Nestle Reorganizes To Deal With Sluggish Sales Growth, Especially In Europe

In a major global reorganization, Nestlé is setting up a business excellence division and expanding the European operations zone to counter slow sales growth. Operations in North Africa, the Middle East, Turkey and Israel will move from the Asia, Oceania and Africa zone into the Europe zone. Nestlé’s overall sales growth target for the first half of 2014 was between five and six percent, but reached only 4.7 percent. Europe generated nearly 20 percent of the company’s $96.9 billion in revenue in 2013, but has been Nestle's weakest sales performer so far this year. The new business excellence unit will focus on greater business efficiency and a stronger bottom line.