Creating Shared Value Report - Nestlé Philippines, Inc.
Creating Shared Value Report - Nestlé Philippines, Inc.
Creating Shared Value Report - Nestlé Philippines, Inc.
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A <strong>Creating</strong> <strong>Shared</strong> <strong>Value</strong> <strong>Report</strong> of <strong>Nestlé</strong> <strong>Philippines</strong>, <strong>Inc</strong>.<br />
CREATING SHARED VALUE REPORT<br />
2011 Edition
1<br />
CONTENTS<br />
Chairman & CEO’s Message 2<br />
Nutrition 3 - 18<br />
Water and Environment 19 -30<br />
Rural Development 31 -62<br />
CSV Forum 63 - 64<br />
CSV Council 65 - 66<br />
Contact Us 67
Chairman’s Message<br />
Making a Positive Lasting Difference<br />
in the Lives of Filipino Families<br />
In the next few pages, you will be introduced to farmers who have<br />
restored their faith in the abundance of their land planting coffee<br />
the <strong>Nestlé</strong> way; unemployed barangay women who have found<br />
purpose and livelihood sewing for <strong>Nestlé</strong> factories; tricycle drivers<br />
who have become mini-entrepreneurs selling <strong>Nestlé</strong> products;<br />
calamity victims who have found new homes and are building new<br />
lives in <strong>Nestlé</strong> GK villages; shoeless children who now dream of<br />
becoming athletes after receiving shoes from MILO.<br />
We take pride and joy knowing that our Company has touched the<br />
lives of thousands of Filipino families in the last 100 years. We have<br />
done this through <strong>Creating</strong> <strong>Shared</strong> <strong>Value</strong> (CSV) for our business and<br />
for society.<br />
As we celebrate our 100th year in the country, <strong>Nestlé</strong> <strong>Philippines</strong> is<br />
more committed than ever to embed <strong>Creating</strong> <strong>Shared</strong> <strong>Value</strong> (CSV)<br />
in our operational activities and weave it seamlessly into the fabric<br />
of our corporate being. More and more, we see CSV as a source of<br />
opportunity, ingenuity, and a competitive advantage for our Company.<br />
It challenges us to creatively craft strategies that not only<br />
make a profit for our business but also create a meaningful and<br />
lasting social impact as well. It makes us constantly look for opportunities<br />
in the value chain where we can create shared value – from<br />
agriculture and sourcing of raw materials, through manufacturing<br />
to the distribution of our products, all the way to our communication<br />
to our consumers.<br />
This 2011 CSV <strong>Report</strong> highlights the<br />
major CSV programs that we have<br />
sustained over the last few years,<br />
particularly in the areas of nutrition,<br />
rural development, and water<br />
and the environment. While these<br />
programmes do not claim to<br />
address all of the enormous social<br />
problems that the country faces, we believe<br />
that they create big enough ripples to make a real<br />
and positive difference in society as we continue to<br />
nurture generations of Filipino families in another<br />
100 years.<br />
It is our hope that through this report, we<br />
will be able to share our programmes and develop<br />
further partnerships to usher in an era of multistakeholder<br />
collaboration for the betterment of the<br />
Philippine society.<br />
JOHN M. MILLER<br />
Chairman & CEO<br />
2
3<br />
Nutrition
Impact on Nutrition<br />
Improve Nutritional<br />
Understanding<br />
Encourage Healthy<br />
Habits/Behaviors<br />
Access to Nutritious Food<br />
Promoting an Active Lifestyle<br />
4
5<br />
Laki sa Gatas:<br />
Putting Milk at the<br />
Heart of Good<br />
Nutrition for<br />
Growing Children<br />
Inside the glass is a piece of paper that bears the uneven<br />
but distinct lines of an airplane, drawn by an 8-year-old<br />
who dreams of becoming a pilot some day. The glass,<br />
typically used for drinking milk, is called the Ambition Glass<br />
as it now encases a child’s dream.<br />
This glass is just one of the many that have served as vessel<br />
to similar drawings by grade school pupils who have<br />
attended the BEAR BRAND Laki sa Gatas nutrition education<br />
advocacy. By translating their ambitions to such drawings,<br />
both the glass and the drawing serve as reminders of how<br />
proper nourishment and drinking milk can help them<br />
achieve their dreams.<br />
Such has been the Laki sa Gatas experience since its launch<br />
in 2006. The half-day nutrition education session includes<br />
the use of colorful flipcharts and fun games led by “Kuya<br />
Benjie.” These sessions help the children learn about the<br />
importance of milk and good nutrition.<br />
The Laki sa Gatas experience is not just for the children but<br />
extends to the children’s parents and their teachers.<br />
Mothers have gone to their children’s schools to attend the<br />
half-day event, where they are given a lecture by a<br />
registered nutritionist-dietician on nutrition, health and<br />
wellness, practical tips on how to ensure proper nutrition<br />
for their kids, plus a meal planner to help them prepare<br />
balanced meals for their families. Thousands of teachers<br />
have taken part in the program, getting briefed on how to<br />
monitor the health conditions of their students and develop<br />
action plans to help malnourished ones.
Post-activity research results show that children who attended the<br />
Laki sa Gatas event increased their daily consumption of milk as their<br />
mothers also increased the number of glasses of milk served daily in<br />
the weeks right after Laki sa Gatas. This behavioral change can do<br />
much to alter the dismal nutrition profile of Filipino children in the<br />
lower-income families, who comprise 70% of the entire population.<br />
According to the 2008 National Nutrition Survey conducted by the<br />
Food and Nutrition Research Institute, a number of children do not<br />
have milk in their diet with only 13% of children ages 6 to 12 only<br />
meeting 13% of their recommended milk intake/day. This figure gets<br />
worse as the children’s ages go up, their mothers equating nutrition<br />
with noodles and fruit juice under the misperception that children<br />
outgrow their need of milk.<br />
Laki sa Gatas continues to visit public elementary<br />
schools throughout the country year after year,<br />
bringing the same nutrition education experience<br />
and message to thousands more children, mothers,<br />
and teachers. BEAR BRAND’s Laki sa Gatas<br />
remains steadfast in its mission: To educate<br />
Filipino families on the value of providing children<br />
with proper nutrition including milk and thus give<br />
them a good head start toward the future as<br />
envisioned in their Ambition Glass.<br />
6
7<br />
Does nutrition come at a higher price?<br />
Not always. That’s what <strong>Nestlé</strong> tells consumers with the<br />
Check the Label campaign of NIDO 3+, urging them to<br />
study the label when buying nutrition-sensitive products<br />
such as milk to determine their real nutritional value<br />
instead of simply assuming that higher-priced brands are<br />
more nutritious.<br />
Turning Consumers into<br />
Nutrition Smart Shoppers<br />
Lauded in 2009 by the Department of Science and<br />
Technology as an “innovative way of promoting correct<br />
information to consumers” and cited by the Department of<br />
Trade and Industry as “well aligned to our mission of<br />
developing well-informed and vigilant Filipino consumers,”<br />
the Check the Label campaign is helping transform more<br />
and more Filipino consumers into nutrition-smart shoppers.
Nearly 70% of consumers who have been exposed to the campaign see the worth of its message and are likely<br />
to adopt the practice.* This simple practice should enable them to get the best nutritional value for their money.<br />
When checking labels of <strong>Nestlé</strong> products, consumers get more than a listing of contents. Each <strong>Nestlé</strong> product<br />
comes with a Nutritional Compass on its packaging, an easy-to-follow graphic tool to different points of interest<br />
about the product— nutritional information, health and wellness tips, and where to call should they need more<br />
information. It enables consumers to make informed choices when buying food and beverage products, while<br />
giving some friendly reminders on how to achieve wellness. That’s the power of the label being harnessed by<br />
<strong>Nestlé</strong> to empower consumers with the right nutrition information to make the right shopping decisions.<br />
*source based on post-evaluation of R&D deployment<br />
Health & Wellness Tips<br />
For More<br />
information<br />
Nutritional<br />
Information<br />
8
9<br />
Making Wellness the Lifestyle<br />
Choice of Filipinos<br />
They meet every Sunday 5:30 a.m. at the Makati<br />
Park — at least 200 of them of different ages and<br />
occupations with little in common except the<br />
desire to get fit and achieve wellness the <strong>Nestlé</strong><br />
way. A fitness instructor gets them on their feet to<br />
form an orderly assembly, some music is played,<br />
and they all move to the groove — stretching,<br />
bending, jumping, dancing, and sweating it out.<br />
Once a month, a seminar on relevant health and<br />
nutrition topics follows the hour-long exercise,<br />
after which they get to consult one-on-one with a<br />
nutritionist for practical advice on how to achieve<br />
their ideal weight and improve their physical<br />
fitness.<br />
These weekly and monthly routines are repeated in 18 other places from up north in Baguio to down south in Davao,<br />
where the <strong>Nestlé</strong> “I Choose Wellness” Advocacy for the Community is currently on the run. Nearly 50,000 of<br />
participants have chosen to stick to the program every week, signing up for the “I Choose Wellness” Passport program,<br />
where their health indicators such as weight, body mass index, and blood pressure are recorded and tracked every<br />
month, and where they get reward items in exchange for points earned from engaging in wellness activities. This Wellness<br />
activity is a real, sustained, and monitored experience for Filipinos at no cost to them.
