Nestlé will “grow almost double its online sales”

Nestlé reportedly intends to almost double the proportion of its annual sales that the company generates through e-commerce.

CEO Mark Schneider told a virtual investor summit that the world’s largest food company aims to double online sales to 25% of the group’s total by 2025 by “stepping up marketing and technology investments,” Reuters reported.

The push will come from the company’s own e-commerce network and also from D2C, Schneider said, noting the success of Nespresso and Purina PetCare coffee pods increasingly sold directly to consumers.

“We plan to take [e-commerce] turnover of around 13% in 2020 to 25% by 2025, ”said Bernard Meunier, head of strategic business units and Nestlé marketing and sales, quoted by the news agency.

To achieve this, investments in digital marketing will increase to 70% by 2025 against 47% in 2020, added Meunier.

Many food manufacturers have seen the increase in online sales associated with lockdowns related to the pandemic hold up to some extent.

Meunier said e-commerce sales growth will be driven by markets such as the United States, Europe and China, Reuters reported, as Schneider plans to hire staff to support the online push and engage in internal advertising rather than using digital agencies.

“In a world where there is no rulebook to follow, a lot of learning has already been done and we look forward to the next phase,” said Schneider.