Leading four food firms battle to increase global share

Nestle

The world's largest food company, its sales grew by 15.7 per cent in 1997, to 69,998 million Swiss francs (€43,784 million), producing a net profit of 4,005 million Swiss francs, on a profit margin of 5.7 per cent.

However, volume growth was low at 3.3 per cent in 1998, below the company's target of 4 per cent. This was due to exposure to emerging economies and blackmailing attempts in Europe. The company has created new strategic business units in nutrition and ice-cream: "Our efforts aimed at widening our geographic presence and at widening our position in several strategic sectors are bearing fruit," the company states. Its share of the global ice-cream market is close to 9 per cent, up from less than 1 per cent five years ago.

Danone

The French company is the world leader in dairy products and biscuits, and in the bottled water sector, its leading Evian brand, "from the French Alps", along with lesser-known labels make it the number two after Nestle. Its other core divisions are in brewing and glass containers. Worldwide, it has more than 100 subsidiaries and brands including major baby food interests in Russia and China and biscuit interests in Asia and Brazil. It controls 8.2 per cent of biscuit sales around the world. "Combined know-how and cross-company ties result in a powerful synergy," the company says.

Cadbury Schweppes

The British confectionary and drinks group is making major changes on the drinks front, concentrating on its US interests. The world's number three soft drinks company after Coca Cola and Pepsi, its Dr Pepper and 7Up (US only) brands provide the group with half its profits. The company owns 25 per cent of Camelot, operator of the British lottery. Along with the Cadbury name, it owns the Trebor and Bassett sweet brands. It made a pre-tax profit of £254 million sterling (€369 million) last year on a £1.9 billion sterling turnover, representing a 13.9 per cent trading margin.

Unilever

The British-Dutch group has 500 subsidiary companies in about 90 countries. It has major food, personal care and detergents divisions. Within the food division, it has major ice-cream operations, owning Walls, and the Magnum, Solero and Cornetto brands. The company recently acquired Mountain Cream, a Chinese ice-cream manufacturer. It owns PG Tips tea, Chicken Tonight and Bachelors soups. It has a stated corporate interest in developing its presence in emerging markets, believing these will overtake advanced industrial countries "in their share of world output by the year 2000".