Nestle attempting to further penetrate African market by looking for small shops across South Africa that will buy its myriad of products
December 1, 2011
Nestle is attempting to further penetrate the African market by looking for small shops across South Africa that will buy its myriad of products, The Wall Street Journal reported Dec. 1.
That’s a departure from the company’s usual strategy of focusing on big supermarkets. However, Nestle is basing its strategy in Africa on middle class estimates in the nation. The African Development Bank estimates that Africa's middle class — those earning between US$4 and $20 a day — will increase to 1.1 billion people by 2060 and account for 42% of the continent's population.
Nestlé is expecting 45% of its sales to come from emerging markets by 2020, up from about 30% currently. Nestlé's sales in Africa rose 6.4% to $3.6 billion last year, while global sales rose 2% to 119.8 billion.
The primary source of this article is The Wall Street Journal, New York, New York, on Dec. 1, 2011.