Friday, March 4, 2011

Nestle: clean up your mess!

"Nestle Philippines' Centennial: Clean Up Your Mess!"

By EQ PostSentinel, originally published on 03 March 2011 here.



In 2011, NestlĂ© will celebrate 100 years in the Philippines. One hundred years of service to the Filipino consumer is a great source of pride within our company and it is fitting that most of the Tanauan factory’s construction will take place during NestlĂ© Philippines’ centennial, signifying our continuing commitment to the country.” JohnMiller, Nestle Philippines CEO

John Miller:Current President and CEO of Nestle Philippines Inc.
Problems did not occur under him but being unfamiliar with the situation or perhaps covering his own ass, he does not want to “take the bull by the horns”. He allegedly lets his committee decide what should be done, whether right or wrong, especially with how they are trying to weasel their way out of problems. Could be guilty of sin of omission. Must step up and be morally upright to salvage reputation.From Consolidated Amalgamated

Why does NESTLE have such a bad corporate reputation in spite of its excellent products?

1) They try to muzzle the press.

With the aid of their large advertising budgets,Nestle Philippines media team work on mainstream media to recycle press releases and to suppress news that might adversely affect Nestle.

EXAMPLE:The news blackout on Milo Marathon tragedy.
Is it true that a man collapsed and died of heat stroke two days after in the recent 34th Milo Marathon eliminations last July 4 and Nestle is suppressing the news in mainstream media??? EQualizer Post :July 16

There has been no report on this tragedy in mainstream media!

2) They bully their trade customers.

In business and economics, predatory pricing is the practice of selling a product or service at a very low price, intending to drive competitors out of the market, or create barriers for entry by potential new competitors. In the Philippines, or in the crap that Nestle Philippines pulls, it's the distributors who are the victims of this nefarious practice.

Distributors cannot sustain equal or lower prices without losing money, they go out of business or choose not to enter the business. Nestle is able to meet its quota while leaving its distributors losing money or worse borrowing money just to keep its business afloat. It's a vicious cycle and they can hardly raise prices above what the market would otherwise bear.

In many countries predatory pricing is considered anti-competitive and is illegal under anti-trust laws. It is usually difficult to prove that prices dropped because of deliberate predatory pricing rather than legitimate price competition. In any case, competitors may be driven out of the market before the case is ever heard.

In the short term predatory pricing through sharp discounting reduces profit margins, as would a price war and will cause profits to fall.

The only winner is that bird on the damned nest.

That is why the Department of Trade and Industry should step in. Down with these multinational buggers!
From Consolidated Amalgamated "

*Read full article in the Equalizer here.

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