• “Choose Wellness, Choose <strong>Nestlé</strong>”<br />
at the Trade. The Company deploys<br />
registered nutritionists to trade outlets and<br />
public markets to educate shoppers on<br />
nutrition and wellness to help them make<br />
purchase decisions attuned to their<br />
wellness needs. Shoppers may also consult<br />
the nutritionists on their personal health<br />
and nutrition concerns, during which their<br />
relevant body measurements are taken for a<br />
proper assessment of their needs. Over 5<br />
million people have sought counseling from<br />
<strong>Nestlé</strong>-deployed nutritionists since 2005.<br />
Among them is Elenita Reyes, 45 years old, who has lost 8 unhealthy<br />
kilos since stumbling upon the weekly activity and getting hooked on<br />
it. “I feel and look much better now that I have learned to be more<br />
physically active and more knowledgeable about the food I eat.<br />
I used to get easily tired. I feel healthier now.” she says.<br />
Millions of Filipinos continue to learn more about nutrition, health,<br />
and wellness through the other components of the <strong>Nestlé</strong> “I Choose<br />
Wellness” campaign:<br />
10
11<br />
Wellness Begins at Home<br />
Six years since its launch to Company employees, the <strong>Nestlé</strong><br />
Wellness program continues to spread through every<br />
activity within the <strong>Nestlé</strong> organization, as employees are<br />
constantly encouraged to adopt a healthy lifestyle through<br />
proper nutrition and physical activity. Nutrition education<br />
training, regular physical exercises, year-round sports and<br />
recreation activities, incorporation of wellness in internal<br />
communication materials, a well-equipped gym at every<br />
site, and a dedicated nutritionist per site — these are what<br />
make wellness palpable in the Neslté culture.<br />
• Wellness in the Workplace. <strong>Nestlé</strong> spreads its wellness<br />
advocacy with business companies, government agencies,<br />
hospitals, and schools by conducting its Wellness in the Workplace<br />
Workshop for representatives of these institutions. This program<br />
is designed to give participants a solid background on nutrition,<br />
health and wellness, and help them develop wellness programs for<br />
their respective organizations. More than 200 companies,<br />
represented by HR practitioners, teachers, and medical staff, have<br />
attended the workshop. Some of them have launched their own<br />
wellness programs as an offshoot of attending the <strong>Nestlé</strong><br />
workshop.
• Wellness Expo. <strong>Nestlé</strong> highlights its nutrition,<br />
health, and wellness advocacy by holding an annual<br />
two-day Wellness Expo in celebration of the Nutrition<br />
Month of July. Open to the public, the wellness fair<br />
features standard <strong>Nestlé</strong> wellness activities — nutrition<br />
counseling, seminars on nutrition and health, physical<br />
measurement of participants for health assessment<br />
purposes, plus an array of engaging wellness activities<br />
by the Company’s major brands. More than 20,000<br />
consumers trooped to the 2010 Wellness Expo, of which<br />
more than 18,000 people took part in at least one of the<br />
wellness activities, around 7,000 availed of nutrition<br />
counseling, and more than 5,000 signed up for the<br />
I Choose Wellness Passport program.<br />
Nutrition<br />
Online<br />
Together with the Food<br />
and Nutrition Research<br />
Institute which develops<br />
relevant content for an<br />
online nutrition resource<br />
called nutritionschool.ph,<br />
both FNRI and <strong>Nestlé</strong><br />
provide visitors with<br />
valuable information<br />
about good nutrition,<br />
health and wellness.<br />
12
13<br />
Bringing<br />
Nutrient-Enriched<br />
Food within Reach<br />
Aling Nene goes to the sari-sari store to buy baon<br />
for her son. She gets him one pack of BEAR BRAND<br />
Busog Lusog family cereal drink. While at the store,<br />
she decides to get MAGGI Sinigang, a NESTEA Litro<br />
Pack, and 20g pack of MILO. She gets all these for<br />
around PhP 23, well within her limited budget. She<br />
may not realize it, but that amount has also bought<br />
for her family a dose of zinc, iron, calcium, vitamins<br />
and minerals, and iodine.<br />
Like Aling Nene, millions of Filipinos in the lowerincome<br />
brackets buy food products in small packs<br />
from small stores. These are everyday food<br />
necessities that <strong>Nestlé</strong> has fortified with the very<br />
nutrients that the Food and Nutrition Research<br />
Institute found to be lacking in the average Filipino<br />
household, and makes these affordable and<br />
accessible to them. The Company makes use of<br />
<strong>Nestlé</strong>’s global superior nutrition science research<br />
to constantly innovate its products with nutrient<br />
combinations that address known deficiencies<br />
among Filipinos while keeping the costs low and<br />
developing routes that bring these within easy<br />
reach, so Aling Nene and millions more like her can<br />
get the nutrients they need from good-tasting and<br />
budget-fitting <strong>Nestlé</strong> goods.
The range includes:<br />
• BEAR BRAND Powdered Milk Drink with zinc, vitamin C, and iron<br />
• BEAR BRAND Ready-to-Drink with zinc and vitamin A<br />
• BEAR BRAND Busog Lusog Family cereal drink with zinc and iron<br />
• MILO ACTIGEN-E (combination of B vitamins and micronutrients -- a good source of niacin, iron and calcium<br />
with enriched levels of vitamins B1, B2, B6, B5, B8, Magnesium and Vitamin C) and malt extract PROTOMALT<br />
(mixture of different types of carbohydrates)<br />
• NESTEA Litro Pack with Vitamin C<br />
• KOKO KRUNCH Breakfast Cereals with B Vitamins, iron and Vitamin C<br />
• CERELAC Rice & Soya with Protect Plus (Bifidus BL, Immunonutrients: DHA, Iron, Zinc, Vitamin A and C)<br />
• MAGGI Sinigang with Vitamin C<br />
14
15<br />
Promoting a<br />
Healthy Lifestyle<br />
Through Sports<br />
The sight of a 10-year-old running in the country’s biggest marathon<br />
event with a big smile on his face as he approaches the finish line is<br />
enough inspiration for <strong>Nestlé</strong> to have its many MILO sports development<br />
programs touch the lives of as many Filipino youngsters as<br />
possible. The sight of this same boy running barefoot, is more than<br />
enough to stir the Company to provide this child and many others like<br />
him with the most basic of sports gear — shoes.<br />
And so, some 4,000 public elementary school students nationwide are<br />
walking to school in new shoes this year — shoes given to them by MILO<br />
through a million-peso grant matched with a million-peso fund raised<br />
from a portion of registration fees from the 200,000 or so runners in the<br />
2010 National MILO Marathon. By gearing them up with running shoes,<br />
the Company puts them on track to becoming champions in life through<br />
the values of discipline, teamwork, competitiveness, sportsmanship,<br />
and perseverance learned in sports.<br />
Nothing beats the MILO Marathon when it comes to the scope of reach<br />
of a sporting event, having sent millions of Filipinos running since its<br />
pilot run in 1976. Held in key cities nationwide, the country’s biggest<br />
marathon event offers people of all ages and walks of life an enjoyable<br />
venue to experience the natural high from running. And with its new<br />
advocacy of helping provide shoes to the shoeless, the MILO Marathon<br />
has become even more relevant to young Filipinos aspiring to become<br />
tomorrow’s champions.
At the heart of <strong>Nestlé</strong>’s<br />
champion-building program is the<br />
MILO Summer Sports Clinics,<br />
hailed by the Philippine Sportswriters<br />
Association as the<br />
longest-running grassroots sports<br />
development program in the<br />
country. The Clinics, which<br />
started out in 1983, provide<br />
youngsters as early as 7 years<br />
old, with professional and<br />
scientific training on various<br />
sports, including badminton,<br />
basketball, bowling, chess,<br />
football, gymnastics, ice skating,<br />
karatedo, lawn tennis, squash, swimming, table tennis, and<br />
taekwondo.<br />
Millions of Filipinos have undergone at least one MILO Sports<br />
Clinic in their lifetime. Among them are some of the country’s<br />
champion athletes such as Chris Tiu (2008 UAAP Basketball<br />
Champion), Japoy Lizardo (2007 SEA Games Medalist) and Nica<br />
Calapatan (2005 SEA Games Gold Medalist).<br />
16
17<br />
Recognizing the all-important role of schools in the over-all formation<br />
of young people, <strong>Nestlé</strong> consistently partners with the educational<br />
sector in advancing its sports programs. For over two decades now,<br />
the Company has been the driving force behind inter-school sports<br />
competitions for elementary and high school students through MILO<br />
Little Olympics. Starting out as a city-wide competition in 1988, the<br />
event has evolved into a national athletic meet where represented<br />
schools compete in several events, and the winning schools receive<br />
cash prizes to be used to purchase sports equipment. In 2009, over<br />
946 schools nationwide took part in the first ever National MILO Little<br />
Olympics.
