ABSTRACT
Nestle is a consumer-oriented food and nutrition company with headquarters in Vevey, Switzerland. The company grew significantly during the first half of the last century, eventually expanding its offerings beyond its early condensed milk and infant formula products to include coffee, tea, bottled water, breakfast cereals, confectionery, dairy products, ice cream, pet foods and snacks. The company mainly uses local materials to produce foods of the same quality as imported products, eliminating foreign exchange tariffs. Coffee was introduced to Yunnan Province in south-west China in 1902 by a French missionary. Nestle has established a 68% share of the instant coffee market in China. An understanding of coffee production process is key to appreciating the issues involved in sourcing and supply. Nestle's business strategy includes the creation of shared value for all its stakeholders: suppliers, government, community, consumers and itself. Global food producer Nestlé is just one of several food companies competing for the supply of coffee beans in Yunnan province.
