Nestle, the world's largest food company, has a history of questionable business practices. In the 1970s, they launched a campaign to promote their baby formula over breast milk, paying doctors to endorse their product and hiring saleswomen dressed as nurses to distribute free samples. This led to widespread adoption of formula feeding, despite the health risks, particularly in developing countries.
Nestle was also accused of exploiting cheap labor in Africa to harvest cocoa beans for their chocolate products. The company has been linked to child slavery and forced labor in their supply chain.
Additionally, Nestle has been criticized for their business practices in Ethiopia, where they demanded payment from the government during a severe famine. The company has also been accused of diverting clean drinking water away from villages and towns in Pakistan and then selling it back to the same people.
Despite these controversies, Nestle remains a powerful and influential company, operating in 190 countries and employing nearly 300,000 people. However, the company has admitted that 60% of its products are not healthy.
Here are the key facts extracted from the text:
1. In the 1970s, Nestle was a major producer of baby formula.
2. The company wanted to expand its customer base beyond mothers who couldn't breastfeed.
3. Nestle launched an influencer campaign to promote its formula over breast milk.
4. The company paid doctors and nurses to recommend its formula.
5. In some countries, Nestle hired saleswomen dressed as nurses to hand out free samples and medical advice.
6. The free samples were designed to be just enough to stop breastfeeding, creating a loyal customer.
7. In 1978, Nestle executives were called before the US Senate to explain why babies were getting sick from their formula milk.
8. The World Health Organization (WHO) set new regulations in 1981 prohibiting the comparison of breast milk with formula alternatives.
9. Nestle moved its marketing to countries with fewer regulations, such as Southeast Asia and the Pacific.
10. The company continued to promote its formula over breast milk, despite criticism.
11. Nestle's formula milk has a 23% profit margin, making it a lucrative business.
12. The company is expected to make over $110 billion in sales by 2026.
13. Nestle has been involved in the bottled water industry, selling tap water at a high markup.
14. In Pakistan, Nestle diverted clean drinking water from villages and towns, then packaged and sold it back to the same people.
15. The company's executives have made statements suggesting that access to clean water is not a human right.
16. Nestle has been accused of using child labor in its cocoa supply chain.
17. The company promised to eradicate child labor from its supply chain by 2005 but missed the deadline.
18. Nestle has been involved in a lawsuit over its use of child labor in its cocoa supply chain.
19. The company has been accused of using "fair trade" labels to distract from its shady supply chain practices.
20. In 2002, Nestle demanded payment from the Ethiopian government, which was in the midst of a famine, for a debt that had accrued interest.
21. The debt was eventually written off due to public pressure and boycotts.
22. Today, Nestle is the largest food company in the world, operating in 190 countries and employing almost 300,000 people.
23. The company has 376 factories worldwide and owns almost 2,000 different brands.
24. Nestle has admitted that 60% of its products are not healthy.