To get more youngsters to actually experience the thrill of engaging in sports,<br />
<strong>Nestlé</strong> has launched the MILO Champ Camp. This is a half-day program that <strong>Nestlé</strong><br />
brings to elementary schools nationwide, gathering pupils ages 7-12 and teaching<br />
them the rudiments of basketball, baseball, and soccer through 15-minute drills<br />
per game supervised by professional trainers. The activity is meant to supplement<br />
the school’s P.E. instruction for the day, and includes a lecture on sports principles.<br />
Champ Camp involves the students’ parents as well, inviting them to a session<br />
where they are taught about nutritional benefits of MILO, the values learned from<br />
sports, and the importance of an active and healthy lifestyle for kids to avoid<br />
lifestyle-induced diseases such as diabetes and hypertension later in life. The<br />
recipe for a perfect MILO drink is also shared with the parents.<br />
Launched in 2009, Champ Camp has visited around 680 schools nationwide and<br />
engaged nearly half a million students in the camp’s<br />
mini-sports training. It was also held at trade outlets in<br />
April and May during the summer school break, enabling<br />
thousands of shoppers and their kids to experience the<br />
camp activities.<br />
18
19<br />
Water and<br />
Environment
Impact on Water and the Environment<br />
Water Conservation Energy<br />
Waste Management<br />
Sharing Best<br />
Practice<br />
20
21<br />
Conserving<br />
Water<br />
Change , %<br />
60.00%<br />
50.00%<br />
40.00%<br />
30.00%<br />
20.00%<br />
10.00%<br />
0.00%<br />
-10.00%<br />
-20.00%<br />
CONTINUOUS REDUCTION OF ENVIRONMENTAL IMPACTS since 2000<br />
<strong>Nestlé</strong> <strong>Philippines</strong> is keenly<br />
aware that water is a<br />
-30.00%<br />
life-giving resource that is<br />
-40.00%<br />
-35.59%<br />
finite and getting scarcer by<br />
-50.00%<br />
the minute. The Company<br />
2000 2007 2008 2009 2010<br />
takes water conservation to<br />
heart, leaving no stone<br />
Prod.Volume Total Water Withdrawal Rate Total Water Discharge Rate<br />
unturned in finding ways to minimize and optimize consumption, treat wastewater, and protect water sources.<br />
Optimizing Water Consumption<br />
All <strong>Nestlé</strong> worksites employ various means to use water efficiently, ever pressed to reduce consumption while increasing<br />
production. Workers are greatly involved not only in implementing water-conservation practices but more so in thinking<br />
of ways to conserve water at their level, since they are the ones who know best the conditions within which they do their<br />
job. Water-conserving ideas are thus aplenty in the worksites — mostly simple practices that cost little spending but<br />
cause a lot of savings.<br />
Among these are:<br />
• Reuse of sealing water from vacuum pumps, where the water is recirculated<br />
and used all over again as sealing water for the same vacuum pumps<br />
• Recirculation of cooling water instead of being immediately discharged to<br />
waste<br />
• Reuse of water from Reverse Osmosis plants for such purposes as flushing<br />
of toilets<br />
• Reuse of the final rinsing water during cleaning-in-place (CIP) of process<br />
equipment as initial rinsing water for the next CIP<br />
• Reuse of effluent for irrigation of plants and grass inside factory premises<br />
• Use of automatic washer for the cleaning dryer, which regulates volume<br />
of water used to clean the dryer<br />
• Insulation of steam valves and leak management<br />
• Use of sensor-operated faucets, which ensures automatic stoppage of<br />
water flow as soon as faucet use is done<br />
• Throttling of supply valve to regulate water flow<br />
• Installation of cistern tanks to collect rainwater<br />
• Use of waterless urinals<br />
Reverse Osmosis Plants<br />
55.01%<br />
-35.87%
Waste Waste Treatment Plants<br />
All these water-saving initiatives have reduced water consumption<br />
throughout <strong>Nestlé</strong> <strong>Philippines</strong> by 41% since 2006, or an average of<br />
170,000 cubic meters of water every year. In 2010, water consumption<br />
further dropped by 20%. Water dropped to 7.21 m 3/t from 9.01 in 2009.<br />
Treating Wastewater<br />
<strong>Nestlé</strong> operates world-class wastewater treatment plants in all its factories and distribution centers to make sure<br />
that every drop of water used is cleansed of impurities before being released to natural waterways. Industrial<br />
wastewater is treated separately from domestic waste to produce cleaner effluent and ensure absence of the bacteria<br />
that characterize the domestic kind.<br />
Treated water from <strong>Nestlé</strong> sites is constantly tested and known to meet, and often exceed, strict government<br />
standards. <strong>Nestlé</strong>-treated water is clean enough to sustain marine life, as evidenced in koi or tilapia fishponds in all<br />
factories, which get water solely from the treatment plants.<br />
Preserving Water<br />
Sources<br />
<strong>Nestlé</strong> keeps a caring eye for rivers and creeks that<br />
run through the communities where it operates.<br />
Through community outreach programs, the sites<br />
organize regular clean-up activities in areas<br />
surrounding the water sources and waterways.<br />
The Cagayan de Oro Factory, in particular, makes it a<br />
point to clean the Umalag River of algae, cut grasses<br />
near the river, and rid the area of scattered trash. The<br />
factory has hired a contractor to do this every month.<br />
Employees and barangay residents of Tablon do their<br />
share in cleaning up the river environs every quarter.<br />
Cagayan Distribution Center has mobilized employees,<br />
local residents and students to clean up the<br />
coastal area in Barangay Casinglot.<br />
22
23<br />
Change , %<br />
60.00%<br />
50.00%<br />
40.00%<br />
30.00%<br />
20.00%<br />
10.00%<br />
0.00%<br />
-10.00%<br />
-20.00%<br />
-30.00%<br />
-40.00%<br />
-50.00%<br />
Spreading Water Awareness<br />
<strong>Nestlé</strong> has also joined hands with Department of Education, DENR-EMB, and CEAE in<br />
conducting the Project Water Education for Teachers (WET) in various communities<br />
throughout the country. Project WET is a curriculum-activity-based training on water and<br />
related environmental concerns.<br />
Using Energy Efficiently<br />
CONTINUOUS REDUCTION OF ENVIRONMENTAL IMPACTS since 2000<br />
Prod.Volume Energy Utization Greenhouse Gas Discharge Rate<br />
-35.59%<br />
2000 2007 2008 2009 2010<br />
55.01%<br />
-35.87%<br />
Another natural resource that <strong>Nestlé</strong> takes extra care to use responsibly and optimally is energy, fully aware<br />
not only of the cost of power generation but more so of its climate change impact and the dwindling supply of<br />
fuel, which is the world’s primary source of energy.
The Company invests heavily in technologies that reduce consumption, convert byproducts into<br />
energy, and tap the use of alternative energy sources. Some of the more notable ones are:<br />
• the use of Solatube lighting, which captures<br />
solar energy to provide lighting inside factory<br />
buildings and warehouses<br />
• Conversion in CDO Factory of spent coffee<br />
grounds into 24 MT of steam per hour through<br />
the Atmospheric Fluidized Bed Boiler (AFBB)<br />
• Recovery of exhaust heat or gas from power<br />
plants in Lipa and Cabuyao Factories to<br />
produce secondary steam that serves as fuel<br />
• Recovery of exhaust heat from air heaters in<br />
Cabuyao to pre-heat incoming fresh air before<br />
final air heating<br />
• Recovery of heat from air compressors in CDO<br />
Factory<br />
• Use of Thermax Chiller condensate in Cabuyao<br />
to reheat water<br />
• Arrest of steam leakages in all factories by<br />
installing insulation steam valves and through<br />
other leak management means<br />
• Use of Variable Frequency Drive (VFD) Motors<br />
to control air blowers and cooling fans<br />
• Use of high-pressure gas discharge lamps for<br />
outdoor lighting in Lipa<br />
• Use of solar-powered air conditioners in the<br />
Cagayan DC main warehouse and offices<br />
• Use of glass skylight windows also in Cagayan<br />
DC to minimize use of lighting inside the<br />
warehouse during daytime<br />
Serving as a strong foundation to the Company’s energy-efficiency efforts is a well-developed energyconsciousness<br />
among employees, which has been achieved through continuous training. Such mindset is what<br />
drives every department in all worksites to keep looking for ways to avoid wasteful use of energy and develop<br />
energy-efficient practices, and monitor their respective energy consumption rates. These practices range from<br />
something as basic as turning off lights when not in use to something as technical as reducing steam pressure.<br />
Energy management in every work site is continually audited to ensure that work practices and processes are<br />
constantly reviewed to determine where energy usage can be further optimized.<br />
24
25<br />
The role of packaging in the sustainability agenda is to<br />
prevent food waste by providing adequate protection to<br />
the product from manufacture to consumption. Aside<br />
from minimizing food loss, packaging contributes to<br />
environmental preservation by ensuring that fewer<br />
resources are used to produce it while meeting the<br />
demands of the market.<br />
Packaging source reduction is an important part of<br />
<strong>Nestlé</strong>’s environmental policy. This program is aimed at<br />
reducing the amount of packaging used without<br />
compromising product quality and safety. In 2009<br />
alongside growth in product volume, <strong>Nestlé</strong> <strong>Philippines</strong><br />
ranked 5th among <strong>Nestlé</strong> markets that contributed to<br />
this program. Through initiatives such as use of thinner<br />
gauges, optimized dimensions and material<br />
replacements, the company saved 2,046 MT of<br />
packaging usage in that year alone.<br />
Reducing the Environmental<br />
Footprint of Packaging<br />
Solid Waste<br />
Water Use<br />
8.287e-2 kL H20<br />
4.718e-1 kg<br />
Land Use<br />
5.574e-5 Ha a<br />
Climate Change<br />
2.197e+0 kg CO2 eq<br />
Eutrophication<br />
1.342e-3 kg PO4 3- eq<br />
<strong>Nestlé</strong> promotes that reducing the environmental<br />
footprint of a product or service requires ‘life-cycle<br />
thinking’. This approach may be applied in packaging<br />
