NEW YORK: Nestle SA, the world's biggest food company, seeks to expand in bottled tea and frozen foods in the United States, where the business climate is expected to remain difficult in the near future.
The tea business is beckoning since the company sees little room to expand further in water, where it already sells many brands, said Kim Jeffery, chief executive of Nestle Waters North America.
"Our next frontier is looking at other beverages that we can sell that fit into the healthy hydration space that we staked out with water," Jeffery said in an interview on Friday, Oct 22 following a press conference in New York. "We like the tea space."
Nestle already owns 35 percent of small tea brands Sweet Leaf and Tradewinds and plans to buy them outright within 18 to 24 months.
Nestle's North American water business accounts for some $4 billion out of Nestle's total revenue of about $100 billion. Jeffery declined to provide sales targets for the current year, except to say he expects to gain market share.
The company's North American water brands range from San Pellegrino and Perrier to Poland Spring and Deer Park.
The Swiss company reported nine-month results on Friday, beating forecasts with a 5.7 percent rise in sales thanks to strong demand in emerging markets, price increases and a thriving Nespresso coffee business. It also affirmed its 2010 sales growth and margin outlook despite concerns about higher commodity prices and the economy.
In a separate interview, Brad Alford, chief executive of Nestle USA, said he sees big opportunities in frozen foods, and said growth for the company would likely be both organic and through acquisitions.
"I am very bullish on frozen food. I think there are many, many more opportunities in frozen food," Alford said. "We live in an 'And' world. So we will be looking organically and for acquisitions."
The company's brands in the United States, its biggest market, include Coffee-Mate creamers, Stouffer's frozen meals and Beneful dog food.
Nestle shares closed down 0.8 percent at 52.65 Swiss francs. - Reuters
The tea business is beckoning since the company sees little room to expand further in water, where it already sells many brands, said Kim Jeffery, chief executive of Nestle Waters North America.
"Our next frontier is looking at other beverages that we can sell that fit into the healthy hydration space that we staked out with water," Jeffery said in an interview on Friday, Oct 22 following a press conference in New York. "We like the tea space."
Nestle already owns 35 percent of small tea brands Sweet Leaf and Tradewinds and plans to buy them outright within 18 to 24 months.
Nestle's North American water business accounts for some $4 billion out of Nestle's total revenue of about $100 billion. Jeffery declined to provide sales targets for the current year, except to say he expects to gain market share.
The company's North American water brands range from San Pellegrino and Perrier to Poland Spring and Deer Park.
The Swiss company reported nine-month results on Friday, beating forecasts with a 5.7 percent rise in sales thanks to strong demand in emerging markets, price increases and a thriving Nespresso coffee business. It also affirmed its 2010 sales growth and margin outlook despite concerns about higher commodity prices and the economy.
In a separate interview, Brad Alford, chief executive of Nestle USA, said he sees big opportunities in frozen foods, and said growth for the company would likely be both organic and through acquisitions.
"I am very bullish on frozen food. I think there are many, many more opportunities in frozen food," Alford said. "We live in an 'And' world. So we will be looking organically and for acquisitions."
The company's brands in the United States, its biggest market, include Coffee-Mate creamers, Stouffer's frozen meals and Beneful dog food.
Nestle shares closed down 0.8 percent at 52.65 Swiss francs. - Reuters
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