Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) Up 5.3% In Spite Of Headwinds


Dallas, Texas 10/29/2013 (Financialstrend) – Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) is a $234.82 billion market capitalized global conglomerate  which offers products meeting the needs of customers ranging from health, nutrition and lifestyle management products. Its subsidiaries also offer pet food products in wider range of markets across the globe. Some of the well known brands produced by the company over the years include “Baby food Cerelac, mineral water Nestle Pure Life, oats and cereals Chocapic, and the world renowned  Nescafé.”  The Switzerland registered Nestlé S.A. was founded in 1866 and is a true blue multinational company with its production and sales operations spread across the globe.

The month of October has been a relatively mixed period for this FMCG giant which employees more than 0.3 million across the globe. It has had to face head winds related to regulatory changes which impact its business negatively and has had to address operational inefficiencies in few of its divisions while its stock value appreciated by 5.3% in the same period.

On October 25, it was Food and Drug Administration announced that it will be formulating new rules to monitor the safety aspect of pet foods sold in U.S. The proposed changes in the rules are geared towards ensuring manufacturers of pet food conform to and maintain standards which will be announced soon. Industry watchers have voiced concern that some of the pet food vendors including Nestle might see their profit margins impacted due to these new rules.

On October 24, the company announced that it had decided to close down its food manufacturing plant in Paris. The plant in question had brought bad name and regulatory enquires to the door step of Nestle in its second largest market,  when safety concerns were raised about the horsemeat being processed at this plant in question. The company shares also took a beating when it announced its 3Q results on October 17.