design to show the impact of a material in all phases of<br />
its life, i.e. from raw material extraction up to recovery<br />
and disposal.<br />
Comparative impacts of two materials may be assessed<br />
using an eco-design tool called PIQET which stands for<br />
Packaging Impact Quick Evaluation Tool. Developed in<br />
partnership with Strategic Packaging Alliance (SPA) of<br />
Australia, the web-based tool generates a spider graph<br />
summarizing the influence of a given packaging material<br />
on eight predefined indicators such as the one shown in<br />
figure below. Shorter distance from the center means<br />
lower impact for a given indicator. The chart compares<br />
the former rigid plastic container to the new shaped box<br />
made of laminated paper for the product <strong>Nestlé</strong> Pops.<br />
Cumulative Energy Demand<br />
5.029e+1 MJ LHV<br />
Minerals & Fuel<br />
3.542e+0 MJ surplus<br />
Photochemical Oxidation<br />
1.835e-3 kg C2H4 eq<br />
POPS in Plastic Tub &... POPS in Hexagonal Box
PIQET results can be translated into equivalent units for easier comprehension, allowing the packaging<br />
designer to have a clear idea of the impacts of the packaging choice over one year of sales. Based on 1.5<br />
million retail units of <strong>Nestlé</strong> Pops per year, the environmental gains of moving to the shaped box are<br />
expressed as follows:<br />
On climate change - 223 trees saved<br />
On comulative energy demand - 24,414 households worth of energy use<br />
saved<br />
On photochemical oxidation - 102,000 passenger car kilometers not<br />
driven<br />
On water use - 579,800 household buckets of water saved<br />
On solid waste - 58 wheely bins of trash not generated<br />
Completely embedded in our <strong>Nestlé</strong> Packaging Environmental Sustainability Policy, PIQET is systematically<br />
applied during the packaging innovation and renovation process. It serves as an internal decision<br />
support tool allowing the user to design a packaging material that is not only the most suitable for the<br />
product, but the one with the least possible negative impact to the environment.<br />
26
27<br />
Going Beyond Nestle<br />
<strong>Nestlé</strong> <strong>Philippines</strong> values water and the environment. Water conservation and environment protection<br />
are inherent in its corporate culture. Recognizing that water and environment are universal concerns,<br />
the Company goes beyond the confines of its operations in upholding these values. Through structured<br />
programs, <strong>Nestlé</strong> shares its best practices and initiatives with business partners and encourages them<br />
to develop a similar commitment to water conservation and environment protection.<br />
Greening the Supply Chain<br />
<strong>Nestlé</strong> helps business partners develop their own environmental management system (EMS) through the<br />
Greening the Supply Chain (GSC) program. The Company provides business partners with training on EMS as a<br />
tool for improving environmental performance and visits them on-site to guide them in developing their own<br />
environment programs.<br />
To sustain the initiatives, <strong>Nestlé</strong> invites all GSC business partners to a day-long forum every four months. The<br />
fora serve as a venue for business partners to learn more about the environment, get updated on relevant<br />
issues and regulations, network and share best practices with other companies, and collaborate in addressing<br />
common issues such as water and climate change.
In 2010, GSC business partners made a formal pledge to conserve water, stating their respective water<br />
consumption reduction targets. These targets are now being monitored within given timelines.<br />
Now on its 10th year, GSC has helped over 170 business partners improve their environmental performance<br />
through EMS, enabling them to put up their own wastewater treatment plants, materials recovery facilities,<br />
waste segregation systems, and water and energy conservation programs, among others.<br />
Water Pledge<br />
Total 2011 Pledge 137,825.55<br />
Actual 2010 water saved 41,233.12<br />
Cubic meters projected savings 179,085.67<br />
Which is equivalent to:<br />
895,428 DRUMS<br />
*estimated representation<br />
Here are some fruits of GSC:<br />
*<br />
• A co-manufacturer reduced water usage by 30% after setting up a<br />
re-use system and saved 25% on LPG cost by simply switching to<br />
bulk container system.<br />
• Another co-manufacturer reduced total waste generation by 40%<br />
by strictly implementing the 3Rs (Reduce, Reuse, Recycle).<br />
• A laminate packaging supplier now saves 30% on major chemical<br />
usage through a recycling scheme and 5% on energy consumption<br />
through a power management system. It was also able to put up a<br />
low-cost wastewater treatment facility through collaborative<br />
studies with the DOST-MIRDC.<br />
• A plastics supplier was able to save 60% on major packaging<br />
materials after launching a solid waste reduction program.<br />
• A primary packaging supplier cut down its energy bill by 5% soon<br />
after installing capacitor banks. It also achieved 10% savings on<br />
cost of water through regular collection of rainwater.<br />
• The GSC partners committed to a water pledge and expected water<br />
savings from this pledge is around 179,085.67 cubic meters which<br />
is roughly 895,428 drums of water.<br />
28
29<br />
Greening the<br />
Transport Operations<br />
<strong>Nestlé</strong> transport operations mainly involve more than 1,100<br />
trucks that carry <strong>Nestlé</strong> products between its manufacturing<br />
facilities and distribution centers nationwide. These trucks<br />
are owned and operated by 19 third-party truckers with a<br />
total of 3,500 trucking personnel in their employ. To reduce<br />
the environmental impact of its transport operations, the<br />
Company has initiated projects aimed at maximizing the use<br />
of transport resources, notably:<br />
• Balik Baterya, a joint project between <strong>Nestlé</strong> and its<br />
truckers and the Philippine Business for Social Progress<br />
(PBSP) where truckers donate sales proceeds from its used<br />
lead acid batteries to PBSP. <strong>Nestlé</strong> collects these batteries<br />
from the truckers and turns them over to Motolite, which<br />
in turn passes the batteries to the Philippine Recyclers, <strong>Inc</strong>.<br />
for proper recycling. Motolite pays for these batteries<br />
directly to PBSP, which uses the proceeds to finance its<br />
social projects.
In 2010 to 2011, three rounds of collection yielded a total of 710 batteries from <strong>Nestlé</strong> truckers, which fetched<br />
Php 440,000 for PBSP. In 2009, the used tires donated by <strong>Nestlé</strong> truckers netted PhP 195,000, which PBSP used to<br />
provide free textbooks to students in two public elementary schools in South Cotabato.<br />
• Bantay Langis, a joint project with the ABS-CBN Foundation, under which <strong>Nestlé</strong> truckers turn over their used<br />
oil for purchase by an oil-recycling company. Proceeds are then donated to ABS-CBN Foundation to finance its<br />
Bantay Kalikasan program.<br />
• Dedicated Return Trip (DRT), a program that ensures every return trip of a truck from a delivery destination to<br />
its point of origin performs a delivery function as well. Previously, Truck A would deliver from factory to<br />
distribution center (DC) and make an empty return trip while Truck B delivers from DC to factory and likewise<br />
return empty. Under the DRT program, Truck A assumes the function of Truck B delivering from DC to factory on<br />
its return trip. This effectively halves the number of trips between the two points.<br />
Factory<br />
Finished Goods<br />
Raw and Packaging Material<br />
Distribution Centers<br />
Caring with Partners<br />
Supplier<br />
Co-Manufacturing Sites<br />
To ensure that <strong>Nestlé</strong>’s co-manufacturers, truckers, and other partners comply with government requirements as<br />
well as <strong>Nestlé</strong> and international standards, the Company has rolled out the <strong>Nestlé</strong> compliance assessment<br />
program to key co-manufacturers and transport partners. Called CARE (Compliance Assessment of Human<br />
Resources, Safety, Health & Environment), the program verifies, through external independent auditors, that<br />
operations of co-manufacturers and truckers are aligned with relevant standards, laws, and regulations pertaining<br />
to labor, business integrity, safety, health, and environment practices. CARE participants are given ample time to<br />
correct audit findings and implement recommendations, after which a second audit is done to check progress and<br />
ensure complete compliance is achieved.<br />
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31<br />
Rural Development
direct<br />
employment<br />
employment<br />
volunteering and<br />
charitable<br />
donations<br />
Impact on Rural Development<br />
indirect employment<br />
(contractors,<br />
collection agents)<br />
<strong>Nestlé</strong> products<br />
for sale and<br />
consumption<br />
direct purchasing of<br />
locally grown<br />
commodities<br />
investment in local<br />
transport<br />
infrastructure<br />
energy-efficient<br />
equipment and<br />
practices<br />
employee training<br />
and apprenticeship<br />
procurement of<br />
local services<br />
clean drinking<br />
water and hygienic<br />
projects<br />
contribution to<br />
local education<br />
facilities<br />
<strong>Nestlé</strong>-built waste<br />
water treatment<br />
plants<br />
32
33<br />
Micro-distributorship Program<br />
Turns Underemployed Pinoys to<br />
Entrepreneurs<br />
A husband who used to depend on his Dubai-based wife’s earnings has asked his wife to come home as he<br />
now earns enough for their family. An odd-job worker who could barely make both ends meet six years ago<br />
now earns enough to send his children to school, afford medical service for his epileptic child, and construct<br />
an extension to his house.<br />
A school teacher who earned P6,500 a month three years ago now generates as much as P50,000 monthly<br />
income and has just recently bought a brand new car. Lotto winners? No. But they all feel like they hit some<br />
kind of jackpot to have their lives turned dramatically around — the jackpot being the opportunity to run<br />
their own business under the micro-distributorship program of <strong>Nestlé</strong> <strong>Philippines</strong>.
