Session Title:
Understanding BOP Markets
Understanding BOP Markets
Date of talk or publication:
2005
2005
Speaker Name / Title:
Ray Goldberg & Kerry Herman
Ray Goldberg & Kerry Herman
Organization:
Harvard Business School
Harvard Business School
Description:
In January 2005, leading food authorities from around the world met to discuss ways to address poverty and nutrition. Convened by the World Bank, the group included institutions from various sectors that, separately, had been asked to address these issues over time. Each had developed local and global supply chains that could effectively address nutrition and poverty issues while remaining commercially consistent with their respective institutional priorities. To augment public sector aid, the group proposed that private sector initiatives might also provide new and effective models to address poverty and nutrition.
Nestlé had perhaps the most extensive global experience in addressing these issues. It held a leadership role in the global dairy system and had a long history of building supply chains by working with producers directly or through farmer cooperatives and governmental institutions. Nestlé, the world’s largest milk company, and the world’s largest provider of vitamin-and mineral-fortified foods in the world, especially milk, cereals, bullion and culinary products had over the years, consistently built food systems that contributed positively to the financial well-being of producers, the nutritional needs of consumers, and the economic development of many countries. These food systems were developed in keeping with Nestlé’s long-term commercial strategy of being a wellness company – an important element of the success of the model; each initiative was a win-win for the partners involved, as well as for the local constituents.
Nestlé CEO Peter Brabeck-Letmathe agreed to the development of a case study of the company’s dairy system. He designated vice president, public affairs Niels Christiansen, along with Hans Jöhr, Nestlé’s corporate head of Agriculture, Martial Genthon, technical director of global dairy operations, to develop the case. As a former Harvard School of Public Health Nutrition department faculty member, Christiansen had a long-time interest in the questions at hand; he knew Brabeck-Letmathe wanted the case to be useful for the World Bank. The case needed to provide leadership to all segments of the global dairy system while acknowledging the significant achievements of others. Developing the case also offered Christiansen’s and Jöhr’s team the opportunity to assess Nestlé’s milk district model and future plans.
The group faced the questions of how the success of a commodity-specific model like Nestlé’s might be multiplied across broader constituents, and perhaps adapted to other food systems. Further, could the model have an even greater multiplier effect if undertaken in partnership with others in the food system? Some argued Nestlé and other food companies could make progress in the fight to reduce malnutrition and poverty if they worked in partnership with each other, or in collaboration with the World Bank. These questions remained unanswered.
In January 2005, leading food authorities from around the world met to discuss ways to address poverty and nutrition. Convened by the World Bank, the group included institutions from various sectors that, separately, had been asked to address these issues over time. Each had developed local and global supply chains that could effectively address nutrition and poverty issues while remaining commercially consistent with their respective institutional priorities. To augment public sector aid, the group proposed that private sector initiatives might also provide new and effective models to address poverty and nutrition.
Nestlé had perhaps the most extensive global experience in addressing these issues. It held a leadership role in the global dairy system and had a long history of building supply chains by working with producers directly or through farmer cooperatives and governmental institutions. Nestlé, the world’s largest milk company, and the world’s largest provider of vitamin-and mineral-fortified foods in the world, especially milk, cereals, bullion and culinary products had over the years, consistently built food systems that contributed positively to the financial well-being of producers, the nutritional needs of consumers, and the economic development of many countries. These food systems were developed in keeping with Nestlé’s long-term commercial strategy of being a wellness company – an important element of the success of the model; each initiative was a win-win for the partners involved, as well as for the local constituents.
Nestlé CEO Peter Brabeck-Letmathe agreed to the development of a case study of the company’s dairy system. He designated vice president, public affairs Niels Christiansen, along with Hans Jöhr, Nestlé’s corporate head of Agriculture, Martial Genthon, technical director of global dairy operations, to develop the case. As a former Harvard School of Public Health Nutrition department faculty member, Christiansen had a long-time interest in the questions at hand; he knew Brabeck-Letmathe wanted the case to be useful for the World Bank. The case needed to provide leadership to all segments of the global dairy system while acknowledging the significant achievements of others. Developing the case also offered Christiansen’s and Jöhr’s team the opportunity to assess Nestlé’s milk district model and future plans.
The group faced the questions of how the success of a commodity-specific model like Nestlé’s might be multiplied across broader constituents, and perhaps adapted to other food systems. Further, could the model have an even greater multiplier effect if undertaken in partnership with others in the food system? Some argued Nestlé and other food companies could make progress in the fight to reduce malnutrition and poverty if they worked in partnership with each other, or in collaboration with the World Bank. These questions remained unanswered.