solve the price pressure caused by rising labor costs and other factors is to carry out rapid and meaningful innovation and bring it to the market. “These innovations must resonate with consumers and seize opportunities quickly before others.”.
“In my opinion, this has to become a ‘new normal’ and that’s what our company has to fight for,” he says