Micro-distributorship, primarily a route-to-market scheme developed by the Company to target<br />
bottom-of-the-pyramid accounts, is proving to be one of the Company’s most viable and effective<br />
means to help provide livelihood to otherwise unemployed or underemployed Filipinos. It allows<br />
any able-bodied individual — who can read, write, compute and drive — to become small-scale<br />
entrepreneurs by selling <strong>Nestlé</strong> products to small accounts in areas that are not covered by <strong>Nestlé</strong><br />
distributors.<br />
The scheme takes the form of three different programs representing the three major sales units of<br />
the Company — Micro Distributor (MD) of Grocery Field Sales, Carrito of Ice Cream Sales, and<br />
Business on Wheels (BOW) of <strong>Nestlé</strong> Professional. In all three programs, the entrepreneurs are<br />
trained on the <strong>Nestlé</strong> way of selling, product knowledge, and the mechanics of the program they<br />
are in. They are equipped with <strong>Nestlé</strong>-branded motorized tricycles and assigned to certain<br />
territories to tap and develop their accounts. They get their stocks of <strong>Nestlé</strong> products from <strong>Nestlé</strong><br />
distributors, enjoy a certain discount on distributor rates, and are allowed to mark up their price by<br />
a certain percentage. On any regular day, these enterprising peddlers earn a net income higher<br />
than the daily minimum wage, with the capacity to earn so much more.<br />
34
35<br />
The MDs of Grocery Field Sales are<br />
deployed in densely populated urban<br />
areas to sari-sari stores, delivering<br />
and selling to these accounts a range<br />
of <strong>Nestlé</strong> products that are known to<br />
be in great demand among sari-sari<br />
store shoppers. To date, this program<br />
has given livelihood to some 392 MDs<br />
nationwide, among them being<br />
Daniel Gorospe whose wife is now<br />
happy to be back from Dubai helping<br />
Daniel grow their MD business.
The Carrito sellers of Ice Cream ply the streets of<br />
residential subdivisions and other high-traffic public<br />
areas to sell the range of NESTLÉ Ice Cream products<br />
categorized as “impulse”, the kind that consumers are<br />
known to crave for in a whim. Numbering about 2,000<br />
nationwide, these vendors earn from regular commission<br />
and different financial incentive programs such as<br />
daily and monthly incentive bonuses.<br />
Armando Araja<br />
Among the hardest working carrito<br />
vendors is Armando Araja of San<br />
Jose, Nueva Ecija, whose earnings<br />
from selling NESTLÉ Ice Cream in<br />
the streets had sent a daughter to<br />
earn a degree in Education and<br />
enabled him to provide medical<br />
attention to his epileptic child,<br />
something he never could afford<br />
before he joined the Carrito<br />
program in 2004.<br />
36
37<br />
A promising Street Selling project is also on the rise under Operation Mobile Store (OMS) program of the<br />
Chilled Dairy Business Unit, under which small entrepreneurs sell BEAR BRAND Probiotic Drink in high-traffic<br />
places such as schools, bus terminals, public markets, and churches. The sellers are equipped with a cooler<br />
mounted on a trolley (called “Rambo carrito”), which they lug along with them as they ply their usual route.<br />
Piloted last quarter of 2009, the program has provided a steady source of income to more than 60 sellers in<br />
Metro Manila and nearby provinces, many of whom are ladies who were formerly unemployed or without<br />
livelihood. Aside from earning a commission for every bottle of BEAR BRAND they sell, they receive monthly<br />
cash incentives to add to their income. During the rainy months of June to August, considered lean season,<br />
they also get kilos of rice as assistance.
The biggest earners seem to come from the ranks of the<br />
BOWers, who sell <strong>Nestlé</strong> products to small carinderias,<br />
kapihans, and small-scale eateries. Around 350 of them<br />
are in active operation nationwide, many of whom earn<br />
triple the minimum wage. Others have developed their<br />
own ways of growing the BOW business, surpassing<br />
earnings of white-collar professionals. No wonder<br />
Peachy Francisco left her teaching job to concentrate on<br />
expanding and closely managing her BOW venture,<br />
which has enabled her to send her children to a private<br />
school and afforded her to build up their family<br />
resources that now include a brand new car.<br />
38
39<br />
Nestlegosyo:<br />
Helping Small Stores Boost Business<br />
<strong>Nestlé</strong> products reach its consumer through over 640,000 sari-sari stores and market stalls scattered<br />
throughout the archipelago. Deriving a portion of its total sales from these small stores, the Company<br />
recognizes the decisive role that this channel plays in getting its products sold to the greater mass of Filipino<br />
consumers.<br />
To build and nurture partnership with these stores, the Company has developed a dedicated program called<br />
<strong>Nestlé</strong>gosyo that provides small store owners with useful information and tools for growing their business:<br />
relating with their customers, displaying their merchandise, and developing a mindset of nutrition, health,<br />
and wellness. The program involves studying and developing content that is relevant to the channel, such<br />
as: best-selling SKUs, proper display, easy-to-recall tips, sanitation and hygiene, as well as nutrition and<br />
wellness. Every year, <strong>Nestlé</strong>gosyo reaches around 25,000 tinderas.
<strong>Nestlé</strong>gosyo imparts all this information through:<br />
• Classroom sessions conducted by <strong>Nestlé</strong> Sales executives<br />
as well as guest speakers, like Mr. Francis Colayco, as part<br />
of trade events for sari-sari storeowners;<br />
• Personal visits to the stores by <strong>Nestlé</strong> distributors for<br />
face-to-face coaching; and<br />
• Production and distribution of leaflets, brochures, comic<br />
books, calendars, and other informative materials.<br />
From time to time, <strong>Nestlé</strong>gosyo runs sales promos exclusive<br />
to small stores, allowing stores to increase their margin by<br />
hitting certain targets or complying with specially developed<br />
display guidelines. Stores also receive useful display tools as<br />
added incentive.<br />
“Malaki ang naitulong ng <strong>Nestlé</strong>gosyo sa pamilya ko dahil<br />
ito ang pinagkukuhanan namin ng aming ikinabubuhay”<br />
“<strong>Nestlé</strong>gosyo has helped me and my family a lot because<br />
this is our main source of livelihood.” – Susan Perlata<br />
(Owner, Peralta’s Sari-Sari Store)<br />
40
41<br />
Responding to the<br />
Needs of OFWs<br />
With an estimated 11.5 million Filipinos working in<br />
foreign shores, OFWs (Overseas Filipino Workers) and<br />
their families have become a potent force in the<br />
marketplace. This phenomenon has prompted <strong>Nestlé</strong><br />
to give dedicated attention to this growing sector in<br />
Philippine society, catering to their special needs based<br />
on two insights gathered from focus discussions with<br />
OFWs and dependents:<br />
• OFWs, particularly mothers who are forced to part<br />
from their families, are eager to take an active role in<br />
nourishing their families in spite of the distance<br />
between them.<br />
• OFWs ultimately want to have a business of their<br />
own to sustain livelihood, in preparation for the time<br />
when they come home for good.<br />
For some years now, the Company has been carrying<br />
out special programs that respond to these insights.<br />
First is the gift-giving service which allows OFWs<br />
anywhere in the world to send various products<br />
including nutritious <strong>Nestlé</strong> products to their families by<br />
simply ordering online or through remittance agencies.<br />
They may send specially wrapped gift sets on special<br />
occasions or simple grocery packs consisting of milk,<br />
coffee, breakfast cereals, and other <strong>Nestlé</strong> products<br />
that mothers usually shop for their family. This <strong>Nestlé</strong><br />
service gives OFWs a chance to convert part of their<br />
monetary remittance to grocery items that provide<br />
their family with nutrition, health, and wellness. This<br />
assures them that their children get their supply of<br />
milk, breakfast cereals, and other products they<br />
normally buy for their little ones despite their physical<br />
absence.
Second, to help them realize their dream of having their own business, <strong>Nestlé</strong> has designed for them a sari-sari<br />
store start-up package called the <strong>Nestlé</strong>gosyo Bundle which has been availed of by 35 Seafarer families.<br />
The package, available in P7,000 and P15,000 bundles, comprises <strong>Nestlé</strong> SKUs that are known to sell fast in sari-sari<br />
stores, along with free store display materials and other business tools such as a calculator and notebook, plus a<br />
booklet of guidelines on how to start up a small store business. Going one step further, <strong>Nestlé</strong> partners work with<br />
cooperatives to provide qualified OFWs with low-interest small loans to finance this start-up package.<br />
“ Nakatulong talaga sa amin ang<br />
<strong>Nestlé</strong>gosyo Bundle. Nakadagdag kita sa<br />
aming pamilya at natulungan ko pa ang<br />
kapatid ko na walang pinagkakakitaan.”<br />
(“The <strong>Nestlé</strong>gosyo Bundle has really<br />
helped us. It added to our family income<br />
and helped my brother who was not<br />
earning anything.”)<br />
- May Paceta (Assistant Manager of<br />
Magsaysay’s Crew Family Affairs;<br />
married to a seafarer)<br />
<strong>Nestlé</strong> continues to explore ways it can<br />
help OFWs and their families by keeping<br />
in close touch with organized groups of<br />
OFWs, manning agencies, and other<br />
establishments that are dedicated to<br />
OFWs, linking arms with them in<br />
providing overseas Filipinos the services<br />
they need to strengthen their family ties<br />
and sustain their livelihood for the<br />
long term.<br />
42
43<br />
Maggi Dedicated Seller Program<br />
Parallel to the Company’s micro-distributorship schemes is a<br />
dedicated selling program launched by the Food Business<br />
Unit in 2005 to push MAGGI products in the public market,<br />
specifically in the market stalls and market stall-x channels.<br />
This program has given livelihood to over 160 people<br />
nationwide, who now make up the MAGGI-exclusive sales<br />
force tasked to drive the distribution of MAGGI products in<br />
the general trade and oversee the execution of<br />
brand-initiated activities, in partnership with our<br />
distributors nationwide.<br />
Many of these sellers attest to the program being key to the marked improvement in their economic conditions.<br />
Ancielyn Udarbe and Charima Noche, both of South Luzon 1, say they have been able to build their respective houses<br />
and buy motorized vehicles from their earnings. Others say that their earnings from selling MAGGI have enabled<br />
them to finance their daily family needs, education and some were able to venture out to other business projects<br />
such as sari-sari stores or buco juice stalls.
