Nestl\u00e9 growth<\/p>\n
\u201cWe\u2019re focusing on growth,\u201d says Navratil, clarifying \u201cRIG-led growth\u201d. In other words, the food and beverage giant wants to drive volumes and product mix through stronger execution, innovation and brand investment, rather than relying on price increases. This he says will \u201csolve\u201d growth and performance issues the multinational is currently experiencing. <\/p>\n
He went on to say the company had been weighed down by \u201cdistractions\u201d at the beginning of his tenure, referring to brands the company has since moved to offload, including ice cream<\/a> and Waters<\/a>. <\/p>\n Interestingly, Navratil again referred to the company \u201cdisposing of Waters\u201d, rather than part of the Waters business, raising questions about whether Nestl\u00e9 could be preparing to exit the category completely. We\u2019ll have to wait and see, though the fact that the company keeps referencing sale indicates we won\u2019t need to wait long.<\/p>\n The stripping back of its portfolio reinforces Nestl\u00e9\u2019s recently announced Four Pillar strategy<\/a>, prioritising Food and Snacks, Coffee, Nutrition and Petcare. <\/p>\n But, even within those four categories, two continue to stand out \u2013 Confectionery and Coffee.<\/p>\n Confectionery and coffee are emerging as the clear standouts within Nestl\u00e9\u2019s streamlined portfolio.<\/p>\n Both categories are delivering stronger volume momentum<\/a> than the group average, helped by high brand recognition, frequent consumption occasions and continued headroom for premiumisation. Confectionery, in particular, is benefiting from resilient demand for global power brands like KitKat<\/a>, with product updates and new formats aimed at staying affordable while nudging shoppers towards higher\u2011value options.<\/p>\n Coffee, meanwhile, remains Nestl\u00e9\u2019s single biggest growth engine. From mass market to premium, the category is performing strongly, with Nescaf\u00e9 driving scale and accessibility, and Nespresso encouraging consumers to trade up.<\/p>\n \u201cCoffee has become a real playground to expand,\u201d says Navratil. What\u2019s more, he describes it as a place he sees \u201clong-term structural growth\u201d.<\/p>\n Emerging markets<\/p>\n Growth for Nestl\u00e9, like many other CPGs, is coming primarily from emerging markets, where rising incomes, population growth and expanding middle classes continue to support demand. These regions are delivering stronger volume growth, helping to offset slower momentum in developed markets, where consumers remain cautious and spending is under pressure.<\/p>\n As a result, Nestl\u00e9\u2019s growth story is becoming more emerging\u2011market\u2011led, with developed markets needing better\u2011priced offerings, fresher innovation and marketing that delivers clearer returns.<\/p>\n This shift mirrors a broader industry trend, as majors move away from price-led growth and back towards volumes.<\/p>\n Marketing investment and brand rebuilding<\/p>\n Marketing also featured prominently in Navratil\u2019s remarks, with the CEO stressing that stronger brand building is central to unlocking RIG\u2011led growth. Nestl\u00e9 is stepping up investment behind its biggest brands while also sharpening how and where that money is spent.<\/p>\n \u201cWe\u2019re upgrading our marketing muscle and our machinery around marketing. We want to be a company that drives consumers and drives trends,\u201d says Navratil.<\/p>\n Rather than simply increasing budgets, the focus is on improving effectiveness \u2013 making marketing work harder through better execution, clearer messaging and more disciplined measurement of returns. This includes a heavier emphasis on digital channels and data\u2011driven campaigns, as well as refreshing brands to keep them relevant for younger consumers.<\/p>\n \u201cWe\u2019re not known as the best brand builders in the industry,\u201d says Navratil. \u201cWe need to become the best brand builders in the industry.\u201d<\/p>\n Navratil underlined the need for a simpler, more focused Nestl\u00e9. Having already exited or begun exiting a number of non\u2011core businesses, the company\u2019s keen to reduce complexity and concentrate resources on areas with the strongest growth and margin potential.<\/p>\n By sharpening its portfolio and organisational focus, Nestl\u00e9 believes it can move faster, allocate capital more effectively and prioritise its biggest brands and categories.<\/p>\n What\u2019s next for Nestl\u00e9?<\/p>\n While some aspects of Nestl\u00e9\u2019s future remain unclear \u2013 notably its Waters business \u2013 its primary focus is unmistakable. <\/p>\n After several years of price hikes, portfolio changes and external disruption, attention is turning back to the basics \u2013 growing volumes, strengthening brands and improving execution. That means a simpler business built around fewer, bigger categories, with more investment behind the brands that matter most and a heavier reliance on emerging markets to drive momentum. <\/p>\n![\"Espresso](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/06\/5LYTTVG3DJFANLM5A2CFK3SYDI.jpg\")
Coffee remains Nestl\u00e9\u2019s single biggest growth engine, with Nescaf\u00e9 driving scale and accessibility, and Nespresso encouraging consumers to trade up. (Image: Getty\/lenta)Confectionery and Coffee<\/p>\n![\"KitKat](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/06\/VN3XGIJLXNG23IEIBMTHEMI4DU.jpg\")
KitKat is Nestl\u00e9\u2019s most famous confectionery brand. (Image: KitKat)Streamlining<\/p>\n