Nestlé growth strategy – overview
- Nestlé prioritises RIG-led (Real Internal Growth) growth, focused on volumes not pricing
- Coffee and confectionery lead performance with strong volume momentum
- Emerging markets drive growth while developed markets remain weaker
- Marketing investment increases to rebuild brands and improve effectiveness
- Portfolio streamlining sharpens focus on core high-growth categories
After years of price hikes, portfolio reshuffles and no shortage of scandals, Nestlé is changing the conversation. At this week’s dbAccess Global Consumer Conference in Paris, CEO Philipp Navratil made it clear that the focus is firmly on growth.
Nestlé growth
“We’re focusing on growth,” says Navratil, clarifying “RIG-led growth”. In other words, the food and beverage giant wants to drive volumes and product mix through stronger execution, innovation and brand investment, rather than relying on price increases. This he says will “solve” growth and performance issues the multinational is currently experiencing.
He went on to say the company had been weighed down by “distractions” at the beginning of his tenure, referring to brands the company has since moved to offload, including ice cream and Waters.
Interestingly, Navratil again referred to the company “disposing of Waters”, rather than part of the Waters business, raising questions about whether Nestlé could be preparing to exit the category completely. We’ll have to wait and see, though the fact that the company keeps referencing sale indicates we won’t need to wait long.
The stripping back of its portfolio reinforces Nestlé’s recently announced Four Pillar strategy, prioritising Food and Snacks, Coffee, Nutrition and Petcare.
But, even within those four categories, two continue to stand out – Confectionery and Coffee.
Confectionery and Coffee
Confectionery and coffee are emerging as the clear standouts within Nestlé’s streamlined portfolio.
Both categories are delivering stronger volume momentum than the group average, helped by high brand recognition, frequent consumption occasions and continued headroom for premiumisation. Confectionery, in particular, is benefiting from resilient demand for global power brands like KitKat, with product updates and new formats aimed at staying affordable while nudging shoppers towards higher‑value options.
Coffee, meanwhile, remains Nestlé’s single biggest growth engine. From mass market to premium, the category is performing strongly, with Nescafé driving scale and accessibility, and Nespresso encouraging consumers to trade up.
“Coffee has become a real playground to expand,” says Navratil. What’s more, he describes it as a place he sees “long-term structural growth”.
Emerging markets
Growth for Nestlé, like many other CPGs, is coming primarily from emerging markets, where rising incomes, population growth and expanding middle classes continue to support demand. These regions are delivering stronger volume growth, helping to offset slower momentum in developed markets, where consumers remain cautious and spending is under pressure.
As a result, Nestlé’s growth story is becoming more emerging‑market‑led, with developed markets needing better‑priced offerings, fresher innovation and marketing that delivers clearer returns.
This shift mirrors a broader industry trend, as majors move away from price-led growth and back towards volumes.
Marketing investment and brand rebuilding
Marketing also featured prominently in Navratil’s remarks, with the CEO stressing that stronger brand building is central to unlocking RIG‑led growth. Nestlé is stepping up investment behind its biggest brands while also sharpening how and where that money is spent.
“We’re upgrading our marketing muscle and our machinery around marketing. We want to be a company that drives consumers and drives trends,” says Navratil.
Rather than simply increasing budgets, the focus is on improving effectiveness – making marketing work harder through better execution, clearer messaging and more disciplined measurement of returns. This includes a heavier emphasis on digital channels and data‑driven campaigns, as well as refreshing brands to keep them relevant for younger consumers.
“We’re not known as the best brand builders in the industry,” says Navratil. “We need to become the best brand builders in the industry.”
Streamlining
Navratil underlined the need for a simpler, more focused Nestlé. Having already exited or begun exiting a number of non‑core businesses, the company’s keen to reduce complexity and concentrate resources on areas with the strongest growth and margin potential.
By sharpening its portfolio and organisational focus, Nestlé believes it can move faster, allocate capital more effectively and prioritise its biggest brands and categories.
What’s next for Nestlé?
While some aspects of Nestlé’s future remain unclear – notably its Waters business – its primary focus is unmistakable.
After several years of price hikes, portfolio changes and external disruption, attention is turning back to the basics – growing volumes, strengthening brands and improving execution. That means a simpler business built around fewer, bigger categories, with more investment behind the brands that matter most and a heavier reliance on emerging markets to drive momentum.
If successful, it could help reset growth metrics that have been under pressure and reassure shareholders, whose trust has been challenged. It could also provide a blueprint for other large CPGs facing similar struggles.
The task now is delivery. RIG‑led growth is harder to achieve than price‑led gains, requiring sharper innovation, stronger marketing and closer alignment with increasingly cautious consumers.
If successful, Nestlé’s strategy could set the tone for growth across all food and beverage.