Sharing the MAGIC<br />
Providing Basic Culinary-<br />
Entrepreneurship Education<br />
as Means to Better Livelihood<br />
Vilma Villareal is a simple housewife who runs<br />
a small sari-sari store at their house in Quezon<br />
City. As a cook, she says that between her<br />
husband and her, she is the less experienced<br />
one — a fact that her kids would attest to. So<br />
how come she also runs a small carinderia<br />
beside her sari-sari store?<br />
What she lacked in experience, Vilma filled<br />
with practical and cutting-edge know-how that<br />
she gained quickly and easily from culinaryentrepreneurship<br />
program organized jointly by<br />
the Food BU of <strong>Nestlé</strong> <strong>Philippines</strong> and the<br />
BAYAN Academy of ABS-CBN Foundation. She<br />
applied for this program last August 2010,<br />
underwent the screening process, and got<br />
accepted as part of Batch 5 of the MAGGI<br />
Culinary-Entrepreneurship program.<br />
On September 12, 2010, she opened a carinderia as an extension of her sari-sari store and started serving breakfast<br />
dishes. She soon saw that this was an opportunity to generate additional income and now plans to expand her carinderia<br />
to a bigger space and start serving lunch, merienda, and dinner. She is optimistic that with her little investment, backed<br />
with passion and formal training, she can make life better for her family.<br />
44
45<br />
This training that Vilma attended is one of the<br />
customized programs developed by MAGGI to<br />
address specific needs of the target participants.<br />
Many of the total 209 food enthusiasts who went<br />
through the same program have reported similar<br />
gains from the training. Housewives like Vilma,<br />
who were aspiring to get into the food business,<br />
have actually been encouraged to put up their<br />
own. Those who have existing businesses<br />
expanded their menu offerings and have<br />
observed an increase in their daily income.<br />
Meanwhile, other graduates have used the<br />
training to beef up their qualifications for employment<br />
in the food service industry.<br />
The five-day customized culinaryentrepreneurship<br />
program was the second<br />
phase of <strong>Nestlé</strong>’s partnership with the BAYAN<br />
Academy, a step forward from what used to<br />
be a simple product sponsorship deal<br />
between the Company and the Academy.<br />
<strong>Nestlé</strong> has linked up with BAYAN, a social and<br />
enterprise development institutions that has<br />
helped more than 50,000 families establish<br />
entrepreneurial ventures nationwide, to<br />
advance its own agenda of providing basic<br />
culinary and entrepreneurial education to<br />
aspiring chefs, small business owners, and<br />
caterers in the BCDE income brackets to help<br />
them get started in the food business or<br />
improve their existing business.<br />
Through lectures, demonstrations, and hands-on exercises held in a kitchen-equipped classroom, the program teaches<br />
participants basics in good cooking such as kitchen safety and sanitation, ingredients and ingredient substitution, waste<br />
segregation, food plating and presentation, safe and balanced meal preparation, healthier eating habits that promote<br />
nutrition, health, and wellness and easy recipes using MAGGI products, among others. A similar program is designed for<br />
the entrepreneurs, which includes lessons in purchasing, inventory, culinary math, and sales and marketing. Their learning<br />
was put to a test via a simulation of an actual “carinderia” business, wherein the profits generated were donated to the<br />
foundation. Graduates of these courses are monitored for one year to track their progress.
In parallel, <strong>Nestlé</strong> also launched its train-the-trainer<br />
program to the members of the Food BU and BEST<br />
team. This was a 10-day basic culinary program<br />
that prepared them to be trainers and assistant<br />
chefs. Aside from equipping them with basic<br />
cooking know-how, it also enabled the team to<br />
have a joint learning experience and at the same<br />
time allowed them to get more actively involved in<br />
the BU’s CSV initiative. From June to December<br />
2010, the BU and BEST team members served as<br />
volunteer assistant chefs and touched the lives of<br />
BAYAN trainees. As they continuously develop<br />
more trainers within the team, they develop a<br />
more solid foundation for future runs that MAGGI<br />
intends to conduct.<br />
The culinary-entrepreneurship program is in line<br />
with MAGGI’s global brand vision, which highlights<br />
the role of cooking in influencing the family’s life<br />
for the better. This, in essence, is the spirit with<br />
which the Food BU creates shared value for its<br />
business and for the millions of households where<br />
its products serve to enhance cooking.<br />
By educating the many culinary talents among<br />
Filipinos who have had little formal training, the<br />
MAGGI brand takes an active role as an enabler for<br />
the participants to improve the quality of their<br />
lives, by uplifting the quality of the food that they<br />
prepare and serve not only to their families but to<br />
the community; and providing them with some<br />
solid means to improve their craft and their livelihood.<br />
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Ka Mila Lambio<br />
Cut & Sew: Empowering<br />
Women in the Barangays<br />
Mila Lambio had been unemployed for most of her adult life as she chose<br />
to attend fulltime to her daughter. When <strong>Nestlé</strong> put up a manufacturing<br />
plant in Barangay Bagong Barrio, Lipa City — right where she lived, in the<br />
early 1990s, Mila and other unemployed housewives in the neighborhood<br />
all thought it would be wonderful to be employed in the plant as it was so<br />
near their homes they wouldn’t have to part too far from their children.<br />
Much to their delight, Mila and other housewives like her who had basic<br />
sewing skills were tapped by <strong>Nestlé</strong> for a livelihood project in 1997. They<br />
were sent to TESDA for formal training on sewing, shouldered cost for<br />
training and sustaining capital, and awarded with a Purchase Order for<br />
sewing jobs that helped them obtain a start-up business loan from a local<br />
bank. Thus the Cut & Sew project was born, and the ladies soon started<br />
doing small sewing jobs for the factory. In just two years, Cut & Sew<br />
became an organized cottage-industry type of enterprise, with Mila acting<br />
as community leader who oversees the operations and represents the<br />
group to business transactions with <strong>Nestlé</strong>.
For several years now, Cut & Sew has been generating at<br />
least P1.5 million worth of business every year for the<br />
ladies, who now supply the factory’s demand for uniforms<br />
(pants and polo jackets) lab gowns, hairnets, shoe covers,<br />
and rags. On the average, the Cut & Sew ladies in Lipa<br />
earn around 2,500 to 4,000 pesos monthly, with the more<br />
productive ones such as Mila netting more.<br />
Mila herself has seen a dramatic<br />
economic improvement in her life.<br />
Through Cut & Sew and her involvement<br />
in other livelihood projects with Lipa<br />
Factory, Mila has earned enough to have<br />
three houses built for her family. She<br />
has also seen her child through college.<br />
What gives her the most satisfaction is<br />
the recognition she enjoys as a community<br />
leader, which inspires her to share<br />
as much as she knows with other<br />
women in the hope of encouraging<br />
them to become economically productive<br />
through livelihood projects such as<br />
Cut & Sew.<br />
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Most recently, Cut & Sew was adopted in Barangay Tibag where the Pulilan Factory was reopened to manufacture<br />
ice cream and chilled dairy products. This project was replicated in this factory in partnership with the New<br />
Zealand Embassy.<br />
About 25 formerly unemployed women from the barangay were recruited into the project forming the Samahan<br />
ng mga Mananahi. They underwent a briefing by Mila Lambio of Lipa on how Cut & Sew could provide them with<br />
a steady source of income and also attended TESDA trainings to improve their sewing skills. Today, the 25 ladies<br />
supply hairnets, face masks, filters, aprons and service uniform repairs for Pulilan Factory, earning an average of<br />
Php 3,700 per month.<br />
Women of Cut & Sew Pulilan
Another noteworthy livelihood activity for Ka Mila<br />
and other Bagong Barrio housewives is the Yard and<br />
Garden in Lipa Factory. Here the ladies engaged in<br />
cut-flower production and organic vegetable farming<br />
in a plot of land within the premises of Lipa Factory.<br />
The factory provided the start-up financial assistance,<br />
planting materials, and relevant training,<br />
enabling the Yard and Garden members to take full<br />
charge of the operation of the garden. They sell all<br />
their produce to the factory canteen and employees<br />
and rent out the ornamental plants to the factory.<br />
They use the earnings to pay for their operational<br />
expenses, including remuneration of those involved<br />
in the project.<br />
Gardening<br />
in the Factory<br />
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Uplifting the Lives of<br />
Coffee Farmers<br />
<strong>Nestlé</strong> <strong>Philippines</strong> is the country’s biggest buyer of green coffee beans, purchasing majority of the entire Philippine coffee<br />
produce. Relying heavily on local farmers for the supply of raw materials that go into manufacturing of NESCAFE, the Company<br />
explores every possible means to help farmers improve the quality and quantity of their yield. Through its long-running<br />
agronomy program, <strong>Nestlé</strong> has enabled thousands of farmers to make a profitable living out of coffee-farming and encouraged<br />
thousands more to venture into coffee farming.<br />
• Providing access to world-class coffee farming technologies.<br />
The <strong>Nestlé</strong> agronomy program started way back in the 1960s<br />
when the Company opened its first NESCAFE-manufacturing<br />
plant. Then as now, the foremost objective is to equip local<br />
coffee farmers with the best available technologies and<br />
techniques to enable them to increase their harvest per<br />
hectare and improve the quality of their coffee. At the core of<br />
the Company’s agronomy program is the <strong>Nestlé</strong> Experimental<br />
and Demonstration Farm (NEDF) in Tagum City, Davao Norte,<br />
which was built in 1994 to serve as the hub of the Company’s<br />
agricultural research and training activities. The agronomy<br />
program does this in several ways:<br />
<strong>Nestlé</strong> agronomists continually conduct trials and experiments at the NEDF and across the country to discover and<br />
develop better techniques of growing coffee. They also cascade research findings from the <strong>Nestlé</strong> R&D Center in Tours,<br />
France to the demo farm to test them for local application. Continuing research allows <strong>Nestlé</strong> to equip farmers with<br />
scientific tools for adapting to changing agricultural conditions or new methods that had been pre-tested and shown to<br />
generate positive gains.
• Training. For effective transfer of technical know-how,<br />
the Company offers three kinds of training to farmers;<br />
(1) three-day basic seminar, which is open to any one who<br />
wants to learn about coffee-growing; (2) three-week<br />
advanced course, for coffee specialists and technicians from<br />
government agencies, NGOs, and LGUs that provide assistance<br />
to farmers; and (3) on-site training for farmers whose<br />
coffee farms need to be improved. Training is provided<br />
free-of-charge.<br />
In the past three years, NEDF has trained 829 farmers within<br />
its facilities and conducted on-farm training to 1,509 farms<br />
nationwide.<br />
• Propagating coffee planting materials<br />
Integral to the NEDF is a nursery where <strong>Nestlé</strong> agronomists<br />
propagate high-yielding and high-quality rooted cuttings that<br />
become ready-to-plant seedlings. These are made available<br />
to farmers at minimal cost. It is estimated that <strong>Nestlé</strong><br />
provides 80% of all Robusta cuttings in the <strong>Philippines</strong>. In the<br />
last five years alone, the NEDF has distributed 1,215,612<br />
coffee seedlings.<br />
• Promoting sustainable practices<br />
<strong>Nestlé</strong> has developed a coffee-based sustainable<br />
farming system that allows farmers to plant other crops<br />
in between rows of coffee trees and enable them to<br />
earn additional income. This is in line with the<br />
Sustainable Agriculture Initiative of <strong>Nestlé</strong> (SAIN),<br />
a worldwide advocacy for making coffee farming<br />
feasible and sustainable.<br />
To cascade this system, <strong>Nestlé</strong> set up 13 demo farms in<br />
coffee-producing regions nationwide that now serve as<br />
working laboratory where farmers can observe firsthand<br />
how sustainable coffee is done and get first-hand<br />
information from farmer-cooperators on the benefits of<br />
the system. Two examples of these demo farms have<br />
shown to generate good income from crops planted<br />
between coffee trees— one in Toril, Davao City, which<br />
plants highland lacatan banana alternately with coffee;<br />
and another in Sultan Kudarat, which earns additional<br />
income from peanuts, upland rice, and white beans<br />
planted between coffee.<br />
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• Directly buying from farmers<br />
Under its direct procurement policy, the<br />
Company buys coffee beans directly from<br />
farmers instead of traders at prevailing market<br />
price, for as long as their beans meet the quality<br />
standards of the Company. <strong>Nestlé</strong> is the biggest<br />
buyer of green coffee in the country and its<br />
demand usually exceeds the supply. Farmers are<br />
invariably guaranteed of buyers, and are thus<br />
able to concentrate their time and attention to<br />
producing the coffee with little worry about the<br />
marketing side.
• Linking arms with government<br />
<strong>Nestlé</strong>’s ardent support of coffee farmers has not escaped the attention of the Philippine government. In<br />
2009, the Department of Agriculture entered into a Memorandum of Agreement with the Company after<br />
expressing desire to partner with <strong>Nestlé</strong> in further developing the coffee-growing industry. This has led to<br />
joint projects between <strong>Nestlé</strong> and the government involving training of government agronomists in coffee<br />
farming technology and increased propagation of coffee planting materials.<br />
Regional officials of the Department of Agriculture from Bicol, Iloilo, Bohol, Mindoro and Cavite have so far<br />
participated in a two-day seminar at the NEDF, and were set to cascade their newly acquired learnings to<br />
farmers in their localities. Among the early beneficiaries of this technology-transfer effort were coffee<br />
farming communities in Bohol and Surigao del Norte.<br />
For more information on <strong>Nestlé</strong>’s coffee program, contact: coffeegrower@ph.nestle.com<br />
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Claudio Arandia<br />
Octogenarian’s<br />
Long-Lasting<br />
Affair with<br />
Coffee<br />
Unlike most of his neighboring farmers in Silang, Cavite who sold their<br />
farm lots to real estate developers, octogenarian Claudio Arandia stuck<br />
to his farm and got rewarded for it.<br />
Like most farmers in Cavite, Claudio planted pineapples all his life until<br />
he decided to shift to coffee in 1975. He marketed his produce to<br />
retailers in the nearby palengke who sold the roasted and ground coffee<br />
beans in a can. It was in the 1990s when he decided to sell his green<br />
coffee beans to <strong>Nestlé</strong> that life tasted a little sweeter. His two-hectare<br />
farmland grew to nine hectares and the carabao and karitela were<br />
replaced by two jeepneys and a pickup. Averaging a harvest of 10,000<br />
kilos of green coffee beans yearly, Claudio hit the jackpot in 1997 when<br />
he harvested 12,000 kilos. Part of his earnings went to the purchase of a<br />
maroon Honda Civic.<br />
“<strong>Nestlé</strong> has been a part of my family’s success. I always cherish that<br />
every time I drink my coffee in the morning,” he mused.
Julio Budlayan<br />
Coffee Awakens<br />
Bayanihan Spirit<br />
Hope and change for the better came to<br />
Julio Budlayan and his fellow farmers in<br />
Kahayagan , Surigao del Sur in 2007 when<br />
they received free on-site training on<br />
modern coffee farming from <strong>Nestlé</strong><br />
agronomists Jose Reano and Proceso<br />
Cortejos. Although Julio and the farmers<br />
had been farming for decades, the lessons<br />
in coffee farm cultivation and maintenance<br />
that they gained from the training quickly<br />
made an impact on the volume and quality<br />
of their harvests.<br />
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The training also awakened the sense of community among<br />
the Kahayagan farmers. This has spurred them to form their<br />
own cooperative, the Kahayagan Coffee Growers’ Association,<br />
through which they can now share in the blessings of<br />
the land by working together as a community, in the true<br />
spirit of Filipino bayanihan. By pooling resources and sharing<br />
knowledge, the benefits they get are multiplied and<br />
received by all their families.<br />
For its first project, the coop bought a de-hulling<br />
machine after pooling contributions from<br />
members. Before that, the farmers had to rent<br />
vehicles to transport their dried coffee beans to<br />
the next barangay where there was a de-hulling<br />
machine they could use for a fee. Since buying<br />
their own de-hulling machine, the farmers have<br />
saved a lot in terms of time, energy and money.<br />
For its second project, the coop sent some<br />
members to the NEDF in Tagum for further<br />
training.<br />
“As late as it may seem, farmers in our barangay<br />
have realized we are much stronger when we are<br />
united. If ever there’s knowledge a farmer ought<br />
to know, we must learn it as a group. Walang<br />
iwanan sa kape,” said Julio, who became the<br />
cooperative’s founding president in 2007.
Building Homes, Rebuilding Lives<br />
A house to call their own. For years, it was a luxury for Rolando to allow himself to think of such<br />
a place. With his daily earnings as a laborer hardly enough to feed their seven children, a roof<br />
over their head at night was something they had to beg for, sometimes even fight for. Informal<br />
settlers, they were called, with very slim chances of ever hauling themselves out of the rut they<br />
were in.<br />
Until Gawad Kalinga, that is. Early last year, they were among the first batch of families who<br />
qualified for a house in the newly developed GK <strong>Nestlé</strong> Eco-village in Lipa, Batangas. They<br />
moved in July, and have since embraced a new life anchored on a place they can finally call their<br />
own in a community designed for ecologically sustainable living.<br />
“I cannot even begin to describe the feeling of knowing that my family is now assured of safe<br />
and permanent shelter,” said Rolando. “Life in this village is good—peaceful, quiet, and clean,<br />
the complete opposite of the place we used to live in.”<br />
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59<br />
Rolando’s high spirits and optimism are shared by the 19 other families who have so far settled in the 50-house<br />
village that <strong>Nestlé</strong> <strong>Philippines</strong> committed to develop in Lipa for Gawad Kalinga. Beyond merely providing housing<br />
structures to beneficiary families, the village is intended to bring about a community that lives in harmony with<br />
nature. It is equipped with a rainwater catchment system that allows recycling of rainwater and is designed to<br />
make use of reed bed technology that processes sewage by natural reed system without use of chemicals.<br />
<strong>Nestlé</strong>’s continuing commitment to build this eco-village for GK sprang from its initial involvement with Gawad<br />
Kalinga in 2004, when the Company heeded GK’s call to come to the rescue of families displaced by a huge fire in<br />
Baseco, Tondo. Mobilizing 150 volunteers to help reconstruct the houses in Baseco, the Company soon committed<br />
its full-blown support to the GK cause, building 50 houses in Baseco and adopting 4 more, for a total 54 houses and<br />
households that the Company continues to support to this day.<br />
Rainwater catchment
A Venue for Volunteerism<br />
The Company’s partnership with Gawad Kalinga has kindled<br />
the spirit of volunteerism among <strong>Nestlé</strong> employees. From<br />
time to time, groups of employees visit the <strong>Nestlé</strong> GK<br />
villages to render some form of assistance such as helping<br />
paint houses, conducting livelihood workshops, cascading<br />
wellness tips, teaching children, and other such activities.<br />
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Two business units have embraced the cause of GK in their<br />
respective social development platforms: the Dairy Health<br />
and Nutrition Solutions (DHNS) and the Liquid Beverages<br />
and Dairy Culinary (LBDC) units.<br />
Expanding the sphere of its BEAR BRAND<br />
Laki sa Gatas program, DHNS launched a<br />
four-point assistance program called Lakbay<br />
Tagumpay specially for the GK <strong>Nestlé</strong> village<br />
in Baseco early this year. The entire program<br />
consists of:<br />
• Palaruan-repair and sponsorship of a<br />
playground for the village’s children;<br />
• Nutri-Patrol - where nutritionists visit the<br />
village every 2nd Saturday of the month<br />
to monitor the children’s growth in<br />
relation to weight and height and advise<br />
parents on proper nutrition;<br />
• Lakbay Tagumpay - tutorial sessions for<br />
children and inspirational talks for<br />
parents held every 2nd and 4th Saturday<br />
of the month; and<br />
• Lakbay Kabuhayan - workshops that teach<br />
village residents practical livelihoods<br />
skills, conducted every month.
For its part, LBDC, through NESTLÉ CHUCKIE, as its<br />
initiative of providing primary education, turned<br />
an empty school building in the GK-<strong>Nestlé</strong> village<br />
into a bright and cheery classroom, furnishing it<br />
with books and toys and most importantly,<br />
sponsoring its school teachers. The <strong>Nestlé</strong> Sibol<br />
school caters to about 25 school-age children.<br />
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John M. Miller<br />
Heading Toward<br />
an Era of<br />
Collaboration<br />
<strong>Nestlé</strong> <strong>Philippines</strong>, <strong>Inc</strong>. has taken the lead in promoting the<br />
concept of <strong>Creating</strong> <strong>Shared</strong> <strong>Value</strong> in the local business<br />
community, seeking to encourage companies to achieve<br />
sustainable business growth while helping boost social<br />
progress in the country.<br />
The Company took its first significant step in this endeavor by<br />
gathering leaders from government agencies, NGOs, business<br />
organizations, and the media to a forum on CSV at the New<br />
World Hotel in Makati in April 2010. The Company organized<br />
the event in cooperation with the Philippine Business for Social<br />
Progress (PBSP), the Asian Institute of Management, RVR<br />
Center for Corporate Social Responsibility, and the Asian<br />
Development Bank (ADB).<br />
With the theme “<strong>Creating</strong> <strong>Shared</strong> <strong>Value</strong>: Beyond CSR”, the<br />
event saw some 260 representatives of different stakeholder<br />
groups engage in a public discussion of the evolving concept of<br />
CSV. In opening the forum, Chairman and CEO John Martin<br />
Miller called on the business community and other sectors of<br />
society to “form an era of collaboration” and to reinforce the<br />
increasing role of the private sector, particularly the<br />
multinational companies, in driving social development<br />
through CSV.<br />
No less than the world’s leading CSV proponent Mark Kramer<br />
led the cast of speakers at the forum, giving the audience a<br />
comprehensive view of CSV as a viable, effective, sustainable,<br />
and profitable business philosophy. Kramer is a Senior Fellow of<br />
Harvard University and Founder and Managing Director of FSB<br />
Social Impact Adviser. He co-wrote the landmark study Strategy<br />
and Society: The Link Between Competitive Advantage and<br />
Corporate Social Responsibility, which was published in the<br />
Harvard Business Review in 2006.
In his presentation, Kramer explained that CSV is more expansive,<br />
more precise, and more integrated than CSR in its approach toward<br />
achieving a mutually beneficial or “symbiotic” relationship between<br />
business and society. “You have got to find the points of convergence<br />
rather than the points of tension. It’s really providing competitive<br />
success and at the same time really making a material difference”, he<br />
said. He further illustrated how CSV allows a corporation to integrate<br />
social responsibility and social progress within the core of its values,<br />
business strategy, and business processes. He cited as an example<br />
how <strong>Nestlé</strong> partners with local farmers in its business operations,<br />
resulting in mutual benefits.<br />
Dr. Mario Capanzana<br />
Mark Kramer<br />
Tony Meloto<br />
Arjun Thapan<br />
The forum featured three other distinguished speakers who expounded on<br />
how the CSV philosophy can generate greater gains for both business and<br />
society in the areas of nutrition, water resources, and rural development. The<br />
speakers shared insights on how corporations can help ensure that a society’s<br />
citizens are adequately provided for in terms of their nutritional and water<br />
needs, and how rural areas can achieve development in partnership with big<br />
business.<br />
Dr. Mario Capanzana, Director of the Food and Nutrition Research Council,<br />
spoke on nutrition, emphasizing the need for making affordable but healthy<br />
food innovations accessible to the bottom of the pyramid. Arjun Thapan,<br />
Special Senior Adviser to the President on Infrastructure and Water of the<br />
Asian Development Bank, touched on the urgency of managing today’s water<br />
resources to ensure water availability in the future. Antonio Meloto, Chairman<br />
of Gawad Kalinga, talked about rural and community development.<br />
Through the forum, <strong>Nestlé</strong> <strong>Philippines</strong> hopes to have captured the interest of<br />
more business companies to consider adopting the strategy of CSV and thus<br />
think of ways they can create partnership with different sectors of society and<br />
effectively make a social difference in the years to come.<br />
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CSV Council:<br />
Championing CSV<br />
<strong>Nestlé</strong> <strong>Philippines</strong>, <strong>Inc</strong>. has stepped up its CSV campaign<br />
with the creation in January 2010 of the CSV Council. The<br />
creation of the Council manifests the Company’s intent to<br />
further embed and champion CSV in the organization,<br />
indicating the prime importance of CSV as a strategy for the<br />
Company.<br />
Composed of representatives from all Business Units and<br />
<strong>Shared</strong> Services, the CSV Council serves as the one body that<br />
consolidates, drives, and directs all CSV initiatives of the<br />
Company. With support from top management, the Council<br />
is tasked to align CSV activities, measure their success in<br />
definite terms, ensure a common understanding of the CSV<br />
concept within the Company, and communicate all these to<br />
employees, stakeholders, and the general public. The CSV<br />
Council meets regularly to share and exchange ideas on how<br />
to design and monitor local CSV programs, receive updates<br />
on the progress of ongoing programs, cascade learnings,<br />
know more about best CSV practices from other countries,<br />
and keep up-to-date on global CSV directions and initiatives.
To date, the Council has had many<br />
accomplishments. Council members have<br />
become more cognizant of the social needs<br />
of the country as the CSV team invites<br />
experts from time to time to speak about<br />
local issues in the fields of nutrition, water<br />
and rural development. The Council<br />
constantly seeks to meet with NGOs and<br />
bilateral aid agencies, and in so doing has<br />
formed partnerships with external groups<br />
that help maximize the impact, scale and<br />
sustainability of the Company’s CSV<br />
programs. Close communication between<br />
and among members has also paved the<br />
way for collaboration and joint programs<br />
between business units.<br />
Now on its second year, the CSV Council is shaping<br />
up to be a fine model for championing and<br />
driving <strong>Creating</strong> <strong>Shared</strong> <strong>Value</strong> in the <strong>Nestlé</strong><br />
milieu. Through the steering of the Council,<br />
<strong>Nestlé</strong> <strong>Philippines</strong> is confident it is on track to<br />
keep doing good for society while doing what’s<br />
good for business.<br />
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We would like to hear from you.<br />
For comments or inquiries on <strong>Creating</strong> <strong>Shared</strong> <strong>Value</strong><br />
Contact us:<br />
<strong>Creating</strong>sharedvalue@ph.nestle.com
<strong>Nestlé</strong> <strong>Philippines</strong>, <strong>Inc</strong>.<br />
©2011, Corporate Affairs<br />
<strong>Nestlé</strong> <strong>Philippines</strong>, <strong>Inc</strong>.<br />
<strong>Nestlé</strong> Center, 31 Plaza Drive, Rockwell Center<br />
Makati City, <strong>Philippines</strong><br />
www.nestle.com.ph